The global procurement analytics market was valued at USD 2.88 billion in 2021 and is projected to reach USD 18.18 billion by 2030, demonstrating a robust compound annual growth rate (CAGR) of 23.6% from 2022 to 2030. This significant expansion is driven by the increasing demand for operational efficiency across industries. Businesses are leveraging advanced data analytics to gain critical insights for negotiations, performance management, vendor segmentation, and annual purchasing plans. Procurement departments, rich in data like transaction history and expenditure details, can significantly enhance business decisions by applying intelligent argumentation and analytics to this information.
Automation plays a pivotal role in the procurement analytics market's growth. Another key driver for high demand is the considerable need for organizations to effectively manage contracts and ensure compliance. For example, ServiceNow, a U.S.-based software company, has enhanced its procurement service management feature, aiming to automate and streamline procurement workflows.
Key Market Trends & Insights:
- Regional Dominance: North America held the largest revenue share, exceeding 40% in 2021, and is anticipated to maintain its leading position throughout the forecast period.
- Component Leadership: The solution segment dominated the market in 2021, accounting for over 70% of the revenue share, encompassing both solutions and services.
- Deployment Preference: The on-premise segment secured the largest revenue share, above 53% in 2021. On-premises solutions typically require an enterprise to purchase a software license or copy.
- Application Focus: Supply chain management emerged as the leading application segment, holding more than 30% of the revenue share in 2021. This growth is fueled by the rising adoption of procurement processes that aid in collecting, classifying, and analyzing spending data through specialized software.
- Organization Size Impact: Large enterprises dominated the market in 2021, holding approximately 76% of the market share. Small and medium enterprises also incur expenses related to software purchases and subscription services.
- Vertical Performance: The telecom and IT segment led the market in 2021 with a share exceeding 18%. However, the adoption of procurement analytics in the manufacturing sector is notably high.
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Market Size & Forecast
- 2021 Market Size: USD 2.88 Billion
- 2030 Projected Market Size: USD 18.18 Billion
- CAGR (2022 - 2030): 23.6%
- North America: Largest market in 2021
- Asia Pacific: Fastest growing market
Key Companies & Market Share Insights
Major competitors in the procurement analytics market are primarily focused on innovation and continuously updating their product portfolios to secure a competitive advantage. A notable example is Oracle Corporation, a key player in this market, which in August 2021 released an updated version of its Cloud Procurement. Oracle's solutions, including Oracle Fusion Cloud Enterprise Resource Planning and Oracle Fusion Cloud Supply Chain & Manufacturing, are designed to mitigate risks, reduce costs, and streamline supply chain management.
Companies are also investing in acquisitions and backward integration as strategies to reduce costs and enhance operational efficacy. For instance, in July 2021, Bain Capital, a private equity firm based in Boston, acquired PartsSource. PartsSource operates as a B2B marketplace and healthcare services provider, connecting approximately 19,000 clinics and hospitals with over 6,000 OEM manufacturers across the U.S. Their precision procurement analytics solution empowers hospitals to minimize waste, reduce risk, and improve overall supply chain visibility.
Key Players
- SAP
- Oracle
- SAS Institute
- Coupa Software
- Genpact
- Rosslyn Data Technologies
- Microsoft
- IBM
- Cisco
- GEP
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Conclusion
The procurement analytics market is experiencing rapid growth, driven by the critical need for operational efficiency, data-driven decision-making, and robust contract and compliance management across all industries. Key trends highlight North America's continued market leadership and the dominance of solutions, on-premise deployments, and supply chain management applications. Large enterprises are currently the primary adopters, with the telecom and IT sector leading, though manufacturing shows strong adoption. The market's evolution is significantly shaped by major players focusing on innovation, product portfolio expansion, and strategic acquisitions to enhance capabilities and competitive advantage.
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