The global policy management software market size was valued at $962.18 million in 2019, and is projected to reach $3.06 billion by 2027, growing at a CAGR of 15.7% from 2020 to 2027. The key objective of policy management software is to create, communicate, and maintain policies and procedure in an organization for mitigating different types of risk associated with the management of the organization. In addition, various industries are adopting policy management software to achieve their goals without affecting the internal and external environment of the organization. Numerous benefits are associated with policy management software include provision of consistency within the company, supports in decreasing the communication gap between the employees and organization, protection of the organization from litigation, and helps in achieving the organization’s objectives.
The key factors driving the growth of the global policy management software market trends include increase in adoption of policy management software by various industries and surge in need to streamline business by the policy management vendors. In addition, rise in need for faster management of procedure and policies across the industries positively impacts the growth of the market. However, high implementation and maintenance cost of policy management software and rise in security issues in the policy management software are the factors expected to hamper the market growth. On the contrary, rise in adoption of cloud-based policy management software across the globe is expected to offer remunerative opportunities for the expansion of the global policy management software market during the forecast period.
The solution segment is expected to garner a significant share during the forecast period, owing to rise in adoption of policy management solution among enterprises for managing and protecting critical policies, procedures and protocol of the organization. However, the service segment is expected to grow at the highest rate during the forecast period, owing to rise in demand for software-as-a-service (SaaS), due to associated benefits that include scalability and one-time customer acquisition cost.
Solution is projected as one of the most lucrative segments.
Region wise, the policy management software market was dominated by North America in 2019, and is expected to retain its position during the forecast period. This is attributed to growing adoption of cloud-based technology across the region and rise in data breaches in privacy policies of various organization. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to rise in adoption of policy management software by various venders in order to prevent and detect threats at early stages.
The report focuses on the growth prospects, restraints, and trends of global policy management software market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on global policy management software market.
By Deployment Model
On-premise is projected as one of the most lucrative segments.
The global policy management software market is segmented into component, deployment model, enterprise size, industry vertical, and region. In terms of component, the market is fragmented into solution and services. Depending on deployment model, it is bifurcated into on-premise and cloud. On the basis of enterprise size, it is categorized into large enterprises and small and medium enterprises. According to industry vertical, it is classified into BFSI, IT & telecom, energy & utilities, healthcare, government & defense, manufacturing, retail, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global policy management software market industry include Amdocs, Comarch SA, ConvergePoint Inc., Huwaei Technologies Co., Ltd, Intracom Telecom, Juniper Networks, Inc., LogicGate, Inc., Mitratech, NAVEX Global, Inc., and WorkflowFirst Software LLC. These players have adopted various strategies to increase their market penetration and strengthen their foothold in the policy management software market industry.
By Enterprises Size
Large Enterprise is projected as one of the most lucrative segments.
Impact of COVID-19 Pandemic on Policy Management Software Market:
The emergence of COVID-19 is expected to have a considerable impact on the growth of the policy management software market. The spending on the policy management software industry is expected to slow down compared to the spending planned before this pandemic, owing to multiple factors such as closure of various insurance companies and various small and medium enterprise and stoppage of various small and medium enterprises. Furthermore, COVID-19 pandemic has brought radical changes to daily lives of people, work, and the surrounding environment. The current estimation of 2027 is projected to be significantly higher than pre-COVID-19 estimates. The policy management software market growth is expected to recover from by the end of 2020; however, it is expected to grow significantly at a higher CAGR in the coming years, owing to working from home (WFH), social distancing, and digital transformation of businesses. These factors have become the key components in the emergence of business messaging as the ideal channel to communicate with consumers.
Top impacting factors
Increase in adoption of policy management software by various industries
Increase in adoption of policy management software in BFSI, IT & Telecom, transportation, and healthcare industries, owing to its numerous benefits such as simplifying policy lifecycle management service, generating notifications, and escalations based on employee’s performance, and recording risk impact for policy exceptions drives the growth of the market. In addition, policy management software helps financial services, credit unions and banks to achieve an automated, consistent approach for adjusting and managing policies according to various new regulation imposed by the government. Thus, various banking and fintech industries are adopting this software to mitigate risk and to follow the new guidelines, which is driving the growth of the market. Furthermore, various healthcare sectors across the globe adopt policy management software for improving their operational efficiency and to impose new additional security and permission options for documentation and sensitive information. This software also provides better collaboration between the policymakers & doctors and helps the healthcare sector to easily share critical information with the policy agents. This propels the growth of the market in this sector.
By Industry Vertical
BFSI is projected as one of the most lucrative segments.
Adoption of cloud-based policy management software among SMEs
The increased availability of accessible cheap data centers delivered by cloud vendors has brought down the costs of upfront investment for small- and medium-sized businesses; thereby, reducing the market entry barrier. This has led to increased demand for cloud-based policy management software among small- & medium-sized enterprises. Furthermore, cloud services have solved the complexity of storing and accessing data for the companies to simplify the use of their policy management software.
By using cloud-based policy management software, organizations can streamline their work process as well as automate their work and enhance their operational efficiency. Several small and medium size enterprises across various industry vertical such as banking, financial services, and insurance (BFSI), retail, healthcare, manufacturing, telecommunication & IT, media & entertainment, and many others adopt cloud services at a rapid pace which is providing lucrative opportunity for the market.
Asia-Pacific would exhibit the highest CAGR of 17.4% during 2019-2027.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of global policy management software market forecast along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on global policy management software market share is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2020 to 2027 is provided to determine the market potential.
Policy Management Software Market Report Highlights
By Deployement Model
By Enterprise Size
By Industry Vertical
Key Market Players
MITRATECH, LogicGate, Inc., Huawei Technologies Co., Ltd., Intracom Telecom, ConvergePoint Inc., Juniper Networks, Inc., COMARCH SA., NAVEX Global, Inc., Amdocs, WorkflowFirst LLC
Increase in adoption of policy management software by various companies, brokers, and agencies to manage their operational and organizational task efficiently and to enhance their market value drives the growth of the market. In addition, various governments across the globe are introducing supportive policies regarding policy management, which increases the demand for this software in various industries. Moreover, the ability of software to protect the confidentiality of digital data stored and transmitted over the internet increases its popularity among end users. Furthermore, technological advancements and increase in awareness among consumers are expected to lead to a rapid growth of the market during the forecast period.
The key providers of policy management software such as Comarch, ConvergePoint Inc., Huwaei Technologies, Juniper and LogicGate, Inc. account for a significant share in the market. According to industry experts, although the policy management software is not a new technology, it is still expected to witness increased adoption in the upcoming years, owing to rise in usage of policy management software by various industries and surge in need to streamline business by the policy management vendors. In addition to this, small business users are the major users of policy management software. Therefore, increase in number of small businesses in developing nations, such as China, India, Indonesia, and Thailand, is expected to provide lucrative opportunity for the market growth. North America is expected to dominate the market during the forecast period while emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities.