Procurement Software Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.93 Billion |
| Market Size (2029) | USD 14.33 Billion |
| CAGR (2024 - 2029) | 9.92 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Procurement Software Market Analysis
The Procurement Software Market size is estimated at USD 8.93 billion in 2024, and is expected to reach USD 14.33 billion by 2029, growing at a CAGR of 9.92% during the forecast period (2024-2029).
Software companies are increasing their focus on in-demand technologies and re-exploring innovative ways to serve their clients. The primary factor driving the procurement software industry is the increased integration of developing technologies, such as artificial intelligence, which assists in high-quality reports and features to maintain accuracy.
- With the growing requirement to automate procurement procedures, the maturation of e-procurement technology is expected to offer new avenues for market growth during the forecast period. Furthermore, the need to prevent duplicate records is projected to drive the growth of the procurement software industry in the future. Moreover, the implementation of government policies encourages market development. The increase in the flow of foreign transactions across borders fuels the market's progress even further. The market synergy between supply and demand drivers is predicted to affect future market growth.
- There is a growing desire to automate procurement operations to improve efficiency and reduce time. It also expedites the process by relieving personnel of time-consuming and unneeded tasks. Procurement process automation is becoming increasingly popular, especially in buy requests, purchase orders, invoice management, vendor management, and contract approval.
- E-procurement software helps an organization integrate and automate its whole procurement process. ERP assists in easing supplier management by facilitating the procurement processes, freeing time to concentrate on other tasks, and enabling a more effective business, which is made possible when e-procurement tools are connected with ERP solutions. Among other things, ERP solutions support improved business reporting, better customer service, lower inventory costs, increased cash flow, cost reductions, data and cloud security, and supply chain management. These factors encourage market expansion.
- In September 2023, SAP SE, Bristol & Weston NHS Purchasing Consortium (BWPC) announced it had selected SAP Ariba to drive its digital procurement transformation program as it embraces a single modern procurement platform in the cloud.
- Further, in August 2023, one of South Africa’s leading global transport and logistics companies, Bidvest International Logistics, signed a multi-year agreement with Zycus, a cognitive procurement software provider, to transform its source-to-pay landscape with Zycus’ AI-powered solutions. A key goal for Bidvest was to enable faster invoice processing and optimize the entire PR to PO process, including lowering PO processing costs. The organization has hence selected the invoicing solution with e-procurement alongside Zycus’ AI-led accounts payable (AP) automation solution, which would also enable cost-efficient invoice processing, better supplier communications, dynamic discounting, and fraud detection, as well as help in achieving global compliance.
- The market for procurement software is expected to have challenges during the forecast period because many organizations lack the infrastructure necessary to work with traditional systems. On the contrary, the lack of skilled personnel impedes the market’s growth.
- The COVID-19 pandemic has accelerated the digital transformation of the procurement process and highlighted the importance of procurement software in enabling agility, resilience, and efficiency in supply chain management. As businesses continue to adapt to the evolving business landscape, the demand in the market is expected to grow. The post-COVID-19 landscape has reinforced the importance of procurement software in driving operational efficiency, risk mitigation, and strategic value creation for businesses.
Procurement Software Market Trends
Retail Industry is Expected to Hold Significant Market Share
- The 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. According to the India Brand Equity Foundation, the Indian retail market size is expected to account for USD 1 trillion by 2025. Therefore, procurement services are expected to be a huge requirement that drives growth during the forecast period.
- With the increasing digitization of business processes, many retailers are adopting e-procurement solutions to automate and streamline their procurement processes. E-procurement platforms facilitate online purchasing, electronic invoicing, and supplier collaboration, driving efficiency and cost-saving.
- Further, procurement software tools enable retail companies to automate procurement tasks and procure the best rates from vendors for their tender, making it essential for retail companies to procure a large volume of goods. With the implementation of procurement software solutions, companies can collaborate with suppliers, track events, 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 the supply chain and facilitating inventory management. It also offers advantages such as minimum operational cost and higher operational efficiency, which are presumed to increase the growth pace of the market in the retail industry in the coming years.
North America is Expected to Hold Significant Market Share
- North America dominates globally due to the rising demand for centralized procurement processes. Also, consolidating companies incorporated in the region is expected to provide an impetus to market growth in the future.
- The United States is rigorously looking to strengthen its manufacturing industry by enhancing its productivity by emphasizing improving activities across the supply chain within the country's industrial sector. E-retailers in the North American retail market are rigorously trying to enhance the customer experience by incorporating same-day delivery, which can be achieved effectively through effective supply chain management.
- Procurement software vendors in North America continually innovate to stay competitive and address evolving customer needs. Key areas of innovation include artificial intelligence (AI), machine learning, predictive analytics, robotic process automation (RPA), blockchain, and advanced data analytics to enhance procurement efficiency, decision-making, and risk management.
