Corporate Performance Management Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.40 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Corporate Performance Management Market Analysis
The Corporate Performance Management (CPM) market was valued at USD 6.30 billion in the current year and is estimated to reach USD 8.59 billion at the end of the forecast period by registering a CAGR of about 6.4% during the forecast period. This increase is attributed to the growing focus on adopting business performance-measuring tools. In addition, the software's cost savings and business effectiveness also boost global corporate performance management software industry market growth. Furthermore, the advancements in artificial intelligence (AI) and business intelligence (BI) enable CFOs, and other business leaders to inspire organizational performance and manage strategies in a more controlled and evident manner, which is anticipated to be an advantage for the global corporate performance management software industry market.
- Corporate performance management software market trends contributing to the market growth is the artificial intelligence-enabled corporate performance management (CPM) software. AI and machine learning (ML) have the potential to make planning much more effective and efficient for organizations. These technologies can help to improve the results of planning and the planning process itself to achieve more meaningful results quickly and reduce the workload of planners. Faster simulations, more accurate forecasts, and increased automation in corporate planning are now within reach of companies using AI, ML, and statistical methods. Many vendors in the market also offer AI-based CPM software. For instance, the Jedox EPM solution helps companies accelerate their planning, forecasting, and reporting. The solution incorporates AI and machine learning to help finance teams create better forecasting models. Such offerings will propel the corporate performance management software market growth.
- Further, Corporate performance management is a component of business intelligence, which monitors and manages an organization's implementation based on key performance indicators, such as return on investment, revenue, and overhead and operating costs. CPM solutions take useful and meaningful information and turn it into a structured performance metric to support the decision-making process in an organization. A CPM solution will streamline data collection, aggregation, and reporting from multiple sources with consistency and improved accuracy, thereby providing faster results in a shorter duration. CPM enables confidence and trust in financial data, along with traceability of actions and seamless workflow capabilities. This, in turn, will push the CPM software market growth during the forecast period.
- Moreover the players in the market are partnering to provide better services to their customers. For instance, in 2022, Ernst & Young (EY) reports an extension of the alliance with Wolters Kluwer to have the CCH Tagetik corporate performance management tools and EY Advisory S.p., harnessing the strength of data to sustain and create opportunities for companies to drive performance and provide long-term benefit. The alliance has also been started in Belgium with additional global growth over time. The requirement for products to sustain financial and operational planning and financial and management consolidation is rising because of the increasing demand for finance process automation.
- One of the key challenges hampering the CPM software market growth is the need for comprehensive technical training. While evaluating CPM software, it is necessary to understand the technical expertise needed to create reports and dashboards or change existing ones. Many CPM software products are very complicated and require IT specialists to get involved anytime the organization needs to change. This drives up the total cost of ownership (TCO). For the finance group, TCO can lead to frustrating delays and dependence on an outside department. Typically, building and maintaining the required competencies and skills and ensuring the availability of monetary and human resources are some of the most significant challenges in the market. These challenges may limit the CPM software market growth during the forecast period.
- The COVID-19 pandemic has significantly impacted the Corporate performance management software market. The pandemic has caused several challenges for banks and other financial institutions, including increased uncertainty and volatility in the financial markets, a decline in economic activity and consumer spending, and an increase in unemployment and bankruptcies. These challenges have made it more difficult for banks to assess and manage credit risk. As a result, there has been a growing demand for corporate performance management software that can help banks better understand and manage their risk exposure.
Corporate Performance Management Market Trends
Cloud Segment is Expected to Hold a Significant Share of the Market
- The increasing realization among firms about the importance of saving money and resources by transferring their data to the cloud instead of building and supporting new data storage drives the demand for cloud-based solutions and the adoption of on-demand protection services in the region. Owing to multiple benefits, cloud platforms and ecosystems are expected to serve as a launchpad for an outbreak in the pace and scale of digital innovation over the next few years. Security has been critical at each step of the cloud adoption cycle as IT provision has moved from on-premise to outside the company's walls.
- According to the Flexera 2022 State of the Cloud Report, migrating workloads to the cloud is widespread across industries. This is especially significant in financial services, where it is the top cloud initiative for 2022. About 62% percent of the 154 survey respondents from financial services businesses said they intend to make progress on this measure in the future year. This workload movement could indicate growing trust in cloud providers' security capabilities and policies to provide adequate protection. Further, one-third (33%) of financial services organizations expect to use a mix of on-premise and cloud/software-as-a-service (SaaS) for corporate financial data. Even more, (35%) anticipate utilizing a combination of on-premise and cloud/SaaS for customer data, such as personally identifiable information and protected health information (PHI). About 44% of financial services or organizations' data are in the cloud, a number expected to grow to 52% in the coming year.
