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LATAM Contract Lifecycle Management (CLM) Market
LATAM Contract Lifecycle Management (CLM) Market size is estimated to surpass USD 580.58 Million, by growing at a CAGR of 10.66% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of LATAM contract lifecycle management (CLM) was USD 157.67 Million. The growth of the market can be attributed to the rising foreign trade and investment in the region, which prompts opportunities for new business and the need for legal contracts for maintaining peace and order among nations. According to UNCTAD's World Investment Report 2022, foreign direct investment (FDI) in Latin America and the Caribbean has recovered from the pandemic-caused decline, increasing by 56% to $134 billion in 2021. In addition to this, the recovery was credited to the launch of 317 greenfield projects in technology and communication.
In addition to these, factors that are believed to fuel the market growth of contract lifecycle management (CLM) in LATAM include the rising adoption of various advanced technology, such as AI, ML, and others. The integration of technology has boosted business expansion and opened the prospects of new business in the region. The technology adoption is further accelerated by government efforts put to advance it. For instance, UNESCO and MIT professionals partnered up to foster artificial intelligence in Latin America. This initiative brings together experts from government, academia, industry, and NGOs from all across Latin America and the Caribbean to explore the potential and hazards of AI in their nations, with the goal of stimulating the deployment of AI research initiatives in those regions.
Growth Drivers
Growing Trade with Other Countries – Businesses enter into trade partnerships in order to import food and goods from abroad. Bilateral contracts help to smoothen the engagement of concerned countries in trade. The import value of Latin America from India in the year 2021-2022 increased by approximately 48% and the total value was around worth USD 19 billion.
Rising Use of Artificial Intelligence– AI has optimized the business and it helps organizations to constantly shift and strategize according to the needs. In the fast-paced world of AI, the contract has become even more important. In the region, around 30% of companies are using artificial intelligence for their business. Moreover, while nearly 43% of businesses in the area are considering using the technology, about 29% of them have implemented these solutions in some capacity.
Introduction of New Construction Contracts – For instance, the Urgency Decree No. 021-2020 was published in January 2020 by the Peruvian government. The Decree specifies terms for collaboration agreements with international organizations as well as Project Management Office within the context of Government to Government ("G2G") agreements.
Growing Usage of Natural Language Processing– Text analytics-based cloud NLP helps in decision-making or additional analysis by creating structured data from the contracts. The value of the Latin American market for natural language processing software was estimated at approximately USD 25 million.
Rising Employment in the Region– Latin American IT companies increased their global hiring by 286% in the second half of 2021. Additionally, it indicated that employers worldwide were most interested in hiring Latin American specialists.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
10.66% |
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Base Year Market Size (2022) |
USD 157.67 Million |
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Forecast Year Market Size (2035) |
USD 580.58 Million |
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Regional Scope |
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Business Function (Legal, Finance, Procurement, Sales, Operations, Human Resources, Information Technology)
The LATAM contract lifecycle management (CLM) market is segmented and analyzed for demand and supply by business function into legal, finance, procurement, sales, operations, human resources, and information technology. Out of the seven purposes of a business, the legal segment is estimated to gain the largest market size of USD 133.20 Million by the end of 2035 by growing at a CAGR of 9.52% over the projected time frame. Moreover, the segment generated a revenue of USD 41.31 Million in 2022. The growth of the segment can be attributed to the rising number of new startups in the region. Startups usually have multiple founders and investors, in that case, it is crucial to have legal counsel draught contracts and agreements to avoid any sort of ambiguity. In 2017, there were only 2 unicorns in the region, the economy of the region boosted and in 2021, there around 34 startups reached the value of over USD 1 billion and entered the list of unicorns.
End-user (BFSI, IT, Government & Public, Energy & Utilities, Manufacturing, Healthcare & Pharma, Life Sciences, Retail, Real Estate)
The LATAM contract lifecycle management (CLM) market is also segmented and analyzed for demand and supply by end user into BFSI, IT & telecom, government & public sector, energy & utilities, manufacturing, healthcare & pharma, life sciences, retail, real estate. Amongst these ten segments, the BFSI segment is expected to garner a significant market revenue of USD 120.56 Million by growing at a CAGR of 11.69% over the forecast period. Additionally, in 2022 the segment generated a revenue of USD 28.99 Million. The segment growth is credited to a higher number of people having bank accounts and getting life insurance. In 2021, out of the total population of Latin America, Venezuela, and Brazil have a higher share of people with bank accounts. IN 2021, around 84% of Venezuelans and 84% of Brazilians, respectively, held an account at a bank or another form of financial institution. Furthermore, in 2022, in Brazil the total worth of premium life insurance was around USD 30 billion, followed by Mexico and Chile, which accumulated life insurance worth nearly USD 13 billion and USD 5 billion, respectively.
Our in-depth analysis of the global market includes the following segments:
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By Solution |
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By Business Function |
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By Deployment |
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By End User |
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By Enterprise Size |
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The Brazil contract lifecycle management (CLM)market, amongst the market in all the other regions, is projected to hold the largest market size of USD 282.10 Million by the end of 2035. Moreover, it garnered a revenue of USD 63.97 Million in 2022 and is further expected to grow at a CAGR of 12.19% over the forecast period. The growth of the market can be attributed majorly to the increasing usage of artificial intelligence in the region which gives a boost to the business to grow both within the boundaries of the nation and internationally. AI are been used in various sectors moreover, there is a specific technology that is designed as per the need of the sector. For instance, artificial intelligence in healthcare, AI in agriculture, and others. Artificial intelligence is used by seven out of ten Brazilian businesses for a variety of functions. On the other hand, the market growth in the country is expected on the back of rising trade of Brazil with other countries. In 2022, Brazil exported China, items of worth USD 90 billion. Moreover, as per the statistics of OEC trade, Brazil exported USD 241 million in December 2021 and purchased USD 736 million from Russia in December 2022.
The Mexico contract lifecycle management (CLM) market, amongst the market in all the other regions, is projected to hold a market size of USD 119.31 Million by the end of 2035. Moreover, it garnered a revenue of USD 35.87 Million in 2022 and is further expected to grow at a CAGR of 9.79% over the forecast period. The market growth in the region is expected on the account of rising employment in the region which in turn is likely to boost the demand for drafting the contracts for maintaining the legal ethics with the new hiring. Around 57 million individuals were employed in the third quarter of 2022, an increase from the second quarter.
Wolters Kluwer N.V. announced the integration of its legal tech solution EasyQuorum for digitizing the board meeting and general assemblies. The software allows the accessibility of these meeting on the Microsoft Teams videoconferencing platform. This integration is also an indication for the collaboration of Wolter Kluwer with Microsoft for aiding the corporate legal workflows.
Coupa Software, Inc. a pioneer in business spend management (BSM) has announced the launch of its first offices in the Latin American area in Mexico City, So Paulo, and Bogotá this month. The new offices are to be open in 3 major countries with the highest GDP, including Brazil, Colombia and Mexico.
Author Credits: Abhishek Verma, Hetal Singh
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