Configure, Price, Quote (CPQ) Software Market Size, Share, Growth, and Industry Analysis, By Types (Cloud, On-Premise), By Applications (IT and Telecom, Banking, Automobile, Retail, Gaming, Hospitality, Others) , and Regional Insights and Forecast to 2035

Configure, Price, Quote (CPQ) Software Market Size

The Global Configure, Price, Quote (CPQ) Software Market size was USD 1.6 billion in 2025 and expanded to USD 1.83 billion in 2026, reflecting rising enterprise focus on sales automation and pricing accuracy. The market further increased to USD 2.1 billion in 2027, supported by growing adoption across manufacturing, IT, telecom, and service-based industries. By 2035, the market is projected to reach USD 6.24 billion, exhibiting a CAGR of 14.61% during the forecast period from 2026 to 2035. Nearly 64% of enterprises prioritize CPQ platforms to reduce quoting errors, while around 58% adopt CPQ to manage complex product configurations. Automation-driven quoting improves sales cycle efficiency by approximately 36%, reinforcing sustained market expansion.

The US Configure, Price, Quote (CPQ) Software Market shows strong growth momentum driven by advanced CRM adoption and digital sales transformation. Nearly 71% of US enterprises deploy automated quoting tools to handle configurable products. CPQ usage has reduced manual pricing errors by approximately 45% and improved deal closure rates by nearly 34%. Around 62% of US sales teams rely on CPQ for discount governance and approval workflows. Cloud-based CPQ solutions account for nearly 68% of deployments in the country, while integration with ERP and CRM platforms exceeds 73%, indicating a mature and expanding market landscape.

Key Findings

• Market Size: Market expanded from $1.6 billion in 2025 to $1.83 billion in 2026, reaching $6.24 billion by 2035 at 14.61% growth.
• Growth Drivers: Automation adoption above 65%, pricing error reduction near 45%, sales cycle improvement around 36%, and configuration complexity rising over 60%.
• Trends: Cloud deployment share near 64%, AI-based pricing usage about 35%, mobile CPQ adoption around 40%, and CRM integration exceeding 70%.
• Key Players: Salesforce.com, Oracle Corp, SAP AG, PROS, Inc, Apttus Corporation & more.
• Regional Insights: North America 38%, Europe 27%, Asia-Pacific 25%, Middle East & Africa 10%, together forming 100% market distribution.
• Challenges: Integration complexity affecting 43%, data inconsistency near 44%, training needs around 35%, and customization delays about 32%.
• Industry Impact: Sales productivity improved by 36%, quote accuracy by 45%, compliance adherence by 33%, and upselling efficiency by 28%.
• Recent Developments: AI pricing accuracy up 36%, cloud scalability improved 42%, mobile usage increased 28%, analytics visibility enhanced 45%.

The Configure, Price, Quote (CPQ) Software Market is increasingly positioned as a core sales enablement technology. Enterprises rely on CPQ platforms to standardize pricing logic, improve governance, and enhance customer experience across complex sales cycles.

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Configure, Price, Quote (CPQ) Software Market Trends

The Configure, Price, Quote (CPQ) Software Market is witnessing strong structural transformation driven by enterprise digitalization, automation intensity, and demand for pricing accuracy across complex product portfolios. Over 72% of B2B enterprises now manage more than 1,000 configurable product combinations, increasing the need for automated quoting tools. Around 68% of sales organizations report manual quoting errors exceeding 10%, directly impacting deal velocity and customer satisfaction. CPQ software adoption has improved quote accuracy by nearly 45% and reduced sales cycle time by approximately 30%. Cloud-based CPQ deployments account for nearly 64% of total implementations, reflecting enterprise preference for scalability and remote accessibility. Integration demand is rising, with about 58% of enterprises prioritizing CPQ solutions that integrate seamlessly with CRM and ERP platforms. Mobile CPQ access usage has increased by over 40%, enabling field sales teams to generate real-time quotes. Approximately 52% of organizations report improved cross-sell and upsell efficiency after CPQ adoption. AI-assisted pricing recommendations are gaining traction, with nearly 35% of CPQ users leveraging rule-based or predictive pricing features. Custom discount governance has reduced unauthorized discounting by nearly 28%, while compliance adherence has improved by 33%. These trends collectively indicate sustained enterprise reliance on CPQ platforms to enhance sales productivity, configuration accuracy, and pricing transparency.

Configure, Price, Quote (CPQ) Software Market Dynamics

OPPORTUNITY

Expansion of AI-Driven and Rule-Based Pricing Models

The Configure, Price, Quote (CPQ) Software Market presents strong opportunities through the growing adoption of AI-driven and rule-based pricing engines. Nearly 57% of enterprises managing complex product portfolios report challenges in maintaining consistent pricing without automation. AI-enabled CPQ tools improve pricing accuracy by approximately 41% and reduce manual intervention by nearly 38%. Around 46% of organizations adopting advanced CPQ platforms experience improved win rates due to optimized discount structures. Predictive pricing recommendations increase deal profitability for about 34% of users. Additionally, nearly 52% of enterprises leveraging rule-based configuration report faster quote turnaround times, highlighting a substantial opportunity for advanced CPQ functionality expansion across industries.

DRIVERS

Growing Need for Sales Efficiency and Quote Accuracy

Rising demand for sales efficiency is a major driver in the CPQ Software Market. Approximately 71% of sales teams handle more than 500 configurable options, increasing the risk of errors. CPQ adoption reduces quotation errors by nearly 45% and improves sales productivity by around 36%. About 63% of enterprises report shorter sales cycles after CPQ implementation. Automated approval workflows reduce internal delays by 39%, while standardized pricing rules help lower unauthorized discounting by nearly 27%. These efficiency gains are accelerating CPQ adoption across manufacturing, IT services, and telecom sectors.

RESTRAINTS

"Complex Deployment and Customization Requirements"

Deployment complexity remains a significant restraint for the Configure, Price, Quote (CPQ) Software Market. Nearly 48% of organizations report extended implementation timelines due to highly customized product rules. Around 43% of enterprises face challenges integrating CPQ platforms with legacy CRM and ERP systems. User adoption barriers persist, with approximately 35% of sales teams requiring prolonged training periods. Custom configuration logic accounts for nearly 32% of post-deployment adjustments, increasing operational burden. These factors limit rapid CPQ adoption, particularly among small and mid-sized enterprises with constrained IT capabilities.

CHALLENGE

"Maintaining Data Consistency and Pricing Governance"

Ensuring consistent data management and pricing governance poses a critical challenge in the CPQ Software Market. Around 44% of enterprises report discrepancies between CPQ systems and backend data sources. Pricing rule misalignment leads to quote revisions in nearly 29% of transactions. Frequent product updates increase configuration maintenance workloads by approximately 33%. Inadequate governance controls result in unauthorized discounting in about 25% of sales deals. Additionally, nearly 31% of organizations struggle to synchronize real-time pricing across multiple sales channels, impacting customer trust and operational efficiency.

Segmentation Analysis

Segmentation analysis of the Configure, Price, Quote (CPQ) Software Market highlights differentiation by deployment type and application usage. The Global Configure, Price, Quote (CPQ) Software Market size was USD 1.6 Billion in 2025 and is projected to reach USD 1.83 Billion in 2026 and USD 6.24 Billion by 2035, exhibiting a CAGR of 14.61% during the forecast period. Deployment preferences vary based on scalability, security, and integration requirements. Application adoption reflects industry-specific pricing complexity, regulatory needs, and transaction volumes. Enterprises increasingly align CPQ investments with digital sales transformation strategies, emphasizing flexibility and real-time pricing intelligence.

By Type

Cloud

Cloud-based CPQ solutions dominate due to flexibility and lower infrastructure dependency. Nearly 64% of enterprises prefer cloud deployments for faster updates and scalability. Cloud CPQ improves remote sales productivity by approximately 36%. Integration speed is enhanced by 29% compared to traditional setups. Cloud solutions support AI-driven pricing models used by nearly 33% of adopters. The Cloud segment recorded a market size of USD 1.02 Billion in 2025, holding nearly 64% share, and is expected to grow at a CAGR of 15.2% driven by scalability, mobile access, and SaaS adoption.

On-Premise

On-premise CPQ solutions remain relevant for organizations requiring strict data control. Approximately 36% of enterprises continue to deploy on-premise systems due to compliance and customization needs. On-premise environments allow deeper configuration control, improving complex pricing accuracy by 28%. However, maintenance overhead is higher by nearly 34%. The On-Premise segment accounted for USD 0.58 Billion in 2025, representing around 36% share, and is projected to grow at a CAGR of 12.1% supported by regulated industries and legacy system alignment.

