Configure Price and Quote (CPQ) Software Market Size, Share, Growth, and Market Analysis By Type (Cloud-Based CPQ Software, On-Premises CPQ Software), By Application (Small Enterprise , Large Enterprise), and Regional Forecast to 2033

CONFIGURE PRICE AND QUOTE (CPQ) SOFTWARE MARKET OVERVIEW

The configure price and quote (cpq) software market size was valued at USD 2462.63 million in 2024 and the revenue is expected to grow at a CAGR of 12.3% from 2025 to 2033, reaching nearly USD 7940.95 million.

The Configure Price And Quote (CPQ) Software Market is experiencing extensive growth, pushed by the growing need for groups to optimize their income techniques and enhance patron engagement. CPQ software facilitates agencies in automating the manner of configuring complicated product offerings, figuring out correct pricing, and producing professional income costs, thereby reducing guide errors and accelerating the income cycle. This has become especially essential in sectors like manufacturing, IT and telecommunications, healthcare, and BFSI, where product and carrier offerings are often particularly customizable, and pricing structures can be dynamic. As agencies attempt to satisfy growing customer expectations for pace, accuracy, and customized stories, CPQ solutions are emerging as an important device to beautify operational performance and income effectiveness.

Moreover, the marketplace is being fueled through the seamless integration of the CPQ software program with other employer systems, including Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and e-trade systems. This integration gives a unified view of customer facts, enabling more knowledgeable decision-making and a greater cohesive consumer journey. The shift in the direction of cloud-based CPQ solutions has additionally won momentum because of their scalability, price-effectiveness, and simplicity of get right of entry to across geographically dispersed teams. Additionally, superior technology like artificial intelligence and machine studying are being incorporated into CPQ equipment to permit clever product recommendations, predictive pricing, and real-time statistics analytics. As virtual transformation continues to reshape the income panorama, the CPQ software program market is predicted to develop robustly, presenting companies with a strategic part in increasingly aggressive surroundings.

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GLOBAL CRISES IMPACTING CONFIGURE PRICE AND QUOTE (CPQ) SOFTWARE MARKET - COVID-19 IMPACT

"Configure Price and Quote (CPQ) Software Industry Had a Positive Effect Due to Cloud-Based CPQ Growth During the COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden growth reflected by the rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels.

Businesses unexpectedly shifted to online platforms, growing the call for CPQ tools to automate and streamline sales, pricing, and quoting tactics. Sales teams running remotely required cloud-primarily based CPQ tools to ensure seamless configuration, pricing, and quote era from any location. Companies aimed to reduce operational fees and human errors—CPQ software provided automation, enhancing income accuracy and cycle times.

Global lockdowns and reduced group of workers' availability led to delays in onboarding and integrating CPQ systems, especially for on-premise answers. Heavy reliance on positive companies or third-party integrators throughout the pandemic posed a danger because of limited help and slower problem decisions. Quick deployment demands at some point during COVID sometimes caused out-of-the-field CPQ answers to get used without deep customization and proscribing functionality for complicated sales environments.

LATEST TREND

"Sustainability and Circular Economy to Drive Market Growth"

Sustainability and Circular Economy are vital benefits of Configure Price And Quote (CPQ) Software Market share. Predictive hints inside CPQ software leverage the power of synthetic intelligence and device learning to investigate ancient income records, customer behavior, past purchases, and even competitor activity to proactively propose the most applicable products, services, and upsell or pass-promote possibilities to income representatives at some point of the quoting technique. By figuring out styles and correlations on this significant number of statistics, the device can expect a patron's capacity wishes and ache points, providing tailored suggestions that grow deal value and enhance the chance of conversion. This empowers sales groups to have extra informed and targeted conversations with prospects and complements the general client's revelation by supplying answers that align with their unique enterprise requirements and potential destiny wishes.

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CONFIGURE PRICE AND QUOTE (CPQ) SOFTWARE MARKET SEGMENTATION

By Type

Based on Type, the global Configure Price And Quote (CPQ) Software Market can be categorized into Cloud-Based CPQ Software and On-Premises CPQ Software.

• Cloud-Based CPQ Software: Offers scalability and easy integration and is ideal for remote access—leading the market due to its flexibility and low maintenance needs.

• On-Premises CPQ Software: Provides greater control and security but requires high upfront investment, making it less popular in recent years.

By Application

Based on Application, the global Configure Price And Quote (CPQ) Software Market can be categorized into Small Enterprise and Large Enterprise.

• Small Enterprise: Preferred for its affordability and ease of use, helping small businesses automate quotes without heavy IT infrastructure.

• Large Enterprise: Used for handling complex pricing models and integrations, enhancing accuracy and consistency across global operations.

