The global contract lifecycle management software market size was USD 2.1 Billion in 2022 and is likely to reach USD 6.5 Billion by 2031, with a CAGR of 13.1% during 2023–2031. The market is propelled by the rising demand for efficiency and automation in contract lifecycle management across the various end-user industries.
Contract lifecycle management (CLM) software streamlines and automates the creation, execution, management, and other stages of contract processing, from various business verticals. The key stages involved in contract management are contract initiation, authoring, process & workflow, negotiation, contract approval process, execution, and ongoing compliance & management procedures.
The extensive templates library availed by the CLM software enables organizations to speed up the contact stages without technical hassles or process stagnancy. All the required sets of rules, services, products, prices, and regions can be automatically assembled with the software, which helps ease complexities and reduces manual errors.
The contract lifecycle management software solutions help save time and minimize errors by creating a common language, unified terms, core templates, and consistent repeatable conditions. The software solutions are intended to provide visibility and transparency on corporate spending.
These CLM solutions enable more efficiencies in contract management procedures while saving the admin spend of an organization. The key offerings included in CLM solutions are the management of licensing and subscription services.
The market report finds that the COVID-19 pandemic impact was positive on the global market. The demand for contract lifecycle management software grew sharply due to lockdown restrictions. Digital contract management solutions such as digital signature, facial recognition, and cloud computing, helped global businesses to successfully manage contractual operations.
Additionally, digital solutions provided a way for companies to remotely form alliances with other companies to expand their business operations as well as consumer base during the lockdown period. Rapid digitization and innovative contract management solutions that emerged in the last few years have opened vast opportunities in the global market.
Contract Lifecycle Management Software Market Dynamics
Key Trends
Increasing demand for cloud-based solutions is a major trend in the market. Cloud computing software solutions are rapidly becoming popular in contract lifecycle management. The increasing complexities across various business sectors have given rise to the demand for cloud-based software solutions that ease up complex procedures.
The demand for cloud-based contract lifecycle management solutions is high owing to their cost-friendliness and seamless adoption. The cloud-based contract management system automates various stages in contracts, adheres to the set rules and clauses, and minimizes difficulties, which is expected to boost the global market.
Major Drivers
Growing demand to bring efficiency in contract lifecycle management is one of the key driving factors of the market. It has become essential to ease and speed up processes involved in contact lifecycle management with the help of advanced technological tools, owing to rising complexities. The CLM solutions are helpful in reducing manual handling, which helps in minimizing technical errors caused by manual handling.
Enterprises from various verticals are forming collaborations, partnerships, or joint ventures, for mutual growth. This has given rise to regularly creating, updating, and managing contracts for enterprises, resulting in more complexities. Technology solutions in-house or cloud-based are able to handle huge contract-related data and perform various operations on it, which helps streamline the processes.
Existing Restraints
Rising privacy and security concerns can be restraining factors for the market. Contracts are highly valuable for companies, and any data related to them must be protected to the highest level. Although the technology solutions, whether cloud-based or on-premise, aid in speeding up the processes, they can also cause security concerns if they fall into the wrong hands.
There are rising issues of hacking or malware attacks across the globe. Privacy and security-related concerns are expected to challenge the global contract lifecycle software solutions market.
Emerging Opportunities
Rising demand for integrating technology to automate complex contractual operations is expected to create opportunities for the market players. Since partnerships/collaborations are rising across businesses, the contracts are becoming integral and complex aspects to manage.
The stages and processes involved in contracts need to be executed with pre-programmed steps. Large enterprises and SMEs are expected to depend on automation technology solutions to manage the contract lifecycle without needing any manual handling. The highly in-demand technology solutions of modern times such as Artificial Intelligence (AI) and Machine Learning (ML) are expected to aid in the automation process, creating opportunities in the market.
Scope of Contract Lifecycle Management Software Market Report
The report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Contract Lifecycle Management Software Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Component (Software and Services), Enterprise Size (Large Enterprises and Small & Medium Enterprises), Deployment (On-Premises and Cloud-Based), Business Function (Legal, Procurement, Sales, and Finance), and Industry (Legal & Compliance, BFSI, Government, Healthcare & Life Sciences, IT & Telecom, Education, Retail, Energy & Utilities, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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SAP SE; IBM; Infosys Limited; Oracle; Agiloft Inc.; ESM Solutions Corporation; Aurigo Software Technologies Inc.; ASC; CobbleStone Software; CLM Matrix; Corcentric, Inc.; Contract Logix, LLC.; Coupa Software Inc.; DocuSign, Inc.; GEP; Koch Industries, Inc.; Concord; Conga; I Contracts; Great Minds Software; Icertis; Model N; JAGGAER; Newgen Software Technologies Limited; Infor.; ISG; Ivalua Inc.; Optimus BT, Inc.; Synertrade Inc.; EASY SOFTWARE AG; Zycus Inc.; SecureDocs, Inc.; SpringCM; Trackado; and Wolters Kluwer N.V.
