Spend Analytics Software Market

The Spend Analytics Software Market is divided into cloud and on-premises deployment model segments. During the forecast period, the cloud segment is expected to grow at a faster rate than the on-premises segment. The cloud segment is expected to account for a larger share of the Spend Analytics Software Market by 2023. This is attributed to the increased adoption of cloud-based solutions across businesses of all sizes. On the other hand, spend analytics software embedded in the cloud can present a number of advantages compared to on-premises solutions, such as low upfront costs, scalability and flexibility.

By 2023, the on-premises segment is expected to take a smaller share in the Spend Analytics Software Market. This is because there is an increasing shift of businesses towards cloud-based solutions. However, on-premises solutions still have a number of advantages over their cloud-based alternatives, such as better control of data and security. There are a number of factors contributing to the significant growth of the Spend Analytics Software Market in the next five years. These include the increase in adoption of cloud-based solutions, the need for businesses to understand and manage their spending, and the increasingly complex global supply chain.

The Spend Analytics Software Market is segmented by industry. Major industries covered under the scope of this report include manufacturing, retail, healthcare, financial services, government, IT, telecom and others. In 2023, the manufacturing industry accounted for the largest market share, and it is expected to generate revenue from the Spend Analytics Software Market, which will make up about 28.5% of the market. The retail industry is expected to be a developing market, and its CAGR can reach 10.2% through 2032. The healthcare industry may be considered a second major market because, in 2023, the share was equal to 16.3%.

The financial services industry is also growing; its CAGR is expected to be as high as 9.5% by 2032. The government, IT and telecom and other industries are no less important, and companies operating in these fields will contribute to the growth of the market.

Organization Size Segment Insight and Overview The Spend Analytics Software Market is segmented by organization size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. In 2023, the Large Enterprises segment held a dominant market share, accounting for over 60% of the Spend Analytics Software Market revenue. This dominance is attributed to the increasing adoption of digital transformation initiatives and the need for comprehensive spending visibility and control among large enterprises. SMEs are expected to witness significant growth in the coming years, owing to the rising awareness of cost optimization and the need for data-driven decision-making.

The increasing availability of cloud-based spend analytics solutions is further fueling the growth of the SME segment. Overall, the market for Spend Analytics Software is expected to grow significantly in the coming years, driven by the increasing need for organizations to optimize their spending and improve their financial performance.

Spend analysis is the most widely used functionality in the Spend Analytics Software Market, with revenue expected to reach $12.7 billion by 2023. It helps organizations track and analyze their spending patterns, identify potential savings and optimize their procurement processes. Supplier management is another key functionality, enabling organizations to manage their supplier relationships, assess their performance, and mitigate risks. Procurement analytics provides insights into the procurement process, helping organizations identify inefficiencies and improve their decision-making.

Contract management helps organizations manage their contracts, track their performance and ensure compliance. Risk and compliance management helps organizations identify and mitigate risks associated with their spending and procurement processes. Other functionalities include budget management, invoice processing, and travel and expense management. These functionalities help organizations gain a comprehensive view of their spending and procurement processes, enabling them to make informed decisions and improve their overall efficiency and profitability.

The Spend Analytics Software Market segmentation by End-User includes Procurement Professionals, Finance Professionals, Business Analysts, Operations Managers and Other End-Users. The Spend Analytics Software Market revenue for Procurement Professionals is expected to reach $10.24 billion by 2023, growing at a CAGR of 8.9%. Finance Professionals segment is projected to grow at a CAGR of 8.4%, reaching $9.12 billion by 2032. Business Analysts segment is estimated to reach $7.83 billion by 20, exhibiting a CAGR of 8.2%. Operations Managers segment is expected to witness a CAGR of 7.9%, reaching $6.94 billion by 2032.

Other End-Users segment is projected to grow at a CAGR of 7.6%, reaching $5.61 billion by 2023. The growth of the Spend Analytics Software Market is attributed to the increasing need for organizations to improve their spend visibility and control, optimize their procurement processes, and make better data-driven decisions.