Procurement-as-a-Service Market Report 2026

The procurement-as-a-service market size has grown rapidly in recent years. It will grow from $7.34 billion in 2025 to $8.13 billion in 2026 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to rising complexity of procurement processes, increasing corporate focus on cost reduction, early adoption of procurement outsourcing, growth in global supply networks, expanding enterprise digital transformation.

The procurement-as-a-service market size is expected to see strong growth in the next few years. It will grow to $11.81 billion in 2030 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to growing demand for procurement efficiency, increasing reliance on expert procurement partners, expanding need for data driven procurement decisions, rising adoption of managed procurement models, strengthening enterprise focus on operational agility. Major trends in the forecast period include growing outsourcing of procurement operations, rising demand for cost optimization and spend efficiency, increasing adoption of centralized procurement platforms, expansion of strategic supplier management services, strengthening focus on process standardization and compliance.

The growing adoption of cloud computing is anticipated to drive the expansion of the procurement-as-a-service market in the coming years. Cloud computing refers to a technology that enables users to access and store data and applications over the internet rather than on local computer systems. The increasing uptake of cloud computing is driven by its scalability, which allows businesses to flexibly adjust resources based on demand while achieving cost efficiencies. Procurement-as-a-Service utilizes cloud computing to deliver scalable and cost-efficient solutions that help organizations streamline procurement operations, improve supplier collaboration, and generate strategic value. For instance, in December 2023, according to Eurostat, a Luxembourg-based intergovernmental organization, 45.2% of European Union enterprises purchased cloud computing services in 2023, an increase from around 41% in 2022. Therefore, the growing adoption of cloud computing is contributing to the growth of the procurement-as-a-service market.

The increasing demand for digital transformation initiatives is expected to further propel the growth of the procurement-as-a-service market going forward. Digital transformation initiatives involve strategic efforts by organizations to embed digital technologies across business operations, fundamentally reshaping how they operate and deliver value. The rising demand for digital transformation is fueled by the rapid adoption of artificial intelligence and generative AI technologies, as organizations seek to remain competitive in an increasingly digital economy. These initiatives encourage organizations to modernize procurement functions through automated, technology-driven services that enhance operational efficiency and strategic sourcing capabilities. For instance, in November 2023, according to the Central Digital and Data Office (CDDO), a UK-based government agency, between April 2022 and April 2023, the Government Digital and Data profession grew by 19%, strengthening critical digital skills across the civil service. Additionally, 32 organizations have implemented the common Government Digital and Data pay framework, reducing reliance on contractors and generating cost savings for taxpayers. Therefore, the rising demand for digital transformation initiatives is driving the growth of the procurement-as-a-service market.

In November 2023, Jabil Inc., a US-based procurement services company, acquired ProcureAbility for an undisclosed amount. This acquisition strategically aligns with Jabil's goal to enhance its supply chain and procurement capabilities to deliver enhanced, world-class procurement services. ProcureAbility is a US-based company that provides procurement and supply chain management services.

Major companies operating in the procurement-as-a-service market report 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 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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