CPQ/Configure Price And Quote Software Market Size (2024 – 2030)

The CPQ/Configure Price And Quote Software Market was valued at USD 10.5 billion in 2023 and is projected to reach a market size of USD 38.06 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 20.20%. 

The global CPQ (Configure Price And Quote) software market is experiencing a remarkable upswing, marked by several key numerical insights. Cloud-based CPQ software stands out as the market leader, capturing an impressive 65% share in 2023, underlining its widespread adoption among businesses seeking real-time data accessibility and scalability. Projections indicate a robust compound annual growth rate (CAGR) of 18% for the cloud-based CPQ segment from 2024 to 2030, highlighting the growing demand for these solutions. In terms of end-user industries, the IT and Telecom sector takes the lead with a commanding 40% market share in 2023, owing to its intricate pricing structures and subscription mechanisms. Furthermore, the retail and e-commerce segment emerges as a high-growth area, anticipated to experience a remarkable CAGR of 22.05% from 2024 to 2030, driven by digital transformation and the increasing need for personalized customer experiences. These numerical insights underscore the dynamic nature of the CPQ software market, offering valuable guidance for businesses and stakeholders aiming to navigate this evolving industry landscape.

Key Market Insights:

The comprehensive report on the global CPQ (Configure Price And Quote) software market presents a wealth of numerical data, illuminating key aspects of the industry's landscape. Notably, cloud-based CPQ software dominates the market with a substantial share of around 65% in 2023, reflecting the prevalent adoption of real-time data accessibility and scalability among businesses. The shift from traditional paperwork to CPQ software has significantly enhanced sales management productivity and operational efficiency. Cloud-based solutions, offered by leading vendors like Salesforce, Oracle, SAP, and Cincom, have gained prominence due to their real-time data accessibility, scalability, and cost-effectiveness. These solutions not only streamline workflow and reduce errors but also facilitate seamless collaboration among authorized parties. The report also emphasizes the rising significance of mobility solutions, enabled by smartphones and mobile apps, in revolutionizing the CPQ software market. Mobile accessibility allows organizations to generate quotes and provide customer updates promptly, shortening sales cycles and enhancing customer engagement.

Additionally, the report highlights the challenges faced by the industry, such as the lack of coordination among business units hindering adoption and the need for strategic marketing efforts to improve awareness among end users. Furthermore, it discusses the impact of environmental regulations on CPQ software production, emphasizing the industry's need to align with sustainability practices. The report underscores the market's dynamic nature, with key players like Apttus Corp., Oracle Corp., and Salesforce Inc. driving innovation through collaborations and the development of AI-powered CPQ solutions. Overall, the report provides comprehensive insights into the market trends, challenges, and opportunities, guiding businesses and stakeholders in making informed decisions in the rapidly evolving CPQ software industry.

Global CPQ/Configure Price And Quote Software Market Drivers:

Increasing Need for Higher Productivity, and shift from traditional paperwork to CPQ software.

Sales management personnel, traditionally reliant on cumbersome paperwork and documentation procedures, are transitioning to CPQ software to streamline their processes. The adoption of CPQ software significantly improves productivity and operational efficiency, reducing the time spent on pricing and configuration processes. Cloud-based CPQ solutions, in particular, enable companies to scale up their pricing and selling strategies rapidly, leading to a reduction in pricing, quoting, and order errors on a large scale. This increased efficiency also aids in handling legacy system integration, overcoming management challenges, and eliminating pricing data inconsistencies.

The rise in Mobility Solutions and Access to Real-time Data is fueling market growth.

The surge in mobility solutions, facilitated by the widespread usage of smartphones and mobile apps, has revolutionized the CPQ software market. Cloud-based CPQ software offers platforms that permit users to access the software from any mobile device. This mobile accessibility allows organizations to generate quotes on smartphones from anywhere, anytime, and provide customer updates promptly. Mobile CPQ applications contribute significantly to shortening the sales cycle, enhancing customer engagement, and improving overall sales effectiveness. Notably, cloud-based solutions grant access to real-time data, ensuring timely and informed decision-making, thereby bolstering the adoption of CPQ software across various industries.

The expansion in the IT and Telecom Sectors is boosting market growth.

