Proposal Management Software Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premises), By Enterprise Type (Small and Mid-sized Enterprises (SMEs) and Large Enterprises), By Industry (BFSI, IT & Telecom, Retail and E-commerce, Healthcare, Government, Manufacturing, and Others), and Regional Forecast, 2023-2030

The proposal management software market size was USD 2.33 billion in 2022 and is projected to grow from USD 2.59 billion in 2023 to USD 5.81 billion by 2030, with a CAGR of 12.2% during the forecast period (2023-2030). North America accounted for a market value of USD 0.78 billion in 2022. Proposal management systems enable sales organizations to manage their Request for Proposals (RFP) creation and approval processes more effectively and efficiently. Proposal management software will enable users to create RFPs with pre-approved templates and workflows. Proposal management system also provides a way to manage and react to the next steps in the sales process.

The main drivers of the market growth are the growing need to build product innovation platforms to support Software-as-a-Service (SaaS) enabled proposal management applications and the increasing need for cloud-based software to support scalability and IT infrastructure security.

Further, only 36% of sales time is spent on sales, while the remaining 65% is spent on other tasks, such as responding to requests for proposals (RFPs) or drafting proposals, according to Forbes. Thus, efficient software for proposal management automates parts of the bid creation process, streamlining work and freeing up the sales team to focus on creating a high-quality proposal.

COVID-19 IMPACT

Notable Rise in Request for Proposals Fostered Market Growth amid the Pandemic

Amidst the supply chain and market disruptions caused by the COVID-19, 2021 began to turn the corner, and many companies were able to return to business as usual. Request for proposal (RFP) and sales proposals, as well as revenue, started to flow again. The software enabled businesses to manage revenue and handle time-sensitive RFPs in an individualized, timely manner. The software was created to help customers improve the speed and effectiveness of their proposals, resulting in more wins and more revenue-generating opportunities.

For instance,

• According to a QorusDocs survey, 64% of respondents said they received around 30% more RFPs in 2021 than in 2020, and 64% of companies that use proposal management software (PMS) saw an increase in their business win rates compared to 2020.

LATEST TRENDS

Integration of Artificial Intelligence-enabled Tools to Boost Market Development

Integration with advanced technologies, such as artificial intelligence (AI), enhances the software's ability to use auto-propagation functions and responses to provide immediate answers to questions. The wide range of tools and features available in the proposal management allows businesses to easily set up documents in various document formats, including MS Word. Proposal management software allows users to personalize their submissions, which helps to promote an organization's brand to potential customers around the world. It makes it easy for multiple users to work on the same document.

In addition, AI enables companies to share knowledge, increase win rates, and improve the integration of people, workflows, and information. Users can take advantage of the breadth and depth of their company's collective intelligence to rapidly and easily create intelligent, professional-looking proposals and pitches. This is further contributing to the global proposal management software market growth.

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PROPOSAL MANAGEMENT SOFTWARE MARKET GROWTH FACTORS

Increasing Need for Customization in Proposals to Fuel Market Expansion

As RFP competition was expected to skyrocket in 2021, the ability to personalize proposal content will be a key differentiator that helps organizations close deals in future. Investing in tech and automation is only logical as proposal and sales teams become more advanced, and as the team grows and polishes the operations, proposal quality improves dramatically. Clients expect more insight and customization than ever before.

A successful proposal will become more difficult to win as more companies improve their proposal teams and sales processes. Companies need to respond by improving their internal processes to concentrate on the proposals that have the highest chance of success and continuing to invest in quality proposal creation. As a result of these changes, businesses will increase their reliance on automation and increase their workforce. Therefore, this market is expected to experience robust growth in the coming years.

RESTRAINING FACTORS

Cybersecurity Risks & Integration Capabilities Associated with Cloud-based Proposal Management Software To Impede Market Progress

One of the reasons why proposal management software is on the cloud is that there are many SaaS-based applications on the market that may also have security risks. Cyber threats, such as malware attacks and vulnerabilities, in cloud-based applications have a negative impact on the market growth.