- Similarly, 78% of financial services businesses run workloads on Amazon Web Services (AWS), while 76% run workloads on Azure, placing these two public clouds virtually on a level. Google cloud platform ranks third, with 43% of financial services businesses running workloads on it. Regarding where the instances operate, 46% of financial services firms use more than 100 instances in AWS, while 51% of financial services organizations run more than 100 instances in Azure. 22% of financial services businesses spend more than USD 6 million annually on AWS, whereas 18% spend more than USD 6 million on Azure.
- As mission-critical activities such as online and digital banking and payment processing migrate to the public cloud, established organizations discover they can supply products and services more quickly. For example, Wells Fargo is one of the world's largest banks. The bank stated an ambitious digital infrastructure target of moving all its workloads to several public clouds within the next ten years. The bank will decommission its on-premises data centers and shift services to Microsoft Azure and Google Cloud Platform, where each provider has distinct strengths.
- According to Turbonomic released data on July 2022, In 2021, 56% of respondents noted that they are utilizing Microsoft Azure for their cloud services. Amazon Web Services (AWS) was on the list until 2020, when Microsoft took its place. Additionally, the rate of respondents not using any form of cloud rose to 8% in 2022 from 4% in 2021. Such huge rise in the usage of cloud by various organizations would push the market players to develop new solutions to be deployed on the cloud.
North America is Expected to Hold Significant Share of the Market
- North America is expected to witness significant growth in the corporate performance management industry market and register favorable development in the forecast year. This is due to increased demand, competition, and cost optimization strategies adopted by companies operating in the region. However, the United States region is expected to witness growth in the market. This region's corporate performance management market has historically undergone significant growth and challenging development as vendors continue to offer various functional and viable solutions based on business requirements. These vendors have extended their offerings with information systems analytics to help customers generate better reporting and stay ahead of the competition. This is a key factor propelling the growth of the region's corporate performance management software market.
- According to the US Small Business Administration Office of Advocacy, in 2022, the number of small enterprises in the United States reached 33.2 million, accounting for nearly all (99.9%) firms in the country. The increase in the number of small firms in the United States in 2022 reflects steady growth, with a 2.2% increase from the previous year and a 12.2% increase from 2017 to 2022. Such huge number of small and medium-sized enterprises in the region would create an opportunity for the studied market to grow.
- Progressive banks in the region are relying on the cloud services to help upraise their revenue management system through integrating their revenue management and billing process across the cloud that allows them to cut implementation time and free up resources, thereby, focusing more on innovations, rolling out solutions faster, reduce IT complexity, drive greater business agility, transform user experience, and rapidly implement new business models.
- Moreover, by integrating the processes with compliance and audit tasks, these projects consume a significant amount of resources, as meeting the deadline becomes the most crucial objective and one of the primary reasons to adopt audit, compliance, and governance solutions. The repetitive nature of these tasks, as companies carry out these assessments at infrequent intervals to track their growth, is the major driving factor in maximizing revenue management. Further, it helps in accurately projecting the company's future finances, thereby obtaining real-time visibility across the organization, measuring the successes and failures of current business strategies, and managing financial risk.
- In January 2023, Wolters Kluwer CCH Tagetik corporate performance management solution helped EY Canada clients to streamline financial close, consolidation, regulatory compliance, and planning. In addition to EY's operations in the United States, Italy, and Belgium, EY Canada will utilize the Wolters Kluwer market, one of the prominent players in CCH Tagetik corporate performance management (CPM) solutions to support and accelerate significant financial transformations. EY expects to continue introducing the market-leading CCH Tagetik technology to additional global markets in 2023.
Corporate Performance Management Industry Overview
The corporate performance management market is moderately consolidated with the presence of several players like Oracle Corporation, SAP SE, IBM Corporation, Adaptive Insights, Host Analytics, etc. The companies continuously invest in strategic partnerships and solutions developments to gain substantial market share.
In May 2023, Wolters Kluwer, a global player in professional information, software solutions, and services, announced the expansion of its CCH Tagetik corporate performance management (CPM) portfolio in Taiwan - introducing new functionality to enable Taiwan multinational companies to address evolving Global Minimum Tax and ESG regulations. New CCH Tagetik functionality will support international Taiwan companies impacted by new Global Minimum Tax requirements, which the Ministry of Finance predicts to adopt as early as 2024 for certain global businesses. Specifically, the CCH Tagetik Global Minimum Tax solution will authorize enterprises to collect, align, calculate, and report integrated finance and tax data in compliance with Organisation for Economic Co-operation and Development (OECD) pillar two tax requirements.
