Quality Management Software Market Size, Share & Trends Analysis Report By Solution (Complaint Handling, Document Control), By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global quality management software market was valued at USD 8.25 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2021 to 2028. The growing importance of customer-centric production and frequent changes in regulations and standards that demand recurring compliances are driving the growth of the market. Registration to ISO 90001, ISO 14001, and other international standards has become imperative for organizations to run businesses worldwide as it enables them to meet market demands, competitive pricing, legislative requirements, and satisfy customer needs. The outbreak of the COVID-19 pandemic has negatively impacted the manufacturing and transport and logistics industries. The suspension of production and trade of various goods and services is expected to affect the QMS market in the short term.

However, individuals across the globe have turned to the internet for online shopping, leading to the rapid growth of the business-to-consumer markets. The volumes of goods being shipped have increased, along with enhancements in the profiles of the goods. In response to this, logistics companies have started fast-tracking their development, quality and safety management standards, and growth strategies with significant investments in e-commerce, assets, and people. Such developments are likely to boost the growth of the quality management software market in the transport and logistics domain over the coming years.

Businesses across the globe are widely recognizing the need for an inclusive QMS to enhance business performance and gain a competitive advantage. They are proactively assessing and investing in QMS solutions to ensure that quality standards are maintained at every stage of the product lifecycle. Technological advancements such as cloud computing, analytics, and big data have further enhanced the existing capabilities of QMS in terms of scalability, cost-efficiency, flexibility, and platform independence, among others. As a result, end-use industries such as life sciences, manufacturing, and IT and telecom are rapidly adopting QMS solutions.

QMS solution providers are focused on enhancing sustainability practices to help companies reduce wastes and carbon footprint. Organizations deploy these solutions to align their processes with standards such as United Nations’ Sustainable Development Goals (SDGs) to reduce carbon emissions. While QMS solutions offer several benefits to users, they also involve some challenges such as lack of collaboration, and misalignment with the existing IT infrastructure. While vendors have proactively been trying to tackle these issues, the widespread acceptance of cloud-based deployment of QMS is expected to prove beneficial in addressing these challenges across industries and verticals.

The stringent compliance of quality management standards and international technical specifications such as IATF 16949, AS9100 Rev.D, and ISO 9001is expected to increase the implementation of QMS across end-use industries. Moreover, the C-level executives across organizations are taking efforts to align quality management with strategic business objectives. Many organizations are taking advantage of quality management methodologies such as ISO standards and Six Sigma to improve process efficiency, productivity, and eventually customer satisfaction. As a result, quality process automation, supplier quality assurance, and compliance management are anticipated to become the prime focus areas of QMS end users over the coming years.

Solution Insights

The complaint handling segment held the largest market share of over 15% in 2020. Effective management of complaints helps in proactively meeting customer expectations and enhancing brand equity. Businesses are adopting standard complaint handling tools and processes to handle customer complaints more effectively and efficiently. These factors are expected to act as fundamental drivers for boosting segment growth.

Calibration management solution provides essential connections between related maintenance tasks and additional quality processes for regulated life science and high-tech environments. Such solutions help in increasing the life of machinery and saving the company’s revenue by reducing the number of recalled products. As per Beamex Inc.-a calibration software company-over 75% of companies carry out more than 2,000 calibrations annually in the highly regulated pharmaceuticals sector. QMS’s calibration management solutions can help organizations manage instrument calibration processes and associated documentation to make them more productive and efficient.

Deployment Insights

The on-premise segment held the largest market share of over 60% in 2020. Many large organizations are shifting from pen and paper-based systems to automated systems owing to the advent of digitalization, which has resulted in the increasing demand for on-premise QMS. Organizations are opting for on-premise QMS as it is more secure and allows easy customization of software as per the client’s business requirements. Hence, it is largely preferred by enterprises demanding high data security. Additionally, rising concerns regarding data theft and loss of sensitive business information over cloud-based platforms are also contributing to the demand for on-premise QMS.

The cloud segment is anticipated to emerge as the fastest-growing segment over the forecast period. Increased scalability and flexibility, security aspects, and control over the data center offered by the cloud technology are some of the prime factors anticipated to boost the cloud segment growth. On the security front, data encryption techniques are widely being adopted to prevent the leak of sensitive QMS data. These encryption techniques serve a great purpose during data transmission and are estimated to drive the growth of the cloud segment over the forecast period.

Enterprise Size Insights

The large enterprise segment held the largest market share of over 60% in 2020. The reduction in expenses is the primary motivation behind the adoption of QMS among large enterprises. Many QMS vendors have different sets of software suites for large enterprises and small & medium enterprises. These suites are tailored to fit the exact requirements of the clients and, hence, play a vital role in the selection process.

The mobility and flexibility offered by QMS are driving their demand among large enterprises, resulting in regular additions of new functionalities to the software. Organizations across the globe use a host of different software and systems and produce large volumes of data. With the ever-increasing data and growing demand for technologies such as artificial intelligence and machine learning, QMS solutions are anticipated to cater to the growing needs of organizations for increasing efficiency and productivity in their operations.

End-use Insights

The manufacturing segment held the largest market share of over 20% in 2020. This growth is attributed to the stringent regulations as well as the complex processes and integrated business systems. QMS solutions enable manufacturing industries to enhance quality through continuous improvements to prevent or respond quickly to situations such as product recalls and ensure certification compliance. Furthermore, they help in prioritizing process improvement efforts, comparing production line capability, and ensuring product conformity. Such factors are expected to act as fundamental drivers for the segment growth over the forecast period.

QMS is increasingly gaining importance among companies to help meet critical objectives such as compliance with industry regulations, avoidance of potential product liability lawsuits, and customer retention. For instance, QMS helps telecom service providers to support their communication strategy by complying with the highest quality standards, including TL9000 requirements, in the telecommunications products and services. Moreover, vendors are taking into consideration the needs of Quality Excellence for Suppliers of Telecommunications Forum (QuEST), which promotes continuous improvements in the quality and reliability of telecom products and services.

Regional Insights

North America dominated the global market with a share of over 40% in 2020. The Patient Protection and Accountable Care Act (PPACA), 2010, was enacted in North America to provide quality healthcare facilities and mandates compliance with quality standards. Meanwhile, in Europe, SaaS providers deploying solutions on cloud-based platforms need to comply with the European Data Protection Directive (Directive 95/46/EC) and General Data Protection Regulation. The European Union's Medical Device Regulation (EU MDR), which has replaced the Medical Device Directive in 2020, requires medical companies to meet requirements such as device classification and updating QMS. These factors are expected to significantly boost the QMS market growth in North America and Europe over the forecast period.

Asia Pacific is anticipated to emerge as the fastest growing regional market, which is driven by the growing awareness of standards and quality among emerging economies such as China and India. Moreover, ISO 9000 registration has become a prerequisite in the European Union, Asia Pacific, the U.S., and Canada for conducting trade with companies and government agencies.

Key Companies & Market Share Insights

Strategic mergers and acquisitions and partnerships are estimated to be the most effective ways for market players to gain quick access into emerging markets. For instance, in December 2020, Honeywell International Inc., a provider of industry-specific solutions for automotive and aerospace products, agreed to acquire Sparta Systems Inc. to expand its software and life science capabilities. Through this acquisition, the company aims to further strengthen its competencies in digital transformation solutions, industrial automation, and enterprise performance management software.

Furthermore, product differentiation and upgrades are anticipated to pave the way for the expansion of companies in the market. For instance, in August 2020, MasterControl, Inc. launched its new solution, MasterControl Manufacturing Excellence, to enhance manufacturing operations by driving efficiency and quality. The new solution would enable manufacturers to create dynamic connections among enterprise systems, processes, data sources, and people for a holistic view of production and quality data. Some prominent players in the global quality management software market include:

• Arena Solutions, Inc.

• Biovia Corp (Dassault Systemes SE)

• Cority Software Inc.

• Dassault Systemes SE

• Enablon (Wolters Kluwer N.V.)

• EtQ Management Consultants, Inc.

• Iqms, Inc.

• MasterControl, Inc.

• MetricStream, Inc.

• Microsoft Corporation

• Oracle Corporation

• Pilgrim Quality Solution, Inc.

• Plex Systems, Inc.

• QT10 Software

• SAP SE

• Siemens AG

• Sparta Systems Inc.

• Unipoint Software, Inc.

• Verse Solutions, Inc.

Quality Management Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the 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 quality management software market report based on solution, deployment, enterprise size, end use, and region:

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

  • Document Control

  • Non-Conformances/Corrective & Preventative

  • Complaint Handling

  • Employee Training

  • Audit Management

  • Supplier Quality Management

  • Calibration Management

  • Change Management

  • Others

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

  • Cloud

  • On-premise

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

  • Small & Medium Enterprise (SME)

  • Large Enterprise

• End-use Outlook (Revenue, USD Million, 2018 - 2028)

  • IT & Telecom

  • Transportation & Logistics

  • Consumer Goods & Retail

  • Defense & Aerospace

  • Manufacturing

  • Healthcare

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa