Regionally, the global spend analysis software market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of the rising adoption of cost-effective spend analytics software and services among small and medium sized enterprises in the region. In addition, rapid rate of urbanization and digital transformation is also expected to drive market growth in the region in the coming years. According to the World Bank, in 2020, the percentage of urban population in the East Asia & Pacific region was about 60.698%, up from 59.889% in 2019 and 59.053% in 2018 respectively. Moreover, the market in North America is projected to grab the largest share during the forecast period ascribing to the early adoption of new and emerging technologies, and strong presence of major market players in the region.
The global spend analysis software market is further classified on the basis of region as follows:
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Our in-depth analysis of the global spend analysis software market includes the following segments:
By Analytics Type
By End User
January 2021- JAGGAER and EdgeVerve announced the launch of AI-powered contracts and risk analysis solution that is able to learn continuously from the customer’s business and evolving market.
March 2020- SAP Ariba solutions and SAP S/4HANA Cloud declared that they are completely integrated to deliver an end-to-end source-to-pay process, part of the intelligent suite of solutions from SAP.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving market growth are increasing amount of data generated across the world, and growing demand for implementation of predictive analytics among businesses.
Ans: The market is anticipated to attain a CAGR of ~17% over the forecast period, i.e., 2022-2031.
Ans: The major players in the market are SAP SE, IBM Corporation, Coupa Software Inc., Oracle Corporation, Zycus Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by analytics type, application, end user, and by region.
Ans: The predictive segment is anticipated to hold largest market size and is estimated grow at a notable CAGR over the forecast period and display significant growth opportunities.
Ans: Rising number of security and data breach issues is estimated to hamper the market growth.
Ans: Asia Pacific will provide more business opportunities for market growth owing to the rising adoption of cost-effective spend analytics software and services among small and medium sizer enterprises in the region.