- Regulatory compliance requirements, such as GDPR and industry-specific regulations, drive the adoption of procurement software in the region. Procurement software vendors offer features and functionalities to assist organizations in complying with regulatory mandates, managing risk, and ensuring transparency and accountability in procurement processes.
Procurement Software Industry Overview
The procurement software market is fragmented, with the presence of global players and small and medium-sized enterprises. Some of the major players in the market are SAP SE, Proactis Holdings PLC, Epicor Software Corporation, Ginesys (Ginni Systems Limited), and Coupa Software Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their software offerings and gain sustainable competitive advantage.
- April 2024: Iris Software Group formed a partnership with Amazon Business to optimize procurement for UK schools. This collaboration allows 5,254 Iris customers to efficiently purchase supplies from Amazon Business using Iris Financials, the group's cloud-based school finance software.
- October 2023: Maximus UK launched the Atamis procurement software. Atamis will provide procurement software to optimize Maximus UK's sourcing processes, enhance efficiency, and reduce costs. By implementing Atamis's procurement software, Maximus UK entered a new procurement phase, focusing on streamlining operations and driving efficiencies.
Procurement Software Market Leaders
SAP SE
Proactis Holdings PLC
Epicor Software Corporation
Ginesys (Ginni Systems Limited)
Coupa Software Inc.
*Disclaimer: Major Players sorted in no particular order
Procurement Software Market News
- November 2023: Accenture acquired Shelby Group, one of the leading digital procurement and optimization services providers. The acquisition further enhanced Accenture’s capabilities in sourcing and procurement technology transformation.
- October 2023: Olive Technologies, a provider of artificial intelligence (AI)-driven decision-making solutions, partnered with Procurify, a provider of cloud-based procure-to-pay software. The collaboration focuses on simplifying and enhancing global organizations' vendor sourcing, selection, and procurement processes.
Procurement Software Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Impact of COVID-19 on the Global Procurement Software Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand to Automate the Procurement Processes
5.1.2 Integration between E-procurement Applications and ERP Solutions
5.1.3 Retail Industry is Expected to Hold Significant Market Share
5.2 Market Challenges
5.2.1 Complexity Regarding Integration with Existing System and Supplier Onboarding
6. MARKET SEGMENTATION
6.1 By Deployment
6.1.1 On-premise
6.1.2 Cloud
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Manufacturing
6.2.3 Transportation and Logistics
6.2.4 Healthcare
6.2.5 Other End-user Industries
6.3 By Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Procurement Software Industry Segmentation
Procurement software is a program that consists of various features, such as helping in executing the online ordering process, generating the purchase order, matching the invoices to the materials received, and electronic payment of all the bills. It helps in increasing productivity, reduces external costs, spending controls, and process efficiencies, and 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.
The procurement software market is segmented by deployment (on-premise and cloud), end-user industry (retail, manufacturing, transportation and logistics, healthcare, and other end-user industries), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | |
| On-premise | |
| Cloud |
| By End-user Industry | |
| Retail | |
| Manufacturing | |
| Transportation and Logistics | |
| Healthcare | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Procurement Software Market Research FAQs
How big is the Procurement Software Market?
The Procurement Software Market size is expected to reach USD 8.93 billion in 2024 and grow at a CAGR of 9.92% to reach USD 14.33 billion by 2029.
What is the current Procurement Software Market size?
In 2024, the Procurement Software Market size is expected to reach USD 8.93 billion.
Who are the key players in Procurement Software Market?
SAP SE, Proactis Holdings PLC, Epicor Software Corporation, Ginesys (Ginni Systems Limited) and Coupa Software Inc. are the major companies operating in the Procurement Software Market.
Which is the fastest growing region in Procurement Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Procurement Software Market?
In 2024, the North America accounts for the largest market share in Procurement Software Market.
What years does this Procurement Software Market cover, and what was the market size in 2023?
In 2023, the Procurement Software Market size was estimated at USD 8.04 billion. The report covers the Procurement Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Procurement Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major challenges faced by the Procurement Software Market?
Challenges faced by the Procurement Software Market include: a) Resistance to change b) Integration with existing systems c) Data security concerns d) Need for training employees to use the new system effectively
Procurement Software Industry Report
The Global Enterprise Procurement Software Market is on the rise, fueled by the shift towards cloud-based solutions and a strong push for digitization to streamline procurement processes for enhanced efficiency. This surge is supported by the need for transparency with suppliers and improved partner relationships, leading to market expansion opportunities. The software plays a crucial role in automating procurement tasks like inventory management, aiding in economic volatility management. Trends towards mobile applications and artificial intelligence (AI) integration are boosting international transactions and strengthening supplier-vendor ties. Centralized processes and automated payment systems are driving the market, despite the challenge of a skilled professional shortage. The retail sector, in particular, is driving revenue with its demand for efficient inventory and transparent supply chains. According to Mordor Intelligence™ Industry Reports, the enterprise procurement software market is experiencing robust growth, with detailed analysis and forecasts available in a free report PDF download, highlighting market share, size, and revenue growth insights.
