The global procurement software market held a market value of USD 5,635.6 Million in 2020 and is forecasted to reach USD 9,654.8 Million by the year 2026. The market is anticipated to register a CAGR of 9.4% over the projected period.
Global Procurement Software Market is Anticipated to Grow at a CAGR of 9.4% Over the Projected Period of 2017-2026
Procurement software is business software that helps in automating the organizational purchasing functions. Increasing demand for automating the procurement processes and integration between e procurement applications and ERP solutions is anticipated to boost the market growth. Furthermore, rising demand for improving the relationship management and supplier discovery is also expected to fuel the market growth.
Despite the driving factors, cybersecurity and data protection risks are expected to restrain the market growth. Also, the complexity regarding integration with existing system and supplier onboarding is estimated to negatively hamper the market growth.
Increasing demand to automate the procurement processes
Procurement processes are automated for maximizing efficiency and reduce the time. It also accelerates the process by freeing up employees from the redundant and time consuming tasks. The demand for automating the procurement processes is increasing, especially in processes such as, purchase requisition, purchase order, invoice management, vendor management, and contract approval. Automation of these processes increases the productivity, eliminates manual errors, provides visibility into the expenditures, acts as a central repository, improves collaboration between external and internal teams, and removes approval bottlenecks. All these benefits are increasing the demand for automating procurement processes, hence fueling the market growth.
Integration between E Procurement applications and ERP solutions
E-procurement software assist in integration and automation of the entire procurement cycle in an organization. When e procurement applications are integrated with ERP solutions, ERP helps in easing supplier management by smoothening the procurement processes and providing more time to focus on other areas and enable a more efficient business. ERP solutions also help in enhancing business reporting, better customer service, improved inventory costs, boosted cash flow, cost savings, better data & cloud security, business process improvements, and supply chain management, among others. These factors boost the market growth.
The global procurement software market is segmented the deployment, software, and industry.
- Cloud Based
- On Premise
The cloud based segment is expected to hold the largest market share and is also estimated to grow at the fastest rate during the forecast period. This is owing to the high preference for cloud based model over the on-premise model.
- Spend Analysis
The e-procurement segment is anticipated to hold the largest market share of about 59%. The e-sourcing segment is estimated to witness the fastest growth rate of about 10.2% owing to its features such as valuable pricing and non-pricing information.
- Transportation & Logistics
The transportation & logistics segment is expected to hold around 11% of the total market share owing to increasing adoption of procurement software in the sector. The BFSI segment is anticipated to surpass a market size of around USD 200 million by 2024.
Based on region, the global Procurement software market is divided into Europe, North America, Asia, Middle East & Africa, and South America.
The North America region is expected to hold the largest market share of around 40% owing to the growing demand for centralized procurement processes. Furthermore, growing initiatives by government as well as non government organizations for strengthening the manufacturing industry in the United States is also expected to contribute to the market growth.
The Asia Pacific region is expected to grow at the fastest rate of about 11.9% owing to a presence of a number of logistics firms in emerging economies such as India and China.
Key players operating in the global procurement software market include SAP SE, Proactis Holdings PLC, Coupa Software Inc., Microsoft Corporation, Oracle Corporation, Epicor Software Corporation, Ginesys, Zycus, Inc., Ivalua Inc., Infor Inc., Jaggaer, and Tangoe, Inc., among others.
The approximate market share of the top 9 players is near about 60%. These market players are involved in collaborations, mergers & acquisitions, and new product launches to strengthen their market presence. For instance, in August 2021, Oracle launched the Oracle Verrazzano Enterprise Container platform for multicloud and hybrid cloud scenarios. This expanded Oracle's product portfolio.
The global Procurement software market report provides insights on the below pointers:
- Market Penetration: Provides comprehensive information on the market offered by the prominent players
- Market Development: The report offers detailed information about lucrative emerging markets and analyzes penetration across mature segments of the markets
- Market Diversification: Provides in-depth information about untapped geographies, recent developments, and investments
- Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches in the global Procurement software market have been provided in this research report. In addition, the report also emphasizes the SWOT analysis of the leading players.
