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Procurement Software Market to Grow by USD 6.66 Billion (2025-2029), Boosted by E-commerce and Retail Growth, Market Evolution Powered by AI - Technavio
Saturday, February 15, 2025
NEW YORK, Feb. 7, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global procurement software market size is estimated to grow by USD 6.66 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 11.3% 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 2024
Historic period
2019 - 2023
Forecast period
2025-2029
Growth momentum & CAGR Accelerate at a CAGR of 11.3%
Market growth 2025-2029
USD 6663.5 million
Market structure
Fragmented
YoY growth 2022-2023 (%) 10.3
Regional analysis
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution North America at 37%
Key countries
US, Germany, Canada, UK, China, France, Italy, India, Japan, and South Korea
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 procurement software market is experiencing significant trends with the increasing adoption of AP automation, cloud sourcing, and cloud-based procurement contracts. Procure-to-Pay Suites, eProcurement Software, and AI are driving digitization in procurement processes, making them more automated and transparent for businesses. Cloud solutions are popular among SMEs and large enterprises in retail & e-commerce, healthcare and pharmaceutical, manufacturing & automotive, IT & telecom, oil & gas, and energy & utilities. Emerging technologies like Machine Learning (ML) and blockchain technology are enhancing supply chain planning and capacity management. Major market players like GEP and Cheniere Energy Inc are forecasting opportunities in this market during the upcoming years. The procurement software market offers solutions to streamline spending, improve quality, and provide infrastructure for company-wise production and supply chain management.
The digital transformation of businesses is driving the adoption of advanced solutions in various industries. Procurement software is a prime example, with many companies opting for real-time, AI-powered systems to gain a competitive edge. These systems offer features like virtual agents, chatbots, suggestive web searches, pattern recognition, machine translation, and automatic scheduling. By integrating AI into procurement processes, enterprises can streamline operations, improve accuracy, and gain a centralized view of their business-related data. This not only enhances efficiency but also enables better decision-making. AI-driven procurement software is an essential investment for modern businesses seeking to stay competitive in today's market.
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Market Challenges
-- The procurement software market is experiencing significant growth due
to the increasing adoption of automation in AP processes, cloud
sourcing, and cloud-based procurement contracts. The market is driven by
major factors such as digitization, funding, and spending trends in
various industries. Emerging technologies like AI, machine learning
(ML), blockchain technology, and supply chain planning are transforming
procurement processes for both SMEs and large enterprises in sectors
like retail & e-commerce, healthcare and pharmaceutical, manufacturing &
automotive, IT & telecom, oil & gas, and energy & utilities. Companies
like GEP and Cheniere Energy Inc are leading the way with On-Cloud
solutions that offer transparent information, automation, and quality
infrastructure. However, challenges like duplication of records and
complexity remain, providing opportunities for market players to
innovate and improve their procurement software solutions throughout the
forecast period.
-- Procurement software integration poses challenges due to the unique
systems and suppliers in each organization. Compatibility issues are a
primary concern, as outdated technologies in existing systems can hinder
the installation of new procurement software. This may necessitate
modifications, adding complexity to the integration process. Supplier
technological capabilities also vary, with some lacking the resources or
knowledge to integrate with new software. This can cause delays in
onboarding suppliers, potentially impacting organizational efficiency.
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Segment Overview
This procurement software market report extensively covers market segmentation by
-- Deployment
-- Cloud-based
-- On-premises
-- End-user
-- Retail And E-commerce
-- Healthcare And Pharmaceuticals
-- Manufacturing And Automotive
-- IT And Telecom
-- Others
-- Geography
-- North America
-- Europe
-- APAC
-- South America
-- Middle East And Africa
1.1 Cloud-based- Many vendors, including BirchStreet Systems and Coupa Software, provide procurement software through the software-as-a-service (SaaS) model to meet the expanding demand for cloud-based procurement solutions. Cloud-based procurement software is less costly than on-premises alternatives since it doesn't necessitate hardware and software installation at the enterprise. Instead, it is maintained at the vendor's data center and accessed via subscription. Enterprises pay a monthly or yearly fee per device, which includes maintenance and upgrades. This model is particularly advantageous for small and mid-sized enterprises, enabling them to streamline operations, reduce errors, and lower costs. The deployment of cloud-based procurement software is simpler and quicker than on-premises software, resulting in a faster return on investment (ROI). BirchStreet Systems offers a cloud-based procurement solution that automates the Procure-to-Pay (P2P) process for enterprises, enhancing control and visibility over back-office operations and supply chains. This solution also connects businesses and suppliers for increased transparency, efficiency, financial control, accountability, and reduced compliance gaps, leading to significant business process improvements and real supply cost savings. The rapid growth of the cloud-based deployment segment is anticipated to fuel the expansion of the global procurement software market during the forecast period.
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Research Analysis
The procurement software market is experiencing significant growth due to the increasing digitization of business processes. Cloud sourcing and cloud-based procurement contracts are becoming increasingly popular, allowing companies to access procurement solutions on-demand and reduce upfront costs. The market is witnessing a shift towards Procure-to-Pay Suites and eProcurement Software, which automate the entire procurement process from requisition to payment. Emerging technologies like Artificial Intelligence (AI) are being integrated into procurement software to enhance efficiency, reduce errors, and provide transparent information. The procurement process is becoming more complex, requiring advanced solutions to manage company-wise production capacity, supply chain, and funding. Opportunities in this market are majorly driven by the need for streamlined procurement processes, cost savings, and improved supply chain visibility.
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. AP Automation and AI are major factors driving this market, providing automation, transparency, and opportunity for major cost savings. Emerging technologies like Machine Learning (ML) and blockchain technology are also gaining traction, offering enhanced supply chain planning and security. The market caters to various industries, including SMEs, large enterprises, retail & e-commerce, healthcare and pharmaceutical, manufacturing & automotive, IT & telecom, oil & gas, and energy & utilities. The procurement software market is expected to grow substantially during the forecast period, with funding and spending on cloud solutions continuing to increase. Companies are investing in On-Cloud solutions for company-wise production capacity and supply chain management. The market presents significant opportunities for brands to improve quality, reduce complexity, and provide transparent information to customers. Cheniere Energy Inc. Is one of the many companies leveraging these solutions to streamline their procurement process.
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-based
-- On-premises
-- End-user
-- Retail And E-commerce
-- Healthcare And Pharmaceuticals
-- Manufacturing And Automotive
-- IT And Telecom
-- 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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