Procurement-as-a-Service Global Market Report 2024

The procurement-as-a-service market size has grown rapidly in recent years. It will grow from $6.0 billion in 2023 to $6.63 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The expansion observed during the historical period can be attributed to improvements in efficiency, access to expertise, risk mitigation, reduction in time-to-market, and effective management of supplier relationships.

The procurement-as-a-service market size is expected to see rapid growth in the next few years. It will grow to $10.03 billion in 2028 at a compound annual growth rate (CAGR) of 10.9%. The projected growth in the forecast period can be attributed to the demand for cost optimization, the increasing emphasis on sustainability, globalization and the complexity of supply chains, a focus on supplier collaboration, and an emphasis on innovation. Key trends expected in the forecast period include the integration of advanced technologies, customization and personalization, expansion into emerging markets, integration of artificial intelligence (AI) and machine learning (ML), and the adoption of blockchain technology.

The increasing uptake of cloud computing is set to drive the expansion of the procurement-as-a-service market in the coming years. Cloud computing enables users to access and store data and applications via the internet, rather than on local machines. Its growing adoption is attributed to its scalability, allowing businesses to adjust resources as needed and realize cost savings. Procurement-as-a-Service utilizes cloud computing to deliver scalable and cost-efficient solutions for organizations seeking to optimize procurement processes, bolster collaboration with suppliers, and drive strategic value. For instance, Eurostat reported that in December 2023, approximately 42.5% of European Union enterprises utilized cloud computing, marking a 4.2% increase from 2021. Consequently, the upward trend in cloud computing adoption is fueling the growth of the procurement-as-a-service market.

Key players in the procurement-as-a-service market concentrate on developing innovative solutions, such as procurement service management platforms, to address the evolving needs and challenges of modern procurement processes. These platforms offer comprehensive, user-centric solutions that enable teams to reallocate employee time efficiently, manage risk effectively, and facilitate seamless collaboration across functions. For example, in May 2022, ServiceNow Inc., a US-based provider of software solutions, unveiled its new procurement service management offering. This solution streamlines and enhances procurement processes for businesses of all sizes, seamlessly integrating with existing ERP and procurement technologies. It provides real-time benchmarking of SLA risks at the task level, reporting of end-to-end SLAs at the procurement process level, and insights with embedded analytics to mitigate risks and address rogue team behaviors.

In November 2023, Jabil Inc., a US-based procurement services firm, acquired ProcureAbility for an undisclosed sum. This strategic acquisition aligns with Jabil's objective of bolstering its supply chain and procurement capabilities to deliver superior procurement services. ProcureAbility, based in the US, specializes in providing procurement and supply chain management services.

Major companies operating in the procurement-as-a-service market are Accenture plc, International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, SAP SE, Jabil Inc., Hewlett Packard Enterprise Company, Tata Consultancy Services Limited, Capgemini SE, Infosys Limited, HCL Technologies Limited, Wipro Limited, Palo Alto Networks Inc., Bain & Company Inc., Genpact Limited, GEP Worldwide, WNS Global Services, Coupa Software Inc, Zycus Inc., Xchanging Limited, Simfoni Limited., Ivalua Inc., Corbus LLC, Scoutbee GmbH, Aegis Components Inc.

North America was the largest region in the procurement-as-a-service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the procurement-as-a-service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the procurement-as-a-service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Procurement-as-a-Service (PaaS) is a business model wherein companies delegate their procurement processes to a third-party service provider. In this arrangement, the service provider manages various facets of the procurement lifecycle on behalf of the client organization, leveraging expertise, technology, and resources to optimize procurement operations. PaaS empowers organizations to access specialized procurement capabilities, enhance operational efficiency, decrease costs, and bolster agility in responding to market dynamics, ultimately driving business value and competitive advantage.

The primary components of procurement-as-a-service encompass category management, contract management, transaction management, strategic sourcing, spend management, and process management. Category management entails the organization and oversight of different groups of products or services within a business to maximize efficiency and savings. Organizations of various sizes, including large enterprises and small and medium enterprises across different sectors such as manufacturing, retail and consumer packaged goods, banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, energy and utilities, healthcare, travel, hospitality, and others, can benefit from this model.

The procurement-as-a-service market research report is one of a series of new reports that provides procurement-as-a-service market statistics, including procurement-as-a-service industry global market size, regional shares, competitors with a procurement-as-a-service market share, detailed procurement-as-a-service market segments, market trends and opportunities, and any further data you may need to thrive in the procurement-as-a-service industry. This procurement-as-a-service 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-as-a-service market includes revenues earned by entities through services such as strategic sourcing, spend management, contract management, process optimization, data analytics, and reporting. 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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