ID: MRFR/ICT/7079-HCR | February 2021 | Region: Global | 141 pages
Contract management software facilitates and supports contract lifecycle management and project management. This solution helps users to organize contracts at a centralized location and therefore reduce the overall time spent on sharing documents among various stakeholders. Enterprises deal with a number of contracts related to sales, intellectual property, and leases. In order to efficiently manage these contracts, they usually deploy contract management software. Key industries where contract management software plays a significant role in reducing overall cost and time are healthcare, education, manufacturing, and consumer goods among others. A large number of enterprises find it challenging to locate their contracts and sometimes these contracts are lost and misplaced which can impact the overall business operation. Contract management solutions help organizations in overcoming these challenges by providing a centralized location for storing contracts and allow ease of access and retrieval.
Some of the key features of contract management software tools are the provision of efficient organization of large sets of contracts, presence of advanced search options for retrieving any contract with ease, and tracking and notification alerts regarding contract expiry date and updates. The software also has a reporting facility that includes report generation and analytics that help enterprises to predict and model best practices for the contract lifecycle.
In a survey conducted by Bloomberg Finance L.P. in partnership with Baker Tilly titled “Key Contracting Trends and Best Practices in Federal Contract Management” in 2017, 92% of those surveyed agreed that effective contract management is crucial for the success of an organization. The complex and dynamic regulatory environment has made it important for enterprises to manage their contracts effectively and ensure that the contracts are within the framework of the regulation. Due to this, a large number of enterprises are shifting to contract management systems thereby driving the overall market. Companies operating in industries like supply chain or procurement, financial services, healthcare, manufacturing, and education are investing in deploying contract management software. For instance, firms like Endo Pharmaceuticals, Penn University, RCI Banque SA, Mobivia Groupe have deployed contract management software to streamline their contract lifecycle.
The global contract management market comprises several players who offer various types of solutions, for instance, SecureDocs, Inc. offers contract management solutions with AI capabilities. The company also focuses on the security of its solutions, therefore, it uses Amazon Web Services’ (AWS) platform for data storage and two-factor authentication for data security, which lets the organization to offer the capability of encryption of contract in transit as well as during rest. Similarly, Icertis uses blockchain technology to store contracts which ensures security from cyberattacks.
The Contract Management Market is expected to expand at 12.3% CAGR, to reach USD 6.5 Billion in 2025 during the forecast period.
The Global Contract Management Market has been segmented on the Basis of Component, Deployment, Organization Size, Vertical and Region.
Based on the component, the contract management market has been segmented into solution and services. The service segment has been further categorized into support & maintenance services and implementation & integration service. The solution segment held the larger share in 2018 and is expected to remain so in the forecast period as well. The contract management service segment is expected to grow at a higher CAGR during the forecast period. Among the service segments, implementation & integration services segment is expected to grow at a higher CAGR during the forecast period. Enterprises in the coming years are expected to demand integration with legacy systems like Enterprise Resource Planning (ERP), which in turn will increase the demand for integration services.
Based on deployment, the market has been segmented into on-premise and cloud-based segments. The cloud-based contract management solution held the larger share in the year 2018 and is expected to hold larger share by 2025. A large number of end-users are opting for cloud-based deployment as it is scalable and cost effective, which increases the overall demand for cloud-based contract management solutions.
Based on organization size, the contract management market has been divided into small- & medium-sized enterprises and large enterprises. The large enterprises segment occupy the larger share in the market particularly in industries such as healthcare and BFSI.
Based on vertical, the contract management market has been segmented into healthcare, manufacturing, IT & telecommunication, consumer goods, education, BFSI, others. The healthcare industry verticals are expected to grow at the highest CAGR during the forecast period.
Geographically, the global contract management market has been segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America.
North America leads the market in terms of market share in the contract management market. Some of the factors that are responsible for the growth of the market include increasing investment by industry verticals to deploy new technologies and increasing need to manage varied contracts effectively.
Europe has occupied the second position in the market. Europe has been segmented into the UK, Germany, France, Spain, Italy, and the rest of Europe. According to the MRFR analysis, the UK is expected to gain the highest market share, followed by Germany and France. Prominent industry vertical where demand for contract management solutions is increasing in the country includes healthcare, manufacturing, education, and consumer goods.
Key Players of the Global Contract Management Market are Icertis, IBM, SAP, Zycus Inc., SecureDocs, Inc., Apttus Corporation, Concord, SpringCM, Contract Logix LLC., Trackado, GEP, Determine, Ultria, ConvergePoint Inc.
Key questions addressed by the report
Frequently Asked Questions (FAQ) :
By 2025, the market is projected to earn revenues worth USD 6.5 Bn, which can be attributed to the accelerating demand for efficient contract lifecycle management.
Among solution and service, the service segment is poised to expand at a faster growth pace.
The healthcare segment is prognosticated to mark a higher CAGR across the review period.
Icertis, SAP, Zycus Inc., IBM, and SecureDocs, Inc. are a few of the key players in the market. These players are poised to resort to product launches and advancing technologies for growth.
The deployment based segments of the market are on-premise and cloud-based.