Forrester is predicting that the market for partner relationship management software will climb at a compound annual growth rate of 14.2 percent to $889 million by 2025.
In a recent post, Jay McBain, Forrester’s Principal Analyst, Channel Partnerships & Alliances, noted that channel leaders are looking for PRM to be the foundational layer on a channel software tech stack that will drive this growth. The explosion of new partner types supporting different business models, requirements for new people with different skills, channel programs with more than 100 distinct elements, advanced automation, and deeper integration of processes and technology has added substantially to the “chaos” channel managers are tasked with managing, McBain wrote.
Currently only 50% of the addressable market for PRM solutions has been penetrated, note McBain. In addition to investments in PRM solutions, McBain added that investments in them generates up to a 5x multiplier for additional services and software. PRM solutions need “to be installed, implemented, integrated, secured, made compliant, protected, and automated at scale.”
In a comprehensive review of channel supporting solutions earlier this year, McBain listed almost 30 different vendors. The Forrester Wave: Partner Relationship Management, Q4 2020 — made available at no cost by Impartner, a channel management platform provider — evaluates, identifies and scores 14 of the most significant providers.