The impact on the market is estimated to be high in the short term and moderate in the medium to long term. However, integrating AI for users of proposal management software may have a moderate effect on the market during the forecast period. 

SEGMENTATION

By Deployment Analysis

Cloud-based Solutions to Gain a Competitive Edge Due to Rising Security Concerns

Based on deployment, this market is bifurcated into cloud and on-premises.

The market is dominated by cloud deployment as workloads are shifting to the cloud, the demand for cloud storage is increasing with the growth of internet users, cloud services are being adopted rapidly, and enterprises are producing more and more data. According to industry experts, about 83% of enterprise workloads shifted to the cloud in 2020, and about 94% of enterprises are using cloud computing-based services globally. The growing adoption of the cloud among enterprises is further augmenting the market growth.

By Enterprise Type Analysis

Increasing Demand for Software from Large Enterprises Fueled Market Growth

On the basis of enterprise type, the proposal management software market is classified into large enterprises and Small and Mid-sized Enterprises (SMEs).

The large enterprises segment held the largest market share in 2022. This high percentage is due to the widespread adoption of software in large organizations due to increased employee travel. Large organizations often seek medium to large-size business deals, some of which could be multi-year with different elements of project scope, such as software, hardware, implementation, and support or consulting, engineering design, prototype, and manufacturing.

We are living in an era where projects are being carried out by teams from multiple countries with different skills and cost structures. Due to the complexity of the proposal process, managing the entire proposal involves multi-functional teams across multiple locations. As a result, it is expected that proposal management systems will be in high demand in the coming years.

By Industry Analysis

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Government Sector Dominated the Market Due to Large Volumes of Intricate Data across the Industry

By industry, the market is categorized into BFSI, IT & telecom, retail and e-commerce, healthcare, education, government, manufacturing, and others (media and entertainment).

The market share of the government sector dominated the market in 2022. Proposal software is a must-have for any government contractor involved in the bid process. Proposal software can simplify the entire bid process, from initial proposal to submission. It helps contractors to create, organize, and present bids more efficiently and effectively. By eliminating repetitive tasks, government agencies can concentrate on capturing, qualifying, and producing quality proposal responses. This saves hundreds of thousands of hours per year, which in turn drives the market share of proposal management solutions.

REGIONAL INSIGHTS

By region, the market is analyzed across five regions, namely North America, South America, Europe, Middle East & Africa, and Asia Pacific.

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In terms of market share, the market in North America accounted for the largest proposal management software market share in 2022. North America is a region that is open to adopting new technologies. Furthermore, due to its strong financial position, North America has the opportunity to invest heavily in adopting the most up-to-date and cutting-edge tools and technologies to ensure efficient business operations. These advantages help organizations in North America to gain a competitive advantage.

Some of the leading players in the region, such as QorusDocs Inc., Conga Inc., Icertis Solutions Inc., Deltek Inc., Salesforce, Inc., and others, have been investing heavily in R&D to incorporate cutting-edge technology features in their solutions to improve the customer experience. For example, in April 2022, Conga saw an increase in the growth and innovation of its Conga contract intelligence and Conga software. The solution incorporates cutting-edge technologies, such as Artificial Intelligence, Machine Learning, and others.

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Asia Pacific is predicted to register the highest CAGR during 2023-2030. The region is expected to have significant growth in demand for proposal management systems due to the growing adoption of online and mobile banking platforms across regional countries, such as China, Singapore, and India. According to the Microsoft Corporation survey, the Asia Pacific has 88% of the enterprises planned IoT investment in 2021, which is projected to reach 91% in the next 1-2 years. Also, several leading players in Asia Pacific are investing in emerging technologies, including AI, IoT, edge computing, and digital twins, along with IoT solutions.

