Global Contract Lifecycle Management Software Market Report and Forecast 2024-2032

Global Contract Lifecycle Management Software Market Size

The global contract lifecycle management software market size attained a value of USD 2.40 billion in 2023. The market is expected to grow at a CAGR of 17% between 2024 and 2032 to reach almost USD 9.84 billion  by 2032.

Key Takeaways:

• CLM software boosts efficiency by automating and streamlining contract processes across initiation, drafting, workflow management, negotiation, approval, execution, oversight, compliance, and renewal stages.

• CLM software is widely used in BFSI sector. India's vast network of 160,000+ bank branches drive global contract lifecycle management software market growth.

• The presence of 3,09,83,113 enterprises in Europe as reported by Eurostat in 2021 is fuelling the global contract lifecycle management software market.

As per the contract lifecycle management (CLM) software market report, CLM software enhances efficiency by automating and simplifying contract processes across essential stages such as initiation, drafting, workflow management, negotiation, approval, execution, ongoing oversight, compliance within the repository, and contract renewal. Buyers and suppliers benefit from time savings and error reduction by establishing a shared language, utilising core templates, unified terms, and consistent conditions.

The primary goal of most contract management software is to offer improved visibility into corporate spending, enhance efficiency throughout the contract lifecycle, and reduce administrative expenses. For example, contract lifecycle management software is extensively utilised within the BFSI sector. In India, there are over 160,000 bank branches, roughly equating to about 15 branches per 100,000 people, as reported by the National Investment Promotion and Facilitation Agency, thus, boosting the global contract lifecycle management software market growth.

BANKING INDUSTRY IN INDIA, IN 2022

Key Trends and Developments

The global contract lifecycle management software market is expanded by increasing use in healthcare sector, regulatory agreements, and contract task optimisation.

January 2023

Evisort had introduced Document X-Ray, a Gen AI Custom Model Builder, which transformed users' contract inquiries into custom AI models for automatic data entry into any agreements.

January 2023

SpotDraft had introduced VerifAI, an innovative AI add-in for Microsoft Word, aimed at aiding lawyers in contract review. The tool checked contracts based on guidelines and responded to various contract-related inquiries.

May 2023

At the PTC LiveWorx conference, eQ Technologic and iBase-t collaborated on a Closed Loop Manufacturing solution, linking iBase-t's Solumina MES with PLM and ERP systems.

March 2023

ContractPodAi, a leading CLM platform provider, introduced Leah, a Generative AI Legal Services hub using OpenAI's GPT-4, now accessible independently for legal tasks.

Increasing use in healthcare services

Healthcare contract lifecycle management software aids healthcare institutions in managing regulatory responsibilities, spanning from contract creation to execution and beyond. It provides valuable analytics, empowering healthcare professionals to make informed decisions, and fosters collaboration among diverse departments and stakeholders.

Regulatory agreements

CLM software supports organisations in regulatory compliance with automated checks, version control, and audit trails. It guarantees contracts align with legal standards and adapt to regulatory updates, preventing penalties and promoting ethical conduct. Moreover, it simplifies compliance reporting through document generation and report creation.

Contract task optimisation

CLM software improves effectiveness by streamlining contract procedures, automating workflows, and minimising manual involvement. This leads to significant cost savings by reducing administrative costs, minimising errors, and expediting contract timelines. Additionally, it identifies opportunities for cost savings, such as renegotiating supplier terms or optimising pricing structures.

Public sector services

CLM enables contracting officers to attain operational excellence in federal procurement by automating the complete contracting process. This encompasses activities such as acquisition planning, requisition generation, solicitation, offer submission, contract awarding, administration, and closure.

Contract Lifecycle Management Software Industry Trends

As per the contract lifecycle management software market study, the significant return on investment (ROI) linked with implementing CLM software presents an attractive option for organisations aiming for efficient contract management. Furthermore, the growing focus on streamlining contract tasks with CLM software enables organisations to enhance productivity and refine their contract processes for increased competitiveness, thereby fuelling the contract lifecycle management software market expansion.

CLM software seamlessly incorporates legal and business requirements into contracts, mitigating the risk of misunderstandings and disputes. Additionally, it enhances transparency and accountability, serving as an asset for companies grappling with intricate modern contracts.

