PMRREP19822
3 Sep 2025 IT and Telecommunication
187 Pages
The global configure, price, quote (CPQ) software market size is likely to be valued at US$ 3.2 Bn in 2025 and is expected to reach US$ 8.9 Bn by 2032, growing at a CAGR of 15.7% during the forecast period from 2025 to 2032.
The CPQ software market has experienced significant growth, driven by the increasing need for streamlined sales processes, rising adoption of digital transformation strategies across industries, and advancements in cloud-based technologies. The demand for automation in complex sales configurations, pricing strategies, and quote generation, particularly in manufacturing, IT, and telecom sectors, has significantly boosted market expansion.
Key Industry Highlights:
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Global Market Attribute |
Key Insights |
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CPQ Software Market Size (2025E) |
US$ 3.2 Bn |
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Market Value Forecast (2032F) |
US$ 8.9 Bn |
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Projected Growth (CAGR 2025 to 2032) |
15.7% |
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Historical Market Growth (CAGR 2019 to 2024) |
14.8% |
The growing complexity of sales processes in industries such as manufacturing, IT and telecom, and automotive has significantly driven the adoption of CPQ software. In today’s competitive business environment, companies face growing pressure to deliver accurate, timely, and customized quotes while managing intricate product configurations and diverse pricing models. Traditional manual methods are often time-consuming, error-prone, and inefficient, leading to delays, lost opportunities, and customer dissatisfaction. CPQ software addresses these challenges by streamlining the end-to-end quoting process, automating repetitive tasks, and ensuring real-time accuracy in product configuration and pricing. This helps in reducing human error and accelerates sales cycles, improves deal closure rates, and enhances customer experience.
Industries such as manufacturing, IT, telecom, and healthcare are increasingly adopting CPQ solutions to manage complex offerings and dynamic pricing structures. For instance, Siemens Digital Industries uses CPQ solutions to automate its highly complex industrial equipment sales, enabling sales teams to configure thousands of product combinations quickly and accurately. The shift toward digital transformation and the integration of AI and analytics in CPQ tools further amplify their value, making automation a crucial growth driver for the sector.
The high costs associated with implementing and integrating CPQ software hamper market growth. Deploying CPQ solutions requires significant financial investment, including software licensing, customization, employee training, and ongoing maintenance. For organizations with complex product portfolios and legacy IT systems, integration with existing enterprise resource planning (ERP) and customer relationship management (CRM) platforms can be both technically challenging and costly. These expenses often deter small and medium-sized enterprises (SMEs) that operate with limited budgets, slowing down their adoption of advanced CPQ tools.
The implementation process can be time-consuming, demanding specialized IT expertise, and extensive coordination between sales, IT, and operations teams. Any disruptions or misalignment during this phase may lead to increased costs and delays, reducing the short-term return on investment. For instance, many SMEs adopting Salesforce CPQ report challenges in customizing integrations with their legacy ERP systems, leading to extended implementation timelines and higher consulting costs. Although CPQ software offers long-term benefits in efficiency and accuracy, the high upfront expenditure and complex integration process remain significant barriers for wider market penetration.
Advancements in AI and cloud-based CPQ solutions present a significant growth opportunity for the domain. As sales processes become more dynamic, organizations are increasingly seeking intelligent solutions that go beyond basic automation. AI-powered CPQ platforms can analyze customer behavior, historical sales data, and market trends to recommend optimal product configurations, pricing strategies, and cross-selling opportunities. This enhances decision-making and allows companies to deliver more personalized and competitive quotes, thereby improving customer satisfaction and driving revenue growth.
At the same time, the growing adoption of cloud-based CPQ solutions offers businesses flexibility, scalability, and cost efficiency compared to traditional on-premise systems. Cloud deployment enables seamless integration with CRM and ERP platforms, while supporting remote accessibility for global sales teams. For instance, Oracle and Salesforce have expanded their cloud CPQ offerings with AI-driven capabilities to provide predictive pricing and real-time configuration insights. These innovations open significant opportunities for organizations to transform sales operations and gain a competitive edge.
Cloud-based CPQ dominates, and is expected to account for approximately 59% of the share in 2025. Its dominance stems from its scalability, cost-effectiveness, and ease of integration with other cloud-based enterprise systems such as CRM and ERP. Cloud-based CPQ solutions, such as those offered by Salesforce (Apttus) and Oracle, enable real-time updates, remote access, and seamless collaboration across sales teams, making them a preferred choice for industries such as IT and telecom, and retail. Their subscription-based pricing models also reduce upfront costs, driving adoption among SMEs.
The On-Premise CPQ segment is the fastest-growing, driven by industries with stringent data security and compliance requirements, such as BFSI and healthcare. On-premise solutions offer greater control over data and customization, appealing to large enterprises with complex workflows. The growing focus on data privacy regulations, such as GDPR and CCPA, is accelerating the adoption of on-premise CPQ systems in regions such as Europe and North America, with significant growth potential in highly regulated industries.
Manufacturing leads the CPQ software market and is poised to account for a 31% share in 2025. The segment’s dominance is driven by the need for efficient product configuration and pricing in complex manufacturing processes, particularly in industries such as industrial equipment and automotive. CPQ solutions streamline the configuration of customized products, reduce errors, and improve sales efficiency, making them critical for manufacturers such as Siemens and General Electric.
