Procurement Analytics Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[220+ Pages Report]According to Facts & Factors, the global procurement analytics market size was valued at USD 4.78 billion in 2023 and is predicted to surpass USD 32.35 billion by the end of 2032. The procurement analytics industry is expected to grow by a CAGR of 23.80% between 2024 and 2032.

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Market Overview

Procurement analytics refers to the deployment of data analytic techniques in the organizational process to optimize the supplies in management, improve procurement processes, and make informed decisions. The major function of such solutions is to manage risk, reduce cost, and improve the efficiency of procurement activities. The procurement analytic solutions assist organizations in managing their sustainability and environmental goals by offering detailed insights on responsible sourcing and supplier practices. Procurement analytic solution is a powerful tool used by organizations to gain a competitive edge and build more resilient supply chains.

Key Insights

• As per the analysis shared by our research analyst, the global procurement analytics market size is estimated to grow annually at a CAGR of around 23.80% over the forecast period (2024-2032).
• In terms of revenue, the global procurement analytics market size was valued at around USD 4.78 million in 2023 and is projected to reach USD 32.35 million by 2032.
• Digital transformation is driving the growth of the global procurement analytics market.
• Based on the end-users, the manufacturing segment is growing at a high rate and is projected to dominate the global market.
• Based on the enterprise types, the large enterprise segment is projected to swipe the largest market share.
• Based on applications, the supply chain management segment is expected to dominate the global market.
• Based on deployment modes, the on-premise deployment model segment is anticipated to witness significant developments in the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

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Growth Drivers

• Digital transformation is driving the growth of the global market.

The growing adoption of advanced technologies like big data, machine learning, artificial intelligence, and the Internet of Things (IoT) across different end-user sectors is making people more familiar with advanced tools and techniques in businesses. Such technology leads to automation of the procurement process, which is the primary reason for the high growth rate of the global procurement analytics market.

Also, the significant shift towards cloud-based solutions is likely to support the growth of the industry. Organizations are more interested in lowering procurement costs and analyzing cost-saving opportunities, which is another major reason for the high growth rate of the market. Analytic solutions also help end-users streamline the procurement processes and improve transparency, which leads to fewer procurement cycles and higher operational efficiency.

Therefore, all these factors are contributing to the positive growth trajectory of the industry. For instance, PartsSource came up with supply chain risk monitoring solutions in June 2022. It is likely to assist customers improve supply chain resilience and equipment time.

Restraints

• High initial investment is likely to hamper the growth of the global market.

The cost of procurement analytic solutions is quite high which is expected to restrain the growth of the procurement analytics industry. Furthermore, advanced systems that include machine learning, AI, and big data tools are more expensive.

Additionally, there is a requirement for hardware, software licenses, and implementation services after a while which also adds to the end cost. Therefore, organizations hesitate to invest in such solutions because of their uncertainty regarding the ROI.

Opportunities

• Risk management capabilities are fostering growth opportunities in the global market.

Procurement analytic solutions have the ability to identify and eliminate the risk of navigating through the complex global supply chain. These solutions offer detailed and predictive insights into the potential disruptions and market volatility, which further help in the proactive management of risk. These solutions also offer strategies to come up with different management strategies to navigate through the complex market landscape.

Furthermore, these also help organizations comply with regulatory requirements. It also eliminates the risk of legal issues and fines by continuously monitoring internal policies and government regulations. All these factors are anticipated to foster growth opportunities in the global procurement analytics market. For instance, Zip collaborated with Oracle in 2023 to integrate its NetSuite platform to grow the adoption of procurement among team members to enhance the spend visibility.

Challenges

• Tech complexity is a big challenge in the global market.

Integrating procurement analytics solutions into the existing system is a big challenge in the procurement analytics industry. The legacy system and ERP platform are technically complex and need skilled professionals for their operations. This skill gap and shortage of expert personnel are likely to slow down the growth of the industry in the coming years.

Segmentation Analysis

The global procurement analytics market can be segmented into end-users, enterprise types, applications, deployment modes, and regions.

On the basis of end-users, the market can be segmented into healthcare & life sciences, transportation, & logistics, BFSI, retail & consumer goods, manufacturing, and others. The manufacturing segment is anticipated to witness significant growth during the forecast period. Manufacturing companies are working hard to lower their overall cost and enhance operational efficiency. Therefore, the sectors are increasing their adoption rate of procurement analytic solutions to lower waste, optimize supplier selection, and look for cost-saving opportunities in the entire procurement process. The complexity of the supply chain poses a requirement for analytical solutions to optimize their supply chain. The procurement analytics solution helps end-users with important information on inventory management, delivery schedule, and supply performance, thereby helping them manage their businesses efficiently.

On the basis of enterprise types, the procurement analytics industry can be segmented into large enterprises and small & medium enterprises. The large enterprise segment accounts for the largest share of the global market during the forecast period. Large enterprises deal with more extensive and complex procurement requirements, which pose a significant demand for procurement solutions. These enterprises deal with a number of suppliers, products, and procurement processes across diverse regions.

