Configure Price and Quote (CPQ) Software Market Size [2031]

Report Description

Configure Price and Quote (CPQ) Software Market Outlook 2031

The global configure price and quote (CPQ) software market size was USD 2.21 Billion in 2022 and is likely to reach USD 7.96 Billion by 2031, expanding at a CAGR of 16.5% during 2023–2031. The market is driven by the increasing use of CPQ software in the banking, retail, and automobile industries, among others.

Growing demand for high productivity and efficient management is anticipated to boost the market during the assessment period. CPQ software aids in streamlining the configuration, pricing, and quoting processes. As a result, businesses save time and resources, allowing them to focus on other important aspects of their operations. Expansion of businesses and industries in developed and developing economies is expected to boost the market in the coming years.

• According to a survey published in November 2023, excluding the US, global industrial production surged by 0.35% in May 2023 as compared to the same time last year. This is based on the moving average of three months.

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The COVID-19 pandemic boosted the market, owing to the rise in online shopping and the adoption of WFH by organizations such as Ford, PwC, Google, and Twitter. Growing inclination among consumers towards E-commerce and the presence of numerous E-commerce vendors significantly fueled the market. Additionally, the resumption of operations in various industries post-vaccination is expected to boost the market further.

Impact of Artificial Intelligence (AI) in Configure Price and Quote (CPQ) Software Market

The use of artificial intelligence is likely to provide substantial propulsion to the configured price and quote software market. Artificial Intelligence (AI) acts as a complementary technology, catapulting the proficiency of CPQ software. One of the primary benefits of AI is the ability to evaluate large amounts of data accurately and quickly, which further helps businesses generate relevant and precise quotes for the products.

Configure Price and Quote (CPQ) Software Market Dynamics

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Major Drivers

Growing requirement for high productivity is expected to drive the market during the projection period. Sales management personnel who rely on traditional methods are often bogged down by paperwork and documentation. Adopting CPQ software significantly enhances productivity and efficiency by reducing the time spent on pricing and configuration processes.

Cloud-based CPQ solutions, such as Salesforce, enable companies to scale up their pricing and selling strategies rapidly and eliminate pricing inconsistencies, ultimately contributing to the market growth.

• In September 2023, Salesforce launched the latest version of Einstein Copilot, the AI-based conversational assistant. This is intended to enhance the customer experience.

Existing Restraints

Unregulated coordination among various units within the business is likely to hamper the market during the forecast period. Implementing CPQ software requires coordination and participation from multiple business units within an enterprise. For instance, sales teams are required to collaborate with IT, product management, and finance departments to ensure efficient implementation. Lack of coordination often leads to reduced adoption of CPQ software, which is hindering the market growth.

Emerging Opportunities

Rise in mobility solutions is anticipated to provide substantial expansion opportunities in the market. Increasing smartphone usage and the popularity of mobile apps have boosted sales in the configure price and quote software market. Accessing CPQ software features through smart devices and cloud-based platforms enables organizations to easily exchange data with remote employees and generate quotes. The existence of multiple mobile CPQ applications, such as PandaDoc and Infusionsoft, is projected to further expand the market.

Scope of The Configure Price and Quote (CPQ) Software Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Configure Price and Quote (CPQ) Software Market Segment Insights

Deployment Segment Analysis

Based on deployment, the configure price and quote software market is divided into on-premise and cloud-based. The cloud-based segment is projected to hold a major share of the market during the projection period. CPQ software is ideal for organizations that share the latest information, such as the classification of products in real-time to all authorized parties.

Cloud-based solutions are deployed over hybrid, public, and private cloud computing models, which are boosting the CPQ software market. Numerous cloud-based CPQ vendors, such as SAP, Salesforce, Oracle, and Cincom, help reduce IT infrastructure costs significantly while maintaining the efficiency, agility, and flexibility of marketing operations. These factors are projected to impel the segment in the coming years.

End-User Segment Analysis

On the basis of end-user, the global market is segregated into IT & telecom, automobile, banking & finance, retail, and others. The IT & telecom segment is projected to expand at a high CAGR during the forecast period, as IT companies are increasingly incorporating the usage of CPQ technology for capital management. CPQ software is used in this industry for various purposes, such as pricing plan structures, quoting subscription mechanisms, revenue recognition, and complex billing.

The software helps in automating administrative work and financial transactions, such as paperwork and proposals during the sales process. As a result, this segment is likely to register major propulsion, due to the expansion of the IT industry in the coming years.

• As per a survey published in August 2023, the global revenue generated by the IT industry in 2022 amounted to approximately USD 1,123 billion. This value is estimated to reach around USD 1,771 billion by 2028.

The automobile segment is projected to expand at a considerable CAGR during the forecast period, owing to the extensive use of CPQ software in the automotive industry for creating highly accurate quotes. This ensures that all the vital components and selections are considered while quoting the price and configuring the products. Use of this software is helping heavy vehicle manufacturers streamline the order and sales process, which is likely to propel the market in the coming years.

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Regional Outlook

In terms of region, the global configure price and quote software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to its excellent industrial infrastructure and manufacturing capacity.

The highly developed supply chain management in this region ensures a significant rise in business activities, leading to the need for creating a large number of sales orders and quotations. Growth of industries and import-export activities in the coming years is anticipated to propel the market in the projection period.

The market in Asia Pacific is projected to expand at a high rate in the forecast period, owing to rapid industrial expansion and corporatization. Developing economies such as India and China are registering a high trajectory of growth in terms of business activities. Business organizations are implementing CPQ software to ensure efficient functioning. This is expected to boost the market in the coming years.

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