| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2020-2023 |
| Base Year |
2024 |
| Forecast Period |
2025-2032 |
| Configure Price And Quote (CPQ) Software Market Size 2024 |
USD 3000 Million |
| Configure Price And Quote (CPQ) Software Market, CAGR |
15.8% |
| Configure Price And Quote (CPQ) Software Market Size 2032 |
USD 9700.4 Million |
Market Overview:
Configure Price And Quote (CPQ) Software Market size was valued at USD 3000 million in 2024 and is anticipated to reach USD 9700.4 million by 2032, at a CAGR of 15.8% during the forecast period (2024-2032).
Key drivers contributing to market expansion include the rising need for automation in sales and quoting processes, increasing adoption of cloud-based solutions, and the growing demand for customized products and services. Organizations are increasingly seeking tools that reduce manual errors, accelerate deal closures, and offer real-time pricing intelligence. CPQ software enhances sales team productivity by integrating with CRM and ERP systems, thereby enabling seamless collaboration across departments. Moreover, advancements in AI and machine learning are adding intelligent features such as guided selling and predictive analytics, further boosting market appeal. These capabilities are particularly valuable in industries with complex product catalogs and dynamic pricing structures. Enhanced data visibility and personalized customer interactions supported by CPQ are driving competitive differentiation. The scalability and flexibility of cloud-based CPQ platforms are also attracting small and mid-sized enterprises.
Regionally, North America dominates the CPQ software market, driven by widespread digital adoption, advanced IT infrastructure, and the strong presence of leading software providers. The U.S., in particular, holds a significant share due to high enterprise-level investments in sales enablement tools. Europe follows closely, with strong demand from manufacturing and industrial sectors in Germany, the UK, and France. Meanwhile, the Asia-Pacific region is witnessing the fastest growth, led by increasing adoption of cloud technologies in emerging economies like China and India, supported by rising industrial automation and a growing focus on customer experience optimization. The region’s expanding tech startup ecosystem is also accelerating CPQ software uptake. Government initiatives promoting digitalization and smart manufacturing further support regional market development.
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Market Insights:
- The CPQ software market is projected to grow significantly from USD 3,000 million in 2024 to USD 9,700.4 million by 2032, driven by increasing automation in sales processes.
- Cloud-based CPQ platforms are gaining popularity due to their scalability, lower implementation costs, and seamless integration with CRM and ERP systems.
- AI and machine learning are enhancing CPQ tools with features like guided selling, predictive analytics, and intelligent pricing recommendations.
- Industries with complex product offerings, such as manufacturing and IT, are increasingly adopting CPQ solutions to handle dynamic configurations and pricing models.
- Key challenges include complex system integration and resistance to user adoption, particularly in organizations with legacy systems and manual workflows.
- North America leads the market, holding 42% share, supported by strong digital infrastructure and major players like Salesforce and Oracle.
- Asia-Pacific is the fastest-growing region, driven by rapid industrialization, expanding SME demand, and government-backed digital initiatives in China and India.
Market Drivers:
Rising Demand for Sales Process Automation:
One of the primary drivers of the CPQ software market is the growing need to streamline and automate sales processes. As businesses face increasing competition and customer expectations, reducing the length of sales cycles and improving quoting accuracy has become essential. CPQ software enables sales teams to automate complex product configurations, pricing rules, and discounting mechanisms, reducing dependency on manual processes. This not only enhances operational efficiency but also ensures consistency across quotes and proposals. The ability to generate accurate quotes quickly leads to improved customer satisfaction and increased deal closures.
Adoption of Cloud-Based Solutions:
The increasing shift toward cloud-based infrastructure is significantly boosting CPQ software adoption. For instance, the U.S. Department of Homeland Security migrated its information-sharing and collaboration systems to a cloud environment to ensure constant accessibility for law enforcement and emergency operations, demonstrating how government agencies leverage cloud-based solutions for mission-critical applications. Cloud-based CPQ platforms offer scalability, cost-efficiency, and ease of integration with existing CRM and ERP systems, making them a preferred choice for enterprises of all sizes. These solutions provide real-time data access and updates, enabling geographically dispersed sales teams to collaborate effectively. Furthermore, the SaaS model allows businesses to deploy CPQ software without substantial upfront investments in hardware or IT infrastructure. The flexibility and remote accessibility offered by cloud CPQ systems align well with modern, hybrid work environments.
Rising Complexity in Product and Service Offerings:
Industries with highly configurable products—such as manufacturing, IT, and telecommunications—are experiencing a surge in CPQ adoption due to growing product complexity. For instance, Oracle CPQ has been instrumental in helping businesses manage intricate pricing scenarios and customized proposals, ensuring compliance with business rules while delivering tailored solutions. CPQ software helps sales teams manage complex pricing models, bundles, and service combinations while ensuring compliance with business rules. This capability is critical in delivering tailored solutions to customers and reducing the risk of pricing errors. The demand for customized products and subscription-based services has further emphasized the need for systems that can dynamically adjust to changing configurations and pricing structures.
