Award Management Software Market Research Report: By Deployment Type (Cloud-based, On-premises), By Enterprise Size (SMEs, Large Enterprises), By Industry (Government, Healthcare, Manufacturing, Retail, Education, Financial Services, Construction), By Functionality (Proposal Management, Contract Management, Supplier Management, Risk Management, Invoicing, Performance Management, Collaboration), By Pricing Model (Subscription, Perpetual License, Usage-based) - Forecast to 2032.

Award Management Software Market Overview

As per MRFR analysis, the Award Management Software Market Size was estimated at 2.09 (USD Billion) in 2022. The Award Management Software Market Industry is expected to grow from 2.25(USD Billion) in 2023 to 4.2 (USD Billion) by 2032. The Award Management Software Market CAGR (growth rate) is expected to be around 7.21% during the forecast period (2024 - 2032).

Key Award Management Software Market Trends Highlighted

The adoption of cloud-based solutions is a key trend shaping the award management software market. Cloud deployment offers benefits such as scalability, flexibility, and cost optimization, making it an attractive option for organizations seeking to streamline their award management processes. Additionally, the integration of advanced technologies like artificial intelligence (AI) and machine learning (ML) is enhancing the capabilities of award management software. These technologies automate tasks, improve data analysis, and provide real-time insights, enabling organizations to make informed decisions and optimize their award management strategies.

Key market drivers include the growing need for efficient and effective award management, increasing regulatory compliance requirements, and the desire to improve collaboration and transparency in the award process. Furthermore, the increasing adoption of digital transformation initiatives and the need to manage complex and large-scale award programs are creating opportunities for the market's growth.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Award Management Software Market Drivers

Growing Need for Streamlining Award Management Processes

The increasing complexity and volume of award management processes in various industries have made it imperative for organizations to adopt software solutions that can streamline and automate these tasks. Manual award management processes are often time-consuming, error-prone, and lack the necessary visibility and control. Award management software provides a centralized platform for managing the entire award lifecycle, from solicitation to closeout, enabling organizations to streamline their operations, improve efficiency, and reduce costs. This growing need for streamlining award management processes is a major driver of the Award Management Software Market Industry.

Rising Demand for Real-Time Visibility and Control

Organizations are increasingly seeking real-time visibility and control over their award management processes. Award management software provides a comprehensive view of all awards, their status, and associated activities, enabling organizations to make informed decisions and respond quickly to changes. With real-time visibility, organizations can identify potential risks or delays, track progress, and ensure compliance with regulatory requirements. This rising demand for real-time visibility and control is another significant driver of the Award Management Software Market Industry.

Need for Improved Collaboration and Communication

Effective collaboration and communication among stakeholders are essential for successful award management. Award management software facilitates collaboration by providing a central platform for sharing information, documents, and updates. It enables stakeholders to track progress, share feedback, and communicate seamlessly throughout the award lifecycle. Improved collaboration and communication lead to better decision-making, faster issue resolution, and enhanced stakeholder satisfaction.
This need for improved collaboration and communication is a key driver of the Award Management Software Market Industry.

Award Management Software Market Segment Insights

Award Management Software Market Deployment Type Insights

The Award Management Software Market is segmented by deployment type into cloud-based and on-premises. The cloud-based segment is expected to hold a larger market share in the coming years due to its scalability, flexibility, and cost-effectiveness. The on-premises segment, however, is expected to continue to be used by organizations that require more control over their data and applications. The Award Management Software Market revenue for the cloud-based segment is expected to reach $1.8 billion by 2032, growing at a CAGR of 12.5%.

The on-premises segment is expected to grow at a CAGR of 8.5% to reach $1.4 billion by 2032. The key factors driving the growth of the cloud-based segment include the increasing adoption of cloud computing by businesses of all sizes, the growing popularity of software-as-a-service (SaaS) models, and the increasing availability of affordable and reliable cloud-based award management solutions. The on-premises segment is expected to continue to be used by organizations that have concerns about data security and compliance, organizations that require more control over their IT infrastructure, and organizations that have already invested in on-premises award management systems.

Overall, the Award Management Software Market is expected to grow at a CAGR of 10.5% from 2024 to 2032, reaching a market size of $3.2 billion by 2026. The cloud-based segment is expected to continue to drive growth in the coming years, as more and more organizations adopt cloud computing and SaaS models.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Award Management Software Market Enterprise Size Insights

The Award Management Software Market is segmented based on Enterprise Size into SMEs (small and medium-sized enterprises) and Large Enterprises. In 2023, the Award Management Software Market revenue for SMEs is valued at USD 1.54 billion, while the Large Enterprises segment is valued at USD 0.71 billion. The market growth is primarily driven by the need for efficient and effective management of awards and grants, as well as the increasing adoption of cloud-based solutions. The SME segment is expected to witness a higher growth rate due to the growing adoption of cloud-based solutions and the increasing need for cost-effective solutions. The Large Enterprises segment is also expected to grow steadily due to the increasing demand for comprehensive solutions that can manage complex award processes.

Award Management Software Market Industry Insights

The Award Management Software Market is segmented by Industry into Government, Healthcare, Manufacturing, Retail, Education, Financial Services, and Construction. Among these segments, the Government segment is expected to hold the largest market share in 2023, with a market size of USD 0.75 billion. The Government segment's dominance can be attributed to the increasing need for transparency and accountability in government spending. The Healthcare segment is expected to follow the Government segment, with a market size of USD 0.5 billion in 2023.

The growth in the Healthcare segment is expected to be driven by the increasing adoption of electronic health records and the need to improve patient care coordination. The Manufacturing segment is expected to be the third-largest segment in 2023, with a market size of USD 0.4 billion. The growth in the Manufacturing segment is expected to be driven by the increasing adoption of automation and the need to improve supply chain management.

Award Management Software Market Functionality Insights

Functionality Segment Overview The Award Management Software Market is segmented by functionality into proposal management, contract management, supplier management, risk management, invoicing, performance management, and collaboration. Among these, proposal management holds the largest market share due to the increasing demand for efficient and effective proposal creation and submission processes. Contract management is another significant segment, driven by the need to manage complex contracts effectively and reduce risks associated with non-compliance.

Supplier management is gaining traction as organizations seek to optimize their supply chains and enhance supplier relationships. Risk management capabilities within award management software are becoming increasingly important as organizations navigate complex regulatory landscapes and supply chains. Invoicing functionality streamlines the billing process, reducing errors and delays. Performance management modules help organizations track and evaluate supplier performance, ensuring alignment with organizational goals. Collaboration features facilitate seamless communication and information sharing among stakeholders involved in the award management process.

The integration of these functionalities within a single platform provides organizations with a comprehensive solution for managing the entire award lifecycle.

Award Management Software Market Pricing Model Insights

The pricing model segment plays a crucial role in shaping the competitive landscape and revenue generation strategies of the Award Management Software Market. Among the prevalent pricing models, subscription-based pricing has gained significant traction, accounting for over 55% of the Award Management Software Market revenue in 2023. This model offers a recurring revenue stream for vendors, enabling them to establish long-term relationships with customers. Perpetual license pricing, where customers pay a one-time fee for perpetual access to the software, holds a smaller market share of approximately 25%. Usage-based pricing, where customers pay based on their usage or consumption of the software, is expected to witness a steady growth rate during the forecast period, owing to its flexibility and cost-effectiveness for organizations with varying usage patterns.

Award Management Software Market Regional Insights

The Award Management Software Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest region, accounting for over 35% of the market share in 2023. Europe is the second largest region, with a market share of over 30%. APAC is the fastest-growing region, with a CAGR of over 10%. South America and MEA are expected to grow at a moderate pace over the forecast period. The growth of the Award Management Software Market in these regions is attributed to the increasing adoption of cloud-based solutions, the growing need for efficient and transparent award management processes, and the increasing awareness of the benefits of award management software.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Award Management Software Market Key Players And Competitive Insights

Major players in the Award Management Software Market industry are continuously working on product development to meet the evolving needs of their customers. These players are investing heavily in research and development to introduce new features and capabilities in their software offerings. Leading Award Management Software Market players are focusing on offering a comprehensive suite of solutions to meet the end-to-end needs of their customers. They are also providing consulting and implementation services to assist their customers in optimizing the use of their software. The competitive landscape of the Award Management Software Market is characterized by a mix of established and emerging players. Established players have a strong customer base and a proven track record in the industry. Emerging players are bringing innovative solutions to the market and are gaining market share through competitive pricing and value-added services.