The retail and e-commerce segment is the fastest-growing, fueled by the rapid growth of online retail and the need for dynamic pricing and product customization. The rise in e-commerce platforms and the increasing demand for personalized customer experiences have spurred the adoption of CPQ solutions in this sector. For instance, retailers using platforms such as SAP CPQ have reported a 20% increase in online sales conversion rates due to streamlined pricing and quoting processes.
Direct sales is expected to register the largest share, accounting for approximately 66% of revenue in 2025. Direct sales channels allow vendors such as Oracle, SAP, and Microsoft to maintain close relationships with customers, offer tailored solutions, and provide dedicated support. This channel is particularly dominant in industries with complex sales processes, such as manufacturing, IT, and telecom, where customized CPQ solutions are critical.
The hyperscaler cloud marketplace is the fastest-growing sales channel, driven by the increasing adoption of cloud-based CPQ solutions and the rise of platforms such as AWS Marketplace, Microsoft Azure Marketplace, and Google Cloud Marketplace. These marketplaces offer seamless access to CPQ software, enabling faster deployment and integration with other cloud services. The growing popularity of cloud marketplaces among SMEs and startups is accelerating the adoption of CPQ solutions through this channel, particularly in North America and the Asia Pacific.
North America is expected to hold a dominant 40% share of the global Configure, Price, Quote (CPQ) software market in 2025, driven by strong technological adoption and the presence of leading industry players. The region benefits from advanced digital infrastructure and the concentration of major technology hubs in the United States, including Silicon Valley, which fosters innovation and early adoption of advanced sales automation solutions. Enterprises across industries such as manufacturing, IT and telecom, BFSI, and healthcare are increasingly adopting CPQ tools to streamline complex sales processes and improve customer engagement.
The high adoption of cloud-based solutions is another critical factor boosting market growth in the region. Cloud CPQ platforms offer scalability, real-time integration with CRM and ERP systems, and remote accessibility—features particularly important for geographically dispersed sales teams. Moreover, the growing demand for automation in sales processes is driving organizations to invest in AI-driven CPQ solutions that enable predictive pricing, personalized quoting, and faster deal closures. Supportive government initiatives promoting digital transformation and strong venture capital investments in SaaS-based platforms further enhance market expansion. Collectively, these factors position North America as the leading hub for CPQ software innovation and growth.
Europe holds a significant share in the CPQ software market, driven by advanced technological adoption, stringent regulatory frameworks, and growing demand for automation in sales processes. Leading countries include Germany, the UK, and France. Germany benefits from its strong industrial base, with companies such as SAP investing heavily in CPQ solutions to cater to the manufacturing and automotive sectors. The UK’s market is supported by increasing adoption in BFSI and retail, driven by the need for dynamic pricing and compliance with GDPR. France’s market is fueled by advancements in cloud-based CPQ solutions and a focus on digital transformation in SMEs. The EU’s stringent data privacy regulations, such as GDPR, ensure high standards for CPQ software, though compliance increases costs. The region’s focus on sustainability and automation, coupled with growing demand in manufacturing and retail, is driving steady market growth from 2025 to 2032.
Asia Pacific is emerging as the fastest-growing market for Configure, Price, Quote (CPQ) software, driven by rapid digitalization, increasing enterprise adoption of advanced sales automation tools, and the expansion of IT infrastructure across key economies such as China, India, Japan, and South Korea. The region’s booming e-commerce industry, coupled with the rising demand for personalized customer experiences, is encouraging businesses to deploy CPQ solutions that enable accurate product configuration, dynamic pricing, and faster quote generation.
Enterprises in manufacturing, IT and telecom, automotive, and retail sectors are leading the adoption curve, as they seek to optimize complex sales cycles and improve operational efficiency. Cloud-based CPQ platforms are particularly gaining traction due to their cost-effectiveness, scalability, and ability to support remote teams-factors critical for SMEs that form the backbone of the Asia Pacific’s economy. For instance, retailers using SAP CPQ have reported up to a 20% increase in online sales conversion rates, reflecting the platform’s impact on driving e-commerce growth.
The global Configure, Price, Quote (CPQ) Software Market is characterized by intense competition, regional strengths, and a mix of global and niche players. In developed regions such as North America and Europe, large firms such as Oracle, SAP, and Microsoft dominate through scale, advanced R&D capabilities, and established partnerships with enterprises. In the Asia Pacific, rapid digitalization and increasing demand for automation are attracting significant investments from both international players, such as Salesforce (Apttus) and Zilliant, and regional vendors. Companies are focusing on product innovation, cloud-based solutions, and strategic alliances to gain a competitive edge. The development of AI-powered and cloud-based CPQ solutions has emerged as a key differentiator, enabling faster adoption in manufacturing, retail, and IT sectors. Strategic collaborations, acquisitions, and digital-first approaches for supply chain and marketing are further intensifying the competitive landscape. The industry exhibits a dual nature, consolidated at the top by global giants while remaining fragmented across numerous regional and niche players catering to local preferences and cost-sensitive segments.
The global Configure, Price, Quote (CPQ) Software Market is projected to reach US$ 3.2 Bn in 2025.
The increasing demand for automation in complex sales processes is a key driver.
The CPQ software market is poised to witness a CAGR of 15.7% from 2025 to 2032.
Advancements in AI and cloud-based CPQ solutions are a key opportunity.
Oracle, SAP, Microsoft, Salesforce (Apttus), and Zilliant are key players.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis |
Value: US$ Bn, Volume: As Applicable |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
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By Deployment Type
By End-Use
By Sales Channel
By Region
Delivery Timelines
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