Contract Lifecycle Management (CLM) Software Market Size, Share & Segmentation by Component (Software, Services, Consulting, Implementation, Support, and Maintenance), by Deployment Type (On-premises and Cloud), by Organization Size (SMEs and Large Enterprises), by Business Function (Legal, Sales, Procurement, Others), by Vertical (Government, Retail, and eCommerce, Healthcare and Life Sciences, BFSI, Transportation and Logistics, Telecom and IT, Manufacturing, Others) ,by Regions and Global Market Forecast 2023-2030

Report Scope & Overview:

The Contract Lifecycle Management (CLM) Software market size was valued at USD 2.03 Bn in 2022 and is expected to reach USD 4.65 Bn by 2030, and grow at a CAGR of 10.93 % over the forecast period 2023-2030.

Contract Lifecycle Administration (CLM) Software Market enables the effective management of a contract's complete lifecycle between two or more firms. The eight key steps include contract preparation, negotiation, approval, compliance and administration, repository, compliance optimization, retrieval and renewal, modifications, and dispose. CLM software ensures rule compliance, reduces contract risks, protects a company from non-compliance fines, and enhances decision-making.

It also helps the firm build partnerships with other businesses in order to expand its consumer base. As a result, CLM software is becoming increasingly popular around the world in the public, healthcare, industrial, and financial services sectors. The eight procedures include negotiation, contract writing, approval, compliance and administration, repository, compliance optimization, retrieval, renewal, amendments, and dispose.

The CLM program ensures that rules are followed and that contract expirations and renewals are addressed on time, preventing the company from losing commercial opportunities. Contract lifecycle management software assists the firm in establishing ties with other businesses in order to expand its client base. As a result, CLM software is becoming increasingly popular around the world in the public, healthcare, industrial, and financial services sectors.

MARKET DYNAMICS:

KEY DRIVERS:

• Demand for Agile Contract Management is Growing.

• Contract Lifecycle Management Software Adoption Driven by Changing Legal Compliances.

• Increasing Complexity Contract Lifecycle Management (CLM) Software demand is being driven by the diversity of sales and licensing models.

OPPORTUNITIES:

• Smart Contracts are becoming increasingly popular.

• Contract Management Software Vendors Will Benefit from the Automation of the Contract Management Process Using AI and MI.

CHALLENGES:

• a scarcity of skilled labor.

• Increased Cybersecurity Risk.

IMPACT OF COVID-19:

The COVID-19 epidemic has had a massive influence on people's lives all around the world. Every firm must fight on two fronts—health and economic—and must weather this period of forced recession. With the global economic crisis costing trillions of dollars, there is widespread concern that the recovery phase may last far into early next year. The unexpected emergence of the COVID-19 epidemic has increased demand for contract lifecycle management software, which supports corporations in remotely forging partnerships with other enterprises in order to extend their client base.

MARKET ESTIMATION:

Hospitals, like other major companies, handle a vast number of contracts, all of which must adhere to numerous compliance requirements and performance criteria. In hospitals, smart contract management software optimizes processes, saving time and reducing the danger of missing any critical stages. Contract Lifecycle Management software has also seen substantial technical advancement over the years. The most recent contract management software on the market is completely compliant with HIPAA and other international privacy and security regulations for patient information and other legal documents. This is pushing hospital use of contract lifecycle management software. One of the important areas for decreasing healthcare costs is the proper administration of crucial contract papers, patient information, and records with minimal human work. Furthermore, unanticipated costs associated with mistakes and rejections, as well as fines for data breaches and lawsuits, make it even more critical for healthcare businesses to handle their contracts and paperwork swiftly and effectively.

The market is divided into two segments depending on deployment: cloud-based and on-premise. Because of the widespread use of high-speed internet and the widespread acceptance of cloud services by mid-size organizations, the cloud is expected to develop faster throughout the projection period. The options on the worldwide market are divided into three categories: licenses, subscriptions, and services.

In comparison to large firms, SMEs have a lesser number of contracts to handle. As a result, there is a lack of proactive contract management because they can be postponed without considerable penalty. SMEs may supervise contracts manually with a relatively modest number of contracts, saving money on software expenditures. However, the number of new contracts will increase over time, while current contracts will be renewed on different terms or closed out. And it is at this point that the risks connected with an SME's contracts begin to increase fast. Contract lifecycle management software deployment is predicted to result in greater risk mitigation, lower administrative overhead, lower compliance costs, beneficial business outcomes, and increased business efficiency for small and medium-sized businesses.

KEY MARKET SEGMENTS:

On the basis of Component

• Software

• Services

• Consulting

• Implementation

• Support and Maintenance

On the basis of Deployment Type

• On-premises

• Cloud

By Organization Size

• SMEs

• Large Enterprises

On the basis of Business Function

• Legal

• Sales

• Procurement

• Others

On the basis of Vertical

• Government

• Retail and eCommerce

• Healthcare and Life Sciences

• BFSI

• Transportation and Logistics

• Telecom and IT

• Manufacturing

• Others

REGIONAL ANALYSIS:

In terms of revenue sales for the contract lifecycle management industry, North America will be the dominating market in 2021. The presence of prominent companies in the country is a crucial element fueling the growth of the US industry. Key companies in the contract management software market in this nation invest considerably in research and development. Furthermore, favorable laws, such as the Health Insurance Portability and Accountability Act, have increased the usage of contract lifecycle management solutions in North America. Demand for contract lifecycle management is predicted to increase in Germany. Rapid advancements in new technologies, such as hybrid cloud solutions, have made it easier and more cost-effective to enter new markets. These advances enable real-time contract management, enabling greater visibility, choice, and control over the cloud, electronic repository, and other infrastructure.

REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

KEY PLAYERS:

The major key players are Conga, CLM Matrix, Contract Logix, LLC, Coupa Software Inc., Gatekeeper, Icertis, Integreon, Inc., Newgen Software Technologies Limited, Oracle Corporation, Zycus Inc.

Frequently Asked Questions (FAQ) :