Contract Lifecycle Management Software Market

Global Contract Lifecycle Management Software Market:

The global contract lifecycle management software market size reached US$ 2.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.2 Billion by 2032, exhibiting a growth rate (CAGR) of 10.1% during 2024-2032. The market is experiencing steady growth driven by the rising complexity of contracts like intricate documents with multiple stakeholders, variables, and dependencies and increasing focus on streamlining contract-related tasks to enhance productivity and save costs.

Contract Lifecycle Management Software Market Analysis:

• Major Market Drivers: The increasing complexity in contracts due to regulatory changes, along with a rising focus on mitigating legal risks is proliferating the market growth. Moreover, the escalating regulatory requirements and compliance obligations drive demand for CLM software.
• Key Market Trends: The integration of advanced technologies like artificial intelligence (AI) and machine learning (ML) in contract lifecycle management (CLM) software, to automate contract analysis and improve decision-making, is facilitating the market growth.
• Competitive Landscape: Some of the prominent companies in the market include Wolters Kluwer N.V., IBM Corporation, Icertis, Inc., SAP SE, BravoSolution SPA., Contracked BV, Contract Logix, LLC, Coupa Software Inc, EASY SOFTWARE AG, ESM Solutions Corporation, Great Minds Software, Inc., Koch Industries, Inc., Ivalua Inc, Optimus BT, Oracle Corporation, Symfact AG, DocuSign, Inc, Newgen Software Technologies Limited, Zycus Infotech Private Limited, and Corcentric LLC (Determine), among many others.
• Geographical Trends: According to the contract lifecycle management software market dynamics, North America exhibits a clear dominance in the market owing to the robust regulatory environment, including compliance requirements such as GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act).
• Challenges and Opportunities: The complexity of contractual agreements and data security concerns are hampering the market's growth. However, CLM software offers opportunities for automating manual contract management tasks, reducing administrative burdens, and accelerating contract cycles. Automation improves efficiency, enhances productivity, and allows organizations to focus on strategic initiatives.
   

Contract Lifecycle Management Software Market Trends:

Rising Spending on Legal Technologies

The increasing spending on legal technologies is significantly driving the growth of the contract lifecycle management software market. For instance, according to an article published by Gartner, legal technology spending has risen 1.5 times, from 2.6% of in-house budgets in 2017 to 3.9% by 2020. It is predicted to rise to about 12% of in-house budgets by 2025, a threefold increase from 2020 levels. Legal departments and organizations are investing in CLM software to automate and streamline contract management processes. This includes contract creation, negotiation, approval workflows, and post-execution management. By reducing manual effort and cycle times, CLM software improves operational efficiency. These factors are expected to drive the contract lifecycle management software market growth in the coming years.

Adoption of Cloud Computing

The growing adoption of cloud computing is driving the Contract Lifecycle Management (CLM) software market growth. For instance, according to an article published by Edge Delta, the cloud has become an essential mainstay for many U.S. companies. 94% of major companies worldwide utilize cloud computing in their operations. Cloud-based CLM solutions often operate on a subscription or pay-as-you-go model, reducing upfront costs and allowing organizations to manage expenses more effectively. This makes CLM solutions accessible to smaller businesses that might not have the resources for on-premises systems. These factors are further positively influencing the contract lifecycle management software market forecast.

Technological Advancements

Technological advancements are significantly driving the growth of Contract Lifecycle Management (CLM) software market growth. AI and machine learning technologies are being integrated into CLM software to automate routine tasks such as contract drafting, reviewing, and approval processes. Natural Language Processing (NLP) enables software to understand and extract key information from contracts, improving accuracy and reducing manual effort. For instance, in June 2024, Conga launched a new Contract Lifecycle Management (CLM) product built on the Conga Platform. The AI-enhanced solution is available on the Conga Platform and includes a CLM interface that can link with any CRM, ERP, or procurement platform. Conga's CLM with AI empowers organizations by minimizing risk, shortening contract formation to closure time, and lowering supplier expenses. New cutting-edge AI models improve accuracy while extracting text and data from contracts and tables. These factors are contributing to the contract lifecycle management software market share.

Global Contract Lifecycle Management Software Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on deployment model, CLM offerings, enterprise size, and industry.

Breakup by Deployment Model:

• Cloud-Based
• On-Premises
   

Cloud-based accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the deployment model. This includes cloud-based and on-premises. According to the report, cloud-based represented the largest segment.

