Global Procurement Software Market – Industry Trends and Forecast to 2031

Global Procurement Software Market, By Deployment (On-Cloud, On-Premise), Software Type (pend Analysis, E-Sourcing, E-Procurement, Contract Management, Supplier Management, and Others), Organization Size (Small and Medium Enterprise, Large Enterprise), Vertical (Retail, Automotive, Travel and Logistics, Electronics, IT and Telecommunication, Mining) – Industry Trends and Forecast to 2031.

Procurement Software Market Analysis and Size

Contract management is a key application within the procurement software market, focusing on the creation, negotiation, execution, and tracking of contracts with suppliers. Procurement software streamlines contract management processes by digitizing contract creation, storing contracts in a centralized repository, automating approval workflows, and providing alerts for key dates such as renewals and expirations. This enables organizations to efficiently manage supplier agreements, ensure compliance with contract terms, minimize risks, and optimize supplier relationships, ultimately contributing to cost savings and operational efficiency.

Global procurement software market size was valued at USD 7.86 billion in 2023 and is projected to reach USD 16.68 billion by 2031, with a CAGR of 9.86% during the forecast period of 2024 to 2031.  In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Procurement software are the digital tools and platforms designed to streamline and automate the procurement process within organizations. These software solutions facilitate tasks such as sourcing suppliers, managing contracts, processing purchase orders, and tracking inventory. Optimizing supplier relationships, and enhancing visibility into purchasing data by centralizing procurement activities, it helps organizations improve efficiency, reduce costs, mitigate risks, and make more informed decisions throughout the procurement lifecycle.

Procurement Software Market Dynamics

Drivers

• Growing Technological Advancements Enhances the Efficiency of Operations

Technological advancements enables innovative solutions that enhance efficiency, accuracy, and transparency in procurement processes. Advancements such as artificial intelligence (AI), machine learning, and robotic process automation (RPA) empower procurement software to offer predictive analytics, intelligent sourcing, and automated workflows, thereby optimizing decision-making and resource allocation. These technological capabilities streamline operations and contribute to cost reduction, risk mitigation, and improved supplier relationships, making them essential drivers of market growth.

For Instance,

In January 2024, Ginesy's user-friendly POS software exemplifies technological advancements driving the procurement software market. It offers fast billing features and seamless data synchronization, it enhances efficiency and accuracy in retail transactions. Its adoption by top retail companies in India underscores its effectiveness, displays how technological innovation in procurement software optimizes operations and fosters market growth.

• Increasing Adoption of Cloud-Based Solutions Provides Rapid Deployment Capabilities

Cloud-based procurement software offers several advantages, including scalability, flexibility, and accessibility from anywhere with an internet connection. Businesses are drawn to these solutions as they eliminate the need for costly infrastructure investments and provide rapid deployment capabilities. Moreover, cloud-based procurement software enables real-time collaboration among stakeholders and seamless updates, ensuring that organizations always have access to the latest features and enhancements. This trend reflects a broader shift towards cloud computing across industries, as businesses seek to leverage the benefits of cloud technology for enhanced efficiency and competitiveness in procurement operations.

Opportunities

• Growing Emphasis on Sustainable Procurement among the Consumers

Businesses are increasingly prioritizing environmental and social sustainability in their supply chain practices, seeking to minimize their carbon footprint, ensure ethical sourcing, and meet regulatory requirements. Procurement software equipped with sustainability features can enable organizations to assess supplier sustainability credentials, track environmental impact, and implement responsible sourcing practices. This demand for sustainable procurement solutions creates a niche market segment within the broader procurement software landscape, driving innovation and specialization among software providers.

• Adoption of Procurement Software Increases due to Rising Globalization

With businesses increasingly operating on a global scale, there is a greater need for procurement solutions that can effectively manage sourcing, supplier relationships, and supply chain logistics across diverse regions and markets. Procurement software offers functionalities such as multi-currency support, international supplier management, and cross-border compliance, enabling organizations to navigate the complexities of global trade. Moreover, globalization fosters competition, driving companies to seek innovative procurement technologies to gain a competitive edge and capitalize on new market opportunities. Thus, the procurement software market stands to benefit from globalization by providing essential tools and capabilities to support businesses in their international expansion efforts and optimize global procurement operations.

For Instance,

In November 2021, Honeywell introduced a cutting-edge solution for intelligent automated handling, aimed at optimizing space usage in warehouses and manufacturing facilities. Leveraging advanced automation such as AS/RS and robotics, the offering enhances order processing efficiency and accuracy, facilitating faster fulfillment and potential storage footprint reduction. This innovation addresses the pressing demand for space-efficient solutions, empowering businesses to streamline operations, boost productivity, and achieve cost savings.

