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Procurement Software Market size is set to grow by USD 5.72 billion from 2024-2028, Growth in E-commerce and organized retail industry boost the market, Technavio
Friday, July 26, 2024
NEW YORK, July 25, 2024 /PRNewswire/ -- The global procurement software market size is estimated to grow by USD 5.72 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 10.77% during the forecast period. Growth in E-commerce and organized retail industry is driving market growth, with a trend towards integration of ai in procurement process. However, complexity regarding integration with existing system and supplier onboarding poses a challenge. Key market players include Basware Corp., BirchStreet Systems Inc., Coupa Software Inc., Elcom System Ltd., Enaviya Information Technology Pvt. Ltd., Epicor Software Corp., Ginni Systems Ltd., Infor Inc., International Business Machines Corp., Ivalua Inc., JAGGAER LLC, Microsoft Corp., NB Ventures Inc., Oracle Corp., ORO Labs Inc., SAP SE, ScienceSoft USA Corp., SunSmart Technologies Pvt. Ltd., SutiSoft Inc., Tata Consultancy Services Ltd., Tropic Technologies Inc., Workday Inc., and Zycus Inc..
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Procurement Software Market Scope
Report Coverage
Details
Base year 2023
Historic period
2018 - 2022
Forecast period
2024-2028
Growth momentum & CAGR Accelerate at a CAGR of 10.77%
Market growth 2024-2028
USD 5728.3 million
Market structure
Fragmented
YoY growth 2022-2023 (%) 9.82
Regional analysis
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution North America at 37%
Key countries
US, UK, Germany, China, and India
Basware Corp., BirchStreet Systems Inc., Coupa Software Inc., Elcom System Ltd., Enaviya Information Technology Pvt.
Ltd., Epicor Software Corp., Ginni Systems Ltd., Infor Inc., International Business Machines Corp., Ivalua Inc.,
JAGGAER LLC, Microsoft Corp., NB Ventures Inc., Oracle Corp., ORO Labs Inc., SAP SE, ScienceSoft USA Corp.,
SunSmart Technologies Pvt. Ltd., SutiSoft Inc., Tata Consultancy Services Ltd., Tropic Technologies Inc., Workday
Key companies profiled Inc., and Zycus Inc.
Market Driver
The digital transformation of businesses is driving the need for real-time solutions and advanced business intelligence in various industries. Procurement processes are no exception. Modern businesses require efficient and accurate procurement processes to gain a competitive edge. Artificial Intelligence (AI) has been integrated into procurement software to streamline processes and provide valuable insights. AI capabilities include virtual agents and chatbots, suggestive web searches, pattern recognition, machine translation, and automatic scheduling. This technology offers a centralized view of business information and activities, enabling enterprises to identify cost discrepancies, compare contract data to orders and invoices, detect unusual order quantities or frequencies, and identify potential fraud or errors. Additionally, AI can detect purchasing patterns and identify top-performing trading partners and suppliers. The integration of AI in procurement processes simplifies the ordering process, making it easy to manage. Despite these advancements, the demand for procurement software is expected to continue, fueling the growth of the global procurement software market.
The procurement software market is experiencing significant trends, with AP automation and cloud sourcing leading the way. Cloud-based procurement contracts and Procure-to-Pay Suites, also known as eProcurement Software, are becoming increasingly popular. Artificial Intelligence (AI) and Machine Learning (ML) are being integrated into cloud-based solutions for automation and transparent information. Digitization and funding are major factors driving spending in the cloud. SMEs and large enterprises in retail & e-commerce, healthcare and pharmaceutical, manufacturing & automotive, IT & telecom, oil & gas, energy & utilities, and other industries are adopting these solutions. Emerging technologies like blockchain technology and supply chain planning are also gaining traction. On-Cloud solutions help companies manage production capacity and supply chain more efficiently. Market players forecast a robust growth for the procurement software market during the forecast period. Opportunities lie in improving procurement process automation, reducing duplication of records, and ensuring quality infrastructure. Brands must focus on delivering customized solutions to meet customer needs.
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Market Challenges
-- Procurement software market growth faces challenges due to the unique
systems and suppliers of every organization. Compatibility issues arise
when trying to integrate new software with outdated technologies in
existing systems. Modifications to these systems further complicate the
process. Supplier integration is also problematic, as some may lack the
resources or knowledge to integrate with new software. These challenges
can lead to delays in supplier onboarding, causing significant problems
for organizations. These factors are expected to hinder the growth of
the global procurement software market during the forecast period.
-- The procurement software market is experiencing significant growth due
to the increasing need for automation and transparent information in the
procurement process. Large enterprises and small & medium-sized
businesses in sectors like retail & e-commerce, healthcare and
pharmaceutical, manufacturing & automotive, IT & telecom, oil & gas, and
energy & utilities are adopting procurement solutions to streamline
their supply chains. On-Cloud solutions are gaining popularity for their
flexibility and cost-effectiveness. Company-wise production capacity and
supply requirements are major factors driving the market. However,
challenges like duplication of records and complexity persist. Emerging
technologies like Artificial Intelligence (AI) are providing
opportunities for market players to offer advanced solutions. Brands
like GEP and Cheniere Energy Inc are forecasted to dominate the market
during the forecast period. Quality, automation, infrastructure, and
customer satisfaction are key areas of focus for these companies.
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Segment Overview
This procurement software market report extensively covers market segmentation by
1. Deployment
-- 1.1 Cloud
-- 1.2 On-premises
2. End-user
-- 2.1 Retail and e-commerce
-- 2.2 Healthcare and pharmaceuticals
-- 2.3 Manufacturing and automotive
-- 2.4 IT and telecom
-- 2.5 BSFI and others
3. Geography
-- 3.1 North America
-- 3.2 Europe
-- 3.3 APAC
-- 3.4 South America
-- 3.5 Middle East and Africa
1.1 Cloud- Many vendors, including BirchStreet Systems and Coupa Software, provide procurement software via the software-as-a-service (SaaS) model to meet the expanding demand for cloud-based solutions. Cloud-based procurement software is less costly than on-premises alternatives since it doesn't necessitate hardware and software installation at enterprises. Instead, it's maintained at the vendor's data center, which enterprises can access on a subscription basis. Enterprises pay a monthly or yearly fee per device for usage, maintenance, and updates. This model is particularly beneficial for small and mid-sized enterprises, enabling them to streamline operations, reduce errors, and lower costs. Deployment of cloud-based procurement software is simpler and quicker than on-premises software, resulting in faster ROI. BirchStreet Systems offers a cloud-based procurement solution, automating the Procure-to-Pay (P2P) process, enhancing control and visibility over back-office operations and supply chains. This solution connects businesses and suppliers, increasing transparency, efficiency, and financial controls, creating accountability, and reducing compliance gaps, leading to significant business process improvements and real supply cost savings. The global procurement software market is anticipated to grow rapidly due to the increasing popularity of cloud-based deployment.
For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2017-2021) - Download a Sample Report
Learn and explore more about Technavio's in-depth research reports
The global Library Management Software market is experiencing robust growth driven by increasing digitalization in education and public libraries. The global Vendor Management Software market is expanding rapidly as businesses seek to optimize supplier relationships and enhance procurement efficiency. Meanwhile, the global IT Software market continues to surge due to rising demand for innovative solutions across various industries, including healthcare, finance, and retail. Key players in these markets are leveraging advanced technologies to offer integrated and scalable solutions, catering to the evolving needs of their customers.
Research Analysis
The procurement software market is experiencing significant growth due to the increasing digitization of business processes. Cloud sourcing and procurement contracts are becoming more prevalent, with procure-to-pay suites and eProcurement software leading the way. These solutions offer major advantages such as automation of AP processes, real-time visibility into company-wise production capacity, and supply chain optimization. Emerging technologies like AI are also playing a key role, providing intelligent insights and streamlining the procurement process. Funding for on-cloud solutions is readily available, making it an opportunity for businesses to adopt these solutions and gain a competitive edge. The market's growth is driven by the need for transparent information, procurement process automation, and the ability to manage complexity in the supply chain.
Market Research Overview
The procurement software market is experiencing significant growth due to the increasing digitization of business processes. Cloud-based solutions, such as eProcurement Software and Procure-to-Pay Suites, are becoming increasingly popular for their convenience and cost savings. AP Automation and AI are major factors driving the market, providing automation, transparency, and opportunity for companies to streamline their procurement processes. Emerging technologies like Machine Learning (ML) and blockchain technology are also gaining traction, offering enhanced capabilities for supply chain planning and contract management. The market caters to various industries, including retail & e-commerce, healthcare and pharmaceutical, manufacturing & automotive, IT & telecom, oil & gas, and energy & utilities. SMEs and large enterprises alike are adopting these solutions to improve spending control, reduce duplication of records, and ensure quality. The procurement software market is forecasted for steady growth during the upcoming years, with On-Cloud solutions and company-wise production capacity being key areas of focus.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
-- Deployment
-- Cloud
-- On-premises
-- End-user
-- Retail And E-commerce
-- Healthcare And Pharmaceuticals
-- Manufacturing And Automotive
-- IT And Telecom
-- BSFI And Others
-- Geography
-- North America
-- Europe
-- APAC
-- South America
-- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
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