Market Size of Sales Performance Management Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 2.51 Billion |
Market Size (2029) | USD 5.61 Billion |
CAGR (2024 - 2029) | 17.43 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Sales Performance Management (SPM) Market Analysis
The Sales Performance Management Market size is estimated at USD 2.51 billion in 2024, and is expected to reach USD 5.61 billion by 2029, growing at a CAGR of 17.43% during the forecast period (2024-2029).
Sales performance management refers to a set of operational and analytical services that aid in the automation and integration of back-office sales operations. Among other aspects of sales performance, it focuses on forecasting, insights, gamification, quota setting, and advanced analytics. Account segmentation, territory planning, incentive compensation, standard reporting, and pipeline optimization also exist. Organizations are using SPM tools and approaches throughout the globe to increase operational efficiency and effectiveness.
- Organizations are rapidly growing and transforming their entire environment into a digital platform. So, to empower their growth and accelerate the enterprise's acceleration in the rapidly changing market circumstances, organizations are using SPM software, which assists them in establishing a business roadmap and implementing their plans much more efficiently. SPM offers an organized and transparent solution between the organization and its personnel.
- Various organizations utilize sales performance management to reduce processing time and error at a significant rate. The active and effective management of performance payouts and incentives has significantly driven the demand in the SPM market. The growing demand for accurate measurement and tracking of sales metrics and mitigation for IT staff may drive market growth over the forecast period.
- Increasing audit, compliance, and visibility requirements boost the market's growth. There is an increased need for oversight in sales performance management. There is a growing desire to scrutinize the inner workings of the compensation system and the related processes.
- However, the risk of damage and theft of recorded data would hinder the growth of the sales performance management industry. Furthermore, the market would face challenges due to a need to understand SPM solutions' benefits. Another reason obstructing the development rate of sales performance management is the reluctance of small and medium-sized organizations to invest in costly business process software and technological obstacles.
- The onset of the COVID-19 pandemic has forced many sales teams to operate remotely, changing the way they provide value and engage with buyers without in-person interaction. This shift has resulted in an increased demand for the adoption of SPM. After the pandemic, the market is growing positively, owing to increased digital penetration.
Sales Performance Management (SPM) Industry Segmentation
Sales performance management (SPM) is a suite of operational and analytical functions that automate and unite back-office operational sales processes. SPM is implemented to improve operational efficiency and effectiveness.
The sales performance management market is segmented by deployment (on-premise, cloud), solution (incentive compensation management, territory management, sales monitoring and planning, sales analytics, and other solutions), end-user vertical (BFSI, manufacturing, energy and utility, healthcare, IT and telecom, and other end-user verticals), and geography (North America, Europe, Asia-Pacific, and Rest of the World).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Deployment | |
On-premise | |
Cloud |
By Solution | |
Incentive Compensation Management | |
Territory Management | |
Sales Monitoring and Planning | |
Sales Analytics | |
Other Solutions |
By End-user Vertical | |
BFSI | |
Manufacturing | |
Energy and Utility | |
Healthcare | |
IT and Telecom | |
Other End-user Verticals |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Rest of the World |
Sales Performance Management Market Size Summary
The Sales Performance Management (SPM) market is experiencing significant growth as organizations increasingly adopt digital platforms to enhance operational efficiency and effectiveness. SPM encompasses a range of services, including forecasting, insights, gamification, quota setting, and advanced analytics, which are crucial for automating and integrating back-office sales operations. The demand for SPM tools is driven by the need for accurate measurement and tracking of sales metrics, as well as the management of performance payouts and incentives. Despite challenges such as data security concerns and the reluctance of smaller organizations to invest in costly software, the market is poised for expansion due to the growing importance of audit, compliance, and visibility requirements.
The North American region, with its mature market and presence of major consumer electronics and software giants, is a significant contributor to the SPM market's growth. Companies in this region are increasingly moving away from complex spreadsheet systems to more customizable and flexible solutions for managing sales performance. The market is moderately fragmented, with key players like Anaplan Inc., Beqom SA, and Varicent Software Inc. actively engaging in partnerships and acquisitions to enhance their offerings. The integration of machine learning and artificial intelligence is further boosting sales teams' efficiency, enabling more personalized and productive interactions. As organizations continue to navigate the post-pandemic landscape, the demand for SPM solutions is expected to rise, driven by the need for streamlined processes and improved sales forecasting.
Sales Performance Management Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Intensity of Competitive Rivalry
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1.2.5 Threat of Substitute Products
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1.3 Assessment of the Impact of COVID-19 on the Industry
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2. MARKET SEGMENTATION
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2.1 By Deployment
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2.1.1 On-premise
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2.1.2 Cloud
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2.2 By Solution
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2.2.1 Incentive Compensation Management
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2.2.2 Territory Management
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2.2.3 Sales Monitoring and Planning
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2.2.4 Sales Analytics
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2.2.5 Other Solutions
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2.3 By End-user Vertical
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2.3.1 BFSI
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2.3.2 Manufacturing
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2.3.3 Energy and Utility
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2.3.4 Healthcare
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2.3.5 IT and Telecom
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2.3.6 Other End-user Verticals
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2.4 By Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia-Pacific
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2.4.4 Rest of the World
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Sales Performance Management Market Size FAQs
How big is the Sales Performance Management Market?
The Sales Performance Management Market size is expected to reach USD 2.51 billion in 2024 and grow at a CAGR of 17.43% to reach USD 5.61 billion by 2029.
What is the current Sales Performance Management Market size?
In 2024, the Sales Performance Management Market size is expected to reach USD 2.51 billion.