Contract Lifecycle Management Market size is expected to reach USD 7 Billion by the end of 2036, growing at a CAGR of 13% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the contract lifecycle management was USD 1.6 Billion and the reason behind this growth is impelled by the never-ending accessibility of the internet all over the world along with several technological advancements which include 5G, cloud services, Internet of things (IoT), Artificial Intelligence (AI), and blockchain. For instance, as of January 2024, there were more than 5.3 billion active users worldwide, which is estimated to be 66% of the global population.
Furthermore, the CLM software is being highly used by lawyers, especially for retrieving contracts from the library for their reference purposes, as this reduces their time to review and this enables the organizations to identify loopholes in their systems. About 44% of the corporate legal departments were using CLM systems in 2018 and in 2021, approximately 55% of corporate legal departments were using CLM.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~13% |
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Base Year Market Size (2023) |
~ USD 1.6 Billion |
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Forecast Year Market Size (2036) |
~ USD 7 Billion |
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Regional Scope |
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Component (Software, Services)
The software component segment is predicted to account for of 58% share of the global contract lifecycle management market during the forecast period. owing to the improved automation as this facilitates the automation of various processes and activities, such as contract and workflow generation, tracking, administration, finance and accounting, and risk management as 76% of businesses use automation for standardizing or automating daily workflows; 58% use automation for data/reporting for planning, and 36% use it for regulation or compliance. Furthermore, software can also facilitate improved customer service, where relevant information about contract activities, such as benefits, payments, and regulations, can be provided quickly and easily to contractors. Moreover, the software component can create an integrated and centralized database of contract-related data that can be easily accessed and analyzed, to gain insight into different contract activities and performance. This can help in making informed and data-driven decisions and policies for contract Lifecycle management.
Deployment (Cloud-based, On-premises)
The cloud-based segment is set to garner a notable share shortly and is likely to remain the second largest segment in the deployment of the Contract Lifecycle Management (CLM) market as due to the growing number of contractors and the complexity of their work, the platform can be easily scaled up or down to meet the changing needs of its users, due to which it’s easy for clients and contractors can access the software platform. Moreover, cloud-based solutions can provide a greater degree of mobility and remote access to the platform which allows easy access to the platform from anywhere through their devices, providing them with the flexibility of working from anywhere.
Enterprises (SMEs, Large Enterprises)
The SME segment is estimated to hold a noteworthy share as the digitalization and adoption of technology by SMEs are rapidly increasing. The growing demand for contract-based work, which can provide a source of flexible income and cost-effectiveness for businesses, is driving the growth of this segment. Moreover, the increasing competitiveness in various business industries makes it crucial for SMEs to improve their level of efficiency and effectiveness.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Deployment |
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Enterprise |
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North American Market Forecast
The contract lifecycle management (CLM) market in North America is estimated to have the largest share of approximately 43% in 2023, impelled by the presence of several major industrial participants such as Coupa, Icertis, Zycuz, SAP SE who are investing heavily in the research and development while they are being included in cutting-edge technological features to improve their customer experience and products. According to the National Centre for Science and Engineering Statistics, the investment in Research and development has increased from about 2.7% in 2016, 2.9% in 2018 to 3.1% in 2019, to about 3.4% in 2020.
APAC Market Statistics
The Asia Pacific contract lifecycle management (CLM) market is estimated to be the second largest, during the forecast timeframe led by the higher adoption of contract lifecycle management solutions across China, India, and Japan, as SMEs in these countries have shown their highest growth in the deployment of their cloud-based solutions, mainly to improve their contract processes and to reduce the business complexity.
Author Credits: Abhishek Verma
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