ENTITY MANAGEMENT SOFTWARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Entity Management Software Market Size and Trends

Global Entity Management Software Market is estimated to be valued at USD 140.11 Bn in 2024 and is expected to reach USD 310.35 Bn by 2031, growing at a compound annual growth rate (CAGR) of 12.1% from 2024 to 2031.

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The increasing adoption of entity management software across various industry verticals, aimed at achieving a unified view of critical business data, is driving market growth. Customers are seeking more comprehensive and intelligent solutions to derive real-time insights from large volumes of data. In response, established vendors are actively pursuing partnerships, mergers, and acquisitions to expand their product portfolios and geographic presence. Additionally, the growing focus on digital transformation initiatives is expected to further boost the demand for entity management software in the years ahead.

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Insights, By Deployment, Low-cost Adoption and Scalability Drive Cloud Deployment Growth

By deployment, the cloud is expected to account for the highest market share of 56.3% in 2024, driven by its numerous advantages over on-premises solutions. Cloud deployment significantly reduces upfront infrastructure costs for companies, as there is no need to invest in servers, storage, backups, or maintenance. It operates on a pay-as-you-go model, allowing customers to pay only for what they use on a monthly or annual subscription basis. This makes cloud solutions highly cost-effective for end users across various industry verticals.

Insights, By End-user Industry, Extensive Compliance Needs Drive Healthcare Adoption

By end-user industry, healthcare is projected to hold the largest market share of 39.2% in 2024, driven by its unique and stringent compliance requirements. Healthcare organizations must manage entities such as patients, providers, plans, facilities, and assets while adhering to numerous regulatory standards related to privacy, security, and transactions. Entity management software offers centralized access to master data for these entities while enforcing robust authorization controls. This ensures that privacy policies are accurately implemented, restricting access to sensitive data and maintaining compliance.

Insights, By Enterprise Size, Agility needs drive SME adoption

By enterprise size, SMEs are projected to account for the highest market share of 44.3% in 2024, driven by their unique agility requirements compared to larger enterprises. SMEs need faster entity data provisioning and flexible configurations to quickly support new business initiatives or partnerships. Cloud-based entity management solutions cater to these needs through self-service portals and straightforward models. SMEs can efficiently onboard new partner entities, modify attributes, and establish access control groups independently, without relying heavily on IT resources. This agility empowers them to seize market opportunities promptly and effectively.

Regional Insights

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Dominating Region: North America

The growth of the North America entity management software market can be attributed to the strong presence of leading software providers and a well-established IT infrastructure. The region is projected to hold a market share of 48.1% in 2024. Established industry standards and government policies supporting digital transformation have driven the widespread adoption of entity management solutions across various business functions.

Fastest-growing Region: Asia Pacific

The Asia Pacific region is expected to exhibit the fastest growth, accounting for 28.2% market share in 2024, driven by the rapid digitalization of operations in major economies such as China, India, and Indonesia. The growing number of small and medium-sized businesses in the region is increasingly recognizing the importance of entity data governance and automation of compliance processes to effectively scale their operations.

Entity Management Software Market Outlook for Key Countries

United States is the Hub of Technological Innovation

The U.S. entity management software market remains one of the largest revenue generators, driven by technological innovation from industry leaders like Microsoft and Oracle. The presence of large multinational corporations requiring scalable entity management solutions is a significant factor contributing to market growth.

China’s Growth Backed by Strong Government Support

China's market is fueled by strong government support for developing a digital economy and local entity software vendors offering cost-effective solutions. In addition, rise in foreign investments and cross-border business activities require compliance management has encouraged the industry growth in China.

Japan sees Rising Adoption of Cloud-based Solutions

Key enterprises in Japan are increasingly adopting cloud-based entity management solutions to enhance efficiencies in managing global business processes. Furthermore, Japan places a strong emphasis on corporate governance and ESG compliance, driving demand for advanced solutions.

Data Security Policies Driving Compliance in Germany

German companies are increasingly focusing on integrating entity data for compliance tracking and audit trails to align with the country’s stringent data security regulations. The significant presence of multinational and industrial corporations, combined with a rigorous regulatory landscape and GDPR compliance requirements, serves as a key driver of industry growth.

Market Consolidation and ESG Compliance in the United Kingdom

The U.K. market is experiencing growing demand from multinationals seeking to consolidate entity records across their European operations onto a unified platform. The rising emphasis on ESG compliance and tracking further drives growth. Additionally, the finance and legal sectors are fueling demand for streamlined corporate governance, contributing to positive market momentum.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Entity Management Software Market Players

Established Players:

Established players focus heavily on research and development to deliver cutting-edge products. Companies like IBM, Oracle, and SAP invest over 10% of their annual revenues in R&D. This commitment allows them to continually innovate and integrate new technologies like AI, Blockchain, and IoT into their software.

Strategic partnerships play a critical role for major players. For example, IBM collaborates with tech giants to enhance the capabilities of IBM Cloud and Watson. Similarly, Oracle has formed partnerships with Microsoft, Intel, and Apple to extend the reach of its database and analytics services. These alliances enable industry leaders to better address customer needs and strengthen their market positions.

Global expansion is another key focus area, with companies establishing offices, data centers, and support teams worldwide. For instance, Oracle now operates in over 145 countries, leveraging its global presence to capitalize on international growth opportunities. SAP has pursued acquisitions to broaden its reach, most recently acquiring Qualtrics and UserTesting to enhance its CX suite on a global scale.

Mid-level Players:

Mid-level players prioritize offering affordable solutions.

Companies like Salesforce provide scaled-down versions of their CRM software at lower price points. Zoho stands out by delivering rich functionality while maintaining competitive pricing.

Small Players:

The entity management software market holds promising opportunities for small players, driven by the increasing demand for niche, customizable solutions among SMEs and specific industries. These players can thrive by offering specialized features, such as localized compliance tools, user-friendly interfaces, and cost-effective subscription models.

Focusing on cloud-based, AI-driven, and mobile-accessible solutions provides small firms with a competitive edge in meeting modern client needs. However, challenges remain, including competition from larger, consolidated players and the need for continuous innovation to stay relevant in the market.

Emerging Startups in the Entity Management Software Market

• Innovation: In terms of innovative technologies, startups like Anthropic are developing conversational AI using self-supervised learning techniques. Cognito uses self-supervised neural networks to enable augmented data annotation and labeling. These and similar startups are exploring technologies that could reshape data management and accessibility.
• Sustainability: On the sustainability front, eco-friendly startups like Pachama are addressing environmental impacts withsoftware to monitor forest carbon credits. Trashless targets waste reduction using IoT devices and analytics. Their innovations aim to help organizations green their operations.
• Niche Specialization: When it comes to niche markets, some startups focus on unique industries. AgShift provides farm management software, while Primer offers 3D modelling tools for manufacturers. By addressing specialized challenges, these startups contribute to overall market growth while building domain expertise.

Entity Management Software Industry News

• In April 2024, Computershare agreed to acquire BNY Trust Company of Canada from BNY Mellon, aiming to strengthen its corporate trust services in Canada.
• In November 2024, Diligent Corporation, reported that investor backing for "say on pay" proposals rose to 91.5% at S&P 500 and Russell 3000 companies during the 2024 proxy season, reflecting effective governance practices.
• In March 2022, Athennian secured USD 33.8 Mn Series B funding round to further develop its platform and expand its market reach.
• In October 2023, Computershare sold its U.S. mortgage services unit to Rithm Capital for USD 720 Mn, focusing on its core competencies in financial administration.
• In March 2021, Diligent acquired Galvanize, a global leader in SaaS governance, risk, and compliance (GRC) software, aiming to become the largest GRC SaaS provider.

Key Takeaways from Analyst

 The entity management software market is driven by the growing need for organizations to maintain centralized control and visibility over business data and entities. Large, complex enterprises managing multiple branch locations, business units, and partner networks find entity data management essential for governance, risk, and compliance (GRC), operational efficiency, and strategic decision-making. The widespread adoption of cloud technologies further accelerates the shift to centralized entity data platforms.

However, the market faces challenges such as data security concerns, high upfront costs, and complex customization requirements. Additionally, transitioning from legacy systems involves significant change management efforts. In emerging regions, hesitancy to adopt new technologies remains a restraint.

On the other hand, opportunities exist in leveraging AI, analytics, and automation to enhance entity data insights. As data volumes grow exponentially, such advanced capabilities will become increasingly critical for businesses. Collaborations with major cloud and technology providers also enable vendors to capitalize on existing infrastructure.

North America currently dominates the market due to its mature digital transformation landscape. However, Asia Pacific presents the highest growth potential, driven by rapid developments and a young, digitally savvy population in key countries.

Market Report Scope

Market Dynamics

Market Driver - Need for the Centralized and Integrated Management of Organizational Data

One of the key drivers fueling the growth of the entity management software market is the need for organizations to achieve centralized and integrated management of their critical data. In today’s highly dynamic business landscape, where collaboration within and outside organizations has become essential, enterprises are increasingly struggling to manage growing volumes of data dispersed across various departmental systems and locations.

This fragmentation creates data silos that hinder a unified view of critical information, leading to inefficiencies, poor decision-making, and compliance challenges.

Market Challenge - Lack of Integration with Legacy Systems Impedes the Market Growth

One of the key challenges facing the entity management software market is the lack of integration between these solutions and the legacy systems still prevalent in many organizations. A significant number of enterprises continue to rely on older customer relationship management (CRM) and enterprise resource planning (ERP) systems developed years ago using outdated technologies. For many entity management software vendors, creating adapters and connectors that seamlessly integrate with these legacy platforms remains a considerable challenge.

Market Opportunity: Growing Demand from Small and Medium Enterprises Create Novel Opportunities

 The entity management software market is witnessing significant growth opportunities arising from the SMB sector. Many small and medium enterprises are now adopting cloud-based business applications to improve efficiency and gain a competitive advantage. As they look to streamline operations and gain a unified view of critical business entities such as customers, prospects, suppliers, and partners, the demand for integrated entity management solutions is on the rise.

Key Stakeholders of Market

What Does Growth in Entity Management Software Market mean for Different Stakeholders?

The entity management software industry includes several players and offers multiple opportunities based on their operational scope and diligence. The table below illustrates and interprets growth aspects for different stakeholders involved.

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Market Segmentation

• By Deployment Insights (Revenue, USD Bn, 2019 - 2031)
• • Cloud
  • On-premises
• By End-user Industry Insights (Revenue, USD Bn, 2019 - 2031)
• • Healthcare
  • Manufacturing
  • Retail
• By Enterprise Size Insights (Revenue, USD Bn, 2019 - 2031)
• • SMEs
  • Large Corporation
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Deloitte
  • Diligent Corporation
  • Athennian
  • Corporatek Inc.
  • EntityKeeper
  • Symfact
  • Berkman Solutions
  • Viewpoint
  • Computershare
  • TGConnect
  • Askival Systems B.V.
  • Harbor Compliance
  • Blika Solutions AB
  • Paper Interactive, Inc.