Procurement Software Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2026

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:

• Based on deployment, the cloud-based segment has the highest share in the procurement software market in 2021 and registers the highest CAGR over the projection period. This is due to the increased speed and simplified scalability offered by cloud-based systems. Furthermore, businesses are increasingly adopting cloud-based technologies due to numerous benefits offered by them such as cost-efficient platforms, ease of management, and access.
• In terms of software, e-procurement software holds the highest market share in 2021 and is estimated to continue its dominance over the projection period. E-procurement software encompasses a wide range of actions including spend analysis, sourcing, e-auctions, procure-to-pay (P2P), and contract management. Contacts and dealings between purchasers and suppliers are automated to improve effectiveness and decrease the overall cost of procurement.
• Based on industry, the BFSI segment has the highest share in the procurement software market in 2021. This is attributed to expanding expectations of digital-savvy consumers from the banking sector with a focus to ease the banking processes. However, the transportation and logistics segment holds the highest CAGR over the projection period.
• North America leads the Global Procurement Software Market in 2021 and is estimated to continue its dominance throughout the forecast period. The regional dominance of North America is attributed to the presence of key companies in the region such as Oracle, Microsoft, and others. However, Asia Pacific records the highest CAGR over the forecast period 2022-2026. The growth of the market in APAC is attributed to growing businesses in the region and rising internet penetration.

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:

• Zycus partnered with Pagero which offers its customers the tools to increase supply chain efficiency, streamline the invoicing process and maintain compliance with ever-evolving e-invoice regulations.
• Ivalua launched a pre-packaged suite of solutions for healthcare providers which provide the full source-to-pay process and enable healthcare providers to digitally transform their supply chain processes to lower the cost of care and free caregivers.
• Jaggaer partnered with Weidmüller Group, German electrical connectivity, and electronics technology company, for a complete digital transformation of Weidmüller’s procurement processes.

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:

• Cloud-based
• On-premise

By Software segment of the Global Procurement Software Market is sub-segmented into:

• Spend Analysis
• E-Sourcing
• E-Procurement

By Industry segment of the Global Procurement Software Market is sub-segmented into:

• Retail
• Manufacturing
• Transportation & Logistics
• Healthcare
• BFSI
• Others

By Region segment of the Global Procurement Software Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Rest of Asia Pacific
• Latin America
  • Mexico
  • Brazil
  • Rest of LA
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of the Middle East & Africa