Procurement Analytics Market Size & Share, by Component (Solutions, Services); Application (Supply Chain Analytics, Risk Analytics, Spend Analytics, Demand Forecasting, Contract Management, Vendor Management, Category Management); Deployment Mode (Cloud, On-Premises); Vertical (BFSI, Retail & E-Commerce, Telecom & IT, Manufacturing, Healthcare & Life Sciences, Energy & Utilities, Government & Defense) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5709
  • Published Date: Feb 21, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Procurement Analytics Market size is expected to surpass USD 65 Billion by the end of 2036, growing at a CAGR of 24% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of procurement analytics was USD 4 Billion. The use of procurement analytics technology and services is expected to be fueled by rising corporate spending on marketing and advertising, a shifting customer intelligence environment to drive the market, and the expansion of customer channels. The annual global expenditure on advertising is estimated to be USD 674 billion.

In addition, one of the major drivers for procurement analytics is automation. The tremendous requirement that enterprises have for contract and compliance management contributes to the rising demand. For example, the U.S. software giant ServiceNow updated its current product to include a procurement service management component that helps with other field activity management. The goal of ServiceNow is to automate workflows related to and involved in procurement.


Procurement Analytics Market
Get more information on this report: Request Free Sample PDF

Procurement Analytics Sector: Growth Drivers and Challenges

Growth Drivers

  • Businesses battle to maintain their place in the cutthroat market- With the proliferation of emerging technologies like big data, machine learning, and IoT in the market, competition is getting more intense. In all, 72% of the businesses that responded to the survey said they were using or developing machine learning applications. Businesses are working very hard to implement these technologies and grow their knowledge in order to stay in the procurement analytics market . Organizations operating in such a demanding and competitive environment can gain a better knowledge of the procurement risks through the use of procurement analytics tools. Analytics solutions have also aided businesses in swiftly adapting to the shifting demands of the market in order to thrive in the fiercely competitive environment.
  • Demand for cloud-based analytical solutions is rising- The procurement analytics solution gives businesses the flexibility and agility to make better decisions faster and at a lower cost. To create better business strategies, a variety of enterprises worldwide are implementing advanced analytics technology integrated with robots and artificial intelligence capabilities. It aids businesses in forecasting market possibilities and optimizing return on investment. An organization's ability to operate properly may be impacted by future procurement outcomes, which is where procurement analytics come into play. Organizations are attempting to migrate their data to the cloud in order to maximize benefits and analyse it for insights that can be put into action, since real-time data accessibility has become more prevalent. It has made it possible for providers of procurement analytics software to offer cloud-based solutions.
  • Increase in The Demand for Procurement Automation and Digitization- Businesses are embracing supplier collaboration tools, predictive analytic capabilities, and strategic sourcing solutions to speed up the procurement process, automate manual labour, and enhance productivity. Due to the vast dispersion of businesses, it is becoming more and more important for both big and small enterprises to evaluate and modify digital procurement automation solutions in order to stay competitive and hold onto their market share. Procurement, contract administration, vendor relationships, payments, and other disciplines are impacted by the introduction of procurement automation, which is a deliberate strategy adopted by businesses to digitize work from antiquated methods.

Challenges

  • Challenges in Simplifying the Procedures and Worries About Data Privacy- To properly manage their procurement portfolio, firms must streamline a number of internal processes. To efficiently make procurement decisions, all of the different activities including supply chain, inventory management, accounting, vendor selection, sourcing, and reporting should be streamlined and placed under a single umbrella. Before implementing the analytics solutions on the organization platforms, procurement analytics vendors must streamline a number of processes. The procurement analytics market is not growing as much as it should because of the lack of integration and companies' worries about privacy violations that could damage their brand.
  • The market may grow more slowly if advanced analytical technologies are reluctant to be used.
  • Widespread distant work created challenges for teamwork and data availability. The combination of these factors caused organizations to prioritize short-term cost-cutting measures over long-term investments in analytics, which in turn slowed down market growth.

Procurement Analytics Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 24%

Base Year Market Size (2023)

 ~ USD 4 Billion

Forecast Year Market Size (2036)

 ~ USD 65 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
Get more information on this report: Request Free Sample PDF

Procurement Analytics Segmentation

Component (Solutions, Services)

Based on component, the solutions segment in the procurement analytics market is expected to hold 60% of the revenue share during the forecast period. Working capital management is improved and growth is accelerated by the procurement analytics software provided by procurement analytics firms. The market offers a wide range of solutions. Oracle and SAP, which offer products including risk analytics, spend analytics, and supply chain management, are a couple of instances of procurement analytics companies. When considering social, economic, and environmental concerns, emerging technologies offer new prospects for sustainable development and green technology. Therefore, one of the main factors driving the use of procurement analytics solutions across verticals globally and driving the market ahead is growing awareness of technology's negative environmental effects. For example, The Hong Kong and Shanghai Banking Corporation Limited is stepping up its efforts to assist companies of all kinds in making the switch to more sustainable business models beginning of October 2020. A little over USD 1 trillion has been invested to funding environmentally friendly companies and creating climate solutions to safeguard the expansion of new firms.

