MGI Research projects the five-year (2022-2026) Total Addressable Market (TAM) for Configure-Price-Quote (CPQ) software globally will exceed $45 billion. This number includes spend by public and privately held companies selling both cloud-based and legacy software.
This MGI Forecast provides a quantitative estimate of the 2022-2026 CPQ market size and growth rate. This forecast covers spending on cloud-based and legacy (on-premises) software for public and private companies globally. Significant additional detailed information is available for MGI Forecasts subscribers including data on spending estimates by public companies and segmented data for specific geographies, industries, and business models, including detailed estimates of CPQ software spend by services organizations globally.
Configure-Price-Quote is a software discipline that enables companies to automate complex sales processes and enable customization at-scale. In theory, a CPQ solution should organize a company product catalog and price lists into one central place, provide an abstract representation of the business rules that govern product packaging, support pricing and margin discipline, and manage timely and comprehensive quote construction, review, approval, submission, and tracking.
CPQ abstracts and automates the process of configuring a customized customer offer, determining all the needed elements, deriving a price, and creating a managed quote to be provided to the customer for review and approval.
The CPQ forecast data includes spend on both commercial, off-the-shelf solutions as well as solutions developed by organizations in-house. The legacy spend is likely to remain on a stable and slightly downward slope, impacted by gradual migration to cloud-based CPQ solutions. MGI Research does not expect a massive or rapid migration from legacy tools to the cloud. Most of the cloud revenue is generated with new opportunities, especially with companies that have not yet invested in a CPQ capability.
This research is based on MGI Research’s proprietary MGI Forecasts Global Analytics Model, a database that includes every publicly listed operating company with revenue greater than $1 million per year.
This forecast provides a detailed breakdown of CPQ TAM by industry, geography, company sizes, and many other criteria.