Procurement Software Market, By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision, Others), By Application (Source-to-Pay, Contract Management, Spend Analysis, Supplier Management, E-Procurement, Others), By End-Use Industry (Manufacturing, Retail & Consumer Goods, IT & Telecom, Healthcare, Government & Public Sector, Others) and Regions 2024-2032

Market Brief:

"The procurement software market size reached US$ 7.3 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 17.1 billion by 2032, exhibiting a growth rate (CAGR) of 9.9% during 2024-2032."

Procurement software facilitates efficient management of purchasing processes, streamlining supplier selection, purchase requisitions, and contract management. It is crucial for businesses to enhance procurement transparency, cost control, and compliance. Procurement software is used across various industries, from manufacturing and retail to healthcare and government, to optimize procurement operations and maintain supplier relationships. Preference for procurement software is increasing due to its ability to enhance productivity, ensure regulatory compliance, and aid in strategic decision-making for the sustainable growth of the businesses .

The global procurement software market is registering steady revenue growth due to rising demand for streamlined procurement processes across industries. Primary factors driving market revenue growth include rising awareness regarding benefits such as cost savings through automated procurement processes, real-time data visibility, reduced manual errors, and improved supplier performance tracking. Businesses seek to optimize purchasing efficiency, manage supplier relationships, and gain real-time data insights. In addition, technological advancements in cloud-based solutions is a key factor driving market expansion, enabling seamless integration and remote access. As procurement software continues to evolve, its adoption is set to increase further, driving revenue growth of the market, improving consumption, and revolutionizing procurement practices across the globe. Moreover, initiatives to adopt digital procurement strategies have led to improved compliance and cost savings, which is expected to further support market revenue growth.

Extensive analysis and insights are available to help businesses make informed decisions in this evolving industry. 

Clarity and understanding of market trends help companies tailor their products to meet customer demands more effectively.  

Procurement Software Market Report Overview:

The global procurement software market research report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights. 

Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use. 

Revenues and market share are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. 

Revenue growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others. 

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, research & development, strategies, product launches, agreements, expansion, mergers & acquisitions, and others.  

The global procurement software market research report is segmented on basis of technology, deployment, organization size, application, end-use industry, and regions and countries. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of Middle East & Africa).

Procurement Software Market Research and Insights:

Global procurement software market research is comprehensive and the report provides in-depth details of the various factors, trends, patterns, and scenarios and aspects that have a direct or indirect impact, near-term or far-term on the market and products and services etc.  

Some more detailed insights on the market are provided below: 

Digital Transformation: Increasing adoption of digital procurement solutions to replace traditional manual processes is driving revenue growth of the global procurement software market. This digital transformation improves efficiency, reduces errors, and enhances overall procurement performance.

Cloud-Based Solutions: Shifting trend towards cloud-based procurement software is providing organizations with scalable, cost-effective, and easily accessible solutions. Cloud deployment eliminates the need for extensive infrastructure investments, leading to significant cost savings.

Demand for Real-Time Insights: Organizations are seeking real-time data insights to make informed procurement decisions. Procurement software provides comprehensive analytics and reporting capabilities, enabling stakeholders to analyze supplier performance, monitor spending patterns, and optimize sourcing strategies, thereby driving market revenue growth.

Focus on Supplier Relationship Management: As businesses recognize the importance of supplier relationships, procurement software is evolving to incorporate Supplier Relationship Management (SRM) functionalities. Enhanced SRM helps in collaboration, improves supplier communication, and helps identify strategic partners for better procurement outcomes.

Integration of AI and ML: Integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies in procurement software is revolutionizing the way organizations function. AI-driven algorithms automate repetitive tasks, predict supplier behavior, and optimize procurement processes, driving efficiency and cost-effectiveness.

What Factors Are Restraining Growth of Procurement Software Market?

Despite the various positive factors and growth prospects in the global market, some restraints and factors are having negative impacts on revenue growth. Some key factors include:  

High Implementation Costs: One of the key factors restraining revenue growth of the global procurement software market is initial high implementation costs. Adoption of advanced procurement software solutions often involves significant upfront expenses for licensing, customization, and training, which can be a deterrent for some organizations, especially Small and Medium-Sized Enterprises (SMEs).

Integration Challenges: Integrating procurement software with existing Enterprise Resource Planning (ERP) systems and other software applications can be complex and time-consuming. Incompatibility issues and data migration challenges may arise during integration process, leading to delays and additional costs for implementation.

Data Security Concerns: As procurement software involves handling sensitive supplier and purchasing data, data security and privacy concerns are a significant factor causing negative impact. Organizations must ensure robust data protection measures to prevent unauthorized access and data breaches.

User Resistance and Training: User resistance to adopting new procurement software and the need for comprehensive training for employees can hamper the successful implementation and utilization of the software. Lack of proper training and understanding of software functionalities may lead to underutilization and inefficiencies.

Complexity for SMEs: SMEs may find it challenging to navigate the complexities of advanced procurement software due to limited resources and expertise. Complexity of the software and its features may pose barriers to adoption, restricting the software potential and adoption among smaller enterprises.

What are the Opportunities for Leading Procurement Software Providers? 

Companies operating in the global procurement software market can leverage various opportunities and revenue streams to drive growth and profitability. Below are some avenues and insights:

Growing Demand for Cloud-Based Solutions: Increasing adoption of cloud-based procurement software is creating significant revenue growth opportunities for vendors. Cloud deployment offers scalability, flexibility, and cost-effectiveness, attracting organizations of all sizes to invest in cloud-based procurement solutions.

Rising Emphasis on Data Analytics and Insights: Demand for procurement software equipped with advanced data analytics and real-time insights is on the rise. Vendors offering comprehensive analytics capabilities can capitalize on this opportunity to attract customers looking for data-driven decision-making in their procurement processes.

Focus on AI-Powered Solutions: Artificial intelligence is transforming procurement practices by automating tasks, predicting demand, and optimizing supplier selection. Vendors that integrate AI-driven features into procurement software can seize opportunities to cater to demand for enhanced efficiency and strategic procurement.

Expanding Adoption of E-Procurement: With digitalization of procurement processes, e-procurement solutions are gaining popularity. Vendors offering user-friendly and customizable e-procurement platforms can tap into the growing market of organizations seeking to streamline procurement operations.

Integration with IoT and Blockchain: Integration of procurement software with Internet of Things (IoT) and blockchain technologies presents a promising opportunity. IoT-enabled procurement solutions can provide real-time tracking of inventory and goods, while blockchain ensures transparent and secure supplier management.

Focus on SMEs: The SME sector presents as an untapped market for procurement software companies. Vendors offering cost-effective and easy-to-implement solutions tailored to the needs of SMEs can unlock new revenue streams.

Cross-Industry Applications: Procurement software has applications across various industries beyond sectors such as manufacturing and retail. Vendors can explore opportunities in healthcare, government, and other sectors looking to optimize procurement processes.

Emerging Markets: Increasing digitalization of procurement practices in emerging markets is creating potential avenue for revenue growth for global players. Vendors expanding their presence in these markets can capitalize on the ongoing demand for procurement software.

Region-wise Analysis of Procurement Software Market:

Regional analysis of the global procurement software market reveals key regions and countries with significant potential. The global procurement software market is experiencing significant growth due to increasing adoption of digital procurement practices across industries. North America and Europe lead in terms of market share in the global market, driven by advanced technological infrastructure and early adoption of procurement solutions. Emerging countries in Asia Pacific, such as China and India, present immense growth potential with rising emphasis on digital transformation. The market is characterized by integration of AI and cloud-based solutions, enabling real-time data insights and streamlining procurement processes across the globe.

Why is US the Largest Market for North America Procurement Software Market? 

In North America procurement software market, US is the largest market due to mature and highly digitalized procurement landscape, making it more receptive to adopting advanced technologies. In addition, the US is hub of various large enterprises across various industries, driving higher demand for innovative procurement solutions. In addition, government focus on optimizing public procurement processes has is further supporting adoption of procurement software. Moreover, well-established ecosystem of procurement software vendors in the country, is resulting in availability of a wide range of solutions tailored to meet the needs of organizations, which is further driving revenue growth of the market in this region.

Which Key Trends Drive the Procurement Software Sales in Europe?

In Europe, key trends driving sales of procurement software include increasing focus on digital transformation and automation, compelling businesses to seek innovative solutions for streamlining procurement processes. In addition, sustainability has become a critical consideration for Europe organizations, driving adoption of procurement software that facilitates sustainable sourcing and supplier management. Moreover, integration of advanced technologies such as data analytics and AI in procurement software is providing real-time insights, enabling data-driven decision-making. Also, strict regulatory landscape in Europe necessitates procurement software with robust compliance features. Emphasis on building strong supplier relationships is driving demand for procurement software with effective supplier relationship management capabilities. These trends collectively drive adoption and sales of procurement software in Europe.

Why is Investment in China and India Key to Growth of the Asia Pacific Procurement Software Market? 

Investment in China and India is key to revenue growth of the Asia Pacific procurement software market due to significant economic growth in these countries, digitalization initiatives, and expanding industrial sectors. Both countries have several businesses seeking to optimize procurement processes. Rising adoption of cloud-based solutions and advanced technologies in China, Japan and India is driving adoption and implementation of procurement software. In addition, growing emphasis on efficient supply chain management and compliance with global standards further drives the need for more advanced procurement solutions. Investing in these dynamic markets offers procurement software vendors immense opportunities to cater to the evolving needs of businesses and expand their market presence in Asia Pacific market, thereby driving revenue growth of the market in this region.

Which Countries in Latin America will be at the Forefront of Growth for Procurement Software Providers? 

Brazil and Mexico are expected to be at the forefront of growth for procurement software providers in Latin America. These countries register significant economic development, expanding industrial landscape, and digital transformation. As businesses in these countries seek to optimize procurement processes, adoption of advanced procurement software solutions is expected to increase, and drive revenue growth of the market in this region.

What is the Outlook on Procurement Software Sales in Middle East & Africa? 

The outlook on procurement software sales in the Middle East & Africa region is optimistic. With increasing digitalization, growing awareness regarding benefits of procurement software, and focus on improving supply chain management, there is rising demand for advanced procurement solutions. Market in this region presents opportunities for global vendors to cater to industry needs and drive sales, thus driving revenue growth of the market in this region.

Leading Procurement Software Providers & Competitive Landscape:

The global procurement software market features a highly competitive landscape with various established players and emerging vendors. Key players such as SAP SE, Oracle Corporation, Coupa Software Inc., and IBM Corporation dominate in the market with comprehensive procurement solutions and extensive customer base. New entrants and smaller players are also making strategic investments to offer innovative and niche-specific procurement software solutions. The competition is driven by factors such as technological advancements, pricing strategies, and customer-centric approaches. Vendors focus on mergers, acquisitions, partnerships, and continuous product development to gain a competitive edge and expand their market presence in the global procurement software market.

Company List:

• SAP SE
• Oracle Corporation
• Coupa Software Inc.
• IBM Corporation
• Jaggaer (Formerly SciQuest, Inc.)
• Ivalua Inc.
• GEP Worldwide
• Zycus Inc.
• Proactis Holdings PLC
• Basware Corporation
• Determine, Inc. (Now part of Corcentric)
• SynerTrade SA
• BirchStreet Systems, Inc.
• BravoSolution SPA (Now part of Jaggaer)
• Tradeshift Inc.

Research Scope

Report Metric	Report Details
Market size available for the years	2021-2032
Base Year	2023
Forecast Period	2024-2032
Compound Annual Growth Rate (CAGR)	9.8%
Segment covered	Technology, Deployment, Organization Size, Application, End-Use Industry, and Region
Regions Covered	North America:  The U.S. & Canada Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe Asia Pacific: China, India, Japan, Australia & New Zealand, ASEAN, & Rest of Asia Pacific Latin America: Brazil, Mexico, Argentina, & Rest of Latin America The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA
Fastest Growing Country in Europe	Germany
Largest Market	North America
Key Players	SAP SE, Oracle Corporation, Coupa Software Inc., IBM Corporation, Jaggaer (Formerly SciQuest, Inc.), Ivalua Inc., GEP Worldwide, Zycus Inc., Proactis Holdings PLC, Basware Corporation, Determine, Inc. (Now part of Corcentric), SynerTrade SA, BirchStreet Systems, Inc., BravoSolution SPA (Now part of Jaggaer), Tradeshift Inc.

Market Segmentation:

By Technology:

• Machine Learning
• Natural Language Processing (NLP)
• Computer Vision
• Others

By Deployment:

• Cloud-based
• On-premise

By Organization Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By Application:

• Source-to-Pay
• Contract Management
• Spend Analysis
• Supplier Management
• E-Procurement
• Others

By End-Use Industry:

• Manufacturing
• Retail & Consumer Goods
• IT & Telecom
• Healthcare
• Government & Public Sector
• Others

Segmentation By Region:

North America:

• United States
• Canada

Asia Pacific:

• China
• India
• Japan
• Australia & New Zealand
• Association of Southeast Asian Nations (ASEAN)
• Rest of Asia Pacific

Europe:

• Germany
• The U.K.
• France
• Spain
• Italy
• Russia
• Poland
• BENELUX (Belgium, the Netherlands, Luxembourg)
• NORDIC (Norway, Sweden, Finland, Denmark)
• Rest of Europe

Latin America:

• Brazil
• Mexico
• Argentina
• Rest of Latin America

The Middle East & Africa:

• Saudi Arabia
• United Arab Emirates
• South Africa
• Egypt
• Israel
• Rest of MEA (Middle East & Africa)