In May 2022, Tietoevry has started a collaboration with OneStream to streamline corporate performance management processes. One of the prominent cloud-based finance platforms guarantees improved decision-making. OneStream provides Tietoevry's enterprise consumers with a unified platform collecting data from different systems across the enterprise to enable finance and other executives to focus on business. The solution enhances financial and operational data quality by aligning planning, reporting, financial consolidation and analytics.
Corporate Performance Management Market Leaders
Oracle Corporation
SAP SE
IBM Corporation
Adaptive Insights
Host Analytics
*Disclaimer: Major Players sorted in no particular order
Corporate Performance Management Market News
February 2023: NETSCOUT SYSTEMS, INC., one of the prominent providers of cybersecurity, business analytics solutions, and service assurance, continues to increase the performance management market with its nGenius Enterprise Performance Management solution that delivers support for more than 1,000 video, voice, and business data applications out of the box. This capability is further enhanced by integrating nGeniusONE and F5 technologies to configure custom applications' monitoring automatically. The solution enables customers to eliminate blind spots at the packet level for more useful application performance and security assurance.
August 2022: OneStream, a player in corporate performance management (CPM) solutions for the world's leading enterprises, announced a strategic partnership with EPM Global Pte. Ltd. to transform CPM processes for sophisticated firms around the globe. This new partnership will provide industry-prominent software and implementation expertise while operating efficiently in the Office of Finance for Singapore and Southeast Asia customers. OneStream is a unified, intelligent finance platform that simplifies and aligns financial consolidation, planning, reporting, analytics, and financial data quality.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Impact of COVID-19 on the Market
4.5 Assessment of Impact of Macro-Economic Changes on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Proliferation of Data Driven Decision Making
5.1.2 Growing Focus on Organizational Compliance
5.2 Market Challenges
5.2.1 Lack of Awareness and Knowledge Among Enterprises
5.3 Key Application Use Cases
5.3.1 Integrated Financial Planning (IFP)
5.3.2 Performance Reporting
5.3.3 Financial Budgeting, Planning and Forecasting Applications
5.3.4 Strategic Planning And Forecasting And Strategy Management
5.3.5 Profitability Modeling And Optimization (PM&O)
6. MARKET SEGMENTATION
6.1 By Mode of Deployment
6.1.1 On-Premises
6.1.2 Cloud
6.2 By Size of Organization
6.2.1 Small and Medium Enterprises
6.2.2 Large Enterprises
6.3 By End-user Industry
6.3.1 Retail
6.3.2 BFSI
6.3.3 Manufacturing
6.3.4 Energy and Power
6.3.5 Other End-user Industries
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Oracle Corporation
7.1.2 SAP SE
7.1.3 IBM Corporation
7.1.4 Adaptive Insights
7.1.5 Host Analytics
7.1.6 Anaplan Inc.
7.1.7 Tagetik Software S.r.l
7.1.8 Longview Solutions
7.1.9 Board International
7.1.10 SAS Institue Inc.
7.1.11 Prophix Software Inc.
7.1.12 Axiom Software
- *List Not Exhaustive
8. VENDOR POSITIONING ANALYSIS
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
Corporate Performance Management Industry Segmentation
Corporate performance management (CPM) is software used by corporations and organizations to manage organizational strategies and goals via predefined standard methodologies, budgeting, forecasting, data analysis, processing, and reporting to monitor and control the performance of an organization. The CPM procedure is essential for businesses to save costs, improve operating methods, and improve financial planning. CPM enables enterprises to use proven and well-tested methods and processes to enhance and expand their firm's management. CPM is a collection of intellectual business tools to measure the performance of an organization.
The corporate performance management market is segmented by mode of deployment (on-premise and cloud), by the size of the organization (small and medium enterprises and large enterprises), by end-user industry (retail, BFSI, manufacturing, energy, and power, and other end-user industries) and by geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Mode of Deployment | |
| On-Premises | |
| Cloud |
| By Size of Organization | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By End-user Industry | |
| Retail | |
| BFSI | |
| Manufacturing | |
| Energy and Power | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Frequently Asked Questions
What is the current Corporate Performance Management Market size?
The Corporate Performance Management Market is projected to register a CAGR of 6.40% during the forecast period (2024-2029)
Who are the key players in Corporate Performance Management Market?
Oracle Corporation, SAP SE, IBM Corporation, Adaptive Insights and Host Analytics are the major companies operating in the Corporate Performance Management Market.
Which is the fastest growing region in Corporate Performance Management Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Corporate Performance Management Market?
In 2024, the North America accounts for the largest market share in Corporate Performance Management Market.
What years does this Corporate Performance Management Market cover?
The report covers the Corporate Performance Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Corporate Performance Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Corporate Performance Management Industry Report
Statistics for the 2024 Corporate Performance Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Corporate Performance Management analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