- Product Development & Innovation: The report provides intelligent insights on future technologies, R&D activities, and breakthrough product developments
The global Procurement software market report answers questions such as:
- What is the market size and forecast of the Global Procurement software Market?
- What are the inhibiting factors and impact of COVID-19 on the Global Procurement software Market during the assessment period?
- Which are the products/segments/applications/areas to invest in over the assessment period in the Global Procurement software Market?
- What is the competitive strategic window for opportunities in the Global Procurement software Market?
- What are the technology trends and regulatory frameworks in the Global Procurement software Market?
- What is the market share of the leading players in the Global Procurement software Market?
- What modes and strategic moves are considered favorable for entering the Global Procurement software Market?
What is the estimated value of the Global Procurement Software Market?
What is the growth rate of the Global Procurement Software Market?
What is the forecasted size of the Global Procurement Software Market?
Who are the key companies in the Global Procurement Software Market?
|No. of Pages||168|
|Forecast Period||2020 - 2026|
| Estimated Market Value ( USD
||USD 5635.6 Million|
| Forecasted Market Value ( USD
||USD 9654.8 Million|
|Compound Annual Growth Rate||9.4%|
Table of Contents
1.2. Product Overview
1.3. Market Segmentation
2.1.1. Primary & Secondary Sources
2.2. Quantitative Research
2.2.1. Primary & Secondary Sources
2.3. Breakdown of Primary Research Respondents, By Country
2.4. Assumption for the Study
2.5. Market Size Estimation
2.6. Data Triangulation
4.1.1. Growth Drivers
4.2. Recent Development
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of Substitutes
4.3.4. Threat of New Entrants
4.3.5. Intensity of Rivalry
5.1.1. By Value (USD Million)
5.2. Market Share & Forecast
5.2.1. By Deployment
184.108.40.206. Cloud Based
220.127.116.11. On Premise
5.2.2. By Software
18.104.22.168. Spend Analysis
5.2.3. By Industry
22.214.171.124. Transportation & Logistics
5.2.4. By Region
126.96.36.199. North America
188.8.131.52. Asia Pacific
184.108.40.206. Latin America
220.127.116.11. Middle East & Africa
6.1.2. By Software
6.1.3. By Industries
6.1.4. By Country
18.104.22.168. United States
7.1.1. By Value (USD Million)
7.2. Market Share & Forecast
7.2.1. By Deployment
7.2.2. By Software
7.2.3. By Industries
7.2.4. By Country
22.214.171.124. United Kingdom
126.96.36.199. Rest of Europe
8.1.1. By Value (USD Million)
8.2. Market Share & Forecast
8.2.1. By Deployment
8.2.2. By Software
8.2.3. By Vertical
8.2.4. By Country
188.8.131.52. Rest of Asia Pacific
9.1.1. By Value (USD Million)
9.2. Market Share & Forecast
9.2.1. By Deployment
9.2.2. By Software
9.2.3. By Vertical
9.2.4. By Country
184.108.40.206. Rest of Latin America
10.1.1. By Value (USD Million)
10.2. Market Share & Forecast
10.2.1. By Deployment
10.2.2. By Software
10.2.3. By Vertical
10.2.4. By Country
10.2.4.1. Saudi Arabia
10.2.4.3. South Africa
10.2.4.4. Rest of Middle East & Africa
13.2. Proactis Holdings PLC
13.3. Coupa Software Inc.
13.4. Microsoft Corporation
13.5. Oracle Corporation
13.6. Epicor Software Corporation
13.8. Zycus, Inc.
13.9. Ivalua Inc.
13.10. Infor Inc.
13.12. Tangoe, Inc.
A selection of companies mentioned in this report includes:
- SAP SE
- Proactis Holdings PLC
- Coupa Software Inc.
- Microsoft Corporation
- Oracle Corporation
- Epicor Software Corporation
- Zycus, Inc.
- Ivalua Inc.
- Infor Inc.
- Tangoe, Inc.