Membership Management Software Market

Market Overview

The global membership management software market size was valued at USD 5.2 billion in 2023 and is projected to reach USD 7.4 billion by 2032, registering a CAGR of 4.5% during the forecast period (2024-2032). The growth of the membership management software market will likely be propelled by the rising demand for software platforms that automate administrative tasks, including maintaining a database of member information and charges and processing event registrations.

Membership software is a type of computer software that offers specific features and capabilities to associations, clubs, and other membership organizations. Modernizing the membership management process enhances the experience for members by making it more customized and fulfilling. This software improves the efficiency of appointment scheduling for members and provides comprehensive support for all aspects of the membership program. This software offers non-profit organizations and associations a category of tools to enhance the efficacy and effectiveness of their membership programs.

The primary catalyst for the growth of the worldwide membership management software market is the rising awareness around using such software. Moreover, the integration of artificial intelligence across different industries would significantly contribute to the growth of the worldwide membership management software market. Furthermore, the membership management software business will be stimulated by the rise in strategic actions and financial contributions from significant competitors throughout the estimated period. The global membership management software market is predicted to grow due to the increasing number of fitness centers and health clubs, and the demand for effective membership administration in developed and developing countries.

Highlights

• On-premises accounts for the largest market share by type.
• Large enterprises hold a significant market share among end-users.

Market Dynamics

Global Membership Management Software Market Drivers:

Increasing Awareness of Membership Management Software 

The increasing number of membership-based organizations in many sectors, such as NGOs, clubs, associations, and educational institutions, has resulted in a high demand for effective management solutions. For example, prominent membership organizations in the United States, such as the ACLU and AAA, are widely recognized. Numerous professional groups, such as the National Association of Realtors, boast substantial membership. Each group possesses a meticulously crafted website that directs individuals toward becoming members.

Furthermore, membership management software is a crucial tool that helps streamline operations, improve member engagement, and ensure the success of an organization.  As more organizations acknowledge the significance of efficiently overseeing their memberships, they actively search for software solutions to fulfill their changing requirements. Membership management software packages offer various functionalities, such as member registration and onboarding, payment processing, event administration, communication tools, and data analytics. These features enable businesses to automate laborious administrative chores, better communication with members, analyze data for informed decision-making, and improve the entire member experience.

In general, as organizations increasingly acknowledge the need for effective membership management for their long-term viability and expansion, there is anticipated to be a surge in the need for sophisticated membership management software solutions, which will, in turn, drive market growth.

Growing Adoption of Cloud-based Solutions 

It is predicted that by 2025, over 85% of enterprises will adopt a cloud-first approach and rely on cloud-native architectures and technologies to implement their digital goals successfully. By 2028, the global market for cloud computing is projected to reach a value of USD 1,251.09 billion. The United States has consistently been at the forefront of cloud adoption in several sectors, particularly in the corporate realm. A push towards digital transformation also fuels the impetus for cloud adoption. Statista's analysis reveals that 48% of respondents have embraced the industry cloud. In 2023, the US public cloud market had achieved USD 258.10 billion.

Additionally, the Chinese cloud computing market is projected to grow to USD 32 billion in 2021 and is expected to reach USD 90 billion by 2025. By that time, cloud computing is anticipated to be an essential component of daily operations for 60% of businesses and government organizations in the country. As a prominent manufacturing nation, China also boasts several influential domestic IT manufacturers that leverage cloud technology to enhance efficiency. Furthermore, the increasing utilization of cloud-based membership management software solutions has contributed significantly to the market's rise.

Global Membership Management Software Market Restraints:

Integration Issues 

Membership management software is crucial for effectively managing memberships in organizations spanning diverse industries, such as clubs, associations, gyms, and charity organizations. Nevertheless, despite the multitude of advantages, the market's expansion is impeded by integration concerns, which provide a substantial obstacle. Integration issues develop due to the varied technical environment present in businesses. Numerous firms currently employ multiple software solutions for various activities, such as customer relationship management (CRM) systems, accounting software, or marketing automation tools.

