Retail Sourcing And Procurement Global Market Opportunities And Strategies To 2032

The global retail sourcing and procurement market grew from $2,766.3 million in 2017 to $4,346.9 million in 2022 at a compound annual growth rate (CAGR) of 9.5%. The market is expected to grow from $4,346.9 million in 2022 to $8,028.7 million in 2027 at a CAGR of 13.1%, and to $14,582.8 million in 2032 at a CAGR of 12.7%.

Growth in the historic period resulted from the increasing digitalization in the retail sector, rising automation in procurement and increased funding and investments for retail sourcing and procurement platforms.

Going forward, the increasing use of cloud-based platforms, increasing adoption of blockchain in procurement and sourcing and growth in digital technologies such as automation, analytics and AI (artificial intelligence) will drive the market growth. Factors that could hinder the growth of the retail sourcing and procurement market in the future include the Russia-Ukraine war impact.

The retail sourcing and procurement market is segmented by solution into strategic sourcing, supplier management, contract management, procure-to-pay and spend analysis. The strategic sourcing market was the largest segment of the retail sourcing and procurement market segmented by solution, accounting for 32.2% of the total in 2022. Going forward, the spend analysis market is expected to be the fastest growing segment in the retail sourcing and procurement market segmented by solution, at a CAGR of 13.6% during 2022-2027.

The retail sourcing and procurement market is also segmented by end-user into small and medium enterprise (SME) and large enterprise. The small and medium enterprise (SME) market was the largest segment of the retail sourcing and procurement market segmented by end-user, accounting for 55.1% of the total in 2022. Going forward, the small and medium enterprise (SME) market is expected to be the fastest growing segment in the retail sourcing and procurement market segmented by end-user, at a CAGR of 13.4% during 2022-2027.

The retail sourcing and procurement market is also segmented by deployment into on-premise, hybrid and cloud. The on-premise market was the largest segment of the retail sourcing and procurement market segmented by deployment, accounting for 41.1% of the total in 2022. Going forward, the hybrid market is expected to be the fastest growing segment in the retail sourcing and procurement market segmented by deployment, at a CAGR of 13.3% during 2022-2027.

The retail sourcing and procurement market is also segmented by service into implementation, consulting and training and support. The consulting market was the largest segment of the retail sourcing and procurement market segmented by service, accounting for 39.0% of the total in 2022. Going forward, the consulting market is expected to be the fastest growing segment in the retail sourcing and procurement market segmented by service, at a CAGR of 13.4% during 2022-2027.

North America was the largest region in the retail sourcing and procurement market, accounting for 42.8% of the total in 2022. It was followed by Asia-Pacific, and then the other regions. Going forward, the fastest-growing regions in the retail sourcing and procurement market will be Asia-Pacific and North America, where growth will be at CAGRs of 14.6% and 13.1% respectively. These will be followed by Western Europe and Eastern Europe, where the markets are expected to grow at CAGRs of 12.5% and 12.2% respectively.

The global retail sourcing and procurement market is slightly concentrated, with a few large players. The top ten competitors in the market made up to 31.67% of the total market in 2021. IBM Corporation was the largest competitor with 7.01% share of the market, followed by Oracle Corporation with 5.55%, SAP SE with 4.58%, Coupa Software Incorporated with 3.64%, Ivalua Inc with 2.39%, Zycus Inc with 2.30%, GEP Worldwide with 2.22%, Epicor Software Corporation with 1.92%, Basware Corporation with 1.63% and Vroozi, Inc with 0.43%.

The top growth potential in the retail sourcing and procurement market by solution will arise in the strategic sourcing segment, which will gain $1,216.1 million of global annual sales by 2027. The top growth potential in the retail sourcing and procurement market by end-user will arise in the small and medium enterprise (SME) segment, which will gain $2,098.0 million of global annual sales by 2027. The top growth potential in the retail sourcing and procurement market by deployment will arise in the on-premise segment, which will gain $1,464.6 million of global annual sales by 2027. The top growth potential in the retail sourcing and procurement market by service will arise in the consulting segment, which will gain $1,489.7 million of global annual sales by 2027. The retail sourcing and procurement market size will gain the most in the USA at $1,459.7 million.

Market-trend-based strategies for the retail sourcing and procurement market include focus on localization of suppliers, focus on adoption of Procurement-as-a-Service (PAAS) model, focus on deploying artificial intelligence and digitization, focus on launching new, innovative products, focus on mergers and acquisitions and focus on offering sustainable procurement software solutions.

Player-adopted strategies in the retail sourcing and procurement market include focus on transforming the supply chain process through strategic partnerships and collaborations, focus on strengthening business operations through the launch of new products and solutions and focus on enhancing operational capabilities through offering new services.

To take advantage of the opportunities, the publisher recommends the retail sourcing and procurement companies to focus on sustainable procurement software solutions, invest in artificial intelligence and digitization, adopt procurement-as-a-service (PAAS) model, focus on new product launches, expand in emerging markets, continue to focus on developed markets, offer flexible pricing, adopt market-based pricing, continue to use B2B (business-to-business) promotions, participate in trade shows and events and continue to target fast-growing end-users.

This report describes and explains the retail sourcing and procurement market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.