The Global Procurement Software Market is projected to make a forward leap in its revenue from US$ 6,115.4 Mn in 2021 to US$ 9,654.8 Mn by 2026. The market is registering growth at a CAGR of 9.4% over the forecast period 2022-2026. Procurement software is a form of business software that aids an organization by systemizing its purchasing functions and overall procurement process. Software function involves issuing and assessing tenders, raising and approving purchase orders, picking and ordering a product or service, receiving and matching the invoice and order, and payment of invoices. This allows the procurement division to streamline processes and see everything that is ordered, guaranteeing that nothing can be ordered without the right approvals. Procurement software encourages the automation and documentation of every transaction. This allocates all specifics of how resources are being used with regards to suppliers, expense, quality, and the period it requires to conclude the purchase, all of which can be accessed in one source.
The market is majorly driven by factors such as increasing demand to automate the procurement processes and integration between e-procurement applications and ERP Solutions. With a traditional procurement system, the purchasing process is more time-consuming and has a greater potential for error. Using procurement software, on the other hand, allows a great deal of the process to be automated, and all the process is electronic. This saves time and reduces error potential, thereby saving the organization money. Therefore, to deliver continuous cost savings and increase process efficiency, procurement departments are now looking at automating steps of a procurement cycle. Procurement software allows for a more automated process which lowers the total hours spent crafting documentation containing purchases. This can reduce the probability of errors in manual data entry and allows a company to spend hours saved on additional strategic company priorities. Furthermore, the software applications integrate with the enterprise resource planning (ERP) platforms, whether Oracle, SAP, or another option. The effective integration of e-Procurement applications with back-end systems is essential to help critical data flow between the two platforms. However, the lack of skilled professionals and risks associated with cybersecurity and data protection is expected to hinder market growth over the forecast period.
Report Summary
The study of the global procurement software market considers various market determinants, industry value chain analysis, and competitor analysis of the market. The report discusses the analysis of the procurement software industry for the period 2016-2026, where the base year is 2021 and the forecast period is 2022-2026. The report provides a detailed analysis of the Global Procurement Software Market across 13 Chapters and 168 pages. The report includes data presentation across 29 tables and 77 statistical figures. The research report also provides Porter’s five forces analysis wherein the bargaining power of buyers and intensity of rivalry are high.
The subsequent section provides details of the market analysis based on different segments such as deployment, software, industry, and region. The report includes a detailed study of the value chain of the industry. It includes developers, technology integrators, service providers, and end-users. The report also covers extensively the key competitors in the market for procurement software.
Key Takeaways from the Global Procurement Software Market Report:
Competitive Landscape
The key players in the Global Procurement Software Market are SAP SE, Proactis Holdings PLC, Coupa Software Inc., Microsoft Corporation, and Oracle Corporation, among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on emerging markets. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.
Recent Developments in the Global Procurement Software Market:
Segmentation Overview
The following are the different segments of the Global Procurement Software Market:
By Deployment segment of the Global Procurement Software Market is sub-segmented into:
By Software segment of the Global Procurement Software Market is sub-segmented into:
By Industry segment of the Global Procurement Software Market is sub-segmented into:
By Region segment of the Global Procurement Software Market is sub-segmented into:
Report Attribute | Details |
---|---|
Market Size Value in 2021 | US$ 6,115.4 Mn |
Expected Revenue in 2026 | US$ 9,654.8 Mn |
Historic Data | 2017-2020 |
Base Year | 2021 |
Forecast Period | 2022-2026 |
Unit | Value (USD Mn) |
CAGR | 9.4% |
Segments covered | By Deployment, Software, Industry, and Region |
Leading players | SAP SE, Proactis Holdings PLC, Coupa Software Inc., Microsoft Corporation, and other prominent players. |
Customization Scope | Get your customized report as per your preference. Ask for customization |
Procurement software function involves issuing and assessing tenders, raising and approving purchase orders, picking and ordering a product or service, receiving and matching the invoice and order, and payment of invoices.
Reduced cost, improved operational productivity, standardized system and transparency across the organization are some of the benefits of procurement software.
The end-industries in the procurement software market are retail, manufacturing, transportation & logistics, healthcare, and BFSI, among others.
The Global Procurement Software Market was valued at US$ 6,115.4 Mn in 2021.
Global Procurement Software Market is estimated to expand at a CAGR of 9.4% over the forecast period 2022-2026.
The market is majorly driven by factors such as increasing demand to automate the procurement processes and integration between e-procurement applications and ERP Solutions.
Lack of skilled professionals and risks associated with cybersecurity and data protection are hindering the market growth.
Cloud-based deployment segment holds the highest share in the Global Procurement Software Market.
BFSI is the highest end-user industry in the Global Procurement Software Market.
North America dominates the Global Procurement Software Market.
The key players in the Global Procurement Software Market are SAP SE, Proactis Holdings PLC, Coupa Software Inc., and Oracle Corporation, among others.