Contract Lifecycle Management (CLM) Market Size & Share, by Component (Software, Services); Deployment (Cloud-based, On-premises); Enterprises (SMEs, Large Enterprises)-Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 3633
  • Published Date: Mar 27, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

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.


Contract Lifecycle Management Market
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Contract Lifecycle Management Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing population of gig workers - There is an increase in the demand in the gig economy due to the expansion of the contract Lifecycle management (CLM) market, as the population is opting for a short-term contract and freelance opportunities, instead of a full-time employment. According to a NITI Aayog 2022 report on the gig economy, the gig workforce has the potential to increase to 2.35 crore by 2030.
  • Importance of contract work - The growing importance given to the contract work, especially for skilled professionals, is driving the market for contract Lifecycle management.
  • Demand for flexible work arrangements - The growing demand for a flexible work arrangements and high work-life balance has increased the demand for support mechanisms, such as contract Lifecycle management, which provides several services and support for those who are working on contract or freelance bases.
  • Importance of contract-based benefits - Along with the importance of contract Lifecycle management for tracking contract work, the demand for contract-based benefits and services, such as insurance, reimbursements, and other related benefits is also increasing.
  • Importance of self-employment - The increasing surge of self-employment as a form of job and the source of income, has increased the demand for a proper management of finances and several other related aspects.

Challenges

  • Complexities of contracting - The contract lifecycle is highly complicated while involving several parties and stakeholders, such as clients, employers, employees, insurance providers, and tax authorities, which offers several challenges to the management for contractual obligations.
  • Confusing regulations and laws - Several regulations and laws which are related to contractual work can be extremely complex and confusing, especially in several regions. This can act as a barrier in the proper implementation and administration of contract Lifecycle management.
  • Lack of tools and solutions - The available tools and solutions, for the contract Lifecycle management may be limited and might not be able to cater to the growing need and complexity of the contracting and freelancing environment.
  • Difficulty in integration - The integration of contract Lifecycle management solutions and existing systems and processes can pose a big challenge and cause problems with communication, coordination, and data flow between different departments and teams. This can hinder the effectiveness and the return on investment from the management of contractual activities.

Contract Lifecycle Management Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~13%

Base Year Market Size (2023)

~ USD 1.6 Billion

Forecast Year Market Size (2036)

~ USD 7 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Contract Lifecycle Management Segmentation

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:

             Component

  • Software
  • Services

            Deployment

  • Cloud-based
  • On-premises

            Enterprise

  • SMEs
  • Large Enterprises

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Contract Lifecycle Management Industry - Regional Synopsis

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.

Research Nester
Contract Lifecycle Management Market Size
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Companies Dominating the Contract Lifecycle Management Landscape

top-features-companies
    • Contract Logix, LLC
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Coupa Software Inc. (Exari)
    • Infor
    • Newgen Software Technologies Limited
    • SAP SE
    • Infosys Limited
    • Information Services Group, Inc.
    • Model N, Inc.
    • Synertrade (Econocom Group)
    • Corcentric
    • Ivalua Inc.
    • Agiloft Inc.
    • Apttus

In-the-news

In The News

  • Icertis, introduced Contract Intelligence Solution, is majorly dedicated to the banking and capital market’s needs with a suite of associated documents, attributes, clauses, obligation management, templates, and reporting.
  • Nexa3D, launched Icertis Matter Management, built on the Icertis Contract Intelligence (ICI) Platform.
  • Aventa, has developed a set of Smart Marketing tools comprising target-focused and innovative measures.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 3633
  • Published Date: Mar 27, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The demand for flexible work arrangements and the importance of self-employment are the major factors driving the growth of the market.

The market size of US Contract Lifecycle Management is anticipated to attain a CAGR of 13% over the forecast period, i.e., 2024- 2036.

The major players in the market are Coupa Software Inc. (Exari), Infor, Newgen Software Technologies Limited, SAP SE, Infosys Limited, Information Services Group, Inc., Model N, Inc., Synertrade (Econocom Group), Corcentric, Ivalua Inc., Agiloft Inc., Apttusand others.

The software segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Contract Lifecycle Management Market Report Scope
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