Procurement Software Market (Updated Version Available)

Key Market Overview:

The Procurement Software Market was valued at USD 6,740.89 Million in 2022, registering a CAGR of 10.31% during the forecast period (2022-2030), and the market is projected to be worth USD 14,772.55 Million by 2030.

Procurement software is considered as business software which helps tracking inventories and procurement operations. Procurement software is used for approving purchase orders, payment invoices, picking, receiving, and ordering a product. It also helps users in payment verification and invoices matching. Several organizations have adopted procurement system to expand the supply chain and cost purchases. The combination of procurement software with e-procurement can shorten the time required for procurement. Companies adopting procurement software can perform best purchasing cycle and to keep track on inventories. Procurement software have wide application in automotive, logistics, electronics, telecommunication, and mining.

Furthermore, growth of emerging technologies and development in artificial intelligence (AI) is driving the procurement software market. AI helps procurement organization to solve complex problems. Additionally, supply chain segment is focusing on modernization to enhance the productivity by using procurement software market. For instance, in November 2022, Kearney, a strategy and management consultancy acquired a software firm Optano, to optimize supply chain planning.

Procurement Software Market Scope:-

Report Attributes	Report Details
Study Timeline	2016-2030
Market Size in 2030 (USD million)	14,772.55 million
CAGR (2022-2030)	10.31 %
Base Year	2021
By Type	E-Sourcing, E-Procurement, Contract management, Supplier management, and Others
By Deployment	On-Cloud and On-Premises
By Organization Size	Small and Medium Enterprise, Large Enterprise
By Application	Automotive, Travel & Logistics, IT & Telecommunication, Electronics, Mining, and Retail
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Zycus, SAP, Basware, IBM, Oracle, JDA Software, Tungsten Network, Coupa Software Inc., Infor, Manhattan Associates, Vinimaya

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Market Dynamics:

Driver:

Emerging technologies and adoption of procurement software to track inventories fuel the growth of procurement software market.

Emerging technologies and adoption of procurement software to track inventories fuel the growth of procurement software market.
Procurement software has wide application in various sectors such as automotive, logistics, electronics, telecommunication, and mining. Growing emerging technologies and development in artificial intelligence (AI) is driving the procurement software market. Additionally, procurement software is used for payment verification, purchasing orders and to keep track on inventories. Thus, various applications of procurement software in businesses, reduce complexity and provide transparent information which helps to propel the adoption of procurement software market.

Restraint:



Lack of skilled professionals are hindering the growth of procurement software market.
The operation of procurement software needs skilled professionals for optimizing supply chain and managing expenditures. Several countries believe that digital skills in procurement is less innovative. For instance, majority of UK organizations (86%) are facing complexities in building digital procurement skills. Thus, lack of skilled professionals is hampering the growth of procurement software market.

Opportunities

The integration of voice-activated controls is providing new opportunities for hands-free and convenient lighting control. Voice-activated controls such as Alexa or Google Assistant enable building occupants to control lighting using voice commands, which improves convenience and accessibility reducing the need for manual switches and controls. Such technology is anticipated to provide lucrative opportunities for the growth of the global market.

Procurement Software Market Segmentation:

By Type

The type segment is categorized into E-Sourcing, E-Procurement, Contract management, Supplier management and Others.
E-Procurement holds major share for procurement software market owing to its wide application in various industries such as automotive, logistics, electronics, telecommunication, and mining. E-Procurement is used for catalog search.

E-procurement segment anticipate rapid growth of procurement software market due to adoption of advance technologies such as artificial intelligence and cloud-based computing. Moreover, the segment is anticipated to grow during the forecast period.

By Deployment

The Deployment segment is bifurcated into On-Cloud and On-Premises.
On-cloud deployment demonstrates largest revenue for procurement software market due to technological developments and adoption of advanced technologies such as artificial intelligence and machine learning. On-cloud deployment is used for elimination of inefficiencies and for effective performance of procurement cycle. On-Cloud procurement software is easy to use and cost effective with end-to-end integration.
On-cloud deployment witness fastest growth of procurement software market owing to rapid digitalization and technological developments adopted by enterprises.

By Organization size

The Organization size segment is bifurcated into Small and Medium Enterprise, Large Enterprise.
Large enterprise dominates major market share for procurement software market due to advancement in technologies and adoption of artificial intelligence for business operations.
Small and medium enterprise anticipate rapid growth of procurement software market due to shifting to enterprises to advance technologies and cloud-based computing systems.

By Application:

The Application segment is divided into Automotive, Travel & Logistics, IT & Telecommunication, Electronics, Mining, and Retail.
Retail segment demonstrate major market for procurement software market due to rapid adoption of advanced technologies. Several organizations such as Walmart and McDonald adopted procurement systems to expand the supply chain and cost purchases.

Electronics segment witness rapid growth of procurement software market owing to technological developments. Procurement software helps various industries to keep track of inventories.

By Region

The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. In 2022, North America region is considered to contribute the largest revenue share.
North America holds major share of procurement software market. Development in artificial intelligence, growing technologies and adoption of procurement software in various industries are driving the procurement software market.

The Asia Pacific region is anticipated to witness fastest growth in the procurement software market. Investment in R&D activities and purchasing patterns of vendors is driving the market of procurement software.

Procurement Software Market Competitive Landscape:

The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Procurement Software Market. Key players in the market include-

• Zycus – USA
• SAP – Germany
• Basware – Finland
• IBM – USA
• Oracle – USA
• JDA Software – USA
• Tungsten Network – UK
• Coupa Software Inc. – USA
• Infor – USA
• Manhattan Associates – USA
• Vinimaya