Restraints/Challenges

• High Implementation Costs for Small and Medium-Sized Enterprises (SMEs)

High implementation costs encompass not only the initial purchase of the software but also expenses associated with customization, integration with existing systems, training, and ongoing maintenance. For many organizations, the upfront investment required to implement procurement software can be daunting, leading to reluctance in adoption. The total cost of ownership over the software's lifecycle may exceed initial projections, further complicating ROI calculations. As a result, some businesses may opt to delay or forgo procurement software adoption altogether, limiting their ability to optimize procurement processes and gain competitive advantages.

• Rising Regulatory Compliance Increases the Implementation Complexity

Government regulations encompass areas such as data privacy, anti-corruption laws, trade compliance, and supplier diversity requirements. Ensuring that procurement software complies with these regulations adds complexity to implementation and ongoing operations, as non-compliance can result in legal penalties, reputational damage, and operational disruptions. Vendors must invest in robust compliance features and stay abreast of regulatory changes to meet the diverse compliance needs of their clients, further adding to the challenges in this market.

This market, report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market, contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In January 2024, Relish launched its Procurement Assistant, leveraging AI and natural language processing to simplify enterprise application interactions and optimize procurement workflows across diverse domains
• In January 2024, Ever.Ag's acquisition of PrairiE Systems emphasized its commitment to enhancing the global food supply chain, particularly in animal protein production, through advancements in feed management software. This strategic move showcased the integration of technology into procurement processes within the agricultural sector, showcasing the evolving landscape of procurement software solutions
• In December 2023, Pivot, a French startup, secure substantial Series a funding for its procurement software, indicating investor confidence and rapid growth in the procurement software market. The funding emphasized the market's recognition of innovative tools designed to streamline procurement processes, reflecting the increasing demand for efficient procurement solutions
• In December 2021, SAP SE's launch of the CommBox AI omnichannel solution significantly impacted the procurement software market by introducing a comprehensive tool for brand-customer communication. This innovation streamlined interactions across multiple channels, setting a precedent for enhanced customer engagement within procurement processes
• In March 2020, GEP collaborated with Cheniere Energy Inc., to launch GEP SMART procurement software to optimize procurement processes. This partnership underscored the importance of advanced procurement solutions in facilitating smoother supply chain operations, highlighting the growing significance of such software in modern procurement strategies

Procurement Software Market Scope

The market is segmented on the basis of deployment, software type, organization size, and vertical. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Deployment

• On-Cloud
• On-Premise

Software Type

• Pend Analysis
• E-Sourcing
• E-Procurement
• Contract Management
• Supplier Management
• Others

Organization Size

• Small and Medium Enterprise
• Large Enterprise

Vertical

• Retail
• Automotive
• Travel and Logistics
• Electronics
• IT and Telecommunication
• Mining

Procurement Software Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, deployment, software type, organization size, and vertical as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America is expected to dominate the procurement software market, driven by the strong presence of industry giants such as IBM Corporation, Oracle Corporation, and Coupa Software Incorporated. The region benefits from well-established infrastructure and a growing trend towards centralized procurement processes, fueled by the need for efficiency and cost savings. With these key market players and favorable market conditions, North America is positioned to maintain its dominance in the procurement software sector, catering to the evolving needs of businesses across various industries.

The Asia-Pacific is expected to have rapid growth in the procurement software market due to developing countries such as China and India, where adoption rates remain relatively low. One significant factor contributing to this lag is the scarcity of skilled procurement professionals in these regions. As businesses in APAC nations increasingly recognize the importance of efficient procurement processes, the demand for procurement software is expected to surge, driving market growth.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Procurement Software Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:-

• Oracle (U.S.)
• IBM Corporation (U.S.)
• Coupa Software Inc. (U.S.)
• Epicor Software Corporation (U.S.)
• Mercateo (Germany)
• SAP SE (Germany)
• Zycus Inc (U.S.)
• Infor (U.S.)
• Tungsten Automation Corporation (U.K.)
• OpusCapita Solutions Oy (Finland)
• Ivalua Inc. (France)
• Epicor Software Corporation (U.S.)
• Proactis Holdings Limited (U.K.)
• JAGGAER (U.S.)
• Tradeshift Holdings, Inc. (U.S.)
• Basware Oy (Finaland)
• HCL Technologies Limited (India)