Partner Relationship Management Market Size, Share & Trends Analysis Report By Component, By Service (Managed Service, Training & Consultation), By Deployment Type, By Organization Size, By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global partner relationship management market size was valued at USD 54.82 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 16.2% from 2021 to 2028. The rising popularity of connected devices and the Internet of Things (IoT) is anticipated to drive the demand for Partner Relationship Management (PRM). Furthermore, the need to control the functional relationship between external partner channels and organizations and focus on improving partner communications and reducing channel management costs will support the market for partner relationship management. However, data privacy and security threats are projected to hinder market growth.

In the first half of 2020, the market witnessed a significant negative impact due to the spread of the COVID-19 virus. The manufacturing units were temporarily closed due to the lockdown restrictions imposed by various governments globally. However, the demand for PRM solutions to effectively manage partner channels is expected to increase over the forecast period. The deployment type of PRM solutions on the cloud helps organizations maintain authenticity and consistency across their partner management.

In the IT industry, various organizations adopted the channel partner method to market their service/products. However, these techniques prove to be a challenging job to efficiently manage partners. Nowadays, new partner programs and partner types are emerging to retain and attract partners. The use of the latest technologies, including analytics and Artificial Intelligence (AI), to provide Business Intelligence (BI) solutions is expected to further fuel the acceptance of PRM solutions.

BI turns information into actionable insights that can assist various businesses in tactical and strategic business decision-making. Furthermore, BI rapidly tracks partner performance, provides channel visibility, and aids partners in discovering opportunities to diversify their business. It can help businesses in making data-driven marketing and sales decisions. Therefore, the PRM solutions integrated with BI for improved channel performance offer growth opportunities for various players in the global PRM market.

PRM solutions help companies reduce manual processing costs associated with promotional funds management and automate customer service roles, order management, returns processing, and warranties. Owing to such assistance offered by PRM solutions, their demand across different industries is anticipated to surge over the forecast period.

Component Insights

Based on component, the partner relationship management market is categorized into solution and service. The solution segment dominated the market and accounted for more than 58.0% share in 2020. The rapid increase in the demand for PRM solutions in various industries, including BFSI, healthcare, among others is anticipated to fuel the growth of the segment.

The service segment is anticipated to register the highest CAGR of 17.3% over the forecast period. Service plays a vital role in the deployment life cycle of any solution. Various vendors offering PRM solutions provide services to assist companies in implementing PRM strategies effectively. These services help identify different types of integration required by organizations to come across their demand for PRM. Furthermore, aftersales services offered by vendors assist the organization in using the PRM solutions effectively and appropriately.

Service Insights

Based on service, the market is categorized into managed service, training & consultation. The managed service segment dominated the market and accounted for more than 59.0% share in 2020. The managed service segment is anticipated to gain significant traction and register the highest growth over the forecasted period. Managed service helps an organization in improving operational efficiency while reducing expenses.

The growing demand from organizations to handle critical PRM functions and manage IT infrastructure is expected to drive the demand for managed service. Furthermore, the concerns over data security and privacy protection are expected to propel the demand for managed service among enterprises operating in various industries. In the long run, the integrated nature of managed service partnerships may provide strategic benefits in the form of the reduced cost associated with business processes. 

The training and consultation service segment is projected to expand at the highest CAGR of 18.6% from 2021 to 2028. The increasing demand for consulting services in various verticals, including healthcare and IT and telecom, is contributing to the segment growth.

Deployment Type Insights

Based on deployment type, the market is categorized into on-premise and cloud. The on-premise segment dominated the market and accounted for more than 50.0% share of the overall market in 2020. In the on-premises type of solutions, software and delivery models are installed and function from customers’ in-house computing infrastructure and server. The cost associated with installing on-premises solutions is included in the Capital Expenditure (CAPEX) of businesses. This method is mostly accepted for applications that include the processing of confidential and sensitive data. Currently, many enterprises generate huge amounts of data due to IT devices, machine learning, clickstreams, sensors, and several other devices.

The cloud segment is anticipated to register a CAGR of 16.8% from 2021 to 2028. The segment growth can be attributed to the increasing adoption of cloud service by various SMEs and large enterprises owing to benefits such as on-demand availability of compute service and zero initial infrastructure setup costs. Furthermore, cloud services offer benefits such as increased compliance and security, effective integration within DevOps groups, and improved workload management.

