2016 - 2021 CTRM Market Outlook
solutions vendors selling software products and related services in this market , the vast majority of those are very small and could be considered “ boutique shops ”. In fact , fewer than 15 software vendors generate more than $ 10 million per year in revenues from the CTRM markets . Further , the top 6 vendors ( again , as measured in terms of CTRM revenues ) account for approximately two-thirds of the total market for vendor supplied software and services . Given this concentration , annual results for the market can be significantly impacted by the success or failure of any one of these half-dozen vendors . This influence will be in particular focus in the next few years as the market continues its transition from traditionally installed , on-premises software to cloud delivered solutions .
FIVE YEAR CTRM MARKET OUTLOOK – 2017-2021
In developing our five year market outlook , the following assumptions were utilized :
/ Growth estimates reflects current consensus outlook for global economic growth of 3 to 3.5 % per year for the foreseeable future . Though this rate has been revised upward when compared with recent years , much of the forecast growth is expected to occur in developing countries , regions in which there is little or no market for CTRM products . With slower but steady growth in the larger economies ( China being an exception at 6-7 %), overall growth in the market for CTRM products is anticipated to be in line with earlier ComTech estimates . / All data is expressed in 2016 dollars – there have been no adjustments for inflation or currency exchange rate changes over the period 2017 to 2021 . / In line with previous estimates , ComTech currently believes the global market for CTRM licenses ( including ASP / SaaS ) will grow 4-6 % annually from 2017 to 2021 , with a forecast CAGR for the period of 5 %. However , as noted earlier , as the trend toward cloud deployment of CTRM solutions continues , it is difficult at this time to accurately forecast the changing mix of perpetual license vs . annual license revenues with any real certainty and market results during the forecast period could show significant inconsistency from year to year .
In general , we believe future market growth will reflect an increasing number of smaller deals as E / CTRM software is more readily adopted in the cloud by smaller firms that would have otherwise been priced out of the market for traditional software . Additionally , as many larger firms have indicated they are committed to moving their current CTRM solutions into the cloud , we anticipate slowing growth and a potential decline in revenues associated with support and maintenance payments . Nonetheless , as these larger end-user companies transition their CTRM installations from on-premises servers to cloud deployments , additional vendor revenues will be generated by both annual cloud “ rentals ” and services revenues as vendors assist these customers with the transition .
In developing our outlook for the global CTRM markets , we reviewed the current and perspective market by commodities ,
$ 2,000 $ 1,800 $ 1,600 $ 1,400 $ 1,200 $ 1,000 $ 800 $ 600 $ 400 $ 200
Total CTRM Market 2015 - 2021 $ Millions
$ - 2015 2016 2017 2018 2019 2020 2021
Vendor Revenue 3rd Party Implementation Unaddressed Market
geographies and industrial market segments ; developing our topside outlook of the market based upon this granular review . In line with previous years ’ estimates , we anticipate the total
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