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Contract Lifecycle Management Software Market Segment Insights
Component Segment Analysis
Based on component, the global contract lifecycle management software market is divided into software and services. The software segment held the highest share of the market in 2022 and is expected to expand at a significant pace during the projected period. CLM software solutions allow more flexibility, visibility, and control over the various stages of a contract, throughout its lifecycle, owing to which its adaptation across business organizations is increasing at a significant pace.
CLM software solutions facilitate improved transparency and efficiency in contract lifecycle management systems which helps in providing more visibility to every party involved in a contract. Rising demand to speed up contract-related operations and reduce complexity is driving the segment.
The services segment is also anticipated to hold a key share of the market in the coming years owing to increasing demand for consulting services to create and implement the right CLM software solutions. Additionally, the demand for support and maintenance of CLM solutions to keep them up to date with current requirements is also driving the demand for services segment in the global market.
Enterprise Size Segment Analysis
On the basis of enterprise size, the global market is bifurcated into large enterprises and small & medium enterprises. The small & medium enterprises segment is projected to register a considerable CAGR during the forecast period, owing to the need to speed up the processes and minimize spending.
The importance of maximizing efficiency in contract management while minimizing unnecessary expenses has increased the adoption of cloud-based apps or on-premise solutions, driving the revenues from the segment higher. The cloud-based software solutions have opened up opportunities for SMEs to easily integrate with software solutions in contract management.
The large enterprises segment is also anticipated to account for a major market share in the coming years. Large enterprises have multiple partnerships and collaborations going on all the time. The contracts are required to be automated with the help of CLM software solutions. In addition, the increasing need to adhere to government regulations and stay within the limits of clauses mentioned in various contracts also drives the demand for CLM software solutions in large enterprises.
Deployment Segment Analysis
In terms of deployment, the global contract lifecycle management software market is segmented into on-premises and cloud-based. The cloud-based segment held the largest share of the market in 2022 and is projected to expand at a substantial pace during the forecast period. The segment growth is attributed to the ease of implementation and cost-effectiveness enabled by the cloud-based contract lifecycle management solution.
The rise of the cloud computing industry across the globe is enabling small and medium enterprises to take the benefits of various cloud-based solutions to streamline contract lifecycle management operations at a low cost. Moreover, cloud-based solutions are kept up-to-date with real-time collaborations, which cuts the implementation and maintenance expenses.
Cloud-based CLM solutions allow self-service contract creation, initiation, and execution of various stages in contracts. Also, there are numerous pre-existing templates that can be chosen based on specific requirements, which further reduces required time and costs.
On-premise segment is also expected to hold a substantial share of the market in the coming years owing to large enterprises focusing on creating in-house software solutions that provide more privacy and security to contract data records. The on-premise solutions are more reliable for large enterprises owing to the high importance of data security and privacy needs of the parties involved.
Business Functions Segment Analysis
On the basis of business function, the global market is segregated into legal, procurement, sales, and finance. The finance segment held the key share of the market in 2022 and it is expected to continue growing fastest during the forecast period. The expansion of the finance segment is attributed to highly improved efficiency and reduced risks facilitated by the CLM solutions to the various financial organizations.
The contract lifecycle management system can effectively handle the workflows in contracts and agreements to make the process more efficient and error-free. The processes ranging from contract creation to archival can be automated, which enables smart and hassle-free business document management for the financial services providing institutions.
The legal segment is anticipated to account for a substantial market share during the projection period owing to the rising use of contract lifecycle management solutions in legal sectors. For instance, contract drafting and reviewing require high focus and more time, however, these processes can be automated using technology features such as AI, ML, or computer vision. To create greater efficiency and improved productivity legal institutions are taking the aid of CLM software solutions, resulting in the rise of the legal segment in the global market.
Industry Segment Analysis
Based on industry, the global contract lifecycle management software market is categorized into legal & compliance, banking, financial services and insurance (BFSI), government, healthcare & life sciences, IT & Telecom, education, retail, energy & utilities, and others. The healthcare & life sciences segment is expected to expand at a significant pace during the forecast period. The growth of the segment is attributed to the rising requirement to manage a large number of contracts and patient large data generated by the healthcare and life sciences sectors.
Healthcare and life sciences sector companies continuously have to manage contracts for drugs or medicine commercialization, medical devices or equipment use, clinical research, and trials among others. The CLM software solutions reduce the load and complexities by streamlining the overall processes involved in contract lifecycle management, which is a major aspect boosting the segment.
The government segment is expected to witness rapid growth in the global market due to the rising adoption of digital solutions across government and public organizations. Government organizations in emerging countries such as India and China are rapidly upgrading with technology to create effective operational workflow.
The CLM solutions provide government organizations with efficient management of various contracts’ lifecycles. The rising adoption of CLM software systems to facilitate improved visibility and transparency is expected to boost the market.
Regional Analysis
In terms of region, the global contract lifecycle management software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the projected period. The growth of the market in the region is attributed to the large-scale presence of the key market players and the high adoption of technology from the public to private sectors.
The key market players in North America, such as Corcentric, Inc., Coupa Software Inc., and DocuSign, Inc., based on the various requirements of the businesses in the region have created highly flexible and suitable CLM solutions. These CLM solutions are accepted by the technology-oriented companies of the region, owing to the higher dependence on technology solutions in the region. Moreover, some of the major cloud computing solutions companies also have a large presence in North America, which is aiding the expansion of the market in the region.
Asia Pacific is expected to expand at the fastest rate during the projection period. This growth is attributed to the rising adoption of digital technology solutions in developing countries of the region such as India and China. The government and private organizations in the Asia Pacific are maximizing digitization in contract negotiations and management to improve visibility, transparency, and efficiency in the process.
Segments
The global contract lifecycle management software market has been segmented on the basis of
Component
Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
Deployment
Business Function
- Legal
- Procurement
- Sales
- Finance
Industry
- Legal & Compliance
- BFSI
- Government
- Healthcare & Life Sciences
- IT & Telecom
- Education
- Retail
- Energy & Utilities
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- SAP SE
- IBM
- Infosys Limited
- Oracle
- Agiloft Inc.
- ESM Solutions Corporation
- Aurigo Software Technologies Inc.
- ASC
- CobbleStone Software
- CLM Matrix
- Corcentric, Inc.
- Contract Logix, LLC.
- Coupa Software Inc.
- DocuSign, Inc.
- GEP
- Koch Industries, Inc.
- Concord
- Conga
- I Contracts
- Great Minds Software
- Icertis
- Model N
- JAGGAER
- Newgen Software Technologies Limited
- Infor.
- ISG
- Ivalua Inc.
- Optimus BT, Inc.
- Synertrade Inc.
- EASY SOFTWARE AG
- Zycus Inc.
- SecureDocs, Inc.
- SpringCM
- Trackado
- Wolters Kluwer N.V.
Competitive Landscape
The competitive landscape of the global contract lifecycle management software market report provides key insights into the growth strategies and development initiatives implemented by the key players in the market.
Key players competing in the global contract lifecycle management software market are SAP SE; IBM; Infosys Limited; Oracle; Agiloft Inc.; ESM Solutions Corporation; Aurigo Software Technologies Inc.; ASC; CobbleStone Software; CLM Matrix; Corcentric, Inc.; Contract Logix, LLC.; Coupa Software Inc.; DocuSign, Inc.; GEP; Koch Industries, Inc.; Concord; Conga; I Contracts; Great Minds Software; Icertis; Model N; JAGGAER; Newgen Software Technologies Limited; Infor.; ISG; Ivalua Inc.; Optimus BT, Inc.; Synertrade Inc.; EASY SOFTWARE AG; Zycus Inc.; SecureDocs, Inc.; SpringCM; Trackado; and Wolters Kluwer N.V.
With the help of various business development strategies such as mergers, acquisitions, partnerships, collaboration, new product launches, and upgrades to existing solutions with advanced technology, these companies are expanding their consumer base to become prominent players in the market.
- On July 20, 2022, Agiloft Inc. one of the key providers of CLM solutions globally, announced a strategic partnership with Mainspring Consulting Group, a leading innovative business services and solutions provider for the middle office. The partnership is aimed at expanding Agiloft’s AI-driven, Contract Lifecycle Management Suite across several high-growth sectors. The strategic partnership is expected to help new and existing customers save on purchasing, bring more efficiency in sales cycles, and compliance optimization.
- On October 31, 2022, Icertis, a global innovative CLM solutions provider announced securing USD150 million in funding from Silicon Valley Bank. The funding is comprised of a revolving credit facility and convertible financing. It is expected to enable Icertis to improve its leadership position in the highly competitive CLM software category, by adding technologies such as AI, ML, and blockchain to its offerings, to provide unique solutions to its customers.
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