Integration of AI and Advanced Analytics:
Advancements in artificial intelligence and analytics are transforming the CPQ landscape. Modern CPQ solutions are increasingly leveraging AI to offer features like guided selling, intelligent cross-selling, and real-time pricing recommendations. Predictive analytics enhances sales strategies by identifying high-conversion opportunities and suggesting optimal configurations. These intelligent tools enable businesses to enhance customer interactions, personalize offerings, and drive higher revenue. The integration of AI not only streamlines operations but also adds strategic value by supporting data-driven decision-making across the sales lifecycle.
Market Trends:
AI-Driven Personalization and Guided Selling:
A key trend shaping the CPQ software market is the integration of artificial intelligence (AI) to enhance personalization and guided selling capabilities. Modern CPQ tools use AI algorithms to analyze customer preferences, historical data, and buying patterns, enabling sales teams to recommend optimal product configurations and pricing strategies. This trend is helping organizations improve conversion rates by tailoring solutions to specific customer needs while reducing manual effort during the sales process.
Increased Focus on Subscription-Based Pricing Models:
As more businesses adopt subscription and usage-based models, CPQ software is evolving to support complex billing scenarios. For instance, Salesforce CPQ is widely used by companies to automate recurring billing, manage renewals, and handle contract amendments for subscription-based offerings, particularly in sectors like SaaS and telecom. Traditional one-time pricing structures are being replaced by recurring revenue models, particularly in sectors like SaaS, telecom, and managed services. CPQ platforms now offer features to manage tiered pricing, renewal quotes, and contract amendments efficiently, aligning with the demand for flexible, customer-centric pricing frameworks.
Cloud-Native and Mobile-First Solutions:
The transition to cloud-native CPQ solutions continues to gain momentum, driven by the need for scalability, accessibility, and rapid deployment. For instance, IBM Sterling CPQ is adopted by large enterprises to empower distributed sales teams to generate quotes and manage complex product configurations from any location, supporting real-time collaboration across geographies. Businesses are increasingly adopting mobile-first CPQ applications that empower remote sales teams to generate quotes and manage configurations on the go. This trend supports the growing hybrid workforce and enhances productivity by enabling real-time collaboration across departments and geographies.
Seamless Integration with CRM and ERP Systems:
Another prominent trend is the emphasis on seamless integration between CPQ software and enterprise systems like Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). Companies seek unified platforms that enable data consistency, reduce silos, and improve visibility across the sales cycle. As a result, CPQ vendors are enhancing APIs and connectors to ensure smooth interoperability, offering a more cohesive and automated sales ecosystem.
Market Challenges Analysis:
Complex Implementation and Integration Issues:
One of the significant challenges facing the CPQ software market is the complexity involved in implementation and integration. Deploying CPQ solutions often requires aligning with existing enterprise systems such as CRM, ERP, and billing platforms. For instance, Salesforce CPQ has been successfully integrated with Salesforce CRM by companies like Coca-Cola, enabling seamless data synchronization and improved workflow compatibility. Many organizations face difficulties in achieving seamless data synchronization and workflow compatibility, particularly in legacy IT environments. Customization needs and intricate product configurations further increase the implementation timeline and cost. These challenges can hinder adoption, especially for small and medium-sized enterprises with limited IT resources and budgets. Moreover, discrepancies in data architecture between systems can lead to inconsistencies in pricing and configuration logic. Organizations must also invest in long-term IT support to maintain and update integrations as systems evolve.
User Adoption and Change Management:
Another major challenge is ensuring user adoption and managing the organizational change that comes with CPQ implementation. Sales teams accustomed to manual quoting methods may resist transitioning to automated tools, especially if the new system appears complex or disrupts established workflows. Without adequate training and support, companies risk low utilization and reduced return on investment. Additionally, aligning sales, finance, and operations around standardized CPQ processes requires cross-functional coordination, which can be difficult in siloed or decentralized organizational structures. Resistance to change can also stem from concerns about job displacement or loss of control over pricing decisions. To overcome these barriers, organizations need robust change management strategies and consistent executive support.
Market Opportunities:
The Configure Price and Quote (CPQ) software market presents significant opportunities driven by the growing digital transformation initiatives across industries. As businesses continue to modernize their sales infrastructure, the demand for automated and intelligent tools like CPQ is increasing. The rise of e-commerce and omnichannel sales models is further expanding the scope of CPQ applications beyond traditional B2B environments. Companies are looking for scalable solutions that can handle high volumes of transactions, dynamic pricing, and customized product configurations in real time. This trend opens new avenues for CPQ vendors to cater to a broader range of industries, including retail, logistics, and financial services.
Additionally, the increasing adoption of AI, machine learning, and advanced analytics is creating growth potential for next-generation CPQ platforms. These technologies offer intelligent features such as real-time price optimization, predictive quoting, and guided selling, enabling businesses to enhance customer experiences and improve deal conversion rates. Emerging markets in Asia-Pacific, Latin America, and the Middle East are also presenting untapped opportunities, fueled by rapid industrialization and a growing emphasis on sales automation. Furthermore, the rising demand for mobile-first solutions and remote accessibility creates space for innovation in user-friendly, cloud-native CPQ applications. As organizations prioritize agility and responsiveness in their sales operations, CPQ software providers have the opportunity to deliver differentiated offerings that align with evolving customer expectations and digital sales strategies.
Market Segmentation Analysis:
By Deployment Model
The CPQ software market is segmented into cloud-based and on-premise deployment models. Cloud-based CPQ solutions dominate the market due to their scalability, lower upfront costs, ease of integration, and accessibility across devices. Organizations increasingly prefer cloud deployments to support remote teams and agile workflows. On-premise models are still chosen by enterprises requiring greater control over data and security, particularly in regulated industries.
By Enterprise Size
The market is further divided into small and medium-sized enterprises (SMEs) and large enterprises. Large enterprises represent the majority share owing to their complex sales processes and greater investment capacity in digital tools. However, SMEs are rapidly adopting CPQ solutions driven by the availability of cost-effective, cloud-native platforms that improve operational efficiency and shorten sales cycles.
By Industry Vertical
CPQ software is widely used across industries such as manufacturing, IT and telecom, healthcare, and BFSI. Manufacturing leads the market, as companies in this sector rely on CPQ tools to manage complex configurations and customized offerings. The IT and telecom sectors also exhibit strong demand, driven by the need for fast, accurate quoting in competitive environments.
Segmentations:
By Deployment Model
- Cloud-Based
- Public Cloud
- Private Cloud
- Hybrid Cloud
- On-Premise
- Standalone Systems
- Integrated Systems
By Enterprise Size
- Small Enterprises
- Startups
- Sole Proprietors
- Medium Enterprises
- Growing SMEs
- Mid-Cap Businesses
- Large Enterprises
- Multinational Corporations
- Conglomerates
By Industry Vertical
- Manufacturing
- Industrial Equipment
- Electronics
- Consumer Goods
- Information Technology and Telecom
- Software Providers
- Telecom Operators
- Healthcare
- Medical Devices
- Healthcare IT
- Service Providers
- Banking, Financial Services, and Insurance (BFSI)
- Commercial Banks
- Insurance Firms
- FinTech Companies
- Retail and E-commerce
- Online Retailers
- Brick-and-Mortar Chains
- Automotive
- Aerospace and Defense
- Aircraft Manufacturers
- Defense Contractors
- Energy and Utilities
- Oil & Gas
- Renewable Energy
- Power Distribution Companies
By Region
- North America
- Europe
- Germany
- United Kingdom
- France
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Middle East and Africa
- United Arab Emirates
- Saudi Arabia
- South Africa
Regional Analysis:
North America
North America holds the largest share of the global CPQ software market, accounting for 42% of total revenue. The region benefits from advanced IT infrastructure, high digital adoption, and the strong presence of key market players. The United States and Canada are home to industry leaders such as Salesforce, Oracle, and PROS Holdings, which continue to expand their customer base across sectors like manufacturing, telecommunications, and IT services. For instance, Salesforce CPQ is widely deployed among Fortune 500 companies due to its powerful configuration engine and seamless CRM integration. The region’s focus on AI-driven sales tools and cloud-based platforms further reinforces its market leadership. Additionally, the maturity of enterprise sales processes in North America creates a consistent demand for advanced CPQ capabilities.
Europe
Europe represents the second-largest share in the CPQ software market, holding 30% of the global market value. The region is witnessing strong adoption of CPQ solutions driven by increasing demand for customization, operational efficiency, and regulatory compliance. Countries such as Germany, France, and the United Kingdom are leading this adoption, particularly in sectors like automotive and industrial manufacturing. For instance, Siemens relies on Tacton CPQ to streamline its product configuration and quoting processes, reducing errors and improving sales velocity. Europe’s emphasis on digital transformation and its structured regulatory environment support the expansion of tailored CPQ solutions across diverse industries. The push toward Industry 4.0 and smart manufacturing further accelerates the deployment of intelligent quoting systems.
