Sales Performance Management Market Share

Sales Performance Management Market Overview

The Sales Performance Management Market is projected to grow from USD 2.67 billion in 2024 to USD 7.48 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.72% during the forecast period (2024 - 2032). Additionally, the market size for Sales Performance Management was valued at USD 2.31 billion in 2023.

 Increased health concerns and challenges have led to more expensive operations and bariatric procedures. Growing the usage of BYOD and SPM solutions in numerous businesses to enhance their performance and sales channels are the key market drivers enhancing market growth.

Sales Performance Management Market Trends

Increasing automation to enhance visibility and prevent calculation errors is driving market growth

With the continuous digitization and automation throughout workplaces, sales teams are always under pressure to automate pay and reward programs, performance reviews, selling targets, and area mapping. According to Xactly's 2019 Sales Compensation Administration Best Practices Survey, 83% of surveyed businesses continue to experience payment errors at an average rate higher than 5%. In these situations, adopting SPM solutions gives both representatives and supervisors a rapid and accurate insight into the complete SPM operations, as well as assisting them in proactively eliminating variable pay irregularities and boosting productivity. For instance, Cox Automotive adopted a recognized ICM solution and attained 99% commission pay-out accuracy.

The use of SPM solutions by businesses and sales teams has been driven further by the requirement to have comprehensive visibility into performance. According to Ambition's State of Sales Performance Survey Report 2019, 31.6% of respondents believe that seeing figures for themselves is what motivates them to sell the most. So, in order to increase productivity and enhance processes, firms are compelled by these benefits to use SPM solutions. Thus, this factor is driving the market CAGR.

The market for sales performance management is being propelled by rising automation to enhance visibility and prevent calculation errors. One of the key factors fueling the market's expansion is the spike in demand for metric-driven sales tools. Demand for sales performance management is increasing due to growing organizational mobility to boost agent performance and engagement. The market for sales performance management will have slower development due to other important reasons including the expansion of technology and the use of audio-video conferencing APIs to promote efficiency and customization. 

The rapid acceptance of BYOD will boost the market's growth for sales performance management, which is another crucial reason. Also, increasing tablet and smartphone usage and a growing need for healthcare services will impact the sales performance management market throughout the aforementioned projected period. Thus, driving the Sales Performance Management market revenue.

Sales Performance Management Market Segment Insights

Sales Performance Management Component Insights

Based on components, the sales performance management market segmentation includes solutions (incentive compensation management, territory management, sales planning & monitoring, and sales analytics) and services. The solution segment dominated the market, accounting for 35% of market revenue. The main sectors anticipated to drive the growth of the sales performance management market globally are sales forecasting and sales planning solutions. It may be uncomfortable, but many sales teams still use computers for customer-facing presentations.

Sales Performance Management Deployment Mode Insights

Based on deployment mode, the sales performance management market segmentation includes on-premise and cloud. The on-premise category generated the most income. The strong demand for solutions tailored to specific business needs, particularly among large corporations and businesses with data security and privacy concerns, is primarily responsible for expanding the on-premises market. Large enterprises with various data and design needs and enough sales staff typically select the on-premises deployment strategy.

Sales Performance Management End User Insights

Based on end users, the sales performance management industry has been segmented into BFSI, IT and telecom, manufacturing, energy & utilities, healthcare, retail and others. BFSI held the largest segment share in 2022. The need to manage intricate incentive compensation calculations and provide representatives with comprehensive visibility into all SPM processes, as well as the fact that BFSI companies deal with a variety of insurance and banking products, including debit cards, credit cards, loans, and insurance policies that involve the employment of a large number of sales representatives, has compelled BFSI companies to swiftly adopt SPM solutions.

Sales Performance Management Organization Size Insights

Based on organization size, the sales performance management industry has been segmented into SMEs and large enterprises. Large enterprises held the largest segment share in 2022. The segment's expansion is primarily attributable to major organizations' need for higher-quality goods and an efficient development process. More spending on R&D also contributes to higher company productivity.

Sales Performance Management Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Sales Performance Management market accounted largest share in 2022 and is expected to exhibit a significant CAGR growth during the study period. The Region has a strong economy, early technology adoption, and a developed SPM market, as in the US and Canada. The origin of numerous well-known SPM solution providers, including SAP SE, Oracle Corporation, Anaplan Inc., and Xactly Corporation, who are already active in the industry, may be a role in the Region's growth.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Due to increased SME implementation of SPM tools at work and major corporations' early acceptance of the technology in their business processes, the Asia Pacific Sales Performance Management market area is anticipated to exhibit the greatest CAGR throughout the estimated period. Moreover, China Sales Performance Management market held the largest market share, and the India Sales Performance Management market was the fastest-growing in Asia-Pacific.

The second-largest market share is for Europe sales performance management market. Also, the European area includes advanced economies like Germany, France, and Spain, among others, which have substantially implemented cloud-based solutions for sales optimization and utilizing cutting-edge technology. It provides several advantages, including improved quota and territory management, more precise performance-based rewards, and professional development for salespeople. Further, the Germany Sales Performance Management market held the largest market share, and the UK Sales Performance Management market was the fastest-growing market in the European Region.

Sales Performance Management Key Market Players & Competitive Insights

Leading industry companies are making significant R&D investments to broaden their product offerings, which will spur further expansion of the market for Sales Performance Management products. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Sales Performance Management industry must offer products at reasonable prices to grow and thrive in a more cutthroat and competitive environment.

One of the primary business strategies manufacturers employ in the worldwide Sales Performance Management industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. The Sales Performance Management industry has recently provided some of medicine's most important benefits. Major players in the Sales Performance Management market, including CA Technologies (US), Source Gear LLC (US), IBM (US), Logical DOC (US), Microsoft (US), CollabNet (US), Canonical Ltd (UK), Codice Software (Spain), Amazon (US), Atlassian (Australia), and others, are attempting to increase market demand by investing in research and development operations.

An American provider of cloud-based software, Salesforce, Inc. is situated in San Francisco, California. It offers customer relationship management (CRM) software and solutions for e-commerce, analytics, sales, customer care, marketing automation, and application development. In November 2020: Ascent Cloud updated its LevelEleven sales performance management solution and made it available on the Salesforce AppExchange. Clients will obtain real-time data input and new communication channels for staff members who work in offices or remotely.

A pure-play SaaS startup, Xactly Corporation offers cloud-based enterprise software and services. They provide solutions to support employee engagement, sales effectiveness, remuneration, and performance management. Xactly bought TopOPPS in March 2021. By acquiring TopOPPS, Xactly combines the power of TopOPPS's data collection and AI with its own. to create the only currently accessible experience-based intelligent revenue performance platform.

Key Companies in the Sales Performance Management market include

• 
  

  Microsoft Corporation (US)

  
  


• 
  

  Salesforce (US)

  
  


• 
  

  Nice Systems (US)

  
  


• 
  

  Axtria Inc (US)

  
  


• 
  

  Anaplan Inc. (India)

  
  


• 
  

  SAP AG (Germany)

  
  


• 
  

  Xactly Corporation (US)

  
  


• 
  

  Callidus Software Inc. (US)

  
  


• 
  

  Synygy Inc. (US)

  
  


• 
  

  Performio Solutions Inc. (US)

  
  


• 
  

  Opytmyze (US)

  
  


• 
  

  SAP AG (Germany)

  
  


• 
  

  IBM Corporation (US)

  
  


• 
  

  Oracle Corporation (US)

  
  

Sales Performance Management Industry Developments

June 2022: Beqom, one of the world's leading providers of cloud-based compensation management software and a Microsoft Dynamics Gold Partner, has partnered to provide clients of Microsoft Dynamics 365 with sophisticated compensation management.

Sales Performance Management Market Segmentation

Sales Performance Management Component Outlook

• 
  

  Solution

  
  

• 
  

  Incentive Compensation Management

  
  


• 
  

  Territory Management

  
  


• 
  

  Sales Planning & Monitoring

  
  


• 
  

  Sales Analytics

  
  

• 
  

  Services

  
  

Sales Performance Management Deployment Mode Outlook

• 
  

  On-Premise

  
  


• 
  

  Cloud

  
  

Sales Performance Management Organization Size Outlook

• 
  

  SME

  
  


• 
  

  Large Enterprises

  
  

Sales Performance Management Vertical Outlook

• 
  

  BFSI

  
  


• 
  

  IT and Telecom

  
  


• 
  

  Manufacturing

  
  


• 
  

  Energy and utilities

  
  


• 
  

  Healthcare

  
  


• 
  

  Retail

  
  


• 
  

  Others

  
  

Sales Performance Management Regional Outlook

• 
  

  North America

  
  
  
  
  • 
    

    US

    
    
  
  
  • 
    

    Canada

    
    
  
  
  
  


• 
  

  Europe

  
  
  
  
  • 
    

    Germany

    
    
  
  
  • 
    

    France

    
    
  
  
  • 
    

    UK

    
    
  
  
  • 
    

    Italy

    
    
  
  
  • 
    

    Spain

    
    
  
  
  • 
    

    Rest of Europe

    
    
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • 
    

    China

    
    
  
  
  • 
    

    Japan

    
    
  
  
  • 
    

    India

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    South Korea

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    Rest of Asia-Pacific

    
    
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • 
    

    Middle East

    
    
  
  
  • 
    

    Africa

    
    
  
  
  • 
    

    Latin America