This MGI Forecast provides a quantitative estimate of the Total Addressable Market (TAM) for Contract Lifecycle Management (CLM) software from 2022 to 2026. Included in this report are the worldwide annual estimates of spending and growth rate, breakdown of spend by company size, industry, and geography, and the demand impact of major secular trends like the subscription economy and digital transformation, among others. 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.
The market for cloud-based CLM software represents a large, expanding, and all-season opportunity with a rapidly expanding 5- year (2022-2026) TAM approaching $30 billion.*
CLM represents a significant opportunity to increase productivity, improve accuracy, and inject operational speed across organizations of all sizes, stages of maturity, industries, and geographies. Leading organizations around the world are already investing in automated CLM tools, but the overall level of adoption is still relatively modest. We expect the pace of innovation and adoption in this area to accelerate over the next five years. This will be accompanied by a transformation of what CLM systems can deliver, how CLM is perceived by the users, and the increasing pace of integration between CLM and other core enterprise systems such as CRM, CPQ, Billing, and Procurement Management and Supply Chain, among others. MGI Research believes CLM is an essential ingredient to any digital transformation initiative.
*Contact MGI Research for the precise figure.