The IT and telecom segment emerges as a major driving force for the CPQ software market. Companies within this sector are increasingly integrating CPQ software into their operations to automate transactions, manage complex billing, and enhance revenue recognition. CPQ software plays a pivotal role in quoting subscription mechanisms, structuring pricing plans, and automating administrative work, including proposals and paperwork, throughout the sales and purchase process. The automation capabilities of CPQ software cater to the specific needs of the IT and telecom sector, driving its adoption and contributing significantly to market expansion.

Global CPQ/Configure Price And Quote Software Market Restraints and Challenges:

Lack of Coordination Among Business Units Hindering Adoption:

The implementation of CPQ software necessitates seamless coordination and collaboration among multiple business units within enterprises, including sales, IT, product management, and finance. The absence of effective coordination poses a significant challenge to the widespread adoption of CPQ solutions. Decisions related to critical factors such as product pricing and discounts require consultation with various departments, particularly the finance team. However, the lack of coordination results in a relatively lower adoption rate of CPQ software, limiting its scope within organizations. The failure to integrate CPQ software into the sales system due to inadequate collaboration among business units adversely impacts the sales of CPQ software solutions.

Limited Awareness and Understanding Among End Users Impeding Market Expansion:

The successful adoption of CPQ software heavily relies on the awareness and understanding of its benefits among end users, including contractors, architects, and construction companies. Unfortunately, there exists limited awareness regarding the types of CPQ software available and their specific applications. This lack of knowledge hampers the optimal utilization of CPQ resources, as potential customers may not fully comprehend the advantages these solutions offer, such as increasing efficiency, reducing errors, and enhancing productivity. Educating the market about the advantages and applications of CPQ software is crucial. However, improving awareness demands strategic marketing efforts and educational programs, which can be resource-intensive and time-consuming. This challenge acts as a barrier to the expansion of the CPQ software market, impeding its growth potential.

Environmental Regulations and Sustainability Concerns Impacting Market Growth:

Stringent environmental regulations and growing concerns regarding sustainability pose significant challenges to the CPQ software market. Conventional software production processes are often associated with high carbon emissions, contributing to environmental degradation and climate change. In response, governments and legislatures worldwide are imposing strict emission standards and encouraging the use of environmentally friendly technologies. CPQ software designers and manufacturers face pressure to develop sustainable products with minimal environmental impact. Achieving this delicate balance, which involves complying with environmental regulations while maintaining product functionality and cost-effectiveness, presents a substantial challenge for industry players. The need to align CPQ software solutions with sustainability practices poses a complex hurdle, affecting market growth and product innovation within the CPQ industry.

CPQ/CONFIGURE PRICE AND QUOTE SOFTWARE MARKET REPORT COVERAGE:

CPQ/Configure Price And Quote Software Market Segmentation: By Deployment

• Cloud-Based CPQ Software

• On-premise CPQ Software

With a commanding market share of approximately 65% in 2023, cloud-based CPQ software stands as the leading deployment choice among businesses worldwide. Cloud-Based CPQ Software segment is the fastest-growing, projected to expand at a compound annual growth rate (CAGR) of 18% from 2024 to 2030. The market dominance can be attributed to its real-time data accessibility, scalability, and cost-effectiveness. Cloud-based solutions offer substantial advantages, such as reduced upfront costs, streamlined workflow, and ease of deployment. Organizations, recognizing the benefits of these solutions, have swiftly adopted cloud-based CPQ software, leading to its substantial market share.

Although facing challenges from the cloud-based counterparts, on-premise CPQ software holds a significant market share of around 35% in 2023. Despite the evolving technology landscape, certain sectors, particularly those with stringent security and compliance requirements, favor on-premise solutions. These industries, including finance and government, prioritize data control and security, driving the demand for on-premise solutions. While its market share is smaller compared to cloud-based solutions, the on-premise segment continues to cater to specific market niches, ensuring its sustained presence.

CPQ/Configure Price And Quote Software Market Segmentation: By End-User Industries

• Information Technology and Telecom

• Banking, Financial Services, and Insurance (BFSI)

• Automobile

• Retail and E-commerce

In 2023, With a significant market share of approximately 40%, the IT and Telecom sector lead CPQ software adoption. This dominance can be attributed to the sector's complex pricing structures, subscription mechanisms, and intricate transaction processes. The sector's continuous technological advancements and dynamic market demands drive the adoption of CPQ solutions. The BFSI sector, accounting for around 25% of the market share in 2023, has experienced notable growth in CPQ software adoption. Banking institutions, insurance companies, and financial services providers leverage CPQ solutions to streamline quoting subscription mechanisms, automate billing processes, and enhance revenue recognition rules. The sector's emphasis on efficient sales processes and customer-centric solutions has contributed to its significant market share.

