Sourcing Software Global Market Report 2024

The sourcing software market size has grown rapidly in recent years. It will grow from $9.08 billion in 2023 to $10.29 billion in 2024 at a compound annual growth rate (CAGR) of 13.3%. The growth observed during the historic period can be attributed to several factors, including the increasing adoption of cloud computing technology, a growing emphasis on cost reduction and operational efficiency, the rising complexity in global supply chains, the demand for real-time data analytics and insights, and regulatory compliance requirements driving the need for digitization.

The sourcing software market size is expected to see rapid growth in the next few years. It will grow to $17.05 billion in 2028 at a compound annual growth rate (CAGR) of 13.5%. The forecasted growth can be attributed to several factors, including the accelerated adoption of artificial intelligence and machine learning, the integration of internet of things (IoT) in supply chain management, the expansion of e-commerce and online marketplaces, a growing focus on sustainability and ethical sourcing practices, and the emergence of blockchain technology for enhanced supply chain transparency and security. Key trends expected in the forecast period include increased adoption of artificial intelligence and machine learning, widespread utilization of cloud-based solutions, a stronger emphasis on sustainability and ethics in supply chain practices, enhanced supplier collaboration, and the integration of blockchain technology to ensure transparency and security throughout the supply chain.

The burgeoning trend of remote work, propelled by a confluence of technological advancements and evolving workforce dynamics, is anticipated to drive substantial growth in the sourcing software market. Remote work, synonymous with telecommuting, denotes the practice of executing professional responsibilities from non-traditional office environments. This paradigm shift is underpinned by factors such as technological innovation, evolving employee preferences, corporate imperatives, and societal shifts. Sourcing software assumes paramount significance in facilitating remote work practices, furnishing distributed teams with requisite tools and infrastructure to efficiently oversee procurement operations, liaise with suppliers, and orchestrate strategic sourcing endeavors irrespective of geographical constraints. For instance, as reported by Upwork Global Inc. in December 2020, an estimated 36.2 million Americans are projected to embrace remote work by 2025, marking an 87% surge from pre-pandemic levels. Consequently, the ascendancy of remote work is instrumental in propelling the growth trajectory of the sourcing software market.

Prominent players within the sourcing software domain are actively innovating to gain a competitive edge, notably through the development of cutting-edge solutions such as AI-powered autonomous sourcing platforms. These platforms, imbued with artificial intelligence (AI) capabilities, are meticulously engineered to streamline and automate various facets of the procurement process. A prime example is LTIMindtree Limited's unveiling of Navisource.AI in February 2024, an autonomous sourcing platform leveraging GenAI's AI algorithms to revolutionize procurement operations. Navisource.AI is engineered to optimize pricing, negotiation, and workflow management, with the overarching goal of curbing procurement costs by 10-15% while enhancing operational efficiency from requisition to risk mitigation. Furthermore, its seamless integration with leading enterprise platforms such as Ariba and SAP S/4HANA ensures compatibility and facilitates streamlined indirect procurement processes, empowering procurement teams to focus on strategic imperatives.

In November 2023, Accenture plc, a leading US-based information technology company, completed the acquisition of the Shelby Group for an undisclosed sum. This strategic move reinforces Accenture's capabilities in sourcing and procurement technology transformation, enabling it to meet client needs for digital procurement solutions more effectively. The Shelby Group, a prominent US-based management consulting firm, specializes in providing sourcing software tailored for industries such as manufacturing, consumer goods, healthcare, financial services, and technology.

Major companies operating in the sourcing software market are International Business Machines Corporation, Oracle Corporation, SAP SE, Workday Inc., GEP Corporation, Coupa Software Incorporated, Zycus Inc., Ivalua Inc., Corcentric Inc., Jaggaer, CBX Software, Determine Inc., Xeeva, Vroozi Revenue, Promena, BirchStreet Systems, Scoutbee Revenue, Proactis Holdings PLC, DealCloud, LevaData Inc., Keelvar Systems Ltd., Aavenir, Market Dojo Ltd., Winddle, Real Sourcing Network LLC.

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

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

Sourcing software is a specialized digital tool or platform designed to streamline and optimize the procurement process, including supplier identification, evaluation, selection, and management. Its objective is to improve the efficiency, transparency, and effectiveness of procurement activities by providing organizations with advanced tools and capabilities.

The primary types of sourcing software include on-premise and cloud-based solutions. On-premise sourcing software refers to applications installed and operated on computers or servers within an organization's physical premises. These solutions are utilized by both large enterprises and small and medium-sized enterprises across various industries such as retail, manufacturing, transportation and logistics, healthcare, and others.

The sourcing software market research report is one of a series of new reports that provides sourcing software market statistics, including sourcing software industry global market size, regional shares, competitors with a sourcing software market share, detailed sourcing software market segments, market trends and opportunities, and any further data you may need to thrive in the sourcing software industry. This sourcing software 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 sourcing software market includes sales of contract management software, spend analysis tools, e-sourcing tools, and performance monitoring software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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