As per MRFR Analysis, the Procurement Analytics Market was valued at 6.77 USD Billion in 2023 and is projected to grow to 15.8 USD Billion by 2035, with a CAGR of 7.32% from 2025 to 2035. The market is driven by the need for cost optimization, regulatory compliance, and technological advancements in analytics capabilities.
The Global Procurement Analytics Market is undergoing significant transformation due to technological advancements and increasing demand for data-driven decision-making.
IBM, Ariba, SAP, Bain and Company, Procurify, InfoSys, Coupa Software, Jaggaer, Kinaxis, GEP Worldwide, Zycus, Icertis, Microsoft, SAS Institute, Oracle
Key Procurement Analytics Market Trends Highlighted
The Procurement Analytics Market is witnessing significant growth due to several key market drivers. The increasing need for organizations to enhance their supply chain efficiencies and make data-driven decisions is pushing demand for procurement analytics tools. Companies are recognizing the necessity of leveraging big data and advanced analytics to optimize procurement strategies, identify cost-saving opportunities, and improve supplier relationships.Â
Additionally, the rise of artificial intelligence and machine learning technologies is enabling more sophisticated analytical capabilities, allowing businesses to predict procurement trends and manage risks more effectively.
One chance to take advantage of in this market is the use of Blockchain technology, which is said to make procurement processes more open and easy to track. More and more businesses are looking for ways to source goods in a way that is both ethical and good for the environment. Procurement analytics can help keep track of how well suppliers are following these rules, which can give you an edge over your competitors.
 Also, small and medium-sized businesses will be able to access procurement analytics tools more easily with the use of more advanced cloud solutions. This will make the market bigger. Recently, there has been a clear trend of companies putting digital transformation projects at the top of their lists of things to do. This has led to more money being spent on procurement analytics solutions.
This trend is further accelerated by the ongoing challenges related to global supply chain disruptions, which force companies to re-evaluate their sourcing and procurement strategies. A focus on real-time analytics and the adoption of collaborative tools to improve communication between procurement teams and suppliers has also become prominent. As organizations strive for agility and responsiveness, the importance of procurement analytics will continue to rise globally, shaping the future of procurement practices.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Procurement Analytics Market Drivers
Increasing Demand for Data-Driven Decision Making
The Procurement Analytics Market is experiencing significant growth due to the increasing demand for data-driven decision-making across various sectors. Enterprises are increasingly leveraging analytics to derive insights from historical procurement data, enabling them to optimize their supply chains and reduce costs. According to a report by the United Nations Conference on Trade and Development (UNCTAD), the value of global merchandise trade reached 18.5 trillion USD in 2021, indicating a need for efficient procurement strategies.
Prominent organizations like IBM and SAP have developed advanced procurement analytics solutions that help businesses achieve a substantial cost reduction of up to 20% on procurement expenses annually. As businesses continue to embrace digital transformation, the reliance on procurement analytics for informed decision-making is anticipated to expand, driving market growth.
Regulatory Compliance and Risk Management
Regulatory compliance and risk management are becoming increasingly crucial in the Procurement Analytics Market. As businesses navigate complex regulations, analytics play a vital role in ensuring compliance while optimizing procurement processes. The World Trade Organization (WTO) has reported a rise in compliance challenges, with countries tightening regulations on trade practices. Companies like Oracle offer procurement analytics tools that assist organizations in adhering to regulatory standards and minimizing risks.
The demand for these solutions is projected to grow, as businesses aim to avoid costly penalties and ensure compliance with local and international laws, thereby fueling market expansion.
Enhanced Supplier Relationship Management
Enhanced supplier relationship management is a prominent driver influencing the Procurement Analytics Market. With growing globalization and increasing cross-border trade, businesses require effective management of supplier relationships to maintain competitiveness. Research by the European Commission highlights that 95% of EU companies consider suppliers critical to their innovation processes. Major players such as Coupa provide analytics-driven insights that help organizations evaluate supplier performance, driving better collaboration and long-term partnerships.
This focus on improving supplier relationships can lead to increased operational efficiency and innovation while contributing to an anticipated growth in the procurement analytics segment.
Procurement Analytics Market Segment Insights
Procurement Analytics Market Deployment Type Insights
The Procurement Analytics Market is experiencing notable expansion, particularly within the Deployment Type segment, which comprises Cloud, On-premises, and Hybrid categories. By 2024, the Cloud deployment segment is expected to reach a valuation of 3.0 USD Billion, indicating a significant shift toward cloud-based solutions due to their scalability and cost-effectiveness. This sub-segment is projected to grow to 6.5 USD billion by 2035, reflecting the trend where organizations favor cloud options for improved accessibility and collaboration across global teams.
Meanwhile, the On-premises segment is valued at 2.5 USD Billion in 2024, with growth expected to elevate it to 5.5 USD Billion in 2035. This deployment option remains crucial for organizations prioritizing data security and regulatory compliance, thus holding a considerable share in the market. Additionally, the Hybrid deployment model is valued at 1.76 USD billion in 2024, expected to grow to 3.8 USD billion by 2035, catering to businesses that require both on-premises stability and cloud flexibility. The Hybrid approach appeals to organizations looking for a balanced solution, combining the benefits of both cloud and on-premises deployments.
The rise in cloud-first strategies and digital transformation initiatives globally has reinforced the importance of these deployment types. Moreover, the continuous evolution of procurement practices, driven by increasing data requirements and a need for effective supplier management, presents significant opportunities for providers in this space. Challenges such as data integration and security remain, but the demand for procurement analytics tools that can operate across multiple deployment types continues to grow. The segment dynamics reflect broader market trends, showcasing how technology advancements and changing business needs are shaping deployment preferences within the Procurement Analytics Market landscape.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Procurement Analytics Market Application Insights
The Procurement Analytics Market is projected to reach approximately 7.26 USD Billion in 2024, showcasing significant growth within the Application domain. This segment is pivotal in enhancing procurement processes by leveraging data analytics to improve efficiency and decision-making. Within this domain, Spend Analysis plays a crucial role as it helps organizations scrutinize expenditure and identify cost-saving opportunities, leading to optimization. Supplier Performance Analysis is another key aspect, enabling businesses to evaluate suppliers based on various metrics, ensuring high standards and reliability in the supply chain.
Contract Management stands out for streamlining procurement agreements, facilitating adherence to terms, and minimizing risks associated with non-compliance. Meanwhile, Risk Management is essential for identifying and mitigating potential supply chain vulnerabilities, thereby safeguarding organizational interests. The market reflects a growing emphasis on data-driven decision-making across these applications, underscoring the significance of effective procurement strategies in a globalized economy. As organizations increasingly adopt advanced analytics, the Procurement Analytics Market data indicates robust growth potential driven by the necessity for efficiency and risk mitigation in procurement operations.
Procurement Analytics Market End User Insights
The Procurement Analytics Market, focusing on the End User segment, is poised for growth as businesses increasingly recognize the value of data-driven decision-making. By 2024, the market is expected to reach 7.26 USD Billion, reflecting a robust demand across various sectors. Within this landscape, the Retail and Manufacturing industries play a crucial role as they seek efficient supply chain management and cost reduction strategies. Healthcare organizations leverage procurement analytics to optimize resource allocation and improve patient care outcomes.
The IT sector benefits from enhanced vendor management, while Telecommunications companies utilize analytics for improved service delivery. Collectively, these areas contribute to the market dynamics, with organizations adopting advanced analytical tools to gain insights into procurement processes. The Procurement Analytics Market data showcases varied growth drivers, such as the rise in digital transformation initiatives and increasing demand for efficiency. However, challenges like data integration and cybersecurity concerns remain pertinent.
Overall, the trends indicate a shift toward smart procurement practices across all sectors, offering significant opportunities for innovative solutions in the market.
Procurement Analytics Market Component Insights
The Component segment of the Procurement Analytics Market includes crucial categories such as Software and Services, which play a pivotal role in driving efficiency and strategic decision-making in procurement processes. As the market is projected to reach a valuation of USD 7.26 billion in 2024 and continue to grow significantly, these components are essential in managing procurement data effectively. Software solutions are becoming increasingly important as organizations recognize the need for advanced analytics to gain insights from their supplier relationships and purchasing behaviors.
This segment generally garners a majority holding in terms of market revenue, as businesses invest heavily in technologies that enhance visibility and control over procurement activities. Services, on the other hand, encompass critical functions such as consulting, implementation, and support, which enable companies to maximize the benefits of procurement analytics tools. The growing trend towards automation and digitization in procurement strategies further underlines the importance of these components, presenting opportunities for innovative solutions and improved resource management in a highly competitive global market.
Procurement Analytics Market Regional Insights
The Regional segment of the Procurement Analytics Market exhibits notable diversity in valuations and growth trajectories. In 2024, North America leads this segment with an expected value of 2.2 USD Billion, growing to 4.7 USD billion by 2035, largely driven by the strong technological adoption and a mature market for analytics solutions. Europe follows closely with a valuation of 1.8 USD Billion in 2024, anticipated to reach 3.9 USD billion in 2035, underscoring its importance in the analytics landscape. The Asia Pacific region, valued at 2.0 USD Billion in 2024 and projected to attain 4.3 USD billion by 2035, demonstrates significant growth potential due to increasing digital transformation and investment in procurement strategies.
South America and the Middle East, and Africa represent smaller segments, with values of 0.6 USD Billion and 0.66 USD billion in 2024, respectively, yet both are poised for gradual growth as awareness of procurement analytics expands. These figures reflect the Procurement Analytics Market segmentation, highlighting the contributions from different regions, which are crucial for understanding market dynamics and the overall industry landscape. The increasing adoption of data-driven decision-making in procurement practices signifies the importance of these regional markets, driving their respective valuations forward.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Procurement Analytics Market Key Players and Competitive Insights
The Procurement Analytics Market has been witnessing significant growth as organizations increasingly recognize the value of data-driven insights in improving procurement processes and decision-making. This market is characterized by a rapidly evolving landscape where numerous key players are striving to leverage advanced technologies such as artificial intelligence, machine learning, and big data analytics. Competitive insights reveal that market participants are not only focused on enhancing their product offerings but are also actively seeking to establish strategic partnerships and collaborations to strengthen their market positions. As more companies adopt procurement analytics solutions, the focus on innovative features, capabilities, and customer service is becoming increasingly important to differentiate one offering from another in this growing market.