The Retail and E-commerce segment emerges as the fastest-growing sector, projected to witness a remarkable CAGR of 22.05% from 2024 to 2030. This surge in growth is fueled by the sector's rapid digital transformation, the proliferation of online marketplaces, and the increasing demand for personalized customer experiences. Retailers and e-commerce platforms are increasingly adopting CPQ solutions to handle diverse product offerings, complex pricing structures, and multiple sales channels.

CPQ/Configure Price And Quote Software Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America stands as a dominant force in the global CPQ software market, contributing 39% to the overall market growth during the forecast period. The region's market leadership is attributed to the increasing need for effective global trade compliance, efficient supply chain management, and rapid advances in user interface design and mobile-first application design. Enhanced user experience, intuitive workflows, and mobile accessibility have transformed sales effectiveness, driving the adoption of CPQ automation among North American enterprises. The region's adoption of CPQ software aligns with its global expansion strategies, helping businesses mitigate risks, protect their brand, ensure customer satisfaction, and increase revenue. Additionally, the COVID-19 pandemic has further accelerated the adoption of CPQ software in North America, with companies transitioning to the work-from-home model and focusing on online operations, thereby boosting the regional CPQ market.

Emerging as a key contender, the Asia-Pacific region accounts for approximately 30% of the global market share in 2023. Led by economic powerhouses such as China and India, Asia-Pacific is witnessing a surge in CPQ software adoption. China, with its booming industrial sector and increasing demand for efficient sales solutions, holds a significant market share within the region.

COVID-19 Impact Analysis on the Global CPQ/Configure Price And Quote Software Market:

The COVID-19 pandemic has significantly reshaped the landscape of the Global CPQ (Configure Price And Quote) Software Market, compelling businesses to adapt swiftly to the changing demands of the market. According to recent data, the pandemic-induced disruptions led to a substantial increase in the adoption of CPQ software solutions, with businesses keen on streamlining their pricing strategies and enhancing customer experience in the face of economic uncertainties. Market reports indicate a notable surge in demand for cloud-based CPQ solutions as remote work became the norm during lockdowns. Moreover, several key players in the industry swiftly pivoted their strategies, focusing on innovative features to cater to the evolving needs of businesses in a post-pandemic world. As we navigate these unprecedented times, it's crucial to stay abreast of the dynamic market trends and leverage data-driven insights to drive strategic decision-making in the CPQ software sector.

Latest Trends/ Developments:

In the rapidly evolving landscape of the Global Configure, Price, Quote (CPQ) Software Market, several noteworthy developments and trends have emerged, signaling a dynamic industry poised for continuous innovation. One of the key trends shaping the market is the increasing focus on collaborative technologies. Market leaders, including PROS, Inc., IBM, and Salesforce.com, have embraced collaborative platforms that facilitate real-time communication and seamless workflow management. These platforms enhance efficiency in configuring complex quotes, pricing strategies, and quoting processes, catering to the diverse needs of industries such as IT, Telecom, Banking, Automobile, Retail, Gaming, and Hospitality. Moreover, significant investments have been made in research and development, leading to the introduction of AI-powered CPQ solutions. These advanced systems utilize artificial intelligence and machine learning algorithms to analyze customer data, predict buying patterns, and offer personalized product configurations and pricing options. Furthermore, strategic collaborations between CPQ software providers and leading enterprises in the manufacturing sector have resulted in the development of innovative solutions tailored to specific industry requirements. For instance, recent collaborations between CPQ software companies and automobile manufacturers have led to the creation of custom CPQ tools that streamline the configuration and pricing of complex vehicle models, meeting the demands of discerning customers. Additionally, environmental sustainability has become a focal point, driving the adoption of eco-friendly CPQ solutions. Companies in the market are actively investing in the development of CPQ software that enables businesses to configure environmentally conscious products, promoting sustainable practices across industries. These developments underscore the market's commitment to innovation and responsiveness to the evolving needs of businesses and consumers alike, ensuring a vibrant and forward-looking CPQ Software Market landscape.

Key Players:

1. Apttus Corp.

2. CloudSense Ltd.

3. ConnectWise LLC

4. Experlogix LLC

5. Hansen Technologies Ltd.

6. International Business Machines Corp.

7. Koch Industries Inc.

8. Model N Inc.

9. Oracle Corp.

10. Salesforce Inc.

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