Contract Lifecycle Management Market
Contract Lifecycle Management Market Analysis by Solution (CLM Software, Services, Management, Support & Maintenance), by Business Function (Legal Functions, Finance, Procurement, Sales, Operations), by Industry & Regional Forecast 2022-2032
Analysis of Contract Lifecycle Management market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Contract Lifecycle Management Industry Outlook (2022-2032)
The worldwide contract lifecycle management market size is estimated to be valued at US$ 845 Mn in 2022 and forecasted to reach nearly US$ 3 Bn by 2032, recording a CAGR of 13.5% during the projected period.
Expected Market Size (2022)
US$ 845 Mn
Value CAGR (2022-2032)
Projected Market Size (2032)
US$ 3 Bn
Key Providers of Contract Lifecycle Management
Increased investment in the field of contract lifecycle management is considerably boosting the global market for contract lifecycle management. Another crucial element that has significantly boosted the growth of this market is the introduction of cloud technology. In the near future, the use of analytics in contract life cycle management will boost the growth of the global contracts management industry.
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2017-2021 Contract Lifecycle Management Market Analysis vs. 2022-2032 Forecast
As per Fact.MR, sales of contract lifecycle management software surged at around 10% CAGR from 2017 to 2021. Adoption of cloud-based solutions is expanding throughout the world, particularly in small and medium-sized businesses, have enabled worldwide sales of contract-level management software. Economic expansion in emerging nations such as China and India is being aided by lower pricing for corporate apps and contract lifecycle management systems.
The CLM market offers several potential prospects as digitization and advancement in telecommunications continue to increase. As a result, the market is expected to increase at a rate of more than 13% over the projected period. Integration of technologies such as IoT, machine learning, artificial intelligence, and others is likely to drive the growth of the contract lifecycle management software market with increased capabilities and performance.
Customers are happier, according to market firms who provide software integration with these technologies. As a result, throughout the projection period, it is predicted that the incorporation of modern technologies would open up new prospects for regional suppliers.
Prominent Drivers of Contract Lifecycle Management Market
Need to Streamline Workflows Encouraging CLM Software Uptake
CLM software assists attorneys in accessing comparable contracts from the library for future reference, which may be read digitally in forms such as Microsoft Word, PowerPoint, and Excel. This shortens the review process and allows organizations to detect system flaws. This software also improves the efficiency and openness of reporting processes and management controls, allowing enterprises to assure compliance with regulating bodies' actions.
Furthermore, the rise of cloud-based CLM software is boosting demand for this solution across all sectors since it provides an easy-to-use interface, seamless interaction with popular CLM systems, dynamic process approvals, and greatly lowers total costs. Furthermore, it assists businesses in minimizing infrastructure investments linked to contract administration.
Because of increased globalization, the need for a collaborative approach in project management and joint ventures has grown in importance, as it leads to improved contract visibility for the parties involved. As a result, firms are forming large-scale partnerships to deal with rapid changes in their industries, which are projected to boost the CLM market.
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What are the Key Opportunities in the Contract Lifecycle Management Market?
Contract lifecycle management is becoming widely used by large firms because it enables them to automate organized and predetermined procedures. Furthermore, the number of partnerships and other transactions every year appears to be higher in major corporations than in small and medium-sized businesses.
According to the deployment model, the on-premise contract lifecycle management market would experience massive growth through 2032, owing to the model's inherent benefits such as the ability to manage everything in-house, control over security and backups, ensure organizational compliance, and avoid annual hosting charges.
Which Trends Will Influence the Growth of Contract Lifecycle Management Market?
When it comes to contract management software, there are a plethora of solutions accessible these days. There is, of course, no "one-size-fits-all" CLM solution for each agency or business. Customers, business partners, and legal authorities all want firms to be careful and accountable in contract management.
When it comes to contracts, institutions such as government agencies are held to a higher level than ever before. Even little errors in CLM can lead to a tarnished reputation for any company or organization.