Basware has positioned itself as a strong player in the Procurement Analytics Market, with a robust portfolio of solutions designed to enhance procurement efficiency and decision-making. The company's strengths lie in its comprehensive analytics tools that offer insights into procurement processes, supplier performance, and spending patterns. Basware caters to a diverse range of industries, which reinforces its presence in the global market. The company has made substantial investments in research and development, continuously innovating to ensure that its offerings remain at the forefront of technological advancements. This commitment to innovation, combined with a strong reputation for reliability and client support, has solidified Basware's standing as a trusted provider in procurement analytics.
Tealbook is another notable entity within the Procurement Analytics Market, known for its unique approach to supplier data and insights. The company focuses on providing a comprehensive platform that centralizes supplier information, thereby improving procurement agility and transparency. Tealbook’s key products and services include its robust supplier data management tools and advanced analytics capabilities, enabling organizations to make informed procurement decisions. With a strong emphasis on integrating artificial intelligence into its offerings, Tealbook enhances the accuracy of supplier evaluations and market insights. The company has been proactive in forging strategic partnerships and collaborations to expand its market presence, and its commitment to innovation is evident in its continuous efforts to enhance its product functionality. Overall, Tealbook stands out in the global procurement analytics landscape due to its focus on data-driven insights that empower organizations to optimize their supplier relationships and procurement strategies.
Key Companies in the Procurement Analytics Market Include:
Procurement Analytics Market Developments
There have been a lot of changes in the Procurement Analytics Market lately, especially from big companies like Basware, Tealbook, Coupa, Oracle, and GEP. GEP QUANTUM, GEP's AI-first platform, was launched in October 2023. Its goal is to provide more information about procurement, supply chains, and sustainability initiatives. This was a major breakthrough in how artificial intelligence can be used in platforms for procurement analytics.
Thoma Bravo bought Coupa in February 2023, and the company has continued to improve its data capabilities through its unified spend platform. But, despite what was said, Coupa did not announce the purchase of a dedicated analytics company in September 2023.
IBM is still improving its procurement-related products, but there was no announcement of a new procurement intelligence suite in July 2023. Ivalua is said to have grown its user base, which shows that there is a growing need for strong procurement analytics tools. However, the exact number of 20% growth has not been confirmed in public sources.
In general, the procurement analytics market has grown steadily. This is because more money is being spent on digital transformation, supplier risk management, and data-driven decision-making, especially since companies have had to deal with problems in the global supply chain since 2020. Companies like SAP, Zycus, Jaggaer, and SpendHQ are always coming up with new ways to help businesses better manage their costs and work with suppliers by using real-time analytics.
Procurement Analytics Market Segmentation Insights
Procurement Analytics Market Deployment Type Outlook
Procurement Analytics Market Application Outlook
Procurement Analytics Market End User Outlook
Procurement Analytics Market Component Outlook
Procurement Analytics Market Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | 6.77 (USD Billion) |
| Market Size 2024 | 7.26 (USD Billion) |
| Market Size 2035 | 15.8 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 7.33% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Basware, Tealbook, Coupa, Determine, Oracle, GEP, Ivalua, IBM, SpendHQ, Jaggaer, SynerTrade, Zycus, SAP, Procurify, ProcurementIQ |
| Segments Covered | Deployment Type, Application, End User, Component, Regional |
| Key Market Opportunities | AI and machine learning integration, Real-time data analysis demand, Increased focus on cost reduction, Supplier risk management enhancement, Cloud-based solutions adoption |
| Key Market Dynamics | Increasing data-driven decision making, Rising demand for cost efficiency, Integration of AI technologies, Need for supplier risk management, and Growing adoption of cloud solutions. |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Procurement Analytics Market Highlights:
Frequently Asked Questions (FAQ) :
The Procurement Analytics Market is expected to be valued at 7.26 USD billion in 2024.
The market is expected to grow at a CAGR of 7.33% from 2025 to 2035.
The North American segment is projected to reach a value of 4.7 USD billion by 2035.
The Cloud deployment type is expected to be valued at 3.0 USD Billion in 2024.
Major players include Basware, Coupa, Oracle, GEP, and SAP, among others.
The Asia Pacific region is expected to reach a market size of 4.3 USD billion by 2035.
The On-premises deployment type is projected to be valued at 5.5 USD Billion in 2035.
The South American segment is expected to grow to 1.3 USD billion by 2035.
Increasing need for data-driven decision-making and cost reduction initiatives are key growth drivers.
The Hybrid deployment type is expected to be valued at 3.8 USD billion by 2035.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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