Market Segmentation

Global Contract Lifecycle Management Software Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Deployment Model

• Cloud-Based

• On-Premises

Market Breakup by CLM Offering

• Licensing and Subscription

• Services

Market Breakup by Enterprise Size

• Large Enterprise

• Small and Medium Enterprise

Market Breakup by Industry

• Automotive

• Electrical and Electronics

• Pharmaceutical

• Retail and E-commerce

• Manufacturing

• BFSI  

• Others

Market Breakup by Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Based on deployment, the cloud-based model is boosting the contract lifecycle management software market growth due to its cost-effectiveness

Cloud-based contract lifecycle management offers improved access and insights into contract data while strengthening security and centralisation. It allows for remote access and real-time data capture without limitations.

On-premises computing provides complete infrastructure control, enabling customisation to fulfil industry requirements for optimal performance and flexible configurations.

According to CLM offering, the global contract lifecycle management software market share is lead by licensing and subscription models

Licensing and subscription entail legal permissions for software or service usage, typically stipulated in contracts, with regular payments for access. It ensures efficient management of such agreements, fostering transparency and accountability.

CLM services comprise professional offerings aiding implementation, customisation, and maintenance, including consulting, training, and integration services.

Large enterprises hold a dominant position in the market due to their extensive operations and significant workforce size

Large enterprises require sophisticated CLM solutions to manage numerous contracts, complex agreements, and compliance requirements. They prioritise scalability, integration with ERP and CRM systems, and customisation.

Conversely, small and medium enterprises, with limited resources, favour cloud-based CLM for affordability and efficiency, seeking user-friendly solutions to streamline contract processes and reduce manual work.

The manufacturing sector holds a prominent position in the global contract lifecycle management software market, primarily because of its intricate supply chain and procurement requirements

In manufacturing, CLM solutions are crucial for supplier contract management, compliance, and procurement optimisation.

Automotive firms utilise CLM software for supply chain contract management with suppliers, distributors, and dealerships. Likewise, in electrical and electronics, CLM aids in managing supplier contracts for components and raw materials, ensuring product specifications and supply chain adherence.

Pharmaceutical companies rely on CLM software to comply with stringent regulations in research, development, and supplier contracts while protecting data privacy. Retailers and e-commerce businesses use CLM for vendor contracts, performance tracking, and pricing compliance. In BFSI, CLM manages contracts with individuals, partners, and regulators, reducing risks and ensuring compliance.

Competitive Landscape

The competitiveness within the global contract lifecycle management software market arises from the manufacturing and automotive sector, software and services, and economic growth.

SAP SE was founded in 1972 and is based in Germany. SAP Modules constitute business management software designed for collecting, storing, managing, and interpreting data across various functional domains, including financial accounting, human resources, and customer relationship management.

DocuSign, Inc. was founded in 2003 and is based in the United States. DocuSign eSignature serves as electronic document signing software enabling swift and secure online approval collection, ensuring legal validity. It replaces time-consuming manual signing procedures, enhancing agreement efficiency and productivity to the fullest.

Coupa Software Inc. was founded in 2006 and is based in the United States. Coupa provides an e-invoicing module to improve user experience, enabling companies to electronically receive and process invoices. This diminishes reliance on paper-based methods and manual data input. Additionally, the BSM provider offers a payments hub solution.

Agiloft Inc. was founded in 1990 and is based in the United States. Agiloft specialises in creating contract lifecycle management (CLM) software, with a focus on delivering efficient solutions for purchasing, legal operations, and sales cycles. They aim to substantially reduce compliance risk through this offering.

Other global contract lifecycle management software market key players are Concord Worldwide Inc., Deltek Inc., Conga, Ironclad, Inc., Icertis, Oracle Corporation, Contracts 365, Inc., Newgen Software Technologies, and others.

Global Contract Lifecycle Management Software Market Analysis by Region

North America leads the market with a significant share due to its large enterprises needing advanced CLM solutions for complex contracts.

Europe sustains a robust market presence, driven by rising demand for CLM solutions to streamline complex contracts, ensure regulatory compliance, and improve operational efficiency. Increasing enterprises in the EU is boosting the product demand.

ENTERPRISE STATISTICS BY SIZE CLASS IN THE EUROPEAN UNION IN 2021

Asia Pacific is prominent with numerous CLM software providers, including established companies and startups. Further, the Middle East and Africa is witnessing growth driven by interest in cloud-based CLM solutions. Latin America's established business sectors contribute to its promising growth in the CLM software market.

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Contract Lifecycle Management Software Market Report Snapshots

Contract Lifecycle Management Software Market Size

Contract Lifecycle Management Software Market Trends

Contract Lifecycle Management Software Companies

Contract Lifecycle Management Software Market Regional Analysis