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The configure price and quote software market size is projected to increase by USD 2.96 billion, at a CAGR of 16.65% between 2023 and 2028. Market growth relies on several key factors. Firstly, there is an imperative for enhanced productivity in organizations, driving the adoption of Configure, Price, Quote (CPQ) software to streamline sales processes and improve efficiency. Secondly, increasing demand for CPQ software from emerging APAC nations is contributing to market expansion, as businesses in these regions seek to modernize their operations. Lastly, the affordability of CPQ software solutions is making it accessible to a broader range of companies, further fueling its adoption. These factors collectively highlight the growing importance of CPQ software in improving organizational productivity and meeting the needs of a global market.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Accenture Plc, Apttus Corp., Cincom Systems Inc., Experlogix LLC, Hansen Technologies Ltd., International Business Machines Corp., Koch Industries Inc., Model N Inc., Oracle Corp., Pros Holdings Inc., Revalize Inc., SAP SE, Tacton Systems AB, Vendavo Inc., Yagna iQ Inc., Zuora Inc., Salesforce Inc., and Aspire Technologies. CloudSense Ltd. company offers assistive technology solutions such as Gendron Bariatric bath safety, Gendron Bariatric beds, and Paramount XD wheelchairs, which help people to carry themselves from one place to another.
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The market is evolving rapidly, driven by digital transformation across various sectors. CRM software and on-premises CPQ software are essential tools for enhancing sales management productivity in configurable product-oriented industries. The integration of AI-powered CPQ solutions leverages artificial intelligence and machine learning algorithms to streamline the configuring and quotations process. Industries like IT and telecommunication, transportation, retail and e-commerce, finance, and government sectors are increasingly adopting these solutions. On-premise CPQ software offers robust customization for specific needs, while AI-powered CPQ solutions provide advanced insights and automation. The market's growth is fueled by the demand for efficient sales tools, improved resource documents, and seamless integration with sales management and digital transformation initiatives.
The market share by the cloud-based segment will be significant during the forecast period. There are several cloud-based CPQ software market players such as Salesforce, Oracle, SAP, and Cincom. Increasing efforts to reduce IT infrastructure costs while ensuring flexibility, agility, and efficiency of marketing operations will boost the growth of the cloud-based segment of the CPQ software market. Cloud-based CPQ software offers numerous benefits such as real-time data, scalability, ease of deployment, installation, and upgradation. It can help streamline workflow and the option of subscription-based payment options and also remove the recruitment of massive capital investments.
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The cloud-based segment showed a gradual increase in the market share of USD 957.52 million in 2018. CPQ software is an ideal platform for companies that must share updated information such as product classification as it gives access to real-time data to all authorized parties. Cloud-based social media management solutions are deployed over public, private, and hybrid cloud computing models which are boosting market growth. Hence such factors are expected to propel the market growth of this segment during the forecast period.
The IT and telecom segment will account for the largest share.?These companies are increasingly integrating the usage of workforce technologies for human capital management. This segment of the market is predicted to witness growth during the forecast period as there are numerous uses of CPQ software such as quoting subscription mechanisms, pricing plan structures, complex billing as well as revenue recognition rules. It helps to automate transactions and administrative work like proposals and paperwork during the sales/ purchase process. Hence such factors will result in further growth of this segment of the configure price and quote software market during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The North American market is the largest regional market due to the increasing need for effective global trade compliance and efficient supply chain management. There is uncertainty due to the collapse of the Trans-Pacific Partnership, potential changes in the North American Free Trade Agreement (NAFTA), and dynamic US-China trade relations.
Furthermore, enhanced user experience, interface design, and intuitive workflows will result in further adoption and increased growth of the configure price and quote software market. North American enterprises that seek to go global increasingly adopt CPQ automation to mitigate business risks, protect their brand, and ensure customer satisfaction while increasing revenue as well. Hence, such factors are expected to contribute to regional market growth during the forecast period.
