Market Size of Vendor Management Software Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 14.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vendor Management Software Market Analysis
The Vendor Management Software Market is expected to grow at a CAGR of 14% over the forecast period. Vendor management involves initiating and grooming the relationships with the suppliers of the goods and services a buyer needs for day-to-day operations.
- The increasing need for reducing risks and making faster decisions paved the way for vendor management software to be integrated with the Vendor Management Software Market.
- The lack of availability of vendor information and vendor performance exposes the company to increased supply risk. It prevents the company's ability to act proactively in dire situations, making it imperative for them to look for solutions like VMS that could navigate them through such situations, fueling the growth of the VMS throughout the forecast period.
- Additionally, the growing adoption of cloud-based software due to government initiatives are expected to drive market growth. For instance, the DOD intends to invest around USD 38.6 billion in unclassified IT in the fiscal year 2022. OMB mandates that agencies update, phase out, or combine their portfolios of software programs to promote cloud usage.
- The increasing need to minimize administrative costs is one of the crucial factors that could drive the VMS market growth over the forecast period. Also, the regulated companies must ensure that the third-party goods and services comply with applicable laws, regulations, and best practices making VMS a necessity for such companies.
- However, the high implementation and maintenance cost is one such factor that could play a vital role in hindering the VMS market growth over the forecast period.
- Organizations had several challenges managing suppliers during the COVID-19 pandemic, as worldwide supply chains were interrupted due to strict restrictions and lockdowns enforced by governments worldwide. Industries that were heavily impacted by the crisis, such as banking and finance, manufacturing, energy, and retail and consumer goods, witnessed a decrease in the usage of vendor risk management systems.