By Application

IT and Telecom

IT and Telecom adoption is driven by complex service bundles and dynamic pricing models. Nearly 69% of telecom operators use CPQ to manage multi-tier offerings. Automated configuration reduces quote errors by 42%. This segment recorded USD 0.38 Billion in 2025, holding about 24% share, and is projected to grow at a CAGR of 15.6% due to increasing service personalization.

Banking

Banking institutions use CPQ for structured financial products and compliance pricing. Around 51% of banks rely on CPQ tools to standardize product quotations. Process automation improves turnaround time by 33%. The Banking segment reached USD 0.22 Billion in 2025, representing nearly 14% share, with a CAGR of 13.4% supported by digital banking expansion.

Automobile

Automobile manufacturers use CPQ to manage vehicle configurations and dealer pricing. Nearly 62% of OEMs utilize CPQ for build-to-order models. Configuration accuracy has improved by 47%. The Automobile segment accounted for USD 0.29 Billion in 2025, holding 18% share, and is expected to grow at a CAGR of 14.8%.

Retail

Retail adoption focuses on personalized pricing and bundled offers. Around 58% of retailers report improved upsell rates using CPQ. Discount governance has reduced pricing leakage by 26%. Retail held USD 0.25 Billion in 2025, with nearly 16% share and a CAGR of 14.2%.

Gaming

Gaming companies deploy CPQ for digital content bundles and subscription pricing. Nearly 49% of gaming firms use CPQ to manage add-ons. Pricing accuracy improved by 31%. The Gaming segment reached USD 0.14 Billion in 2025, capturing 9% share, growing at a CAGR of 15.9%.

Hospitality

Hospitality applications focus on dynamic package pricing and seasonal offers. About 54% of hospitality providers use CPQ for bundled services. Quote turnaround improved by 28%. This segment accounted for USD 0.12 Billion in 2025, representing 8% share, with a CAGR of 13.8%.

Others

Other industries include manufacturing services and education. CPQ adoption improved pricing consistency by 35%. This segment recorded USD 0.20 Billion in 2025, holding 11% share, and is projected to grow at a CAGR of 12.9%.

Configure, Price, Quote (CPQ) Software Market Regional Outlook

The Configure, Price, Quote (CPQ) Software Market demonstrates diversified regional performance driven by enterprise digital maturity, automation intensity, and complexity of product portfolios. The global market size was valued at USD 1.6 Billion in 2025 and reached USD 1.83 Billion in 2026, with long-term expansion supported by multi-industry adoption and cloud transformation initiatives. Regional demand varies based on sales automation penetration, CRM integration levels, and pricing governance needs. North America remains the leading region due to early technology adoption, while Europe shows strong compliance-driven usage. Asia-Pacific is witnessing rapid enterprise digitization, and the Middle East & Africa region is gradually expanding through infrastructure modernization. The regional market share distribution is estimated at North America 38%, Europe 27%, Asia-Pacific 25%, and Middle East & Africa 10%, collectively accounting for 100% of global demand.

North America

North America continues to dominate the CPQ Software Market due to high enterprise automation levels and mature SaaS ecosystems. Nearly 72% of large enterprises in the region use automated quoting tools to manage complex product configurations. Around 64% of sales organizations report improved deal closure efficiency after CPQ adoption. Integration with CRM platforms is observed in nearly 69% of deployments, improving sales visibility by approximately 42%. Manufacturing and IT services collectively account for over 55% of CPQ usage in the region. North America held a market size of approximately USD 0.70 Billion in 2026, representing 38% of the global market share, supported by high cloud adoption and advanced pricing analytics usage exceeding 48%.

Europe

Europe shows steady growth in CPQ adoption driven by regulatory compliance, pricing transparency, and cross-border sales complexity. Nearly 61% of European enterprises prioritize standardized pricing workflows to meet compliance requirements. CPQ tools have reduced pricing discrepancies by approximately 34% across multi-country operations. About 52% of organizations deploy CPQ to manage multilingual and multi-currency quotations. The industrial manufacturing and automotive sectors together contribute nearly 46% of CPQ demand in Europe. The region accounted for approximately USD 0.49 Billion in 2026, holding a 27% share of the global market, supported by strong ERP integration rates and digital sales transformation initiatives.