The market serves diverse sectors like manufacturing and telecommunications with Software as a Service (SaaS) solutions. It streamlines sales teams' operations by integrating product catalogs, pricing databases, and CRM systems. Utilizing product configuration engines and assisted selling tools, enhances efficiency in generating quotation templates and managing approval workflows. With a shift towards cloud-based solutions, CPQ enables seamless e-commerce transactions and process automation. The market experiences growth through mergers and acquisitions, strategic partnerships, and continuous product launches and innovations, offering both subscription-based and perpetual license models. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The increasing need for higher productivity in organizations is the key factor driving the market. Sales management personnel heavily reliant on conventional methods often find themselves bogged down by paperwork and documentation procedures. However, the advent of CPQ software presents an opportunity for exponential improvement in productivity and operational efficiency. With CPQ software, the time spent on pricing and configuration processes can be significantly reduced, particularly with the adoption of cloud-based solutions.
Moreover, configure price and quote software market players like Salesforce offer companies the ability to swiftly scale up their pricing and selling strategies compared to on-premises applications. This capability can aid companies in minimizing pricing, quoting, and order errors on a large scale. Additionally, CPQ software can facilitate legacy system integration, address management challenges, and eliminate pricing data inconsistencies. Consequently, these factors are poised to drive market growth during the forecast period, benefiting industries such as manufacturing, telecommunications, and software as a service (SaaS), among others.
The increase in mobility solutions is the primary trend in the market. Align with market trends and analysis, increasing smartphone penetration and the popularity of mobile apps have increased market sales. Due to the ease of access and mobility among end-users, accessing CPQ software features through smart devices is increasing rapidly. Cloud-based CPQ software offers platforms that permit users to access the software from any mobile device.
Moreover, this allows organizations to easily access and exchange data with employees from remote locations. Mobile CPQ applications can generate quotes on smartphones from anywhere, anytime, and provide customer updates immediately which shortens the sales cycle. The existence of several mobile apps for CPQ such as PandaDoc and Infusionsoft further expands the scope of the Configure Price and Quote software market. Hence such factors are expected to boost market growth during the forecast period.
The lack of coordination among business units is challenging market expansion. Implementing CPQ to receive optimum benefits requires the coordination and participation of multiple business units within an enterprise. For this to occur, sales teams in companies must take the initiative and collaborate with other departments/business units, such as IT, product management, and finance.
Additionally, due to a lack of coordination between business units, there is a relatively lower adoption of CPQ, reducing the scope of the configure price and quote software market. For example, decisions regarding key factors like product pricing and discounts must be consulted with the finance team of the organization. Hence the possibility of failure of CPQ software implementation into the sales system results in reduced sales of CPQ software. Such factors will be a hindrance to market expansion during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
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Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is expanding due to technological improvements and changing customer needs. This growth is supported by cloud-based CPQ systems and on-premise infrastructure, offering flexibility and real-time data access. Sales tools enhance sales productivity through features like upselling, cross-selling, and personalised pricing schemes. Automated pricing algorithms and the ability to customise quotes cater to complex products. Mobile compatibility and intuitive interfaces ensure accessibility and ease of use. The market also sees a rise in subscription models and the integration of sales force automation (SFA) tools with existing processes. B2B purchase processes benefit from these integrated systems, streamlining operations and improving efficiency.
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Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.65% |
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Market Growth 2024-2028 |
USD 2.95 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.23 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Apttus Corp., Cincom Systems Inc., CloudSense Ltd., ConnectWise LLC, Experlogix LLC, Hansen Technologies Ltd., International Business Machines Corp., Koch Industries Inc., Model N Inc., Oracle Corp., Pros Holdings Inc., Revalize Inc., SAP SE, Tacton Systems AB, Vendavo Inc., Yagna iQ Inc., Zuora Inc., Salesforce Inc., and Aspire Technologies |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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