The global sales compensation software market was valued at USD 2,655.4 million in 2022. With a projected CAGR of 9.9% for the next ten years, the market is likely to reach a valuation of USD 7,413.9 million by the end of 2033. The growing inclination of enterprises to utilize digital technology is driving the market.
| Report Attributes | Details |
|---|---|
| Global Sales Compensation Software (2022A) | USD 2,655.4 million |
| Global Sales Compensation Software Estimated Market Value (2023E) | USD 2,875.8 million |
| Global Sales Compensation Software Forecast Market Value (2033F) | USD 7,413.9 million |
| Global Sales Compensation Software Market Growth Rate (2023 to 2033) | 9.9% CAGR |
| United States Sales Compensation Software Market Value Share (2022) | 17.1% CAGR |
Future Market Insights’ analysis reveals that a huge amount of market revenue has grossed from the cloud-based deployment of sales compensation software. On the other hand, large enterprises in the application are projected to remain the most lucrative among applications, with a 9.1% CAGR during the next decade starting from 2023.
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The global market for sales compensation software marked a CAGR of 7.8% over the last historical period. In 2022, the global market size of sales compensation services was valued at USD 2,655.4 million, estimated to reach a valuation of USD 2,875.8 million in 2023. Organizations can automate and streamline the creation of sales incentive schemes and commission calculations with the use of sales compensation software. Additionally, the program provides a mechanism for sales teams to keep track of their short-term incentives, earned commissions, and quota attainment.
Reps are motivated by knowing their future earnings because they may see their potential commissions based on existing deals. Many companies are using spreadsheets to keep track of their commission records. The limited efficiency of Excel is leading to problems like data repeating, unclear commission agreements, and overpayments, which demotivate sales reps and affect the sales of the enterprises. As a result, many enterprises are considering implementing sale compensation software as they can solve all the limitations of spreadsheets, eliminate errors leading to price erosion, and make enterprises deliver efficient sales compensation, which is expected to drive the market in the coming years.
The global sales compensation software industry is predicted to mark a CAGR of 9.9% and sales worth USD 7,413.9 million by the end of 2033. North America is projected to continue to be the significant procurer of sales compensation software throughout the analysis period accounting for over USD 2.6 billion absolute dollar opportunity in the coming 10-year epoch.
The enhancement in technology and increasing automation in industries have increased the adoption of sales compensation software in the industries. Large and small business enterprises are using sale compensation software for managing and keeping records of the accomplishments of the sales rep and formulating and computing compensation plans accordingly to it.
Start-ups are rising as many governments around the world are framing policies and providing incentives to the emergence of start-ups, which has increased the adoption of sales compensation software in the start-ups that are driving the market.
Principal Consultant
The lack of privacy and data security in cloud-based software and regulations related to data and hosting are expected to restrain the market growth. Numerous cloud-based services include a third–party, and they may give the user's information to others, which is a security threat to is an issue associated with cloud-based software, which is also hindering the growth of the sales compensation software industry.
| Country/ Region | Value Share % (2022) |
|---|---|
| North America | 28.8% |
| The United States | 17.1% |
The early adoption of advanced technologies among enterprises is driving the sales compensation software market in North America. The sales compensation market in North America has been estimated to be valued at USD 1.1 billion in 2023. Higher technology knowledge and awareness among business enterprises are boosting the adoption of sales compensation software in enterprises as they improve operations and performance. The sales compensation software market in North America is forecast to reach a valuation of USD 2.6 billion by the end of 2033.
| Countries | Forecast CAGR % (2023 to 2033) |
|---|---|
| India | 10.4% |
| China | 8.1% |
The sales compensation software market in the Asia Pacific is expected to grow at a substantial pace over the forecast period. The market in the Asia Pacific was valued at more than USD 524 million in 2022. The advancing technologies and the emergence of SMEs are the key factors driving the market in the region. The sales compensation software market in the Asia Pacific is likely to reach a valuation of USD 1.4 billion by the end of 2033.
