Procurement Software Market Size

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.