Additionally, integrating membership management software with pre-existing systems might pose intricate challenges that require significant time. During the integration process, delays and increased expenses frequently occur due to compatibility concerns, data synchronization challenges, and technical limits. In addition, various membership management software systems may employ distinct programming languages, databases, or APIs, adding complexity to the integration procedure. This might lead to a fragmented user experience and inefficiencies in data handling.

Furthermore, there is an added level of intricacy due to security considerations. Implementing membership management software involves transferring confidential member information between many platforms, which raises concerns over privacy and potential unauthorized access to data. Organizations must guarantee adherence to data protection standards and establish strong security measures to protect member information. Moreover, there is a need for established integration methods to improve these issues. Although several software providers offer pre-built connectors or APIs to simplify integrating with other systems, numerous solutions still need extensive integration capabilities, necessitating bespoke development work. All these reasons impede market growth. 

Global Membership Management Software Market Opportunity:

Recent Advancement in the Area of AI

In the present age of technology, membership organizations are continuously searching for creative methods to improve the experience of their members, simplify their operations, and stimulate growth. Membership organizations can use the emergence of Artificial Intelligence (AI) to utilize sophisticated technologies and access novel opportunities. 

By 2023, artificial intelligence (AI) had assumed control over most organizational operational tasks. Experts predict that by 2030, AI will substantially contribute up to USD 15.7 billion to the global economy. Organizations now utilize AI for various tasks, including content development, member communications, conference management, and workplace organization. This demonstrates that AI is no longer limited to traditional enterprises.

Moreover, the AI governance framework and regulations aim to cultivate ethical AI and mitigate discriminatory biases in machine learning (ML) algorithms, enhancing AI users' trust. In the artificial intelligence industry, solution providers integrate the core principles of explainable AI. The principles encompassed are equity, responsibility, transparency, security, and privacy of information. The Australian government has adopted an AI ethical framework to effectively utilize the potential of AI for economic, social, and environmental benefits, as well as to enhance the trust of AI users in the technology. Consequently, the growing progress in artificial intelligence creates more opportunities for the membership management software market.

Regional Analysis

North America Dominates the Global Market

The global membership management software market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global membership management software market shareholder and is estimated to grow at a CAGR of 4.3% over the forecast period.  Over 15,000 trade/business associations in the North American region utilize membership management. Notable industrial associations that use this software include the National Association of Realtors, the American Medical Association, and the American Chemical Society.

In addition, membership management is necessary not only for commercial associations but also for Organizations such as sports and fitness service providers, event management firms, and educational institutions that utilize these types of software platforms. Out of all these industries, the fitness business is experiencing rapid growth. According to the statistics, the United States and Canada have the most significant number of fitness clubs worldwide, ranging from 35,000 to 38,000. Additionally, they have the highest rates of membership, which in turn contribute to regional growth.

Europe is anticipated to exhibit a CAGR of 4.7% over the forecast period. Various reasons primarily drive the membership management software industry in Europe. The growing utilization of digital solutions in many industries, such as associations, clubs, and organizations, drives the need for effective membership management technologies. Furthermore, the increasing demand for optimizing administrative procedures, such as enrolling new members, renewing memberships, and facilitating communication, motivates enterprises to allocate resources toward software solutions that automate these functions.

Moreover, the increasing recognition among organizations regarding the advantages of making decisions based on data and engaging with members contributes to the expansion of the industry. Furthermore, firms must invest in software solutions that guarantee data security and privacy due to regulatory requirements, such as GDPR compliance. Moreover, the rise of cloud-based solutions provides the capacity to quickly adjust and adapt to changing needs, leading to market growth. In summary, these factors collectively contribute to the ongoing expansion and development of the European membership management software industry.

