The global sales performance management (SPM) software market is currently valued at around USD 2,091.8 Million in 2023 and is anticipated to reach USD 7,121.5 Million by 2033. The sales performance management (SPM) software market is estimated to progress at a CAGR of 13.0% from 2023 to 33.
| Attributes | Details |
|---|---|
| 2023 SPM Market Value | USD 2,091.8 Million |
| 2033 SPM Market Value | USD 7,121.5 Million |
| CAGR% (2023 to 2033) | 13.0% |
| Top 5 Vendor SPM Market Share | 30% |
Sales performance management (SPM) is software for operational and analytical operations that automate and integrate back-office operational sales processes to boost operational efficiency and effectiveness. SPM software has core capabilities that include incentive compensation management (ICM), sales planning and monitoring, territory management (TM), sales performance analytics, sales reporting, and quota management (QM). The sales performance management (SPM) software market represents nearly 30% of the global business process management market, globally
The global sales performance management (SPM) market is estimated to showcase impressive growth over the forecast period due to factors such as increasing investment in sales automation to improve sales lead visibility, adoption of metrics-driven sales tools, and compensation planning to increase business development and sales performance. It is also used for monitoring and guiding sales personnel to improve their ability to sell products or services.
| Market Statistics | Details |
|---|---|
| Jan - Jun (H1), 2021 (A) | 12.9% |
| Jul - Dec (H2), 2021 (A) | 13.1% |
| Jan - Jun (H1),2022 Projected (P) | 13.2% |
| Jan - Jun (H1),2022 Outlook (O) | 13.4% |
| Jul - Dec (H2), 2022 Outlook (O) | 13.6% |
| Jul - Dec (H2), 2022 Projected (P) | 13.5% |
| Jan - Jun (H1), 2023 Projected (P) | 13.4% |
| BPS Change: H1,2022 (O) - H1,2022 (P) | (+)20 |
| BPS Change: H1,2021 (O) - H1,2022 (A) | (+)50 |
| BPS Change: H2, 2022 (O) - H2, 2022 (P) | (+)20 |
| BPS Change: H2, 2021 (O) - H2, 2022 (A) | (+)50 |
Sales performance management strategies such as territory planning, sales incentive compensation, sales pipeline optimization, and others are widely used by enterprises to optimize the business development process. The sales performance management (SPM) software market is estimated to rise at 13.0% CAGR between 2023 and 2033 in comparison to the 11.1% CAGR registered during 2018-2022.
The rising need for precise measurement and tracing of sales metrics, mitigation for IT staff, and increasing adoption of sales performance management technologies are expected to drive market growth over the forecast period.
The global sales performance management (SPM) software market is anticipated to witness an increase in revenue from ~USD 1.68 Million in 2022 to ~USD 7,121.5 Million by 2033.
The demand for sales performance management (SPM) software is increasing in the BFSI sector for various factors such as increasing business complexity and increasing requirements for audit, compliance, and visibility across financial services.
The ongoing trend of implementation of business intelligence tools in the banking, financial services, and insurance (BFSI) and IT & telecom industries has boosted sales performance management (SPM) software sales across the globe.
Sales performance management (SPM) software offers various features such as automated, collaborative, data-informed, integration with more applications, and others. There are three major sales workflows that are used in BFSI institutions to improve their sales performance such as sales planning, sales incentives and sales insights.
Continuous research and development by the BFSI sector are creating huge competition among vendors for technological advancements in sales performance management (SPM) software, and contributing to the growth of the market for effective customer relationship management.
The USA To Remain a Dominant Market in North America
Until 2022, sales performance management (SPM) software value across the United States grew Y-o-Y by over 9.9% to reach USD 428.4 Million. The market is set to further aggrandize at a CAGR of nearly 10.5% through 2033. FMI has projected the USA to remain one of the most lucrative markets in North America through the course of the forecast period, owing to high digital adoption at workplaces to improve business processes.
Increasing demand for sales performance management software and tools for effective customer relationship management in IT & telecom, retail, government, healthcare, and BFSI sectors is expected to drive the sales performance management (SPM) software demand in the USA.
Furthermore, advantages and benefits offered by sales performance management (SPM) software such as a data-driven approach, pipeline optimization, and improved sales productivity are the factors boosting the USA sales performance management (SPM) software market.
Development of Cloud-based Sales Performance Management (SPM) Software in Spain to Propel the Growth.
Demand for sales performance management (SPM) software in Spain is expected to rise at 14.8% CAGR over the forecast period. Spain’s economy is increasingly powered by cloud-based SPM software.
Furthermore, the European region constitutes developed economies, such as Germany, France, and Spain, among others that have fairly adopted cloud-based sales optimization tools, besides incorporating advanced technologies. It offers various benefits such as sales professional development, optimized quota and territory management, and more accurate performance-based incentives, among others.
Adoption of Modern Sales Performance Management Software in India Giving Tailwinds to Growth
Sales performance management (SPM) software demand in India is estimated to increase at 20.7% CAGR between 2023 and 2033. The market is projected to witness significant growth due to the growing need to identify risks and gaps within the sales process and align sales-related resources for better sales planning.
With the continuous digitalization and automation throughout workplaces in India, sales teams are under constant pressure to automate sales workflows. The SPM tools help organizations in sales planning, sales training, territory assignment, predicting sales trends and other capabilities. India is a big market for customer management and this would drive the sales performance management market growth to large extent.
Demand for Standalone SPM Software to Consistently Grow
As per FMI, the standalone SPM software segment is expected to showcase a higher market share in the coming years. This segment is predicted to account for an exponential share of 65.6% by the end of 2033.
It includes various standalone software/modules such as incentive compensation management (ICM), territory management module, sales planning tool, and others. The need for sales performance management (SPM) software is to educate and inspire different salespeople to identify their goals and delight their customers. It is required for various components such as performance reviews, setting goals, and others.
On-Premise SPM Software to Retain Dominance
By deployment model, on-premise sales performance management (SPM) software dominated the market and constituted the highest market share of 55.0% in 2022. However, the cloud-based sales performance management (SPM) software segment is set to expand at a higher CAGR of 14.8% from 2023 to 2033.
The growth of the cloud-based sales performance management (SPM) software segment is mainly attributed to the high demand for identifying, recognizing, and addressing problems with sales employees, especially among SMEs. The on-premises deployment model is majorly preferred by large organizations as they have diverse datasets across multiple locations and sufficient sales personnel to management the process locally.
Digitization across Large Enterprises to Remain Chief Growth Enabler
The large enterprise segment accounted for more than 70.0% of the overall market share in 2022 and is expected to continue its dominance during the forecast period. The use of sales performance management (SPM) software helps large enterprises to gain useful insights from this data, and make necessary changes to their sales performance.
Large enterprises are fast developing and transforming their entire environment into a digital platform. SPM software is being more widely used to support corporate growth and accelerate enterprise acceleration in today's rapidly changing market conditions. It also aids them in creating a business plan and effectively implementing their strategies.
Demand in IT and BFSI Industries to Help Market Gain Traction
Based on industry, the market is segmented as IT & telecom, retail, government, healthcare BFSI, manufacturing, and others. The IT and telecom segment accounted for the largest market share of 23% in 2022. Moreover, the BFSI industry segment is set to witness a relatively higher CAGR of 17.3% during the forecast period.
Sales performance management (SPM) software help organizations fill the gap between their business goals and sales performance. It offers various benefits such as providing visual representations of sales performance, monitoring progress concerning the team and personal goals, and keeping track of team and individual sales performance.
The sales performance management (SPM) software providers focus on launching innovative solutions and expanding their software offerings to deliver enhanced technology as well as offer new and upgraded solutions in new markets.
Below are some key developments in the market:
| Attributes | Details |
|---|---|
| Market value in 2022 | USD 1,680.0 Million |
| Market CAGR 2023 to 2033 | 13.0% |
| Share of top 5 players | Around 30% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa, and South Africa |
| Key Segments Covered | Type, Deployment Mode, Enterprise Size, Industry, and Region |
| Key Companies Profiled |
Oracle; Microsoft; PROS Holdings; Salesforce; Vendavo; Optymyze; Apttus; IBM; Anaplan;beqom; CDK Global; Iconixx; Incentives Solutions |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
South Asia & Pacific region is projected to register strong growth in the market, exhibiting a CAGR of nearly 17.0% during the forecast period.
Some of the leading companies in this landscape are Oracle, Microsoft, and Salesforce, among others. As per Future Market Insights, nearly 55%-60% of the market share is currently covered by the top 15-20 players.
The IT & telecom industry segment is expected to dominate the market over the forecast period. However, the BFSI industry segment is expected to grow at a higher CAGR of over 17.2% during the forecast period.
The sales performance management (SPM) software market was valued at ~USD 1,680.0 Million in 2022 and is estimated to grow at an exceptional pace with a CAGR of 13.0% to reach ~USD 6,301.3 Million in 2033.
The market in the last 5 years (2017 to 2022) grew by a CAGR of 11.1%.
Key trends in the sales performance management (SPM) software market include: Continuous innovations and development in sales planning for effective customer relationship management Increasing automation via AI/ML to develop visibility into sales workflows
Growing automation to improve sales visibility and increasing demand for metrics-driven sales process, are the key factors driving the market growth.
Countries involved in providing sales performance management (SPM) software include the USA, France, the United Kingdom, Japan, and China.
The global market growth between 2020 and 2022 is 11.5%.
The top 5 countries driving demand for sales performance management (SPM) software include Singapore, India, GCC Countries, Brazil, and China.
North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the USA is expected to account for nearly 80.3% of the North American market through 2033.
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Sales Performance Management (SPM) Software Market
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