Deployment Mode (Cloud, On-Premises)

Based on deployment mode, on-premises segment in the procurement analytics market is expected to hold largest revenue share of about 55% during the forecast period. An organization using on-premises solutions must buy a license or a copy of the software. Firms in heavily regulated areas, such as Europe, are required to utilize software that they have bought. The segment's market share in procurement analytics is influenced by variables including local security controls and data protection resulting from on-premises data storage. But because on-premises software needs specialized IT staff, accessibility and support are better within the company.

Our in-depth analysis of the global market includes the following segments:

     Component

  • Solutions
  • Services

     Application

  • Supply Chain Analytics
  • Risk Analytics
  • Spend Analytics
  • Demand Forecasting
  • Contract Management
  • Vendor Management
  • Category Management

     Deployment Mode

  • Cloud
  • On-Premises

     Organization Size

  • Large Enterprises
  • Small & Medium-Sized Enterprises

     Vertical

  • BFSI
  • Retail & E-Commerce
  • Telecom & IT
  • Manufacturing
  • Healthcare & Life Sciences
  • Energy & Utilities
  • Government & Defense

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Procurement Analytics Industry - Regional Synopsis

North American Market Forecast

Procurement analytics market in North America region is attributed to hold largest revenue share of about 34% during the forecast period due to the early use of digital processes and technologies like analytics. Regional growth is probably going to be driven by the rise in spending on risk management, supply chain analytics, and vendor analytical solutions. Furthermore, leading North American companies in the procurement analytics space are always adding new products to their lineup and improving the ones they already have. To assist clients in enhancing equipment uptime and supply chain resilience, PartsSource announced in June 2022 the release of a visual formulary control and supply chain risk monitor. It is anticipated that in 2023, spending on risk management and information security goods and services would increase by 11.3% to exceed USD 188.3 billion.

APAC Market Statistics

Procurement analytics market in Asia Pacific region is projected to hold largest revenue share of about 27% during the forecast period. Big data analytics is revolutionizing businesses and governments in the Asia Pacific area. China and India are two nations that are integrating technology to enhance supply chain management and operations. The expansion of the market is also being driven by an increase in IoT use and data analysis of manufacturing processes. In February 2022, Google Inc. published an article stating that over 200 unicorn companies were located in the region in 2021. The region's increasing start-up scene is probably going to have an impact on the market's expansion.

Research Nester
Procurement Analytics Market size
Get more information on this report: Request Free Sample PDF

Companies Dominating the Procurement Analytics Landscape

top-features-companies
    • Key Players
      • Microsoft Corporation
        • Company Overview
        • Business Strategy
        • Key Product Offerings
        • Financial Performance
        • Key Performance Indicators
        • Risk Analysis
        • Recent Development
        • Regional Presence
        • SWOT Analysis
      • IBM Corporation
      • Cisco Systems, Inc.
      • SAP SE
      • Genpact Ltd.
      • SAS Institute
      • Zycus Inc.
      • Bain Capital
      • GEP
      • Rosslyn Data Technologies
      • Honda Motor Co., Ltd.
      • Oracle Corporation Japan
      • Fujitsu Limited
      • NTT DATA Corporation
      • Mitsui & Co., Ltd.

In-the-news

In The News

  • Boston-based private equity firm Bain Capital purchased PartsSource. PartsSource is a healthcare service provider as well as a B2B marketplace. PartsSource links more than 6000 OEM manufacturers with almost 19,000 clinics and hospitals in the United States. With the help of its precision procurement analytics technology, hospitals may cut costs, lower risk, and improve supply chain visibility.
  • GEP and Liberty Global, a company that combines broadband, mobile, and video communications, have established a cooperation. Liberty Global uses GEP software to automate all aspects of their source-to-contract process, including sourcing, spend analysis, savings tracking, category workbench, contract and supplier administration, for both direct and indirect procurement.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5709
  • Published Date: Feb 21, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising corporate spending on marketing and advertising and a shifting customer intelligence environment are the major factors driving the growth of the procurement analytics market.

The market size of procurement analytics is anticipated to attain a CAGR of 24% over the forecast period, i.e., 2024 - 2036.

The major players in the market are Croda International Plc, Oleon NV, Wilmar Group, Occidental Petroleum Corporation, Ercros, S.A., FMC Corporation, Olin Corporation, Tokyo Chemical industry Co., Ltd., Nissan Chemcial corporation, and others.

The solution segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Procurement Analytics Market Report Scope
  GET A FREE SAMPLE

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying