Knowledge Management Software Market

Market Overview

The global knowledge management software market size was valued at USD 16,635 million in 2022. It is estimated to reach USD 47,254 million by 2031, growing at a CAGR of 12.3% during the forecast period (2023–2031).

Knowledge management is a process of gathering, identifying, storing, evaluating, and sharing all the valuable information from the day-to-day business operations generated in the organizations. It is a type of ECM software or enterprise content management. This information is readily available at the click of a mouse. It helps maintain response consistency, shortens training times, enhances governance, and boosts customer happiness, among other benefits. In addition, the strategy is based on cloud computing, which utilizes remote computers to collect and store information. Knowledge management software helps end-user organizations stay organized and updated in various forms of documentation of essential insights. Furthermore, it enables its users to access information efficiently for numerous objectives.

Market Dynamics

Global Knowledge Management Software Market Drivers

Increasing Need for Customer Retention and Satisfaction

The industrial world is shifting from a product-centric to a customer-centric framework. Customer-oriented business approaches are regarded as one of the most potent competencies in businesses that aid in transforming their environments into customer-centric environments. Companies can strengthen their relationships with influential customers through knowledge management, resulting in loyal customers and a competitive advantage. In addition, organizations can use knowledge management and knowledge derived from customer relationship management (CRM) to generate new ideas and deliver enhanced and new services. Customer knowledge, as an integral component of the relationship between knowledge management and customer relationship management (CRM), could assist organizations in customizing their products and services and their relationships with customers to improve customer satisfaction and economic profitability. 

Furthermore, a knowledge management system also aids businesses in better serving their consumers, providing them with better support, and cultivating a positive connection with them. Moreover, a knowledge management system can help companies increase their return on investment. Knowledge management software assists businesses in analyzing their consumers' search patterns, the information they want, the terms they use to search, and more. Knowledge management has always been important in establishing long-term client connections. Thus, the increasing need for customer retention and satisfaction boosts market growth.

Increases Operational Efficiency and Staff Productivity

An upsurge in competition level requires companies to improve the efficiency of workforce usages characterized by labor productivity. Knowledge management software helps overall performance by avoiding common errors, directing product development, and exchanging internal and external feedback. Knowledge management software can also assist a corporation in gaining a competitive advantage and expediting business decisions. In addition, knowledge management software combines management strategies such as strategic decision-making, technical implementations, and firm-specific culture difficulties to detect, develop, communicate, and use the skills and abilities of the firm's workforce. 

Additionally, knowledge management software combines management strategies such as strategic decision-making, technical implementations, and firm-specific culture difficulties to detect, develop, communicate, and use the skills and abilities of the firm's workforce. A knowledge management system helps a company to keep expertise and make it available for reuse, increase employee performance, and shorten the time it takes for new specialists to adapt, thereby driving market growth.

Global Knowledge Management Software Market Restraint

Lack of Awareness in Small Organizations

Small businesses often find it challenging to consider a significant financial investment in an area they do not recognize as a core element of their business. However, they are optimistic about the potential of ICT in the future. Knowledge management in SMEs is seen as something other than a business need or a priority. SMEs need help to afford to invest in knowledge management and information technology and have difficulties establishing their business value. In addition, small business owners are unaware of the long-term benefits of knowledge management. However, most of them restrict agreements on specific knowledge management software. Several are concerned that they would lose their competitive advantage by sharing their information with the partnerships. Therefore, the lack of awareness in small organizations restrains market growth.

Global Knowledge Management Software Opportunities

Technological Advancement

Knowledge management software emerged from the evolution of information and communication technology and changes in companies' structure, functions, and management practices all over the globe. The process of producing, sharing, utilizing, and applying information within and between companies has consistently been the focus of knowledge management. Knowledge management processes were either manual or offline before introducing information technologies. However, the emergence and eventual growth of information systems created an opportunity to integrate knowledge management processes progressively.

These digital technologies enable data capture, storage, mining, analytics, and visualization. The value generated by such technologies is improved and transferred to companies and customers through digital technologies that enable interconnection. Moreover, digital technological advancements in knowledge management examine that new and developing digital technologies might aid knowledge management processes within and outside businesses.

Regional Analysis

Based on region, the global knowledge management software market is divided into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. 

North America Dominates the Global Market

North America is the most significant global knowledge management software market shareholder and is anticipated to grow at a CAGR of 10.3% during the forecast period. North America is likely to have a significant market share due to its robust infrastructure and early adoption of new technology. North America dominates the knowledge management software industry because of the rising demand in multiple sectors and the widespread acceptance of various management software. In addition, the regional market is being boosted by a supportive and superior infrastructure and a high tendency to learn new technologies and integrate them into the system. Furthermore, investments in research and development significantly impact the region. The US is the largest country in North America. This is because giant corporations are involved in various companies, each of which necessitates a significant amount of knowledge management work. 

Additionally, the expansion of the North American market would be aided by an increase in the number of startups and SMEs. The US is the leading country in North America, owing to the rapid adoption of various new and innovative technologies. For instance, Philips did not just use knowledge management to cut down on account managers' and sales engineers' time looking for information. It created innovative engineering solutions for its clients by leveraging a knowledge management ecosystem. This shift in focus happened when management understood they were missing out on potential by not sharing new services and solutions across markets. 

Asia-Pacific is estimated to grow at a CAGR of 14.6% over the forecast period. Asia-Pacific will experience rapid growth in the coming years as businesses strive to provide better solutions to their clients. Countries like China, India, and Japan will have the most significant impact on market growth. The expansion of Asia-Pacific's knowledge management software market is being accelerated by factors such as the increasing number of small and medium-sized organizations (SMEs). Furthermore, IT spending in the region is gradually increasing, which is expected to increase the use of knowledge management software. In Asia-Pacific, China is one of the leading countries in the knowledge management software market. In terms of enterprise content management software solutions and services, China, Japan, Australia, and New Zealand (ANZ) are the dominant countries in the area. While spending on IT solutions has surged in Asia-Pacific, the recent COVID-19 pandemic caused a setback. The outbreak of COVID-19 makes it more critical for corporate leaders in Asia-Pacific to accelerate cloud adoption and digital transformation.

Europe is expected to grow significantly over the forecast period. Many businesses have migrated their data to cloud storage using cloud-based knowledge management software due to the vast volume of unstructured data generated by IoT. As a result, the region's market is primarily driven by the growth of unstructured data and the use of cloud-based knowledge management software. Product launches, mergers and acquisitions, government alliances, and technological developments are ways market players contribute to market growth and stay competitive. In Germany, knowledge management will help the country transition from a manufacturing-based economy to one based on knowledge-creating businesses. Rather than cutting-edge, R&D-intensive technologies, knowledge-intensive service-sector skills are seen as the future backbone of the German economy. Germany's efforts to improve knowledge management applications through methodical, business-focused, interdisciplinary approaches will help the country's businesses maintain market leadership and create more jobs, consequently driving market growth in the region.

South America includes Brazil, Argentina, and the Rest of South America. The Economic Commission for Latin America and the Caribbean (ECLAC) presented to governments the regional knowledge management platform for the Sustainable Development Goals (SDG Gateway), built in collaboration with 22 UN agencies, funds, and programs in the region. This platform has proven to be a potent tool for monitoring countries' progress and needs in implementing the 2030 Agenda. The market is expected to be propelled by increasing adherence to international quality standards in end-use sectors and the high demand for technologically advanced knowledge management software.

The Middle East and Africa market is expected to increase significantly during the projected period. This region is likewise experiencing steady growth. Due to the increasing usage of smartphones, online services, and rising startup funding, the Middle East and Africa market is expected to grow at a moderate rate throughout the forecast period. The demand for knowledge management software has increased due to several factors, including the expanding need for regulatory content management and the growing desire to reduce risk. In addition, knowledge management software has become more well-liked due to the necessity for enterprises to access vast amounts of data from a single spot on a regular basis. Knowledge management software is an essential component of many organizations' strategies. The importance of knowledge management has increasingly grown due to the pressing need to implement it as a strategy in modern businesses, whether large or small.

Segmental Analysis

The global knowledge management software market is segmented by type, deployment type, organization size, and end-user.

Based on type, the global market is divided into mobile android native and mobile IOS native. 

The mobile android native segment is responsible for the largest market share and is anticipated to grow at a CAGR of 12.1% over the forecast period. Knowledge management software for mobile devices developed on the android native operating system is considered under the mobile- android native segment. On mobile devices, it allows users to build and access apps. This platform, which ensures data security, privacy control, information integrity, manageability, and other features, can be used to share knowledge. It also improves employee performance. It has applications in various industries, including automotive, healthcare, and many more.

Based on deployment type, the global knowledge management software market is segmented into on-premises, cloud, and hybrid. 

The cloud segment owns the highest market share and is expected to grow at a CAGR of 11.3% over the forecast period. Cloud deployment is deploying an application using one or more cloud-based hosting models, such as software as a service, platform as a service, or infrastructure as a service. Each deployment model is defined according to the infrastructure for which the environment is located. Most better design platforms are not built for enhanced collaboration, a significant feature for extensive design and development teams where multiple people may need to work on a single design.

Based on organization size, the global market is divided into small and medium-scale enterprises and large-scale enterprises. 

The large-scale enterprise segment is the highest contributor to the market share and is anticipated to grow at a CAGR of 11.1% over the forecast period. Knowledge management systems are used by businesses that seek to fully utilize the varying degrees of expertise and experience their staff members hold. The platform creates a central location for teammates and remote employees to access defined processes and routines, such as onboarding documentation, frequently asked questions, and more. These tools are handy when onboarding new staff and saying goodbye to long-serving colleagues. In addition, knowledge management in large businesses necessitates more work than in small and medium-sized enterprises. Knowledge management software is also used to develop a systematic process of organizing, storing, retrieving, and sharing information among employees to access it without difficulty or delay whenever they are required.

Based on end-user, the global knowledge management software market is segmented into government and defense, manufacturing, BFSI, pharmaceuticals, IT and telecommunication, and others. 

The IT and telecommunication segment owns the highest market share and is expected to grow at a CAGR of 11.1% over the forecast period. Modern capabilities like machine learning algorithms and natural language processing construct highly versatile, intelligent systems that form the basis of information management solutions using AI-backed knowledge base software. One can create an infrastructure that uses predictive modeling and machine learning to curate, collect, and download data based on the requests’ unique characteristics (sales, service, customer data, etc.). Most customers transfer telecom brands if they are dissatisfied with their present level of service from their telecom service provider.

Recent Developments

• January 2023- NICE announced its integration of CXone Expert with OpenAI's generative modeling in ChatGPT. CXone Expert is the industry’s leading cloud-native customer service Knowledge Management solution, providing effortless, faster self-service that delivers accurate answers for resolving customer issues.
• January 2023- Jellyfish, the leading engineering management platform (EMP), launched Life Cycle Explorer. This new solution identifies bottlenecks in the life cycle of engineering work to help teams adapt workflow processes and more effectively deliver value to customers.