Procurement Software Market Size

Report on Industry Size & Market Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Procurement Software Companies and the market is segmented by Deployment (On-premise and Cloud), End-user Industry (Retail, Manufacturing, Transportation and Logistics, Healthcare), and Geography (North America, Europe, Asia Pacific, Rest of the World). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Procurement Software Market Size

Procurement Software Market Summary
Study Period 2021 - 2029
Market Size (2024) USD 8.17 Billion
Market Size (2029) USD 13.27 Billion
CAGR (2024 - 2029) 10.20 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Procurement Software Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Procurement Software Market Analysis

The Procurement Software Market size is estimated at USD 8.17 billion in 2024, and is expected to reach USD 13.27 billion by 2029, growing at a CAGR of 10.20% 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, and 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 up new avenues for market growth over the forecast period. Furthermore, the need to prevent duplicate records is projected to drive the growth of the procurement software industry in the future years. 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 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 & cloud security, and supply chain management. These factors encourage market expansion.
  • 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 growth.
  • The COVID-19 crisis has created challenges across multiple industries and has led to a reduction in technology spending. Enterprises are still adjusting to the COVID-19 economy, from new internal logistics like WFH or building infrastructure to cope with new demand. Disruptions in the supply chain, fluctuations in demand share, and economic situations, along with the immediate & long-term impact of the novel coronavirus, possessed a negative effect on the procurement software market growth.

Procurement Software Market Trends

This section covers the major market trends shaping the Procurement Software Market according to our research experts:

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 Retailers Association of India, the retail market size is expected to be around USD 1.7 trillion over the forecast period in India. So, Procurement services have a huge requirement that drives growth over the forecast period.
  • 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 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 the 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 the upcoming years.
  • For instance, Companies like Ginesy offer user-friendly POS software that 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.
Procurement Software Market - Retail Market Size in India, In USD Billion, 2018-2027

North America Accounts For the Largest Market Share

  • North America dominates globally 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 future. According to, the top 20 startups of ecosystems are located in North America. For instance, Austin and Texas have more than 5,500 startups and 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 emphasizing 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 cater to new procurement software trends. For instance, CobbleStone Software released Contract Insight Enterprise 17.6.1. This release brings numerous new and improved features to enhance the leading contract management, vendor management, procurement, and sourcing platform. Contract Insight's drag-and-drop record queue allows users to initiate and manage documents for record creation on their time with expanded control over their AI-based process.
  • Further, the presence of the market players involved in providing procurement software services, such as Oracle, Microsoft, and others, are located in North America, boosting the market growth in the region along with their innovations and merger and acquisition.
Procurement Software Market - Growth Rate by Region

Procurement Software Industry Overview

The procurement software market is moderately concentrated, owing to the presence of a few 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:

  • In October 2022, Tropic, a SaaS procurement software platform company, partnered with Tranch, a B2B Buy Now Pay Later (BNPL) provider, to allow their customers to pay their software costs. Under this partnership, Tropic customers submit their invoices through Tranch and can pay them in flexible EMIs for up to 12 months. Tropic customers must instantly link their bank account via Plaid to start and be approved.
  • In September 2022, GEP, a procurement and supply chain service company, expanded its presence with the launch of a New Office in Abu Dhabi, working with several middle eastern clients in the fields of aviation, consumer packaged goods (CPG), energy, financial services, and oil and gas sectors for procurement software services.

Procurement Software Market Leaders

  1. SAP SE

  2. Proactis Holdings Plc

  3. Ginesys (Ginni Systems Limited)

  4. Epicor Software Corporation

  5. Coupa Software Inc.

*Disclaimer: Major Players sorted in no particular order

Procurement Software Market Concentration
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Procurement Software Market News

  • December 2022 - GEP, a procurement and supply chain services company, announced that Belgium's leading postal and e-commerce logistics provider, bpost group, had implemented the usage of GEP Software for digital transformation across the source-to-contract (S2C) process encompassing sourcing management, project management, contracts, and supplier management to improve efficiencies and compliance throughout the tendering and contracting process.
  • September 2022 - Oro launched its new software solution, Smart Procurement Workflows, designed to simplify procurement and finance operations to meet compliance and speed needs and get help to deliver faster business needs.

Procurement Software Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing demand to automate the procurement processes

      2. 4.2.2 Integration between E Procurement applications and ERP solutions

      3. 4.2.3 Retail Industry is Expected to Hold Significant Market Share

    3. 4.3 Market Challenges

      1. 4.3.1 Complexity Regarding Integration with Existing System and Supplier Onboarding

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Assessment of Impact of Covid-19 on the Global Procurement Software Market


    1. 5.1 By Deployment

      1. 5.1.1 On-Premise

      2. 5.1.2 Cloud

    2. 5.2 By End-user Industry

      1. 5.2.1 Retail

      2. 5.2.2 Manufacturing

      3. 5.2.3 Transportation and Logistics

      4. 5.2.4 Healthcare

      5. 5.2.5 Other End-user Industries

    3. 5.3 By Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia Pacific

      4. 5.3.4 Rest of the World


    1. 6.1 Company Profiles

      1. 6.1.1 SAP SE

      2. 6.1.2 Proactis Holdings PLC

      3. 6.1.3 Epicor Software Corporation

      4. 6.1.4 Ginesys (Ginni Systems Limited)

      5. 6.1.5 Coupa Software Inc.

      6. 6.1.6 Zycus Inc.

      7. 6.1.7 GT Nexus (Infor Inc.)

      8. 6.1.8 Ivalua Inc.

      9. 6.1.9 Microsoft Corporation

      10. 6.1.10 Oracle Corporation

      11. 6.1.11 Basware AS

      12. 6.1.12 Mercateo AG

      13. 6.1.13 GEP Corporation

      14. 6.1.14 Jaggaer Inc.

    2. *List Not Exhaustive


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Procurement Software Industry Segmentation

Procurement software is a program that consists of various features, such as it helps 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 Geography (North America, Europe, Asia Pacific, Rest of the World).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Deployment
By End-user Industry
Transportation and Logistics
Other End-user Industries
By Geography
North America
Asia Pacific
Rest of the World
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Procurement Software Market Research FAQs

The Procurement Software Market size is expected to reach USD 8.17 billion in 2024 and grow at a CAGR of 10.20% to reach USD 13.27 billion by 2029.

In 2024, the Procurement Software Market size is expected to reach USD 8.17 billion.

SAP SE, Proactis Holdings Plc, Ginesys (Ginni Systems Limited), Epicor Software Corporation and Coupa Software Inc. are the major companies operating in the Procurement Software Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Procurement Software Market.

In 2023, the Procurement Software Market size was estimated at USD 7.41 billion. The report covers the Procurement Software Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Procurement Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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.

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Procurement Software Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)