Specification Management Software Market Size, Trends and Growth Analysis by 2027

The market for specification management software is projected to expand significantly, increasing from US$ 404.66 million in 2021 to US$ 720.92 million by 2028. This growth represents a compound annual growth rate (CAGR) of 8.6% during the period from 2021 to 2028.

Several industries, including fast-moving consumer goods (FMCG), pharmaceuticals, logistics, and manufacturing, are enhancing their operations to satisfy rising market demands. This trend is a significant factor driving the increased adoption of sophisticated specification management tools. In fact, over 75% of businesses are aiming to accelerate their digital transformation efforts to recover from the economic setbacks experienced in 2020 due to the COVID-19 pandemic. Companies are seeking affordable solutions to achieve their digital objectives, leading to a surge in the popularity of free and cloud-based platforms for quality management, packaging, and document management.

Specification management software enables users to automate the approval processes while ensuring complete transparency. Companies are providing quick and easily implementable product lifecycle management software tailored for sectors such as food and beverages, personal care and cosmetics, and retail. Transitioning the specification proofing and approval processes online allows businesses to expedite approvals and product launches while minimizing both internal and external costs. Consequently, cloud-based specification management software is becoming a prominent trend within the market.

The specification management software market is categorized based on type, end-use industry, application, and geography. In terms of type, the market is divided into cloud-based and on-premises solutions, with the cloud-based segment holding a larger market share as of 2020. When considering end-use industries, the market is segmented into FMCG, pharmaceuticals, and others, with FMCG representing a significant portion of the market in 2020. The applications of specification management software include raw materials management, formula and ingredients management, packaging management, document management, and other uses, with packaging management leading the market share in 2020. Geographically, the market is divided into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM), with North America holding a substantial share of the global market in 2020.

In Europe, the impact of the COVID-19 pandemic varied across countries, with only certain nations experiencing significant case surges that led to strict and prolonged lockdowns or social distancing measures. Countries in Western Europe, such as Germany, France, Russia, and the UK, saw a relatively modest decline in growth activities due to their robust healthcare systems. The pandemic resulted in the suspension of business operations and the closure of numerous small and medium enterprises in the region. During the initial months of 2020, Europe faced a decline in technological investments. However, the region quickly adapted to remote work and embraced digital platforms for efficient business operations.

The logistics and transportation sector in the UK is extensive, managing significant volumes of food and beverages, pharmaceuticals, and chemicals. The surge in COVID-19 cases prompted the UK government to implement multiple lockdowns to control the virus's spread. This situation accelerated the adoption of specification management software to facilitate the movement of larger quantities of pharmaceutical products from production facilities to warehouses. Countries like Germany, Denmark, The Netherlands, Switzerland, and Italy are among the fastest-growing exporters of medicines and drugs, indicating that the use of specification management software in pharmaceutical companies within these nations is likely to continue increasing in the coming years.

The overall size of the specification management software market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also provided an overview and forecast for the specification management software market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants typically included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the specification management software sector.

Key players in the global specification management software market include Accompa, Inc., Esko-Graphics BV, Emerson Electric Co., Lascom, Siemens AG, SAP SE, DocXellent, Isolocity, PiLog Group, QADEX, and SPECRIGHT.