Market Size of Spend Analytics Software Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 18.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
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?
Spend Analytics Software Market Analysis
Over the forecast period, the Spend Analytics Software Market registered an 18.2% CAGR. Organizations are finding it difficult to manage data flow due to changing data structures and increased data flow.Digitization has exponentially increased data generation and changed data utilization methods. The cloud is also acting as a vital catalyst for digital transformation. Spend Analytics helps organizations provide flexibility by providing real-time synchronization across the cloud or on-premises, bypassing traditional data processing, and accessing options. It continually calculates statistical analytics while moving within the stream of data.
- Spend analytics has evolved how humans and machines interact with and use spend data by broadening the data analysis processes and increasing the accessibility of the data. Its various applications in supply chain and logistics, BFSI, manufacturing, and retail are changing market dynamics. It helps companies to have a competitive advantage and give them better utilization and consumption of spending data.
- The benefits of spend analytics include providing more in-depth insight through data visualization, helping deploy cost-saving processes, making large files easy to access, and having data updated and located in real-time, increasing the system's scalability. It reduces the organization's investment by improving utilization and consumption.
- For instance, in March last year, Xeeva, the AI-powered spend management and procurement software company that serves hundreds of locations and organizations globally, announced the introduction of Spend Analytics with Intelligent Opportunities and a new look. With an enhanced user interface, this new edition enables Xeeva clients to examine and act on application-generated savings and sourcing opportunities.
- Furthermore, market expansion may be hindered by the complexity of migrating from legacy systems. The lack of a defined process, the number of data sources, and the difficulties in transferring from legacy systems can all hamper the future growth of the spend analytics business. Increasingly stringent regulatory rules can also hinder the market for spending on analytics pertaining to data security and breaches.
- With the outbreak of COVID-19, the data science teams were called into action to crunch the massive data available and build the best business spending models on trusted data for decision-makers to prepare contingency plans quickly. This is where enterprises used AI, ML, and natural language processing to mine massive data and build predictive or prescriptive models.
Many organizations were experiencing various unexpected and unplanned supply chain disruptions during the COVID-19 pandemic. With spend analytics, companies were better able to identify areas where they could retain more cash. Based on digital solutions, intelligent and structured spend analysis, sourcing, and eProcurement strategies could proactively provide insight to activate and deploy emergency plans to face a range of difficult circumstances.