MARKET DYNAMICS

Driving Factors

"Automation in Sales Processes to Boost the Market"

A Factor in the Configure Price And Quote (CPQ) Software Market growth is Boost from Automation in Sales Processes. The need for automating income approaches has come to be a central riding pressure in the increase of the CPQ (Configure Price and Quote) software program marketplace. Traditionally, income representatives relied heavily on spreadsheets and emails and guided coordination with numerous departments to configure merchandise, determine pricing, and generate costs. This process becomes not only time-eating but also prone to errors and miscommunication, regularly resulting in incorrect charges and misplaced deals. CPQ software program automates this complete procedure by guiding customers via product configurations, making use of actual-time pricing good judgment, and producing correct rates within minutes. This performance now not only improves the rate of transactions but also boosts consumer pleasure by means of presenting rapid and specific responses. Moreover, sales teams can now recognize extra strategic patron engagement in place of administrative tasks, which enhances productiveness and contributes to an extended sales era for businesses.

"Rise of Cloud-Based Solutions to Expand the Market"

The Fast adoption of cloud-based CPQ software programs is reshaping how organizations handle their income operations. Cloud systems provide several blessings over conventional on-premises systems, such as decrease in advance prices, quicker implementation, and the power to access facts from everywhere at any time. Especially in a publish-pandemic commercial enterprise environment, where far-flung work and international collaboration have ended in general, cloud-based CPQ solutions ensure that income groups stay efficient regardless of location. These platforms additionally permit seamless integration with different cloud-based total equipment like CRM and ERP systems, facilitating a unified workflow and enhancing facts consistency throughout departments. Additionally, cloud CPQ providers often offer everyday updates, more significant protection functions, and scalability options, making them more agile and cost-effective for growing agencies. As groups continue to prioritize digital transformation, cloud-based totally CPQ is becoming a foundational device in modern-day income ecosystems.

Restraining Factor

"Data Security and Privacy Concerns to Potentially Impede Market Growth"

While cloud-based CPQ software programs offer large operational blessings, they also increase crucial issues regarding record security and privacy. These systems save and process touchy statistics, including product pricing systems, discounting guidelines, and private patron statistics—all of which can be valuable targets for cybercriminals. For industries dealing with notably regulated records, including healthcare, finance, and authorities sectors, the chance of information breaches and regulatory non-compliance is a main hurdle to adoption. Additionally, organizations may be worried about the storage of information on third-party servers, mainly when it includes international facts transfer and ranging felony standards. Without robust encryption, entry to management, and compliance with frameworks like GDPR or HIPAA, agencies may additionally hesitate to absolutely decide on CPQ answers. Therefore, CPQ carriers ought to constantly spend money on robust cybersecurity infrastructure, obvious facts practices, and compliance certifications to guarantee customers of their platform's reliability and safety.

Opportunity

"AI and Machine Learning Integration To Create Opportunity for the Product in the Market"

The Integration of artificial intelligence (AI) and device-gaining knowledge of (ML) into the CPQ software program is reworking those structures from static configurators into clever income assistants. By analyzing ancient sales records, patron behavior, and marketplace trends, AI-powered CPQ equipment can offer predictive insights—which include recommending first-rate product mixtures, identifying upsell and go-promote possibilities, and suggesting the handiest pricing strategies. This stage of intelligence extensively enhances choice-making for sales teams, allowing them to reply faster and with greater precision to consumer needs. Furthermore, AI helps personalize the patron's enjoyment by adapting configurations and charges in real-time based totally on preferences and shopping for records. Over time, these systems can constantly study and refine their pointers, contributing to advanced conversion prices and purchaser loyalty. As AI talents turn out to be more advanced and on hand, they may be predicted to be a trendy feature in subsequent-technology CPQ systems, giving organizations a competitive side in more and more complex and dynamic markets.

Challenge

"Resistance to Technological Shift Could Be a Potential Challenge for Consumers"

Despite the clear advantages presented by using CPQ software, many businesses still face internal resistance while adopting those solutions. This reluctance often stems from a fear of change, mainly amongst employees who are acquainted with the usage of manual or legacy systems for quoting and pricing. Sales groups can also worry that the software program will complicate their workflow, require time to research, or lessen their flexibility in deal-making. Additionally, groups without a sturdy virtual culture may additionally battle to justify the preliminary investment, specifically in the event that they lack immediate proof of return on funding. Overcoming this resistance calls for a strategic method: organizations ought to provide thorough training applications, reveal quick wins through pilot implementations, and involve cease-customers within the transition technique. Choosing a consumer-pleasant, intuitive CPQ platform additionally facilitates less friction and encourages adoption. As companies end up extra digitally mature, this resistance is predicted to decline; however, addressing it early is prime to a successful implementation and long-term advantages.

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CONFIGURE PRICE AND QUOTE (CPQ) SOFTWARE MARKET REGIONAL INSIGHTS

• North America

"North America is the fastest-growing region in this market. The United States churros market has been growing exponentially for multiple reasons."

The North American CPQ software sector, as it stands, is evidently mature and strong in its functionalities and adoption in various industries, with a strong emphasis on integration with existing CRM systems. Thus far, many CPQ deployments have been cloud-based, with such deployment models ensuring scalability and easy accessibility. One big trend is the increasing incorporation of AI and ML to enhance product recommendations and automate pricing strategies. There is a high demand for personalized and guided selling experiences, which accelerates the adoption of visual configurators and self-service quoting portals to empower sales teams and customers. Mobile CPQ solutions once again provide critical functionality for field sales representatives to generate accurate quotes on the spot.

• Europe

The European CPQ market represents an important and fast-growing area focused on streamlining complex sales processes and improving pricing accuracy across all industries. Cloud CPQ solutions are becoming very popular since they are flexible and allow distributed workforces, while some needs are still served with an on-premise installation. The emphasis is on establishing seamless data integrations between CPQ, CRM, ERP, and e-commerce platforms to appear as one unified view to the customer for data-supported decision-making. Understanding the complexities of product configuration and automating quote generation and approval processes are big priorities to improve efficiencies while reducing errors. Compliance with local regulations, such as GDPR, and the ability to handle multiple languages and currencies are also crucial considerations in the marketplace.

• Asia

Due to the accelerated speed of digital transformation of various businesses across the economies concerned, the Asia Pacific CPQ software market exhibits considerable growth potential. Particularly in Asia-Pacific countries, cloud uptake is on the rise as SMEs search for cost-effective and scalable solutions. These are some of the major driving forces for CPQ software in this region: the rising need for productivity through sales automation to reduce manual errors and improve overall sales effectiveness in rapidly expanding markets. Growing complexity in manufacturing and IT product offerings that require increasing CPQ adoption is also driven by the demand for tailored customer experiences with regional undertones and dynamic pricing strategies.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key enterprise players are shaping the Configure Price And Quote (CPQ) Software Market via strategic innovation and market expansion. These businesses adopt advanced software functionalities and develop novel platform features to enhance their products' user experience, integration capabilities, and automation potential. They are diversifying their product lines to include specialized modules and industry-specific solutions for key sectors like manufacturing, SaaS, telecommunications, and financial services, catering to the evolving demands for streamlined sales processes and accurate quoting. Additionally, these organizations are optimizing their cloud infrastructure and partner ecosystems to enhance market reach and ensure consistent software availability and implementation support, especially in rapidly growing digital economies and organizations undergoing digital transformation. By investing in research and development for new AI-powered features, enhanced integration APIs, and user-friendly interfaces, improving platform scalability and security, and exploring innovative applications in emerging areas like headless CPQ and subscription management, these players drive growth and foster advancements within the Configure Price and Quote (CPQ) Software sector.

List of Top Configure Price And Quote (Cpq) Software Companies

• Oracle (U.S.)
• Apttus (now Conga) (U.S.)
• IBM (U.S.)
• Infor (U.S.)
• SAP (Germany)
• Callidus Software (now part of SAP) (U.S.)
• FPX (U.S.)
• com (U.S.)

KEY INDUSTRY DEVELOPMENT

December 2024: Salesforce, a significant global cloud-based software company headquartered in the USA, announced a substantial expansion of its Configure Price and Quote (CPQ) platform capabilities with a focus on enhanced AI-powered features across its global infrastructure. This strategic move involves integrating advanced machine learning algorithms and upgrading its cloud services, significantly improving the intelligence and automation within the quoting process for its users worldwide.

REPORT COVERAGE

The Study offers a detailed SWOT analysis and provides valuable insights into future developments within the market. It explores various factors driving market growth, examining various market segments and potential applications that may shape its trajectory in the coming years. The analysis considers both current trends and historical milestones to provide a comprehensive understanding of the market dynamics, highlighting potential growth areas.

The Configure Price And Quote (CPQ) Software Market is poised for significant growth, driven by evolving consumer preferences, rising demand across various applications, and ongoing innovation in product offerings. Although challenges such as limited raw material availability and higher costs may arise, the market's expansion is supported by increasing interest in specialized solutions and quality improvements. Key industry players are advancing through technological advancements and strategic expansions, enhancing both supply and market reach. As market dynamics shift and demand for diverse options increases, the Configure Price And Quote (CPQ) Software Market is expected to thrive, with continuous innovation and broader adoption fueling its future trajectory.