|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The procurement software market is expected to register a CAGR of 10.2% during the forecast period (2021 - 2026). With the increasing need to automate the procurement processes, the materialization of the e- procurement technology is anticipated to open up new opportunities for market growth over the forecast period. Moreover, the requirement to prevent the duplication of records is anticipated to boost the procurement software market's development in the coming years.
- Further, the deployment of governmental policies is motivating development in the market. The growth in the flow of international transactions across nations is further stimulating the progress of the market. The synergies being created among supply and demand forces in the market are expected to influence further growth of the market.
- The integration of Artificial Intelligence (AI) with the software is likely to unleash extensive developmental opportunities into the procurement software market over the forecast period. Technological advancements are poised to accelerate revenue creation for market participants. On the contrary, lack of skilled personnel remains an impediment to market growth.
- Further, the deployment of governmental policies is motivating development in the market. The growth in the flow of international transactions across nations is further stimulating the progress of the market. The synergies being created among supply and demand forces in the market are expected to influence the growth of the market.
- Furthermore, the market is witnessing new developments and an increase in partnerships resulting in the adoption of procurement software. According to Frevvo, the new generation of the procurement system is expected to be user-driven instead of office-controlled. As more number of buyers prefer to interact with businesses via self-service portals, nearly 70% of companies invest in such technology.
- In March 2020, GEP, a provider of procurement software and procurement services, announced that it has partnered with Cheniere Energy Inc. to offer its GEP SMART procurement software. In January 2020, GEP partnered with Brunei Shell Petroleum Company Sdn Bhd (BSP) to provide the same solution and manage complete source-to-pay over its subsidiary operations. This may include a full range of functions, such as sourcing, contract, and supplier management, spend analysis, savings tracking, purchasing, and invoice handling.
- Software companies are currently increasing their focus on in-demand technologies and re-exploring innovative ways to serve their clients as the COVID-19 crisis is creating challenges across multiple industries and is leading to a reduction in technology spending. Industries are still adjusting to the COVID-19 economy, from new internal logistics like WFH or building out infrastructure to cope up with new demand. Moreover, many of the heaviest spending reductions are being felt in the industries, which were hardest hit by the effect of COVID-19.
Scope of the Report
The procurement software is a program that consists of various features, such as it helps in executing the online ordering process, generating the purchase order, matches the invoices to the materials that are received, and electronic payment of all the bills. It helps in increasing the productivity, reduces the external costs, spending controls, process efficiencies, generates electronic requests for proposal (e-RFP), electronic requests for information (e-RFI), and electronic requests for quotation (e-RFQ). Procurement software, along with e-procurement, helps in reducing the complete procurement life cycle.
|By End-user Industry|
|Transportation and Logistics|
|Other End-user Industries|
|Rest of the World|
Key Market Trends
Retail Industry to Witness Highest Growth
- Retail Industry is anticipated to cater to a significant share. The growing competition, falling margins, and diminishing brand loyalty have made retailers look for new ways to remain profitable and competitive. Business leaders at retail enterprises are increasingly turning to their procurement teams to reduce costs, mitigate supply risks, and create more value. This has enabled the adoption of procurement software in the retail industry.
- Procurement software helps retailers to integrate business processes and improve the overall value of businesses. It facilitates transparency in financial supply chains and contract details for generating invoices to complete payments.
- Procurement software tools enable retail companies to automate procurement tasks and procure best rates from vendors for their tender, making it essential for retail companies that need to procure a large volume of goods. With the implementation of procurement software solutions, companies can collaborate with suppliers, track events and get alerts, and analyze business intelligence data to gain insights into the procurement process for forecasting and planning purposes.
- Moreover, this technology simplifies the decision-making process that concerns demand and sales forecast by consolidating supply chain and facilitating inventory management. Also, it offers advantages such as minimum operational cost, higher operational efficiency, etc. which are presumed to increase the growth pace of the market in the retail industry in upcoming years.
- For instance, Companies like Ginesy offer POS software, which is user-friendly, and it supports fast billing features. It also provides a quick and easy approach to billing with continuous data synchronization. It is being used by the top retail companies in India, making it the best POS software in India.
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North America Accounts for Highest Market Share
- North America dominates in the global marketplace due to the rising demand for centralized procurement processes. Also, the consolidation of companies incorporated in the region is expected to provide an impetus to market growth in the years to come.
- According to Business.org, the top 20 startups of ecosystems are located in North America, for instance, Austin and Texas have more than 5,500 startups, as well as big- tech giant firms, like Facebook, Google, and Apple. This enhances the demand for procurement software significantly.
- The United States is rigorously looking to strengthen its manufacturing industry, by enhancing its productivity by laying emphasis on improving activities across the supply chain, within the industrial sector in the country. The e-retailers in the North American retail market are rigorously trying to enhance the customer experience by incorporating same-day delivery, which can effectively be achieved through effective supply chain management.
- Moreover, automated document creation, and contract writing process that significantly streamlines the contract lifecycle are catering to new trends in the procurement software. For instance, in June 2020, CobbleStone Software announced the release of Contract Insight Enterprise 17.6.0. This release brings forth numerous new and improved feature offerings to enhance the leading contract management, vendor management, procurement, and sourcing platform. It allows users to initiate and manage documents for record creation on their time with expanded control over their AI-based process, with Contract Insight's drag and drop record queue.
- Further, the presence of the market players that are involved in providing services of procurement software, such as Oracle, Microsoft, and others, are located in North America, which further boosts the market growth in the region along with their new innovations and M&A.
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The procurement software market is moderately concentrated, owing to the presence of many large and small players in the market operating in the domestic as well as in the international market. Players in the market are adopting key strategies, such as product innovation, strategic partnerships and mergers, and acquisitions. Some of the key developments in the market are:
- April 2020 - Epicor Software Corporation announced the launch of Epicor Commerce Connect Express (ECC Express), a new portal to its existing Epicor Commerce Connect solution. The e-commerce product is designed for businesses that need an immediate way to improve productivity, offer quality online experiences, and stay connected to their valued customers and suppliers.
- February 2020 - Proactis announced a new partnership with global change-ready technology and implementation specialist Agilyx Group to provide a range of spend management solutions and services to Agilyx customers. This partnership means that Agilyx can identify where a customer has an unmet need or has decided to make a change, that can be fulfilled by Proactis technology, and enable that customer to leverage additional value from their current ERP solution.
Proactis Holdings Plc
Ginesys (Ginni Systems Limited)
Epicor Software Corporation
Coupa Software Inc.
Dec 2021- SAP SE created CommBox AI omnichannel solution in order to change the way brands communicate with their customers by providing a robust platform that unify all customer interactions in one smart inbox. CommBox integrated into SAP Sales Cloud allowing it to become fully omnichannel & powered by AI capabilities.
Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Improving Supplier Discovery and Relationship Management
4.2.2 Growing Adoption of Advanced Retail Sourcing and Procurement Solutions
4.3 Market Challenges
4.3.1 Complexity Regarding Integration with Existing System and Supplier Onboarding
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment of Impact of Covid-19 on the Global Procurement Software Market
5. RELEVANT USED CASES AND CASE STUDIES
6. MARKET SEGMENTATION
6.1 By Deployment
6.2 By End-user Industry
6.2.3 Transportation and Logistics
6.2.5 Other End-user Industries
6.3.1 North America
6.3.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 SAP SE
7.1.2 Proactis Holdings PLC
7.1.3 Epicor Software Corporation
7.1.4 Ginesys (Ginni Systems Limited)
7.1.5 Coupa Software Inc.
7.1.6 Zycus Inc.
7.1.7 GT Nexus (Infor Inc.)
7.1.8 Ivalua Inc.
7.1.9 Microsoft Corporation
7.1.10 Oracle Corporation
7.1.11 Basware AS
7.1.12 Mercateo AG
7.1.13 GEP Corporation
7.1.14 Jaggaer Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Frequently Asked Questions
What is the study period of this market?
The Global Procurement Software Market market is studied from 2018 - 2026.
What is the growth rate of Global Procurement Software Market?
The Global Procurement Software Market is growing at a CAGR of 10.2% over the next 5 years.
Which region has highest growth rate in Global Procurement Software Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Procurement Software Market?
North America holds highest share in 2021.
Who are the key players in Global Procurement Software Market?
SAP SE, Proactis Holdings Plc, Ginesys (Ginni Systems Limited), Epicor Software Corporation, Coupa Software Inc. are the major companies operating in Global Procurement Software Market.