Organization Size Insights

The large enterprises segment accounted for a 52.96% share of the overall market in 2020. These enterprises have a varied corporate network and revenue stream, which helps in the adoption of new technologies and solutions in their existing systems. Furthermore, these organizations prefer to implement their service and solutions on-premise. On-premise data implementation assists them to maintain data privacy and confidentiality. All these factors are expected to support the segment growth over the forecast period.

The Small and Medium Enterprise (SME) segment is anticipated to register a CAGR of 16.9% over the forecast period. Partner relationship management solutions help SMEs prioritize work, eliminate repetitive tasks, reduce costs, and improve collaboration among organizations. The segment growth can be attributed to the growing number of SMEs in emerging economies such as India and China. Moreover, rapid increase in the demand for partner relationship management solutions among SMEs to decrease operational costs and streamline workflow is anticipated to fuel the segment growth.

Application Insights

Based on application, the market is further segmented into BFSI, retail and consumer goods, manufacturing, and healthcare. The IT and telecom application segment accounted for more than 28.55% share of the global revenue in 2020. IT and telecom encompass numerous applications, including data gathering, data processing, and data management. The vertical faces various challenges to maintain data privacy and IP copyrights. Considering the growing demand for data security, privacy, and synchronization of various organizations and their partners, partner relationship management systems are expected to witness significant demand over the forecast period.

The BFSI sector is anticipated to register a CAGR of 15.8% from 2021 to 2028. The increasing number of financial service institutions and banks globally and the technological innovations in the BFSI industry are expected to fuel the segment growth. Various organizations in the IT industry such as Oracle Inc.; Infosys; and Microsoft are focusing on partnering with various banks and financial institutions to offer PRM solutions. For instance, in June 2021, Federal Bank entered into a strategic partnership with Oracle Inc. and Infosys to offer customer experience through the Oracle CX platform.

Regional Insights

North America dominated the market and accounted for over 40.0% share of the global revenue in 2020. The region is a hub for various technological innovations and internet users. Moreover, various prominent players such as Salesforce.com, Inc.; Impartner, Inc.; and Oracle Corporation are supporting the market growth in the region. Internet users in the region are further driving the market growth in North America.

The Asia Pacific market for partner relationship management is anticipated to register the highest CAGR of 19.1% from 2021 to 2028. The increasing tech-savvy population and the rise in the number of IT companies and manufacturing units in various countries, including China and India, in the region are expected to fuel the market growth in this region.

Key Companies & Market Share Insights

The prominent players that dominated the PRM market globally in 2020 include Oracle Corporation, Salesforce.com Inc.; Allbound Inc.; Zinfi Technologies Inc.; and Mindmatrix Inc. These players focus on acquisition, partnership, and collaboration to enhance their presence in the market and gain a competitive edge. For instance, in September 2020, Channeltivity announced its partnership with Alcatraz. The partnership assisted Alcatraz in using the PRM platform of Channeltivity for developing training programs and business channels.

The market players emphasize undertaking various strategic initiatives, including joint ventures, new product launches, partnerships, and contracts and agreements, to enhance their position in the market. For instance, in June 2020, Impartner introduced the Impartner Channel Ignite PRM Package. This assisted various organizations to increase their channel’s performance. Some of the prominent players operating in the global partner relationship management market are:

• Oracle Corporation

• Salesforce.com Inc.

• Channeltivity

• Allbound Inc.

• Zinfi Technologies Inc.

Partner Relationship Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028 For this study, Grand View Research has segmented the global partner relationship management market report based on component, service, deployment type, organization size, application, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2028)

  • Solution

  • Service

• Service Outlook (Revenue, USD Million, 2018 - 2028)

  • Managed Service

  • Training & Consultation

• Deployment Type Outlook (Revenue, USD Million, 2018 - 2028)

  • On-premise

  • Cloud

• Organization Size Outlook (Revenue, USD Million, 2018 - 2028)

  • Small and Medium Enterprise

  • Large Enterprise

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • BFSI

  • IT & Telecom

  • Retail & Consumer Goods

  • Manufacturing

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa