We have updated the MGI Forecast of the total addressable market (TAM) for Agile Monetization Platform (AMP) software from 2018 to 2022.

This latest forecast contains worldwide annual estimates of spending on software that falls into AMP categories including Financials, Billing, Revenue Recognition, CPQ, CRM, Order Management, Contract Lifecycle Management (CLM), e-Commerce, and Mediation. The report also details growth rate, breakdowns by AMP categories, geographies, economic sectors, analysis of market size based on company size, the impact of Internet of Things (IoT), Digital Transformation, and company growth and technology spend profiles (among other factors). The scope of the data has been expanded to include estimates and annual forecasts for cloud-based AMP software as well as the corresponding legacy on-premise software solutions. This MGI Forecast examines the total potential spend in each category and across AMP as a whole.

The term Agile Monetization was introduced by MGI Research in 2015 and originally evolved from a concept of Agile Billing pioneered by MGI Research in late 2013. In the monetization context, agility refers to the ability to create and evolve new offers by iterating rapidly, thus accelerating the velocity with which a business can bring new product offers to market.


Business Context

The very nature of competition today is changing radically. Product innovation and growth opportunities are bound only by the imagination. Once-protected pools of profit are now at risk. Product cycles and market opportunities come and go in less than five years with the majority of benefits accruing for a limited few. Organizations of all sizes want greater transparency and control in their business relationships. The demand for custom pricing models and flexible terms is counterbalanced by the challenges of delivering these capabilities at scale.

Across most key world economies, the number and complexity of regulatory and audit requirements are mounting while the timeframes in which to reach compliance are getting shorter. Against this rapidly accelerating backdrop, product innovation and revenue optimization are the crucial levers for growth and profitability. In the face of these opportunities and threats, progressive organizations are focusing on key processes and new monetization tools to sharpen their edge.

Increasing regulation, digital disruption, activist investors, and ever-evolving customer demands are overwhelming legacy IT systems and processes. Individuals and businesses alike are looking beyond product purchasing to the consumption of services. Customer preferences for pricing models, payment modalities, and personalized quotes and contract terms continue to shift. Subscriptions, demand-based price models, pay-per-use, and increasingly complex enterprise agreements with a litany of unique entitlements are now the norm. Technology disruption accelerates the demand for these new pricing models, and it is everywhere–from the Internet of Things (“IoT”), autonomous vehicles, and artificial intelligence to digital disrupters like Netflix, Airbnb, and Uber. This revolution necessitates a reckoning for businesses from corner stores to Fortune 10 companies.

Reacting to these new business needs, organizations are looking to revamp their core business systems, particularly in the area of monetization.


Monetization as a Strategic Capability

Monetization is a measure of how efficiently and effectively market demand is created and translated into revenue, profits, and competitive differentiation.

The process of monetization reaches across the entire organization covering product development, marketing, sales, finance, billing, and customer support—literally from the back office to the front office and into the customer and supplier ecosystem. Monetization is not a single product but a business discipline that combines business processes, tools, and skilled human resources to efficiently and effectively create and translate market demand into revenues, profits, and competitive differentiation.

There are multiple business and technology drivers for investment in AMP solutions. AMP is one of those all-season markets with solid demand through good times and bad times. In periods of economic expansion, AMP enables companies to launch products faster and accelerate time to revenue while increasing customer success and satisfaction. In periods of relative economic weakness, AMP is no longer a boost but an essential business tool accelerating the order to cash cycle, reducing DSO, and enabling more granular (and efficient) product offer management.

In our research and advisory practice, we have seen clear evidence of companies prioritizing investment into AMP over other, more traditional business applications areas.



The market for Agile Monetization Platform (AMP) software represents a new, large (and expanding), all-season opportunity with a total addressable market (TAM) exceeding $172 billion from 2018 to 2022. MGI Research expects AMP spending to rise from $19 billion in 2018 to over $55 billion in 2022. The key drivers of growth include the shift to new business models based on recurring and/or usage-based pricing, increased impact from adoption of Internet of Things (IoT), regulation, the ability of vendors to reach previously unserved buyers, and the push to automate (“digitally transform”) the enterprise. The economics and agility of cloud computing solutions are also stimulating migration of workloads from traditional on-premise software solutions to cloud-based AMP options.

