Sales Performance Management (SPM) Market Size - By Component (Solution, Services), Deployment Model (Cloud, On-Premise), Industry Vertical (FSI, IT and Telecom, Manufacturing, Energy and Utilities, Healthcare, Retail), Enterprise Size & Forecast, 2023 - 2032

Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format

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Sales Performance Management (SPM) Market Size - By Component (Solution, Services), Deployment Model (Cloud, On-Premise), Industry Vertical (FSI, IT and Telecom, Manufacturing, Energy and Utilities, Healthcare, Retail), Enterprise Size & Forecast, 2023 - 2032

Sales Performance Management Market Size

Sales Performance Management Market size was USD 2.2 billion in 2022 and is anticipated to grow with a CAGR of over 16% from 2023 to 2032. The growth of the market is due to the growing focus on sales performance and sales productivity in businesses. There is a greater interest in enhancing the productivity and performance of the sales teams. Sales performance management solutions offer functionality to monitor, analyze, and improve the performance of sales personnel, enabling organizations to meet their revenue goals and enhance overall productivity.

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With these advantages as drivers, firms competing in this segment are aggressively developing new products and solutions to meet the growing market demand, hence driving the sales performance management market. For example, in June 2022, Indian LeadSquared, a CRM software and marketing automation platform, launched a new suite for the management of sales performance, namely "Ace." The Ace Suite uses a combination of psychological and analytical approaches to gamify sales processes and optimize sales performance.

Sales Performance Management Market Report Attributes
Report Attribute Details
Base Year 2022
Sales Performance Management Market Size in 2022 USD 2.2 Billion
Forecast Period 2023 to 2032
Forecast Period 2023 to 2032 CAGR 16%
2032 Value Projection USD 9.7 Billion
Historical Data for 2018 – 2022
No. of Pages 230
Tables, Charts & Figures 356
Segments covered Component, Enterprise Size, Deployment Model, Industry Vertical
Growth Drivers
  • Growing digital transformation across various industries
  • Increased demand for sales efficiency
  • Rising inclination towards remote & hybrid work environments
  • Complexity of sales compensation and incentive structures
  • Expanding sales teams and channels of businesses
Pitfalls & Challenges
  • Data security and privacy
  • Complexities in implementation of SPM solutions

What are the growth opportunities in this market?

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The first product released under the Ace suite is named "Goals." It enables sales managers to set clearly defined goals through no-code setup. These goals can be customized for a variety of key performance indicators, such as Lead Generation, Completed Calls, Closed Deals, and Generated Revenue, to support various roles within the organizational hierarchy.

The intricacy of deploying SPM solutions and consolidating them with current CRM or Cloud ERP systems can be challenging to industry growth. This frequent necessity of spending considerable time, resources, and technical skills, thus becoming an obstacle for some organizations, especially smaller ones, affecting the entire market dynamics.

COVID-19 Impact
The COVID-19 pandemic had a significant effect on the Sales Performance Management (SPM) market. As remote work became the new reality, SPM solutions became essential for monitoring and optimizing sales performance across remote teams. Demand for digital performance monitoring and incentive management tools skyrocketed, mirroring the demand for flexibility in an evolving sales environment. COVID-19 hastened the use of SPM technologies as companies looked for more agile and data-driven sales management strategies.

Sales Performance Management Market Trends
Quick adoption of AI and ML by SPM solutions will significantly boost the sales performance management business. SPM solutions are now incorporating AI and machine learning functions to enable better analytics and predictive insights. These technologies assist firms in detecting sales trends, fine-tuning compensation plans, and making data-driven choices to optimize sales performance. Therefore, technology players across the world are stepping forward to utilize AI and create solutions to enhance business performance.

For example, in May 2023, Microsoft and SAP, leading tech industry players, announced their commitment to deepen their collaboration on collaborative generative AI solutions in the context of hiring. SAP has announced plans to incorporate its SuccessFactors solution with Microsoft's Copilot, Copilot in Viva Learning, and Azure OpenAI. The incorporation will utilize language models for natural language analysis and generation. The objective is to improve the process by which businesses recruit, develop skills, and retain talent. Sales performance management systems may be combined with compensation and incentive management, the key to keeping top sales performers motivated and retaining them.

Consequently, organizations are embracing these solutions to make compensation plans directly linked to performance, motivating sales teams to achieve and surpass their goals, further enhancing the sales performance management market outlook. Referring to an example, in December 2021, Varicent, a leading Sales Performance Management (SPM) software company, announced the latest enhancements to its highly acclaimed Incentive Compensation Management (ICM) solution. These improvements are the outcome of a joint process that includes customer feedback and considers current industry advancements. This award-winning SPM solution has evolved continuously since its launch to provide enhanced functionality in the areas of sales compensation and planning, enabling organizations to streamline these key processes.