Contracts can underperform or become outdated, which is why it's critical to track contract performance over time. Customized contract reports based on specified criteria are an important aspect of any CLM process. Being able to produce contract reports based on commission rates, business region, or even renewal term lengths, for example, may provide you and your company with useful information into how your contracts are working.
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Country Wise Analysis
What are the Growth Prospects for CLM Market in North America?
Rising Deployment of NGNs to Facilitate CLM Adoption
In terms of sales revenue, North America is the dominating market in the contract lifecycle management market, backed by a rising number of IT and telecom industry to promote next generation network (NGN) development.
United States is likely to be a major market for long-term revenue growth from the Contract Lifecycle Management industry in the next years. Fact.MR forecasts the North American market to surge at an impressive 10% CAGR through 2032.
What makes China a Profitable Market for CLM Market Players?
Because of the rapid adoption of new technologies by important industries, the East Asia region is likely to be a prominent market in the global Contract Lifecycle Management market.
China is most likely to dominate the region during the forecast period. According to Fact.MR, it is expected to register a CAGR worth 9% from 2022 to 2032.
Category Wise Analysis
Which Industry is the Most Preferred?
Govt. & Public Sector to be an Important Beneficiary of CLM Solutions
Because of the rising need for contract management solutions, government and public sector organizations are expected to account for the majority of market share, accumulating 33%. Furthermore, the trend toward digitization is expected to drive increased demand for contract management systems throughout the projected period.
A quarter of the market was accounted for by the healthcare and pharmaceutical industries, as well as the information technology and telecommunications industries. This is due to rising demand for cloud computing services, which is fueled by widespread worries about data security. However, the BFSI industry is predicted to increase at a rapid Y-o-Y rate during the projection period.
The international contract lifecycle management market is fragmented, owing to the existence of a significant pool of well-established regional and international producers of contract lifecycle management systems. The industry is also highly competitive, with the market's major companies increasingly engaging in mergers, acquisitions, and alliances to improve their positions in the worldwide market. The continuous addition to these players' current product portfolios is also predicted to aid them greatly in the near future.
- Coupa Software, a supplier of business spending management (BSM), purchased Exari, a prominent provider of contract lifecycle management, in May 2019.
- The acquisition has opened up new paths for sophisticated CLM capabilities, such as features for contract development, collaboration, and discovery, allowing businesses to manage the whole contract lifecycle and operationalize their contracts against expenditure transactions.
Key Segments Covered in Contract Lifecycle Management Industry Report
- CLM Software
- Contract Lifecycle Management Services
- Professional Contract Lifecycle Management
- Contract Lifecycle Risk & Compliance Assessment
- Contract Lifecycle Implementation & Integration
- Contract Lifecycle Support & Maintenance
- Managed Contract Lifecycle Management
By Business Function
- CLM for Legal Functions
- CLM for Finance
- CLM for Procurement
- CLM for Sales
- CLM for Operations
- CLM for Human Resource
- CLM for Information Technology
- CLM for BFSI
- CLM for IT & Telecom
- CLM for Govt. & Public Sector
- CLM for Energy & Utilities
- CLM for Manufacturing
- CLM for Healthcare & Pharmaceutical
- CLM for Life Sciences
- CLM for Retail Industry
- CLM for Real Estate
- CLM for Other Industries
- FAQs -
The contract lifecycle management market worth is anticipated to reach US$ 845 Mn by 2022
The global contract lifecycle management market is expected to surge at a CAGR of 13.5% by the end of forecast period
According to Fact.MR, the contract lifecycle management industry is expected to reach US$ 3 Bn by 2032
The last 5 year market CAGR was around 10% for the CLM market
Increased investment in the field of contract lifecycle management is considerably boosting the global market for contract lifecycle management.
North America is expected to grow at a CAGR of 10% over the assessment period.
China is anticipated to experience a CAGR of around 9% from 2022 to 2032