Therefore, procurement analytic solutions become of utmost importance amid the growing complexities in the business. Moreover, large enterprises have a more substantial procurement budget when compared to small and medium enterprises, which is a primary reason behind the high growth rate of the segment. Also, large enterprises have ample technological infrastructure to accommodate sophisticated procurement analytic solutions into the existing framework.

Also, they have the resources to integrate advanced technology like data analytics, machine learning, and AI into their software solutions. Another major reason for the high growth rate of the segment is the increasing focus of large enterprises on risk management. The procurement analytics solution will equip these organizations with proactive tools to eliminate potential risks with predictive insights or real-time data analysis.

On the basis of applications, the market can be segmented into contract management, vendor management, speed analytics, risk analytics, supply chain management, and others. The supply chain management segment is expected to dominate the global procurement analytics market during the anticipated period. The globalization of supply chains is paving the way for advanced analytics in the market. The procurement analytics solution offers visibility in the supply chain, thereby helping end-users manage their cross-border logistics, multiple suppliers, and fluctuating market demands.

Also, the changing dynamics of the supply chain are further posing a huge demand for real-time information to make data-driven decisions instantly when needed. These solutions help to respond promptly to the arising challenges in the market. Also, these help end-users optimize costs across the supply chain and leverage cost-saving opportunities by negotiating with suppliers or analyzing the data.

On the basis of deployment mode, the market can be segmented into cloud and on-premise. The on-premise deployment model is the fastest-growing segment in the procurement analytics industry. The on-premise solution helps organizations get more control over their privacy and data security, which is their top priority. Procurement data is quite sensitive as it includes information on supplier contracts, pricing, and many others, which need to be kept confidential within the organization's infrastructure.

Also, many industries like healthcare, finance, and the government sector have strict mandates regarding processing data storage for the on-premise models. Such a model helps reduce the risk of data breaches. Additionally, the on-premise segment comes with greater customization capabilities to help enterprises integrate ERP systems in the extensive IT environment.

Report Scope

Report Attribute	Details
Market Size in 2023	USD 4.78 Billion
Projected Market Size in 2032	USD 32.35 Billion
CAGR Growth Rate	23.80% CAGR
Base Year	2023
Forecast Years	2024-2032
Key Market Players	Zycus Inc., SAS Institute Inc., IBM Corporation, Oracle Corporation, SAP SE, Cisco Systems Inc., Data Technologies Inc., and Others.
Key Segment	By End-Users, By Enterprise Types, By Applications, By Deployment Modes, and By Region
Major Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
Purchase Options	Request customized purchase options to meet your research needs. Explore purchase options

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global procurement analytics market during the forecast period. The United States and Canada are the leading countries in the region because of the high enablers of procurement analytics solutions in the region.

Additionally, the region is known for its rapid technological innovation, which is another major reason expected to accentuate the growth of the regional market in the coming years. However, the digital transformation initiatives in the region are changing the dynamics of the market by integrating advanced technologies and tools like AI, machine learning, and big data into the system.

Also, the organizations in the region are investing heavily in solutions that can help them lower their operational cost and streamline their procurement processes. Procurement analytics helps eliminate the risk associated with supply chain disruptions because of market volatility. Such a landscape is driving the growth of the regional market during the forecast period.

Asia Pacific is another major region that is expected to accentuate the growth of the regional market in the coming years. The industries in the region are primarily being driven by the rising number of businesses recognizing the power of data-driven decision-making in procurement processes. Countries like China, Japan, India, and South Korea are witnessing significant growth in their economies, which is further expanding industries like automation, manufacturing, healthcare, and others.

However, the rapid expansion of these industries in the region is also creating numerous complexities in their supply chain, which is further driving the requirement for advanced analytic solutions. Therefore, all these factors are positively impacting the growth trajectory of the regional market. For instance, International Motorcoach Group & Concentric said it will raise the company's spending on fleet procurement services in 2023.

Competitive Analysis

The key players in the global procurement analytics market include;

• Zycus Inc.
• SAS Institute Inc.
• IBM Corporation
• Oracle Corporation
• SAP SE
• Cisco Systems Inc.
• Data Technologies Inc.

For instance, Ivalua collaborated with Sourcing Champions to integrate the company's S2P platform with different organizations in the Netherlands to improve procurement effectiveness with digitalization.

The global procurement analytics market is segmented as follows:

By End-Users Segment Analysis

• Healthcare & Life Sciences
• Transportation & Logistics
• BFSI
• Retail & Consumer Goods
• Manufacturing
• Others

By Enterprise Types Segment Analysis

• Large Enterprises
• Small & Medium Enterprises

By Applications Segment Analysis

• Contract Management
• Vendor Management
• Speed Analytics
• Risk Analytics
• Supply Chain Management
• Others

By Deployment Modes Segment Analysis

• Cloud
• On-Premise

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America