Astute Analytica released a new research report on the global Procurement Software Market. The global market study looks into a variety of subjects, such as opportunities, market size, development, innovation, sales, and the overall growth of top players.
The study published by Astute Analytica foresees a growth in revenue of the Global Procurement Software Market from US$ 6,115.4 Mn in 2021 to US$ 9,654.8 Mn by 2026. The market is registering a CAGR of 9.4% over the forecast period 2022-2026. The market is majorly driven by factors such as increasing demand to automate the procurement processes and integration between e-procurement applications and ERP Solutions.
The study incorporates both qualitative and quantitative data and draws on both primary and secondary statistical sources. Significant companies, important market categories, and a range of products are included in the global market report. In addition, the report covers the measurement years and the study points.
The segmentations considered to analyze the Global Procurement Software Market are deployment, software, industry, and region. In terms of deployment, the cloud-based deployment segment holds the highest market share in 2021. Further, based on software, the e-procurement software has the highest share in the procurement software market in 2021. North America is the highest shareholder region in the Global Procurement Software Market in 2021.
Procurement software is a form of business software that aids an organization with systemizing its purchasing functions and overall procurement process. Software function involves issuing and assessing tenders, raising and approving purchase orders, picking and ordering a product or service, receiving and matching the invoice and order, and payment of invoices. This allows the procurement division to streamline processes and see everything that is ordered, guaranteeing that nothing can be ordered without the right approvals. Procurement software encourages the automation and documentation of every transaction. This allocates all specifics of how resources are being used with regards to suppliers, expense, quality, and the period it requires to conclude the purchase, all of which can be accessed in one source.
The growing impetus of the market is attributed to factors such as increasing demand to automate the procurement processes and integration between e-procurement applications and ERP Solutions. With a traditional procurement system, the purchasing process is more time consuming and has a greater potential for error. Using procurement software, on the other hand, allows a great deal of the process to be automated, and all the process is electronic. This saves time and reduces error potential, thereby saving the organization money. Therefore, to deliver continuous cost savings and increase process efficiency, procurement departments are now looking at automating steps of a procurement cycle. Furthermore, the software applications integrate with enterprise resource planning (ERP) platform, whether Oracle, SAP, or another option. The effective integration of e-Procurement applications with back-end systems is essential to help critical data flow between the two platforms.
Lack of technical know-how to operate software challenges the overall demand of procurement software globally. Further, as the procurement department becomes more digitally connected, the cybersecurity of the department becomes a key concern, for all professionals involved in the industry. Hence, lack of skilled professionals and risks associated with cybersecurity and data protection is expected to hinder market growth over the forecast period.
Adoption of cloud-based technologies is presenting a lucrative opportunity for market expansion. In terms of procurement, usage of cloud allows for efficient handling of process of requisitioning, sourcing, procuring and handling payments for services, among others. Procurement via the cloud allows for an effective and organized system to keep business costs under control, select the best suppliers, enforce company policy, and appraise supplier risk.
North America dominates the Global Procurement Software Market
North America leads the Global Procurement Software Market in 2021 and is estimated to continue its dominance throughout the forecast period. The regional dominance of North America is attributed to the presence of key companies in the region such as Oracle, Microsoft, and others. The US is the highest shareholder country in the procurement software market of North America. Based on end-use industry, the BFSI segment holds the highest market share in 2021.
Germany leads the procurement software market of Europe
Europe is the second highest shareholder of the Global Procurement Software Market in 2021. Growing retail and higher adoption online channels is the key reason for the growth of Europe procurement software market. Germany is the highest shareholder country in the procurement market of Europe with a share of 24% in 2021. Further, the UK is registering the highest CAGR over the projection period. Based on deployment, the cloud-based deployment segment holds the highest market share in 2021.
Asia Pacific holds the highest CAGR in the Global Procurement Software Market
Asia Pacific records the highest CAGR over the forecast period 2022-2026. The growth of the market in APAC is attributed to growing businesses in the region and rising internet penetration. China dominates the procurement software market of Asia Pacific, whereas India registers the highest CAGR over the projection period. In terms of software, the e-procurement segment holds the highest market share in 2021 as the e-procurement software encompasses a wide range of actions including spend analysis, sourcing, e-auctions, procure-to-pay (P2P) and contract management.
Brazil holds the highest CAGR in the procurement software market of Latin America
Brazil is the highest shareholder country in Latin America and registers the highest compound annual growth rate over the projection period. In terms of software, the e-procurement software segment has the highest market share in 2021, whereas, the spend analysis software holds the highest CAGR over the projection period.
UAE leads the MEA procurement software market in 2021
Middle East and Africa holds a significant share of the Global Procurement Software Market as the region is active in adopting the latest technologies and implementing it in various industries. UAE is the highest shareholder country in MEA procurement software market in 2021 and South Africa holds the highest CAGR over the forecast period. Based on end-use industry, the BFSI segment holds the highest share in MEA market in 2021.
The key players in the global procurement software market are SAP SE, Proactis Holdings PLC, Coupa Software Inc., Microsoft Corporation, and Oracle Corporation among others.
The following are the different segments of the Global Procurement Software Market:
- By Deployment segment of the Global Procurement Software Market is sub-segmented into:
- Cloud based
- By Software segment of the Global Procurement Software Market is sub-segmented into:
- Spend Analysis
- By Industry segment of the Global Procurement Software Market is sub-segmented into:
- Transportation & Logistics
- By Region segment of the Global Procurement Software Market is sub-segmented into:
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of LA
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
About Astute Analytica
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