Procurement software companies offer platforms designed to streamline and automate procurement processes. Their software helps businesses manage suppliers, purchase orders, contracts, and expenses more efficiently. By enhancing procurement operations, these companies assist organizations in reducing costs, improving supplier relationships, and optimizing their supply chains.
Competitive Landscape of Procurement Software Market
The procurement software market is a rapidly growing and dynamic space, fueled by increasing demand for automation, cost savings, and improved supply chain visibility. This report delves into the competitive landscape, highlighting key players, their strategies, and factors influencing market share analysis. Additionally, it explores emerging companies and current investment trends in the sector.
Key Players:
Strategies Adopted by Key Players:
To stay ahead of the curve, key players are adopting various strategies, including:
Factors for Market Share Analysis:
Several factors play a crucial role in determining market share in the procurement software market:
New and Emerging Companies:
Several new and emerging companies are entering the market with innovative solutions and niche offerings. These companies are primarily focusing on:
Current Company Investment Trends:
Current company investment trends in the procurement software market include:
Latest Company Updates:May, 2023
Amazon Business introduces a new mobile app-based procurement solution in 2023. Buyers can complete purchase orders on a mobile device with the new 3-Way Match feature of the Amazon Business mobile app. A new tool available to Amazon Business buyers speeds up purchase order reconciliation without the use of a desktop computer or handheld scanner.
In order to assist customers in keeping track of their tool and equipment inventory across their operations, Kojo, the top materials and inventory management platform for the construction industry, today announced the debut of Kojo Tool Tracking in 2023.
The Procurement Software Market is projected to grow from USD 7.0 billion in 2024 to USD 15.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.2% during the forecast period (2024 - 2032). Additionally, the market size for procurement software was valued at USD 6.1 billion in 2023.
The COVID-19 pandemic has severely disrupted the logistics and supply chain of major companies with goods exceeding their expiration data and rising costs of transportation. Lockdowns initiated by governments have resulted in losses for the company with warehouses becoming overcrowded. Procurement software can assist companies in identifying goods with the highest liabilities and accorded with preventive measures.
The shift to a digital mode of procurement can lead to adherence to quarantine rules and tracking goods received note (GRN) and invoice reference number (IRN). This can ensure productivity during lockdown period by managers. Automation of procurement payment process can drive the sales of procurement software over the forecast period. E-procurement technology can enable organizations for contacting suppliers of their choice and communicate in real-time for their sourcing needs. The technology will see greater adoption rates even after the pandemic as buyers look to strengthen their supply chains and reduce risks.
Procurement software offers companies a tool for managing prices of raw materials and provides a cost-benefit analysis throughout the production cycle. The entry of new players and procurement of goods can drive the demand for procurement software. The penetration of digital logistics and support software, establishment of network infrastructure, and adoption of new technologies can bode well for the market. Asia Pacific being one of the fastest growing regions is likely to embrace digitization for saving on expenses, streamlining of the procurement process, and prevention of duplicated records. This makes the region very lucrative for the global market.
Mobile procurement software applications are expected to be opportune for players in the global procurement software market. This can be attributed to encouraging policies by governments supporting digitization due to transparency in accounts and integration of artificial intelligence. International transactions and synergy among suppliers and procurement vendors can drive the trend in the forthcoming years. E-procurement can streamline steps of sourcing to payment and create value for enterprises. The platform can bring in transparency to suppliers and improve efficiency by maintaining relationships with partners. Procurement of sanitizers, hand masks, and other protective clothing for curbing the spread of the disease and reopen production units are likely to witness a surge during the pandemic.
Lack of skilled professionals who specialize in operating software and maintaining positive relationships between enterprises and their suppliers can restrain the global procurement software market growth. Hiring of the right people by procurement managers for their industry and acceleration of digital initiatives can bode well for the market.
The on-premise segment is expected to retain its lead in the market till the end of the forecast period owing to preference of on-premise installation of the software by organizations. Organizations can train their personnel in utilization of the software for purchase and pricing of goods for acquiring large quantities at nominal rates.
The spend analysis software is expected to attract massive demand and display 10.6% CAGR over the forecast period. The ability to pinpoint purchase patterns and opportunities for cost savings can drive the segment growth. Compliance with latest laws and organization of spending data allows companies to make informed decisions. Moreover, the categorization of maintenance, repair, and operations (MRO) spending according to small and medium suppliers can improve the quality of data.
SMEs are expected to lead in the global procurement software market and exhibit 10.3% CAGR over the forecast period. Rise of cloud deployments and efforts for increasing market share can drive the demand for the software by the segment. Moreover, simplification of contracts, new sources of supply, reduced invoice errors, and improved working capital are advantages attracting SMEs towards the software.
The retail segment is expected to dominate the market revenues owing to demand for centralized procurement processes and efficient management of the inventory. Integration of business processes and transparency in supply chains can drive the segment growth. The use of the software for automating tasks and procuring best rates from the vendor can bolster the market demand in the segment.
APAC is expected to display a 10% CAGR over the forecast period due to large number of logistic firms based in China and India. Setup of manufacturing units and investments in the procurement software market by global players can be attributed to the growth trajectory. The increasing purchasing power of customers in the region can bode well for the market in the coming years. Mid-sized companies in the region can control the spending and benefit from real-time visibility in the procurement process.
Global Procurement Software Market is less dense owing to technological integration being at a nascent stage in the supply chain. Partnerships, mergers, and product innovation are prime strategies deployed by players to gain the competitive edge. Development of online portals for improving productivity and being in touch with esteemed clients can play a pivotal role in maintaining relationships.
Coupa Software Incorporated (U.S.)
Epicor Software Corporation (U.S.)
JDA Software Inc. (U.S.)
Zycus Inc. (U.S.)
SAP SE (Germany)
Mercateo AG (Germany)
Oracle Corporation (U.S.)
Infor Inc. (U.S.)
IBM Corporation (U.S.)
Global Procurement Software Market report by MRFR analyzes the shift to digitization and move by large buyers and contractors for adopting software for management of business tasks. The report takes into consideration of trends, niches, opportunities, and challenges for estimating market revenue and growth trajectories. It is segmented in the following manner:
Procurement Software Market Highlights:
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