Contract Lifecycle Management (CLM) Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4182
Contract Lifecycle Management (CLM) Market size is expected to grow at a significant CAGR to 2025 due to growing trend of strategic alliances, such as mergers, acquisitions, and collaborations, among enterprises across various sectors to innovate new products in a specific industry. Additionally, organizations are focusing on strategic alliances with other players to increase their customer base, improve their product portfolio, and expand their geographical presence. The CLM supports the strategic alliance process by maximizing the profit margins for both the firms.
The rising need to reduce, eliminate, or mitigate risks related to legality, financing, and procurement is driving the contract lifecycle management market growth. Additionally, CLM software allows users to maintain documentation related to pricing, dates, and information regarding internal & external entities involved and signatories. The growing demand for a central repository for efficient contract lifecycle management software among enterprises across various sectors is proliferating the CLM market growth.
The growing need to increase transparency and improve efficiency in management controls and reporting mechanisms that help enterprises to ensure compliance with acts implemented by governing authorities will propel the adoption of CLM software among enterprises. Additionally, it helps organizations minimize their infrastructural investments related to contract management. The solution helps the enterprise to review and monitor several contracts with ease, enhancing operational efficiency of the enterprise.
The enterprises deploying robust, extensive, or basic CLM to enhance the benefits, savings, and the resulting good governance are anticipated to be sustainable due to the discipline offered by contract lifecycle management applications Long-term implementation of contract lifecycle management software in enterprises across various sectors will result in incremental savings for the enterprise.
The large enterprises are anticipated to hold a significant market share in the contract lifecycle management market over the forecast timeline due to the growing demand for compliance monitoring and end-to-end visibility among large enterprises. Large enterprises are integrating contract data into order management, purchasing, and invoicing systems to enhance automated contract compliance.
The cloud-based deployment of CLM software is estimated to grow at a significant CAGR over the forecast timeline. The market growth is attributed to the growing demand for CLM solutions among enterprises across various sectors to enable dynamic workflow approvals, reduce the time to review task activity, and reduce overall costs for enterprises. Additionally, it offers seamless integration with contract lifecycle management systems and easy-to-use interface, enabling enterprises to identify loopholes in the system.
North America held a major share in 2018 and is expected to hold a dominant market share in the CLM market. The market growth is attributed to the presence of prominent market players in the region. Additionally, major players of various sectors are present in the region and are rapidly deploying contract lifecycle management, maximizing their profit margins during strategic alliances.
The Asia Pacific contract lifecycle management market is expected to grow significantly due to the evolving business operation methods and increasing software spending among enterprises present in the region. The prominent enterprises and new entrants in various sectors are rapidly adopting contract lifecycle management, reducing manual methods, and improving operational efficiency of businesses.
The CLM market players are deploying advanced technologies, such as AI and advanced analytics, on digitized data to transform contracts from static documents into live contracts that are anticipated to interact with surrounding systems, humans, and other contracts. The market players are investing heavily in research & development to enhance the capabilities of contract lifecycle management software to cater to several business needs and decision making.
The contract lifecycle management market players are focusing on strategic acquisitions, mergers, and collaborations to further enhance the capabilities of their software and expand the customer base. For instance, in May 2019, Coupa Software acquired Exari that provides contract lifecycle management (CLM). This acquisition extends the Coupa Contract Management solution with advanced CLM capabilities, including the functionality for collaboration, contract creation, and discovery, enabling the companies to comprehensively manage the entire contract lifecycle and optimize client transactions.
The prominent contract lifecycle management market players are CLM Matrix, Contract Logix, LLC, Coupa Software Inc., Determine (Corcentric, LLC), IBM Corporation, Icertis, Infor, Ivalua Inc., Jaggaer, Newgen Software Technologies Limited, Optimus BT, Inc., Oracle Corporation, SAP SE, SpringCM, Symfact, and Zycus Inc.
Contract Lifecycle Management Market, By CLM Offerings, 2014-2025 (USD Million)
- Licensing and Subscription
Contract Lifecycle Management (CLM) Market, By Enterprise Size, 2014-2025 (USD Million)
- Large Enterprises
- Small and Medium Enterprises (SMEs)
CLM Market, By Deployment Model, 2014-2025 (USD Million)
By End-Use, 2014-2025 (USD Million)
- Electrical and Electronics
- Retail & Ecommerce
The above information has been provided for the following regions and countries:
- North America
- Australia & New Zealand (ANZ)
- South Korea
- Latin America
- South Africa
- CLM Matrix
- Contract Logix, LLC
- Coupa Software Inc.
- Determine (Corcentric, LLC)
- IBM Corporation
- Ivalua Inc.
- Newgen Software Technologies Limited
- Optimus BT, Inc.
- Oracle Corporation
- SAP SE
- Zycus Inc.
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