The market in Europe will experience significant expansion during the forecast period.  In Europe, several leading players are expanding and developing cloud-based applications and increasing their investment in cloud services to remain competitive. For instance, in April 2022, Equinix, a digital infrastructure firm, collaborated with NexGen Networks, an optic fiber network system provider, to meet the increasing demand for various services from global enterprises. This expansion is designed to support its customers to connect business partners globally with a secure cloud computing network.

The market in the Middle East & Africa is expected to grow steadily over the forecast period, driven by cloud computing, government initiatives, technological innovation, and data adoption. Middle Eastern countries are in the midst of a technology-driven transition to diversify and move away from oil dependence. For example, Saudi Vision 2030's emphasis on digitization will drive social and economic growth, boost investment in technology, and create more local supply chains.

The market in South America is projected to rise with a steady growth rate over the projected period. An increase in digital start-ups in Brazil and growing investments by major players are driving market growth in the region. Increased deployment of new AI policies and integrated strategies to boost the adoption of innovative technologies by Brazil, Argentina, and Colombia is boosting the market expansion. Hence, these countries in South America are anticipated to generate several growth opportunities in the coming years.

KEY INDUSTRY PLAYERS

Adoption of Organic and Inorganic Growth Strategies by Major Players to Establish Presence in the Market

Top market players focus on several product advancements, acquisition strategies and partnerships. Some of the leading companies are QorusDocs Ltd., Xait, Icertis Solutions Pvt. Ltd., Deltek Inc., PandaDoc Inc., and others. These tactics will support companies in boosting their global presence and providing unconventional services to end-users or businesses.

• In January 2022, Xait acquired French proposal management firm Jack in the Box as part of an international diversification drive into multiple geographies and industry verticals.

List of the Key Companies Profiled In Proposal Management Software Market:

• QorusDocs Ltd. (U.S.)


• Xait (Norway)


• Conga Inc. (U.S.)


• Icertis Solutions Pvt. Ltd. (U.S.)


• Deltek Inc. (U.S.)


• GetAccept Inc. (U.S.)


• Sofon B.V. (Netherlands)


• Nusii Proposal S.L. (Spain)


• PandaDoc Inc. (Poland)


• Salesforce, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• September 2023 – Icertis launched Icertis GovCon, an AI-driven contract intelligence solution designed for enterprises serving the U.S. Federal Government. Icertis GovGon helps business development teams develop more efficient capture plans, monitor opportunity pipelines, and create proposals that improve contract win rates with a standardized platform and up-to-date dashboards.


• September 2023 – Enphase, Inc., a worldwide leader in microinverter-based solar and battery solutions, announced that its cloud design and proposal software, Solargraf, has entered Germany and Austria. Solar installers use Solargraf to design and propose production system designs for residential and commercial customers, and the software is now available to installers in the U.S., Canada, and Brazil.


• August 2023 – PandaDoc acquired Denario to support small businesses in streamlining their Proposal to Cash (P2C) workflow. The acquisition aimed to augment the capabilities of the PandaDoc platform for document generation, administration, monitoring, and electronic signature (eSigning) with the addition of Denario's business-to-business (B2B) payments service that enables small-to-medium-sized businesses (SMBs) and start-ups to automate their AP and AR functions.


• July 2023 – Bright, an accounting software firm, launched BrightPropose – its latest cloud proposal tool. BrightPropose aims to simplify and standardize communications, pricing, and service levels among accounting firm clients.


• October 2022 – QorusDocs announced that it has raised USD 10 million, led by the WestRiver Group, to meet growing customer demand for its proposal management software across growing verticals, such as legal services, IT services, and staffing.

REPORT COVERAGE

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The proposal management software market report includes prominent regions across the globe to get a better knowledge of the industry. Furthermore, it offers insights into the most recent industry trends and an analysis of technologies that are being adopted quickly on a global scale. It also provides the market drivers and restraints, allowing the reader to gain a thorough understanding of the industry scenario.

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