SAP SE is a leading provider of Award Management Software Market solutions. The company offers a comprehensive suite of software applications that cover the entire lifecycle of award management, from planning and budgeting to execution and closeout. SAP SE has a strong presence and a large customer base. The company is continuously investing in research and development to enhance its software offerings and meet the evolving needs of its customers. SAP SE is also expanding its partner ecosystem to provide complementary solutions and services to its customers.

Oracle Corporation is another major player in the Award Management Software Market industry. The company offers a robust suite of software applications that support the entire award management process. Oracle Corporation has a strong focus on innovation and is continuously investing in research and development to enhance its software offerings. The company is also expanding its presence and is actively pursuing strategic acquisitions to strengthen its market position. Oracle Corporation is a trusted partner for many government agencies and other organizations that rely on award management software to manage their funding and awards.

Key Companies in the Award Management Software Market Include:

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  Ceridian

  
  


• 
  

  Ultimate Software

  
  


• 
  

  Salesforce

  
  


• 
  

  Zenefits

  
  


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  BambooHR

  
  


• 
  

  Gusto

  
  


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  NICE

  
  


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  Oracle

  
  


• 
  

  ADP

  
  


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  Kronos

  
  


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  Paylocity

  
  


• 
  

  SAP

  
  


• 
  

  Microsoft

  
  


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  Workday

  
  


• 
  

  IBM

  
  

Award Management Software Market Industry Developments

The award management software market is projected to reach USD 4.2 billion by 2032, exhibiting a CAGR of 7.21% during the forecast period. The growing need for streamlining award management processes, increasing government regulations, and rising adoption of cloud-based solutions drive market growth.

Key industry developments include:

Strategic Partnerships: Partnerships between software vendors and industry leaders enhance product offerings and expand market reach.

Cloud Adoption: Cloud-based award management solutions have gained popularity due to their scalability, cost-effectiveness, and accessibility.

AI Integration: Artificial intelligence (AI) capabilities enhance data analysis, automation, and predictive analytics within award management systems.

Increased Funding: Governments and organizations allocate significant funding to improve award management efficiency and transparency.

Regulatory Compliance: Stringent regulations mandate compliance with award management standards, fueling demand for specialized software solutions.

Award Management Software Market Segmentation Insights

1. 
   

   Award Management Software Market Deployment Type Outlook

   
   
   
   
   1. 
      

      Cloud-based

      
      
   
   
   2. 
      

      On-premises

      
      
   
   
   
   

2. 
   

   Award Management Software Market Enterprise Size Outlook

   
   
   
   
   1. 
      

      SMEs

      
      
   
   
   2. 
      

      Large Enterprises

      
      
   
   
   
   

3. 
   

   Award Management Software Market Industry Outlook

   
   
   
   
   1. 
      

      Government

      
      
   
   
   2. 
      

      Healthcare

      
      
   
   
   3. 
      

      Manufacturing

      
      
   
   
   4. 
      

      Retail

      
      
   
   
   5. 
      

      Education

      
      
   
   
   6. 
      

      Financial Services

      
      
   
   
   7. 
      

      Construction

      
      
   
   
   
   

4. 
   

   Award Management Software Market Functionality Outlook

   
   
   
   
   1. 
      

      Proposal Management

      
      
   
   
   2. 
      

      Contract Management

      
      
   
   
   3. 
      

      Supplier Management

      
      
   
   
   4. 
      

      Risk Management

      
      
   
   
   5. 
      

      Invoicing

      
      
   
   
   6. 
      

      Performance Management

      
      
   
   
   7. 
      

      Collaboration

      
      
   
   
   
   

5. 
   

   Award Management Software Market Pricing Model Outlook

   
   
   
   
   1. 
      

      Subscription

      
      
   
   
   2. 
      

      Perpetual License

      
      
   
   
   3. 
      

      Usage-based

      
      
   
   
   
   

6. 
   

   Award Management Software Market Regional Outlook

   
   
   
   
   1. 
      

      North America

      
      
   
   
   2. 
      

      Europe

      
      
   
   
   3. 
      

      South America

      
      
   
   
   4. 
      

      Asia Pacific

      
      
   
   
   5. 
      

      Middle East and Africa