According to the contract lifestyle management software market outlook, cloud-based CLM solutions offer improved flexibility, scalability, and accessibility from anywhere with an internet connection. These solutions are increasingly adopted by small and medium-sized enterprises (SMEs) seeking cost-effective and subscription-based models. The cloud-based deployment offers easier updates and maintenance, reducing information technology (IT) overhead for organizations.

Breakup by CLM Offerings:

• Licensing and Subscription
• Services
   

Licensing and subscription hold the largest market share

A detailed breakup and analysis of the market based on the CLM offerings have also been provided in the report. This includes licensing and subscription and services. According to the report, licensing and subscription accounted for the largest market share.

Licensing and subscription involve legal permissions granted to use software or services, often outlined in contracts. They also include regular payments for access to these resources. In addition, effective CLM ensures that organizations can manage their licensing and subscription agreements efficiently and promote transparency and accountability in contractual relationships.

Breakup by Enterprise Size:

• Large Enterprise
• Small and Medium Enterprise
   

Large enterprise represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprise and small and medium enterprise. According to the report, large enterprise represented the largest segment.

According to the contract lifestyle management software market overview, large enterprise is characterized by significant resources, extensive operations, and a substantial number of employees. It usually requires advanced and feature-rich CLM solutions to manage a high volume of contracts, complex agreements, and compliance requirements. Large enterprise prioritizes scalability, integration capabilities with other enterprise systems like enterprise resource planning (ERP) and customer relationship management (CRM), and customization options in their CLM software choices.

Breakup by Industry:

• Automotive
• Electrical and Electronics
• Pharmaceutical
• Retail and E-commerce
• Manufacturing
• BFSI
• Others
   

Manufacturing exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the industry. This includes automotive, electrical and electronics, pharmaceutical, retail and e-commerce, manufacturing, BFSI, and others. According to the report, manufacturing represented the largest segment.

The manufacturing industry is rapidly adopting CLM software due to its complex supply chain and procurement needs. In addition, manufacturing companies are using CLM solutions to manage supplier contracts, track compliance, and optimize procurement processes.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa
   

North America leads the market, accounting for the largest contract lifecycle management software market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. According to the report, North America accounted for the largest market share.

According to the contract lifestyle management software market statistics, the growth of the region is driven by the presence of large enterprises across various industries that require advanced CLM solutions to manage their complex contract portfolios effectively. In addition, the rising focus on data privacy, along with stringent regulatory compliance, is bolstering the growth of the market. Furthermore, the increasing adoption of cloud-based CLM offerings, as they offer improved scalability and accessibility, is impelling the market growth. Moreover, the growth of e-commerce and retail sectors in North America has increased demand for efficient supply chain management and product lifecycle tracking. For instance, according to IMARC, the United States e-commerce market size is projected to exhibit a growth rate (CAGR) of 13.23% during 2024-2032. Lifecycle management software helps retailers manage inventory, track product lifecycles, and optimize logistics operations to meet consumer demand and improve customer satisfaction.

Competitive Landscape:

Key players are focusing on improving CLM software by enhancing features, functionality, and user experience. They are leveraging technologies like artificial intelligence (AI) and machine learning (ML) to automate contract analysis and provide valuable insights. Apart from this, companies are developing cloud-based CLM solutions to offer scalability, flexibility, and remote access capabilities, catering to the evolving needs of organizations, including those adopting remote work arrangements. They are also developing industry-specific CLM solutions tailored to the unique needs and compliance requirements of several sectors. In addition, major companies are designing user-friendly interfaces and providing training resources to encourage user adoption.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Wolters Kluwer N.V.
• IBM Corporation
• Icertis, Inc.
• SAP SE
• BravoSolution SPA
• Contracked BV
• Contract Logix, LLC
• Coupa Software Inc
• EASY SOFTWARE AG
• ESM Solutions Corporation
• Great Minds Software, Inc.
• Koch Industries, Inc.
• Ivalua Inc
• Optimus BT
• Oracle Corporation
• Symfact AG
• DocuSign, Inc
• Newgen Software Technologies Limited
• Zycus Infotech Private Limited
• Corcentric LLC (Determine)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Contract Lifecycle Management Software Market Recent Developments:

• June 2024: Conga launched a new Contract Lifecycle Management (CLM) product built on the Conga Platform.
• January 2024: Evisort, an AI for contract lifecycle management (CLM) and analysis provider, launched Document X-Ray, offering organizations unprecedented access to their agreements.
• February 2024: IntelAgree, an AI-powered contract lifecycle management (CLM) software company, launched Saige Assist, a generative AI-based tool that redefines how companies interact with their contracts.

Contract Lifecycle Management Software Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the contract lifecycle management software market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global contract lifecycle management software market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the contract lifecycle management software industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.