Leading organizations primarily in North America are already making the move to AMP today, and they comprise the bulk of the spending currently underway. Over the next 24 months, geographic markets beyond North America will accelerate, and fast-following firms and middle of the road organizations in North America will ramp up spending on AMP. Given the critical nature of AMP–it affects topline growth, profitability, and customer satisfaction–it is one area of technology spend that is being prioritized. This report analyzes the key market drivers and dynamics that are fueling the growth in AMP investments and details the geographies, sectors, and vertical industries that are most impacted by major trends like IoT (“Internet of Things”) and the adoption of subscription business models.



(61 pages)

  1. Executive Summary
  2. Introduction
  3. Key Business and Technology Drivers
  4. Regulatory Compliance
  5. Stepping Into the Future–Automation, Renovation, and Transformation
  6. Customers of All Sizes
  7. Top Symptoms of Need for Agile Monetization
  8. Key Elements of an Agile Monetization Platform (AMP)
  9. Who Are the Buyers of AMP
  10. Who Within an Organization Benefits From AMP?
  11. Functional Overlap
  12. Forecast Scope, Assumptions and Methodology
  13. AMP Total Addressable Market (TAM)
  14. Legacy Total Addressable Market
  15. AMP Annual Forecast
  16. AMP TAM Geographic Segments
  17. Top 10 Countries for AMP TAM
  18. AMP TAM Top Sectors
  19. Impact of Growth
  20. Impact of Technology Adoption Style
  21. Impact of Digital Transformation
  22. Impact of The Internet of Things (IoT)
  23. Impact of a Shift Towards Subscription Business Models
  24. Agile Billing Market Forecast
  25. Cloud Contract Management Market Forecast
  26. Cloud CPQ Market Forecast
  27. Cloud e-Commerce Software Tools Market Forecast
  28. Cloud Financials Market Forecast
  29. Cloud Order Management Software Market Forecast
  30. Cloud Revenue Recognition Software Market Forecast
  31. Cloud Customer Service Software Market Forecast
  32. Summary
  33. Appendix: AMP TAM Forecast Assumptions and Stats



Figure 1 – Current Business Environment

Figure 2 – Business Model Gap

Figure 3 – Symptoms of Need for Agile Monetization

Figure 4 – Rethinking Enterprise Systems

Figure 5 – Select AMP Elements

Figure 6 – AMP Benefits

Figure 7 – AMP TAM Forecast Breadth

Figure 8 – AMP TAM Forecast Depth

Figure 9 – Forecast Core Assumptions

Figure 10 – AMP TAM

Figure 11 – Legacy Monetization Software TAM 2018-2022

Figure 12 – AMP Annual Forecast

Figure 13 – AMP Geographies

Figure 14 – AMP Categories & Regions

Figure 15 – AMP Key Countries

Figure 16 – Top 10 Countries for Legacy Monetization Spending

Figure 17 – AMP Key Sectors

Figure 18 – Top Segments Within Sectors and Company Sizes

Figure 19 – AMP by Company Size

Figure 20 – AMP TAM by Growth

Figure 21 – AMP TAM by Tech Adoption Style

Figure 22 – AMP TAM by Digital Transformation

Figure 23 – Characteristics of a Digital Enterprise

Figure 24 – AMP TAM by IoT Impact

Figure 25 – Impact of Subscriptions on AMP Spend

Figure 26- Agile Billing AMP TAM Forecast 2018-2022

Figure 27 – Cloud Mediation Software TAM Forecast 2018-2022

Figure 28 – Cloud Customer Service Software TAM Forecast 2018-2022

Figure 29 – AMP TAM Source Data: Sectors and Industries

Figure 30 – AMP TAM Source Data: Regions and Countries

Figure 32 – AMP TAM Source Data: Total Revenue

Figure 33 – AMP TAM Source Data: Average Revenue

Figure 34 – AMP TAM Source Data: Growth Distribution

Figure 35 – AMP TAM Source Data: Average Revenue Growth

About MGI Forecasts: MGI Research Forecasts provide quantitative estimates for the total addressable market (TAM) for software solutions that comprise the modern finance office and make up the agile monetization platform (AMP). Worldwide annual estimates of spending, growth rate, breakdown of spending by company size, industry, and geography, and the demand impact of major secular trends like IoT, the Subscription Economy, and Digital Transformation, among others, are included in these reports. Learn more about MGI Forecasts.