Asia-Pacific

Asia-Pacific is emerging as a high-growth region for CPQ software due to expanding enterprise digitization and rising B2B sales complexity. Around 58% of enterprises in the region report challenges in managing customized pricing without automation. CPQ adoption has improved quote accuracy by nearly 39% and reduced manual processing time by approximately 31%. Telecom, IT services, and manufacturing collectively represent over 60% of regional demand. Cloud-based CPQ deployments account for nearly 67% of implementations due to scalability advantages. Asia-Pacific reached an estimated market size of USD 0.46 Billion in 2026, capturing 25% of the global market share.

Middle East & Africa

The Middle East & Africa region is gradually expanding its CPQ Software Market through digital infrastructure development and enterprise modernization. Around 41% of organizations in the region are transitioning from manual quoting to automated systems. CPQ tools have improved pricing consistency by approximately 28% across project-based industries. Adoption is strongest in telecom, construction services, and energy-related enterprises, contributing nearly 54% of regional demand. Cloud deployment penetration stands at nearly 49%, reflecting growing acceptance of SaaS platforms. The region accounted for approximately USD 0.18 Billion in 2026, representing 10% of the global market share.

List of Key Configure, Price, Quote (CPQ) Software Market Companies Profiled

Investment Analysis and Opportunities in Configure, Price, Quote (CPQ) Software Market

Investment activity in the CPQ Software Market is driven by rising enterprise focus on sales automation and pricing intelligence. Nearly 62% of technology investors prioritize platforms offering AI-assisted pricing and configuration logic. Around 48% of enterprises allocate increased IT budgets toward sales process digitization. Investments in cloud-native CPQ solutions account for approximately 66% of total funding activity. Strategic partnerships between CPQ vendors and CRM providers have increased by nearly 29%, improving ecosystem scalability. Private equity interest is rising, with about 37% of mid-sized CPQ vendors receiving growth-stage investments. These factors highlight expanding opportunities across SaaS, manufacturing, and subscription-based service industries.

New Products Development

New product development in the CPQ Software Market is focused on automation intelligence, usability, and real-time pricing optimization. Nearly 44% of newly launched CPQ solutions incorporate AI-driven recommendation engines. Low-code and no-code configuration interfaces are now present in approximately 39% of new offerings, reducing deployment complexity. Mobile-first CPQ applications account for nearly 33% of recent product introductions. Enhanced analytics dashboards improve pricing visibility for about 47% of users. API-first architectures are integrated into nearly 58% of new CPQ products, enabling faster enterprise system integration and customization.

Developments

• In 2024, several CPQ manufacturers introduced AI-powered pricing engines that improved discount optimization accuracy by nearly 36%, enabling better margin control and reducing manual approvals across large sales teams.
• Cloud-native CPQ upgrades launched in 2024 improved system scalability by approximately 42%, supporting higher quote volumes during peak sales cycles without performance degradation.
• Enhanced CRM-integrated CPQ modules released in 2024 reduced sales cycle duration by nearly 31% through automated approval workflows and real-time pricing synchronization.
• Mobile CPQ application enhancements in 2024 increased field sales adoption rates by approximately 28%, enabling on-site quote generation and faster customer engagement.
• Advanced analytics features introduced in 2024 improved pricing governance visibility for nearly 45% of enterprise users, reducing unauthorized discounting and improving compliance.

Report Coverage

The Configure, Price, Quote (CPQ) Software Market report provides comprehensive coverage of market structure, dynamics, segmentation, and competitive positioning. The analysis evaluates strengths such as automation efficiency improvements of nearly 45% and weaknesses including deployment complexity affecting around 38% of enterprises. Opportunities are highlighted through rising cloud adoption exceeding 64% and AI-driven pricing usage at approximately 35%. Threat analysis includes data integration challenges reported by nearly 41% of organizations. The report assesses deployment models, application usage, and regional performance using quantitative indicators. Market dynamics are examined through demand drivers, restraints, challenges, and opportunities supported by percentage-based metrics. Competitive analysis covers vendor positioning, innovation focus, and adoption trends. Overall, the report delivers a balanced SWOT-oriented evaluation to support strategic decision-making across enterprise sales technology investments.