Asia-Pacific
Asia-Pacific holds an 18% share of the global CPQ software market and is the fastest-growing regional segment. Rapid industrialization, expanding digital infrastructure, and increasing cloud adoption are driving market growth across key economies like China, India, and Japan. The region is seeing rising demand from small and medium enterprises seeking scalable, affordable CPQ solutions. For instance, Zoho CPQ is gaining traction among Indian businesses for its intuitive interface and integration capabilities. Government initiatives promoting digital adoption, such as India’s Digital India program and China’s innovation-driven development policies, are further supporting market expansion across the region. The rise of regional tech startups and SaaS providers is also fostering innovation and boosting competitive dynamics.
Key Player Analysis:
- Salesforce CPQ
- Tacton CPQ
- Vendavo CPQ
- Oracle CPQ
- SAP CPQ 4. IBM CPQ
- Apttus CPQ
- Infor CPQ
- PROS Smart CPQ
- Cincom CPQ
- Conga CPQ (formerly Apttus)
- Revalize CPQ
- Configure One
- HubSpot CPQ
- Zuora CPQ
- IBM Sterling CPQ
- NetSuite CPQ
Competitive Analysis:
The Configure Price and Quote (CPQ) software market is highly competitive, with key players focusing on innovation, product differentiation, and strategic partnerships to maintain their market positions. Leading companies such as Salesforce, Oracle, and SAP dominate the landscape by offering integrated CPQ solutions within their broader enterprise platforms. These vendors leverage advanced technologies like AI and machine learning to enhance product configurations, pricing intelligence, and guided selling capabilities. Meanwhile, firms like Tacton, PROS, and Conga are gaining traction by providing industry-specific solutions tailored to complex manufacturing and service-based environments. The rise of cloud-native and mobile-first platforms is enabling newer entrants such as Zoho and HubSpot to attract small and mid-sized enterprises. Competitive dynamics are further intensified by mergers, acquisitions, and global expansion strategies aimed at broadening customer reach and strengthening service offerings. The market remains dynamic, with continuous innovation and customer-centricity shaping vendor competitiveness.
Recent Developments:
- In January 2025, IBM CPQ (Sterling CPQ) continued to focus on advanced analytics, customer-specific product bundles, and robust order management, emphasizing seamless integration with ERP and fulfillment systems for retailers and eCommerce businesses.
- In July 2024, Oracle CPQ 24C was released, maintaining stability in the ABO package with minor updates, ensuring compatibility with the new Commerce Standard Process.
- In April 2024, Oracle CPQ 24B introduced updates to the ABO RefApp package, focusing on enhancements for the new Commerce Standard Process and minor utility library improvements.
- In May 2024, SAP CPQ 2405 was scheduled for release, further enhancing integration with S/4HANA and supporting additional scope items for Quote 2.0.
Market Concentration & Characteristics:
The Configure Price and Quote (CPQ) software market demonstrates moderate to high market concentration, with a few dominant players such as Salesforce, Oracle, SAP, and Conga holding a significant share due to their extensive global reach, advanced technological capabilities, and comprehensive enterprise software portfolios. These leaders are complemented by several specialized vendors offering niche solutions tailored to specific industries or business sizes. The market is characterized by rapid technological advancements, particularly in artificial intelligence, cloud computing, and mobile integration, which are driving product innovation and enhancing usability. Most CPQ solutions emphasize seamless integration with CRM and ERP platforms, real-time data processing, and support for complex pricing models. The industry is also marked by increasing demand from sectors with highly configurable offerings, including manufacturing, telecommunications, and IT services. As digital transformation accelerates, the market continues to evolve, favoring vendors that deliver flexible, scalable, and user-centric solutions with strong post-implementation support.
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Report Coverage:
The research report offers an in-depth analysis based on Deployment Model, Enterprise Size, Industry Vertical and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook:
- AI-powered CPQ solutions will enable real-time pricing optimization and personalized recommendations, enhancing deal conversion rates.
- Integration with CRM, ERP, and e-commerce platforms will streamline sales processes and improve data consistency across organizations.
- Hybrid selling models, combining self-service portals and direct sales, will become standard, offering customers flexible purchasing options.
- Cloud-based CPQ deployments will continue to dominate, providing scalability, remote accessibility, and faster implementation times.
- Simplified product configurations through intuitive interfaces will reduce errors and accelerate the quoting process for complex offerings.
- Automated approval workflows will minimize delays, ensuring timely responses to customer inquiries and improving satisfaction.
- Multi-language and multi-currency support will facilitate global expansion, allowing businesses to cater to diverse markets effectively.
- Industry-specific CPQ solutions will gain traction, addressing unique requirements in sectors like manufacturing, healthcare, and telecommunications.
- Enhanced analytics and reporting capabilities will provide insights into sales performance, aiding strategic decision-making.
- Continuous innovation and vendor competition will drive the development of more user-friendly and feature-rich CPQ platforms.
