Contract Management Software Market

Market Definition

The market encompasses a wide range of digital solutions that streamline the creation, negotiation, execution, monitoring, and renewal of business contracts. These platforms help organizations automate and centralize contract-related processes, enabling greater efficiency, compliance, and risk mitigation throughout the contract lifecycle. 

The report offers a thorough assessment of the main factors driving market expansion, along with detailed regional analysis and the competitive landscape influencing the market.

Contract Management Software Market Overview

The global contract management software market size was valued at USD 4.87 billion in 2024 and is projected to grow from USD 5.46 billion in 2025 to USD 13.69 billion by 2032, exhibiting a CAGR of 14.04% during the forecast period. 

Increasing demand for automation and digital transformation in procurement and legal processes is fueling the demand for contract management solutions. Growing complexity of business contracts is driving companies to adopt contract management software for better compliance and risk mitigation.

Major companies operating in the contract management software industry are Onit, Docusign, Inc., Ironclad, Conga Corporation, Agiloft Inc., Concord, Icertis, Juro, LinkSquares, Inc., PandaDoc Inc, SpotDraft, CobbleStone Software, ContractSafe LLC, Gatekeeper and SAP SE.

Additionally, advancements in technology are enhancing contract management platforms by improving automation and accuracy. Increased funding is supporting companies in investing in innovation and accelerating product development, contributing to market expansion.

• In March 2025, a US-based contract management SaaS provider secured USD 50 million in a funding round, as per a filing with the US Securities and Exchange Commission. The company offers AI-powered solutions that enhance risk management, compliance, and efficiency across departments like finance, legal, procurement, and sales. The funding aims to enhance the company’s contract management platform, expand geographically, and potentially acquire new technologies.

Key Highlights:

1. The contract management software market size was valued at USD 4.87 billion in 2024.
2. The market is projected to grow at a CAGR of 14.04% from 2025 to 2032.
3. North America held a market share of 37.25% in 2024, with a valuation of USD 1.81 billion.
4. The software segment garnered USD 3.66 billion in revenue in 2024.
5. The cloud-based segment is expected to reach USD 8.84 billion by 2032.
6. The large enterprises segment is anticipated to witness the fastest CAGR of 14.33% over the forecast period
7. The legal segment garnered USD 1.59 billion in revenue in 2024
8. The BFSI segment held a market share of 38.00% in 2024
9. Europe is anticipated to grow at a CAGR of 15.33% during the forecast period.

Market Driver

Integration with Enterprise Systems

Integration of market with enterprise systems and procurement platforms is propelling the growth of the market. By enabling seamless data flow between departments, organizations are improving operational efficiency, reducing duplication of efforts, and ensuring consistency across business processes. 

This connectivity allows for more accurate tracking of contract performance, easier compliance management, and faster decision-making. In response, organizations are placing greater focus on contract solutions that deliver full-spectrum integration across business functions.

• In October 2024, Conga launched the Conga Advantage Platform, the first open RLM platform designed to run on premises, cloud-based, and in hybrid environments. The platform integrates contract management with sales, revenue, and billing functions via connectors and an open API. It helps companies capture more revenue, manage obligations, streamline operations, and deliver faster customer experiences.

Market Challenge

High Implementation Costs

A key challenge in the contract management software market is the implementation costs of advanced management software. Deploying advanced solutions, particularly with AI capabilities, requires substantial upfront investment in software licensing, infrastructure, integration, and employee training. 

Smaller organizations find it difficult to justify the cost, limiting adoption. Additionally, the complexity of migrating from legacy systems to modern platforms further increases the initial cost associated with advanced contract management software.

To address this challenge, companies are offering more flexible pricing models, including subscription-based and modular plans that allow users to scale features as per requirement. 

Market players are also providing cloud-based deployment options to reduce infrastructure expenses and streamline setup. They are enhancing onboarding support with guided implementation, training resources, and customer success teams to minimize transition costs.

Market Trend

Integration of Advanced AI Features

The integration of advanced AI features in contract management software is transforming market. AI-powered tools automate complex tasks such as contract analysis, obligation tracking, and risk identification, significantly reducing manual effort and errors. 

These enable faster review, improve accuracy, and provide deeper insights. This allows companies to make more informed decisions, enhance compliance, and optimize performance, driving greater efficiency and value throughout the lifecycle.

• In April 2025, Epsilor Electric Fuel introduced new features to help procurement and legal teams minimize contract value leakage, which accounts for 8.6% of annual spending due to poor visibility and missed supplier commitments. The enhancements include Obligation and Entity Management, a unified dashboard, and custom AI data extraction capabilities.