The sales compensation software industry in China was valued at more than USD 177 million in 2022, making it the second-leading market in the world. The market in China has expected to reach a valuation of USD 454.1 million by the end of the forecast period. The sales compensation software industry in Japan is forecast to reach a valuation of USD 368.8 million by the end of 2033.
| Country/ Region | Value |
|---|---|
| Europe Market Share % (2022) | 21.4% |
| Germany Market Share % (2022) | 9.2% |
| The United Kingdom Forecast CAGR % | 9.1% |
The sales compensation software industry in Europe is anticipated to grow at a modest rate over the forecast period. The sales compensation software industry in Europe was valued at more than USD 582 million in 2022 and is estimated to reach a valuation of above USD 642 million in 2023. The surging automation in every industry vertical is driving the European market. The sales compensation software market in Europe is forecast to reach a valuation of above USD 1.6 billion by the end of 2033.
The sales compensation software industry in the United Kingdom was valued above USD 110 million in 2022. The market in the United Kingdom is forecast to reach a valuation of USD 266.6 million by the end of 2033. The sales compensation software industry in the United Kingdom is expected to expand with a USD 149.7 million absolute dollar growth opportunity in the coming 10-year epoch.
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The sales compensation software market in the United States was valued at around USD 849.4 million in 2022 and is estimated to reach a valuation of USD 931.4 million in 2023. The increasing adoption of sales compensation software among small-sized and medium enterprises is fuelling the expansion of the market in the United States. The United States is also home to several key players in the market, which is boosting the adoption of new versions of software among enterprises at a faster pace. The sales compensation software industry in the United States is forecast to reach a valuation of USD 2.3 billion by the end of 2033.
| Segment | Large Enterprises |
|---|---|
| Market Share % (2023 to 2033) | 65.2% |
The surging digitalization and technological advancement have boosted the adoption of sales compensation software in large enterprises. Large enterprises with a high amount of sales data are adopting cloud-based sales compensation software as they reduce the adoption cost that is driving the market in the segment. Revenue generated from large enterprises grew at a CAGR of 10.2% from 2018 to 2022.
The SMEs segment is anticipated to grow at a significant rate over the forecast period. Sales compensation software helps SMEs to formulate commercial strategies according to their incentive scheme, which is effective for the business. As several SMEs is rising, sales compensation software providers are developing software specifically for SMEs which is expected to drive market expansion.
The cloud-based sales compensation software has high demand because they offer multiple plans that are suitable for enterprises according to their size. Using cloud-based software is uncomplicated for the sales management department, which is driving the segment. The cloud-based sales compensation software accounted for a CAGR of 10.6% from 2018 to 2022.
Sales compensation software providers are mostly active in client win and product launches. The key companies operating in the sales compensation software industry include SAP, Oracle, Performio, IconiSales Compensation Software, Optymyze, Xactly Corp., NICE Systems Ltd., Apttus, NetSuite, Commissionly.io, ZS Associates, IBM, CellarStone, Inc., Anaplan, QuotaPath Inc., CaptivateIQ, Inc., and Atmax Technologies.
Some recent developments by key providers of sales compensation software are as follows:
Similarly, recent developments related to companies developing sales compensation software have been tracked by the team at Future Market Insights, which is available in the full report.
Key Companies Covered
The sales compensation software market is worth USD 2,655.4 million in 2023.
The sales compensation software market is predicted to rise at a 9.9% CAGR through 2033.
The sales compensation software market is estimated to be worth USD 7,412.9 million by 2033.
The large enterprises' segment leads, acquiring 65.2% of the sales compensation software market share by 2033.
India’s sales compensation software market is estimated to significantly rise at a 10.4% CAGR by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment 5.1. Cloud Based 5.2. Web Based 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Large Enterprises 6.2. SME’s 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. SAP 17.2. Oracle 17.3. Performio 17.4. Iconixx 17.5. Optymyze 17.6. Xactly Corp. 17.7. NICE Systems Ltd. 17.8. Apttus 17.9. NetSuite 17.10. Commissionly.io 17.11. ZS Associates 17.12. IBM 17.13. CellarStone, Inc. 17.14. Anaplan 17.15. QuotaPath Inc. 17.16. CaptivateIQ, Inc. 17.17. Atmax Technologies 18. Assumptions & Acronyms Used 19. Research Methodology
Technology
February 2023
REP-GB-5491
563 pages
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Sales Compensation Software Market
