Procurement Analytics Global Market Report 2024

Procurement analytics refers to software which automates spend analysis and purchase analysis and operates completely organizations’ expenditure through an insightful dashboard. These procurement analytics solutions collect data from various sources such as ERPs, process raw data into use-case taxonomies, and display in visualization dashboards.

The main components of procurement analytics are solutions and services. The procurement analytics solutions refer to procurement analytics software and tools that operate on on-premise or cloud platforms. The key applications of procurement analytics include supply chain analytics, risk analytics, spend analytics, demand forecasting, contract management, vendor management, and category management. They are used by end-use industries ranging from retail and e-commerce, manufacturing, government and defense, healthcare and life sciences, telecom and IT, energy and utilities, banking, financial services, and insurance (BFSI), others.

The procurement analytics market research report is one of a series of new reports that provides procurement analytics market statistics, including procurement analytics industry global market size, regional shares, competitors with a procurement analytics market share, detailed procurement analytics market segments, market trends and opportunities, and any further data you may need to thrive in the procurement analytics industry. This procurement analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The procurement analytics market size has grown rapidly in recent years. It will grow from $4.66 billion in 2023 to $5.47 billion in 2024 at a compound annual growth rate (CAGR) of 17.4%. The growth observed in the historical period can be attributed to imperatives for cost reduction, the management of supplier performance, efforts in compliance and risk mitigation, optimization of strategic sourcing, and the improvement of spend visibility.

The procurement analytics market size is expected to see exponential growth in the next few years. It will grow to $11.67 billion in 2028 at a compound annual growth rate (CAGR) of 20.8%. The anticipated growth in the forecast period can be attributed to a focus on sustainable procurement, dynamic pricing optimization, the availability of customizable dashboards and reports, and improved contract management analytics. Major trends expected in the forecast period include increased adoption of advanced analytics, a heightened emphasis on spend visibility, integration with other procurement technologies, real-time analytics for dynamic decision-making, and AI-driven insights for supplier relationship management.

The anticipated growth in the procurement analytics market is closely tied to the expansion of e-commerce and the organized retail industry. E-commerce, a platform facilitating the buying and selling of goods and services over the Internet, is extensively utilized by both consumers and vendors through various devices such as computers, tablets, smartphones, and other smart devices. Procurement analytics, widely adopted by e-commerce giants and organized retail stores, provides data-driven insights into customer behaviors and spending patterns. For example, the Indian Brand Equity Foundation reported in December 2021 that India's e-commerce turnover reached $50 billion in 2020, making it the eighth-largest global market, and is projected to reach $350 billion by 2030. The increased reliance on e-commerce and organized retail is expected to drive the demand for procurement analytics in the forecast period.

The proliferation of smartphones is anticipated to be a significant factor propelling the growth of the procurement analytics market. Smartphones, devices combining mobile computing and cellular functions, have become integral in transforming supply chain management, cost control, and vendor interactions through the integration of procurement analytics. According to Demand Sage in 2023, the global count of smartphone users reached 6.8 billion, marking an increase from around 6.6 billion users in 2022. Thus, the widespread use of smartphones is a driving force behind the expansion of the procurement analytics market.

Major players in the procurement analytics market are introducing innovative solutions, such as CO2 analytics, to effectively reduce carbon emissions. CO2 analytics provides visibility into supply chain emissions, allowing organizations to measure, report, and understand their carbon footprint. In October 2021, Sievo, a US-based procurement analytics company, launched CO2 analytics to empower organizations with insights into their supply chain emissions, facilitating more effective measurement, reporting, and reduction of carbon emissions. This solution aids businesses in comprehending and addressing scope 3 emissions, leveraging data-driven decision-making, and fostering cross-functional collaboration.

Major companies in the procurement analytics market are rolling out enhanced spend analytics. Enhanced spend analytics involves the advanced use of data analysis and technology to gain deeper insights into an organization's spending patterns, ultimately optimizing procurement and cost management. In October 2023, AirPlus, a US-based corporate payment specialist, introduced the AirPlus Intelligence Hub, a spend analytics platform that enables customers to manage and monitor spending metrics through a new dashboard. This platform provides a two-year spend overview, customizable filters by various categories, and multilingual support, with additional data modules planned for 2024, offering customizable data downloads and advanced analytics capabilities, including a global spend overview and deeper insights into business trips and emissions data.

In November 2021, Onventis, a Germany-based Source-to-Pay procurement suite provider, acquired Spendency for an undisclosed amount. This strategic acquisition aimed to expand Onventis' product offering, particularly in the areas of spend analytics and procurement. Spendency, a Sweden-based procurement analytics solution company, specializes in offering spend analytics solutions.

Major companies operating in the in the procurement analytics market report are SAP SE,Oracle Corporation,Statistical Analysis Systems, Coupa Software Inc., Genpact,Jaggaer,GEP Worldwide,Ivalua Inc.,Zycus,ProcurePort,Basware,SynerTrade, Corcentric,Scout RFP,BirchStreet,Periscope Holdings,Tealbook,Keelvar,Proactis,Sievo,Xeeva Inc.,JAGGAER Direct,POOL4TOOL AG,Vroozi,Rosslyn Data Technologies,Simfoni,Applegate,Scanmarket,EC Sourcing Group

North America was the largest region in the procurement analytics market in 2023 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the procurement analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the procurement analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The procurement analytics market includes revenues earned by entities by providing services such as identifying need, supplier evaluation and selection, purchase order, and delivery. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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