Contract Management Software Market Report Snapshot

Segmentation	Details
By Component	Software, Services
By Deployment Model	Cloud-based, On-premises
By Enterprise Size	Large Enterprises, Small and Medium Enterprises (SMEs)
By Business Function	Legal, Procurement, Sales & Marketing, HR & Finance
By Industry Vertical	BFSI, Healthcare, Manufacturing, IT & Telecom, Government & Public Sector, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Component (Software, Services): The software segment earned USD 3.66 billion in 2024 due to the increasing demand for automation, scalability, and real-time contract analytics.
• By Deployment Model (Cloud-based, On-premises): The cloud-based segment held 67.80% of the market in 2024, due to its flexibility, lower upfront costs, and ease of remote access.
• By Enterprise Size (Large Enterprises, Small and Medium Enterprises (SMEs)): The large enterprises segment is projected to reach USD 8.44 billion by 2032, propelled by the need to manage complex, high-volume contracts and regulatory compliance.
• By Business Function (Legal, Procurement, Sales & Marketing, HR & Finance): The legal segment earned USD 1.59 billion in 2024 owing to the growing reliance on digital solutions to streamline legal workflows and mitigate risks.
• By Industry Vertical (BFSI, Healthcare, Manufacturing, IT & Telecom, Government & Public Sector and Others): The IT & telecom segment is anticipated to witness the fastest CAGR of 17.58% 0ver the forecast period due to rapid digital transformation and high contract volumes in service delivery.

Contract Management Software Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America contract management software market accounted for a market share of 37.25% in 2024, with a valuation of USD 1.81 billion. This dominance is driven by strong investments in AI-driven innovations by market players that enhance contract automation and analytics. 

The market benefits from a well-established advanced cloud computing platforms, robust data centers and a high concentration of enterprises adopting advanced contract lifecycle management solutions. Additionally, Access to venture capital and funding enables these companies to invest in research and expand their products offerings are further accelerates market expansion.

• In February 2025, SpotDraft, an AI-driven contract lifecycle management platform for in-house legal teams, raised USD 54 million in a Series B funding round. The platform offers features such as AI-assisted redlining, e-signatures, intelligent contract repositories, and management of third-party papers and clickwrap agreements. Through this funding, SpotDraf aims to improve the use of AI in its product line.

The Europe contract management software industry is set to grow at a robust CAGR of 15.33% over the forecast period. The Europe market is experiencing strong growth, due to the increasing private equity and venture capital investments in this region. 

These funds are enabling companies to establish regional headquarters and expand operational footprints across major European business centers. This strategic expansion is enhancing local market engagement, allowing providers to tailor solutions to regional compliance requirements and improve customer support.

• In March 2025, Tomorro secured USD 27 million in a funding round to support its international expansion strategy. The company announced plans to establish new offices in the Cologne region of Germany, strengthening its presence in the European market.

Regulatory Frameworks

• In the U.S., the Federal Trade Commission (FTC) oversees data privacy and security standards for various businesses, including contract management software.
• In Europe, the European Data Protection Board (EDPB) regulates contract management software providers. EDPB ensures consistent application of data protection rules across the EU for organizations that process personal data.

Competitive Landscape

Major players in the contract management software market are focusing on acquisitions and AI capability enhancements to drive growth. They are strengthening their technology portfolios by integrating advanced AI-powered tools that streamline contract workflow and automation processes. 

Additionally, they are investing in workflow automation and advanced analytics to improve efficiency and deliver deeper contract insights. These strategic moves are helping firms to accelerate the shift toward intelligent agreement management and respond faster to evolving customer needs.

• In May 2024, Docusign entered an agreement to acquire Lexion, a provider of AI-powered agreement management software, for USD 165 million in cash. The acquisition is accelerating Docusign’s transition toward intelligent agreement management (IAM) by integrating Lexion’s advanced AI capabilities. Lexion’s technology enables faster drafting, negotiation, and review of agreements while delivering insights and automating workflows.

List of Key Companies in Contract Management Software Market:

• Onit
• Docusign, Inc.
• Ironclad
• Conga Corporation
• Agiloft Inc.
• Concord
• Icertis
• Juro
• LinkSquares, Inc
• PandaDoc Inc
• SpotDraft
• CobbleStone Software
• ContractSafe LLC
• Gatekeeper
• SAP SE

Recent Developments (Product Launch)

• In April 2025, Govly’s AI-powered contract and procurement management platform was added to the SBIR Aisle of the U.S. Department of Defense’s Tradewinds Solutions Marketplace. The solution uses AI to simplify early-stage procurement processes, including pre-RFQ requirement development while improving the accuracy of supporting documents and enhancing visibility into procurement timelines.