The Asia-Pacific is the fastest-growing region owing to the growing demand for software from developing economies such as India, China, and Japan. The increasing utilization of digital technology in several sectors drives the need for effective and automated solutions for managing memberships. Organizations are realizing the importance of simplifying their membership procedures, which include registration, communication, and payment administration, to improve the experience of their members and increase organizational efficiency. The increasing prevalence of business models based on subscriptions is fueling the adoption of membership management software. As organizations and groups shift towards generating income through subscription models, there is an increased demand for robust software solutions that can successfully handle recurring payments, renewals, and member interaction.

Additionally, the emergence of cloud computing technologies substantially impacts the market dynamics. Membership management software that operates on the Cloud provides the advantages of scalability, flexibility, and cost-effectiveness. This makes it an appealing choice for enterprises of any size, especially in Asia-Pacific, where cloud technology is increasing. Furthermore, the growing emphasis on data security and adherence to regulations fuels the need for sophisticated membership management solutions equipped with integrated security capabilities. Organizations prioritize software solutions that guarantee safeguarding sensitive member data and adherence to data privacy standards like GDPR and CCPA.

Therefore, the growth of the Asia-Pacific membership management software market is driven by the combination of digital transformation, subscription economy trends, developments in cloud technology, concerns about data security, and the increasing popularity of online communities. Comprehending these factors is crucial for software suppliers and organizations aiming to take advantage of the opportunities offered by this changing market environment.

Segmental Analysis

The global membership management software market is segmented based on type and end-user.

Based on type, the market is bifurcated into Cloud-Based and On-Premises. 

The on-premises segment dominated the market in 2023. The on-premises deployment type involves installing the proposal management software within the organization's facilities instead of a distant location. On-premises solutions are provided with a single payment for the license and a service agreement. Moreover, implementing the solution necessitates a substantial infrastructure and a dedicated data center, a cost that is feasible only for sizable enterprises.

The cloud-based segment is the fastest growing. Solution providers offer cloud-based systems to protect firm data and enable customers to access information anywhere. The cloud-based solution is expected to increase market demand throughout the forecast period. Cloud-based databases eliminate the need for additional recurring expenses associated with maintenance. The level of security here is significantly higher than that of the on-premises membership management software. Nationbuilder, Alambase, and Raklet are efficient and user-friendly cloud-based tools for managing memberships.

Furthermore, cloud-based membership management platforms, known for their convenient accessibility, now dominate approximately 65% of the global market for membership management software. This industry is estimated to be valued at around $4.7 billion and is experiencing continuous and rapid growth.

Based on end users, the market is bifurcated into Large Enterprises and SMEs. 

Large enterprises have the largest market share among end users. These organizations cater to a large group of members and provide unique benefits such as gifts, workshop invitations, free newsletter subscriptions, product and service discounts, and more in return for their membership. Membership-based enterprises cater to various institutions such as museums, clubs, civic leagues, unions, cultural organizations, and professional groups. This is anticipated to propel the growth of this sector over the projected timeframe.

Small and Medium Enterprises (SMEs) are poised to grow at a significant CAGR. Small and medium-sized enterprises (SMEs) realize the significance of effectively managing their memberships and are adopting software solutions to simplify their operations. Membership management software enables SMEs to automate tasks like member registration, communication, and engagement, saving time and resources. Consequently, the increasing recognition of the advantages of membership management software among SMEs is anticipated to propel market growth in the future.

Recent Developments

• January 2024- Zen Planner unveiled its newest innovation - a mobile application that combines brand, colors, and energy to deliver a distinctive experience in a competitive market.
• December 2023-  Zen Planner joined the recently introduced CrossFit Affiliate Partner Network, an effort for CrossFit affiliates. The CrossFit APN is a centralized center for reputable companies within the CrossFit community. It offers special deals, discounts, and revenue-generating schemes specifically available to CrossFit affiliate owners.