Procurement Software Global Market Report 2024

Procurement software is an integrated application suite designed to help organizations manage the entire procurement lifecycle from requisition to payment. It automates purchasing processes, facilitates supplier collaboration, ensures compliance with procurement policies, and provides analytics for informed decision-making.

The main types of procurement software include supplier management, contract management, e-procurement, e-sourcing, and spend analysis. Supplier management involves identifying, evaluating, and managing suppliers to ensure the procurement of high-quality goods and services. Procurement software can be deployed on-cloud or on-premise and is used by organizations of various sizes, including small and medium-sized enterprises and large enterprises. It is utilized across various industry verticals such as travel and logistics, information technology and telecommunications, electronics, automotive, retail, mining, and others.

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

The procurement software market size has grown rapidly in recent years. It will grow from $7.62 billion in 2023 to $8.65 billion in 2024 at a compound annual growth rate (CAGR) of 13.4%. The growth observed in the historic period can be attributed to several factors, including the increased accuracy of procurement data, a growing emphasis on sustainable procurement among consumers, the need to automate procurement processes, an increase in the supply process, and a growing demand for e-procurement solutions.

The procurement software market size is expected to see rapid growth in the next few years. It will grow to $14.44 billion in 2028 at a compound annual growth rate (CAGR) of 13.7%. The expected growth in the forecast period can be attributed to several factors, including the rising demand for supply chain management solutions, an increasing need for automated and efficient procurement processes, a growing demand for centralized procurement processes, an increasing demand for smart procurement management solutions, and a rising preference for cloud-based procurement solutions. Major trends anticipated during this period include the integration of artificial intelligence, technological advancements in procurement software, the integration of cutting-edge technologies, the integration with new software solutions, the development of online procurement portals, the integration with other enterprise systems, and the enhancement of integration capabilities with existing systems.

The procurement software market is set to experience significant growth due to the increasing adoption of cloud-based solutions. Cloud-based solutions, which are accessible via the internet and hosted on remote servers, offer businesses scalable and flexible IT infrastructure options, leading to improved efficiency and cost-effectiveness. These solutions enhance procurement software by providing greater flexibility, scalability, efficiency, cost savings, improved collaboration, advanced security, and seamless integration capabilities. This makes them an attractive choice for organizations aiming to optimize their procurement processes. For example, the European Union reported an increase in the adoption of cloud computing services by businesses, with a notable rise in EU businesses using cloud computing from 2021 to 2023. Hence, the rising adoption of cloud-based solutions is a key driver of growth in the procurement software market.

Leading companies in the procurement software market are focusing on developing innovative solutions such as spend management tools to bolster their market position. Spend management solutions encompass tools and processes that help organizations manage, control, and optimize their spending across the entire expenditure lifecycle. These solutions cover everything from planning and budgeting to procurement and payment. For instance, Airbase Inc., a US-based software company, launched a guided procurement solution in April 2023 to streamline purchasing processes. This solution integrates seamlessly into existing workflows and offers a user-friendly interface that guides users through each step of procurement, from requisition to purchase order creation and approval. Its features include automated policy enforcement for compliance with spending policies and real-time budget visibility for informed decision-making.

In November 2023, Accenture plc, a US-based professional services company, acquired The Shelby Group LLC to enhance its sourcing and procurement transformation capabilities. The acquisition integrates The Shelby Group's expertise in procurement operations, spend management, and supplier management into Accenture's portfolio, strengthening its position in digital procurement and optimization services.

Major companies operating in the procurement software market are Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Tata Consultancy Services Ltd., HCL Technologies Limited, Infor Inc, GEP Corporation, Epicor Software Corporation, Coupa Software Inc., Zycus Inc., Mercateo AG, Ivalua Inc., Basware Corporation, Jaggaer Inc, Proactis Holdings plc, Tropic Technologies Inc., Simfoni Limited, Enaviya Information Technology Pvt. Ltd, Determine Inc., Ginesys, SunSmart Technologies Pvt. Ltd., GT Nexus, Vroozi Inc.

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

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

The procurement software market includes revenues earned by entities by providing services such as sourcing management, supplier management, purchase order management, invoice management, reporting and analytics, and catalog management services. 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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