Rising interest in contract management software, increasing compliance adjustments, and increased complexity as a result of the wide range of transactions and allowing models are the main factors anticipated to propel the growth of the digital contract management market.
The global Digital market is projected to reach US$ 227,042 Million by 2032, growing at a CAGR of 14.3%
Covid-19 Impact & Market Status
Many businesses are changing their business practices dramatically as a result of COVID-19. While the work-from-home model has dominated the news, businesses are currently assessing other (but equally essential) strategies that could become standard in the years to come. The way we set up supply networks is one significant change. For many years, corporations were able to create extremely lean supply chains that increased profitability. However, a lot of those global, low-cost, just-in-time supply chains have been put at risk of breaking because to the COVID-19 epidemic or have been severely overstretched.
Cloud segment to Grow at a Higher CAGR during the forecast period
The digital contract management market is segmented based on deployment type into groups like on-premises and cloud. Out of them, the cloud segment will rise as a result of such important variables as a growth in merger and acquisition activity. To improve the organization's contract management software, DocuSign bought SpringCM in September 2018, one of the most well-known cloud-based document generating providers for Contract Lifecycle Management (CLM).
Healthcare to Grow at a Higher CAGR during the forecast period
In the industry sector, the market for contract management software was led by the healthcare sector. Healthcare and life sciences firms produce a significant number of data, a wide range of contracts for the commercialization of medications and medical devices, data for clinical studies, and service contracts for the upkeep of a sizable amount of medical equipment. Additionally, to maintain their contracts, the majority of healthcare firms rely on spreadsheets, dispersed file storage, and email. Therefore, healthcare and life sciences cannot afford to waste time on issues with contracts and procurement because doing so could cause a life-saving drug to be delayed.
Small and Medium Enterprise to Grow at a Higher CAGR during the forecast period
The small and medium enterprise category includes businesses with less than 1,000 employees. Since many businesses have small resources to manage their contracts, maximizing productivity and cutting expenses are essential elements. Therefore, these companies need a solution that is affordable and can help them optimize their contracts. Comparatively speaking to large corporations, SMEs manage fewer contracts. As a result, there is a lack of proactive contract management because postponing them carries no risk. SMEs can manage contracts manually when there are only a few of them, saving money on software expenditures.
North America to Dominates the market share during the forecast period
Throughout the projection period, North America will continue to rule the global market for contract management software. Key market players like Coupa, Information Services Group, Model N, and Corcentric are present in the nation, which has a big impact on how the industry is developing in the US. The most significant companies in this nation's contract management software sector are spending a lot of money on R&D. Increased joint ventures, acquisitions, and mergers in the healthcare and life sciences industries will probably lead to market growth.
Increased demand for agile contract management, changes in compliance, and increased complexity brought on by the variety of sales and licensing models are some of the key drivers anticipated to propel market expansion.
In order to support contract management, contract lifecycle management, and contractor management on projects, a group of tools, data sources, and libraries are referred to as digital contract management. Project management software will be used with it. These days, the majority of complex projects involving contractors rely on contract management software rather than manually managing paper contracts. It has developed into a crucial tool for monitoring a variety of actions that have an impact on costs. It may be especially useful for systematizing administration, guaranteeing compliance, monitoring risk, running reports, and setting off warnings.
A company in a competitive environment must oversee thousands of contracts every year. The popularity of contract management software has expanded along with the development of digital technologies. The software's goal is to manage contracts more quickly, effectively, and safely while lowering the risks, which will raise market demand for them. Additionally, evolving legal compliance has greatly contributed to industry expansion. By 2029, the market for digital contract management is anticipated to reach USD 4.6 billion, growing at a CAGR of 12.4%. (2022–2029).
Software for managing contracts helps to effectively handle every step of a contract signed between two or more firms. The following procedures can be managed by this software: contract writing, contract discussions, contract approval, contract administration, contract administration repository, compliance optimization, contract retrieval, contract amendments, and contract dispose. It helps the company form alliances with other companies to diversify the range of their current clientele. The public sector, the healthcare industry, manufacturing, and financial services have all seen an increase in demand for contract management software as a result.
One of the main elements influencing the adoption of contract management software is the expanding complexity of business processes. This software lowers risks, creates a framework for compliance management that is more effective, and enhances the client experience. Furthermore, cloud-based contract lifecycle management software is being used more and more by small and medium-sized businesses (SMEs) because it supports self-service contract creation, manages templates and pre-approved alternative clauses, and provides real-time collaboration for a quicker contract turnaround. Additionally, it safeguards emails and attachments, streamlines the contract approval procedure, reduces the possibility of compliance infringements, and has version control and comparison features that facilitate tracking and managing contract negotiations.
Software for managing contracts may provide a number of advantages, including shorter reading times and increased compliance by businesses with governmental regulations. Additionally, the requirement of working together on projects and joint ventures has increased contract exposure for the involved parties as a result of globalization. Because of this, several businesses have implemented contract management solutions. The global expansion of contract management is, however, being constrained by the growing security concerns among enterprises surrounding the leakage of contract information.
SAP SE, Exari Coupa Software, Information Services Group, Newgen Software, Synertrade (Econocom Group), Corcentric LLC (Determine), Infosys Limited, Apttus Corporation, Infor, Model N, Ivalua, Agiloft, CLM Matrix, and other market leaders are the major participants in the global digital contract management market. Presently, major players in the contract management software industry are collaborating, making alliances, and introducing cutting-edge contract management platforms. For instance, Icertis opened an AI studio in May 2022 to make contract intelligence driven by AI available to everyone. Customers will be able to quickly make decisions by using the AI studio to assess lengthy documents and several aspects of business-related agreements.
Latest Innovations in the Global Digital Contract Management Market: a Snapshot
- In June 2022, With improvements, Agiloft's connected experience platform has become the most potent platform for contract integration. The platform enables users to manage contracts for the data and move the data where it is needed for decision-making. Its platform's interface with Workato enables customers to seamlessly transfer contract data within the enterprise and to onboard any data into new systems.
- In June 2022, Ooredoo Group selected Icertis as its contracted intelligence provider. In order to ensure that all the data is properly memorialized throughout the company, Ooredoo plans to use the contract intelligence CLM platform to generate enormous sets of papers in a structured and connected manner.
Digital Contract Management Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 4.6 billion|
|Growth Rate||CAGR of 12.4 % during 2022-2030|
|Segment Covered||Components, Deployment, Business, Industry, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||SAP SE, Exari Coupa Software, Information Services Group, Newgen Software, Synertrade (Econocom Group), Corcentric LLC (Determine), Infosys Limited, Apttus Corporation, Infor, Model N, Ivalua, Agiloft, CLM Matrix|
Key Segments of the Global Digital Contract Management Market
Components Overview, 2019-2029 (USD Billion)
Deployment Overview, 2019-2029 (USD Billion)
Business Size Overview, 2019-2029 (USD Billion)
- Small and Medium Enterprise
- Large Enterprise
Industry Overview, 2019-2029 (USD Billion)
- Transportation and Logistic
- IT and Telecom
Regional Overview, 2019-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa