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
|
Key companies
profiled
|
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.
|
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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challenges - Request a sample report!
Segment Overview
This procurement software market report extensively covers
market segmentation by
- Deployment
- 1.1 Cloud
- 1.2 On-premises
- 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
- 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
-
- 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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