The key takeaways from Gartner’s 2016 CPQ application suites market guide

Gartner estimates the CPQ application suites market was $570M in 2015, attaining 20% year-on-year growth between 2014 and 2015.
Cloud-based CPQ revenue was $157M in 2015, attaining 46% year-over-year.
Gartner predicts CPQ will continue to be one of the hottest enterprise apps for the foreseeable future, predicting a 20% annual growth rate through 2020 with the majority being from cloud-based solutions. Legacy on-premise vendors including SAP’s Variant Configurator (VC) are going to face increasingly strong headwinds in the market as a result.
SaaS and Cloud solutions are driving the majority of CPQ market growth today, fueling greater innovation in the market.
The CPQ market continues to grow as companies replace legacy on-premise CPQ apps and outdated ERP quoting and ordering apps with cloud-based CPQ solutions.