Sales Performance Management Market Analysis

Learn more about the key segments shaping this market

Based on enterprise, the large enterprises segment held over 70% of the market share in 2022, driven by the need for data-driven decision-making and performance optimization. SPM systems offer advanced analytics and insights that help large organizations refine their sales strategies. The complexity of managing sales teams and incentives across expansive enterprises necessitates the automation and efficiency that SPM solutions provide. Additionally, the increasing competition in the global market pushes enterprises to invest in SPM to stay competitive and motivate their sales teams to achieve better results.

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Based on industry vertical, the BFSI segment accounted for 26% of the sales performance management market share in 2022, due to regulatory changes and increased scrutiny requiring a transparent and accountable sales process. The BFSI sector relies heavily on sales teams to acquire and retain customers, making efficient performance management crucial. SPM tools enable organizations to optimize sales strategies, improve compliance, and align sales incentives with business objectives, all of which are paramount in this highly competitive and dynamic industry.

Looking for region specific data?

North America sales performance management market size recorded more than 37% of revenue share in 2022. The region's highly competitive business landscape demands efficient sales processes, which SPM solutions optimize. Additionally, North American businesses strongly emphasize data-driven decision-making, and SPM tools offer advanced analytics for informed strategies. Moreover, regulatory compliance is stringent in the region, making SPM's role in ensuring transparent sales practices and accurate incentive management critical. These factors, coupled with the region's technological advancement and economic strength, contribute to the high growth of the SPM industry in North America.

Sales Performance Management Market Share

Major companies operating in the sales performance management industry are

Companies in the SPM market are employing various strategies to fortify their positions. These strategies include investing in innovative technology, expanding service offerings, enhancing customer support, and forming strategic partnerships to tap into new markets and achieve sustained growth.

Sales Performance Management Industry News

  • In April 2023, Siemens Digital Industries Software and IBM unveiled plans to enhance their software collaboration by creating a comprehensive suite of integrated tools aimed at tackling system engineering across multiple domains. This expanded partnership will encompass lifecycle management and asset management, with the overarching goal of establishing a unified digital thread that runs through the entire manufacturing infrastructure.

The sales performance management (SPM) market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Component

  • Solution
    • Incentive compensation management
    • Territory management
    • Sales monitoring and Planning
    • Sales performance analytics & reporting
    • Others
  • Services
    • Professional services
    • Managed services

Market, By Enterprise Size

  • Large enterprises
  • SMEs

Market, By Deployment Model

  • On-premise
  • Cloud

Market, By Industry Vertical

  • BFSI
  • IT and Telecom
  • Manufacturing
  • Energy and Utilities
  • Healthcare
  • Retail
  • Others

The above information has been provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia

 

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Table of Content

Here’s a Table of Contents (TOC) for a Sales Performance Management (SPM) Market report:

Table of Contents

  1. Executive Summary

    • Market Overview

    • Key Findings

    • Market Size & Growth Projections

    • Competitive Landscape

  2. Introduction

    • Definition & Scope of Sales Performance Management (SPM)

    • Research Methodology

    • Assumptions & Limitations

  3. Market Dynamics

    • Market Drivers

    • Market Restraints

    • Opportunities & Challenges

  4. Market Segmentation

    • By Component

      • Software

      • Services (Consulting, Implementation, Support & Maintenance)

    • By Deployment Mode

      • Cloud-Based

      • On-Premise

    • By Organization Size

      • Small & Medium Enterprises (SMEs)

      • Large Enterprises

    • By Application

      • Incentive Compensation Management (ICM)

      • Territory & Quota Management

      • Sales Forecasting & Planning

      • Performance Analytics & Reporting

      • Gamification & Coaching

      • Others

    • By Industry Vertical

      • BFSI (Banking, Financial Services, and Insurance)

      • IT & Telecommunications

      • Healthcare & Life Sciences

      • Retail & E-Commerce

      • Manufacturing

      • Consumer Goods & Services

      • Energy & Utilities

      • Education

      • Others

  5. Regional Analysis

    • North America

    • Europe

    • Asia-Pacific

    • Latin America

    • Middle East & Africa

  6. Competitive Landscape

    • Market Share Analysis

    • Key Player Profiles

    • Recent Developments & Strategies

  7. Technological Trends & Innovations

    • AI & Machine Learning in Sales Performance Management

    • Predictive Analytics for Sales Forecasting

    • Gamification & Behavioral Science in Sales Management

    • Integration of SPM with CRM & ERP Systems

  8. Regulatory & Compliance Landscape

    • Data Privacy & Security Regulations (GDPR, CCPA, etc.)

    • Industry Standards & Best Practices

  9. Market Forecast & Future Outlook (2024-2030)

    • Growth Projections

    • Emerging Trends

    • Strategic Recommendations

  10. Appendix

  • Glossary of Terms

  • References & Sources

 

List Tables Figures

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