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    Procurement Software Market

    ID: MRFR/ICT/2242-CR
    135 Pages
    Shubham Munde
    February 2020

    Procurement Software Market Research Report Information By Deployment (On-Cloud and On-Premise), By Software Type (Spend Analysis, E-Sourcing, E-Procurement, Contract Management, Supplier Management and others), By Organization Size (Small & Medium Enterprise and Large Enterprises), By Vertical (Retail, Automotive, Travel & Logistics, Electronics, IT & Telecommunication, Mining and others) - Forecast till 2035

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    Procurement Software Market Infographic
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    Procurement Software Market Summary

    As per Market Research Future Analysis, the Procurement Software Market is set to grow from USD 7.0 billion in 2024 to USD 15.2 billion by 2032, reflecting a CAGR of 10.2% during the forecast period. The market was valued at USD 6.1 billion in 2023. Key drivers include the automation of procurement tasks and improved inventory management, while challenges such as a lack of skilled professionals may hinder growth. The COVID-19 pandemic has accelerated the shift towards digital procurement solutions, enhancing productivity and compliance. The on-premise segment currently leads the market, with SMEs expected to drive demand due to cloud deployments and simplified processes. The retail sector is projected to dominate revenue generation, supported by centralized procurement processes.

    Key Market Trends & Highlights

    The Procurement Software Market is witnessing significant growth driven by technological advancements and changing business needs.

    • Market Size in 2024: USD 7.0 Billion; Expected to reach USD 15.2 Billion by 2032.
    • CAGR during 2024-2032: 10.2%; driven by automation and digital procurement.
    • SMEs projected to exhibit a CAGR of 10.3% over the forecast period.
    • Retail segment expected to lead in market revenues due to demand for efficient inventory management.

    Market Size & Forecast

    2023 Market Size USD 6.1 Billion
    2024 Market Size USD 7.0 Billion
    2032 Market Size USD 15.2 Billion

    Major Players

    Coupa Software Incorporated, Epicor Software Corporation, JDA Software Inc., Zycus Inc., SAP SE, Mercateo AG, Oracle Corporation, Infor Inc., IBM Corporation.

    Procurement Software Market Drivers

    Focus on Cost Reduction

    Cost reduction remains a pivotal driver in the Global Procurement Software Market Industry. Organizations are under constant pressure to minimize expenses while maintaining quality and efficiency. Procurement software provides tools for better supplier management, contract negotiation, and spend analysis, enabling companies to identify cost-saving opportunities. As the market evolves, procurement software is expected to play a crucial role in achieving these objectives. The anticipated growth from 7 USD Billion in 2024 to 20.3 USD Billion by 2035 indicates a strong correlation between effective procurement strategies and financial performance. This focus on cost reduction is likely to propel the adoption of procurement software across various sectors.

    Market Growth Projections

    The Global Procurement Software Market Industry is poised for substantial growth, with projections indicating an increase from 7 USD Billion in 2024 to 20.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 10.18% from 2025 to 2035. Such projections highlight the increasing reliance on procurement software as organizations strive to enhance efficiency, reduce costs, and improve supplier relationships. The anticipated market expansion reflects the broader trends in digital transformation and the ongoing evolution of procurement practices across various industries. As businesses continue to adapt to changing market dynamics, the demand for innovative procurement solutions is likely to intensify.

    Global Supply Chain Resilience

    The Global Procurement Software Market Industry is significantly driven by the need for supply chain resilience. In an increasingly interconnected world, organizations are recognizing the importance of robust procurement strategies to withstand disruptions. Procurement software enables companies to gain real-time insights into their supply chains, facilitating better decision-making and risk assessment. The anticipated growth of the market from 7 USD Billion in 2024 to 20.3 USD Billion by 2035 suggests that businesses are investing in technologies that enhance their supply chain capabilities. This focus on resilience is likely to drive the adoption of procurement software, as organizations seek to build more agile and responsive supply chains.

    Increased Demand for Automation

    The Global Procurement Software Market Industry experiences a notable surge in demand for automation solutions. Organizations are increasingly recognizing the potential of procurement software to streamline processes, reduce manual errors, and enhance efficiency. As of 2024, the market is valued at approximately 7 USD Billion, reflecting a growing inclination towards automated procurement processes. This trend is likely to continue as companies seek to optimize their supply chains and improve operational performance. The integration of artificial intelligence and machine learning into procurement software further enhances its capabilities, allowing for predictive analytics and better decision-making. Consequently, the demand for automation in procurement is a significant driver of market growth.

    Integration of Advanced Technologies

    The integration of advanced technologies is a key driver in the Global Procurement Software Market Industry. The incorporation of artificial intelligence, machine learning, and data analytics into procurement software enhances its functionality and effectiveness. These technologies enable organizations to automate repetitive tasks, analyze vast amounts of data, and derive actionable insights. As the market is projected to grow at a CAGR of 10.18% from 2025 to 2035, the adoption of advanced technologies in procurement processes is expected to accelerate. This trend not only improves operational efficiency but also empowers organizations to make informed decisions, ultimately driving the demand for procurement software.

    Regulatory Compliance and Risk Management

    Regulatory compliance and risk management are increasingly influencing the Global Procurement Software Market Industry. Organizations face stringent regulations regarding procurement practices, necessitating robust software solutions to ensure compliance. Procurement software aids in tracking supplier performance, managing contracts, and maintaining audit trails, which are essential for meeting regulatory requirements. The growing emphasis on transparency and accountability in procurement processes further underscores the importance of these solutions. As businesses navigate complex regulatory landscapes, the demand for procurement software that facilitates compliance and mitigates risks is expected to rise, contributing to the overall market growth.

    Key Companies in the Procurement Software Market market include

    Industry Developments

    • Q2 2024: Zip raises $100M Series C to expand procurement software platform Zip, a procurement software startup, announced a $100 million Series C funding round led by Y Combinator Continuity to accelerate product development and global expansion.
    • Q2 2024: Coupa Software Announces Acquisition of BELLIN to Expand Treasury and Procurement Offerings Coupa Software completed the acquisition of BELLIN, a treasury management provider, to enhance its procurement software suite with integrated treasury capabilities.
    • Q2 2024: Ivalua and PwC Announce Strategic Partnership to Accelerate Digital Procurement Transformation Ivalua, a procurement software provider, entered a strategic partnership with PwC to deliver joint digital procurement transformation services to enterprise clients.
    • Q3 2024: SAP Appoints New Chief Product Officer to Lead Procurement Software Innovation SAP announced the appointment of a new Chief Product Officer, tasking them with driving innovation in the company's procurement software portfolio.
    • Q3 2024: Proactis Launches Next-Generation Procurement Platform for Mid-Market Organizations Proactis unveiled a new procurement software platform designed to streamline sourcing and supplier management for mid-sized businesses.
    • Q3 2024: Basware secures multi-year contract with European government for e-procurement platform Basware won a multi-year contract to provide its e-procurement software platform to a major European government agency, supporting digital transformation of public sector purchasing.
    • Q4 2024: JAGGAER Announces Partnership with Mastercard to Enhance B2B Procurement Payments JAGGAER partnered with Mastercard to integrate advanced payment solutions into its procurement software, aiming to streamline B2B transactions for enterprise clients.
    • Q4 2024: GEP Launches AI-Powered Procurement Software Module GEP introduced a new AI-powered module for its procurement software platform, designed to automate supplier risk assessment and contract management.
    • Q1 2025: Oracle Expands Procurement Cloud Suite with New Supplier Collaboration Tools Oracle announced the launch of enhanced supplier collaboration features within its Procurement Cloud Suite, enabling improved communication and workflow automation.
    • Q1 2025: Workday acquires Scout RFP to strengthen procurement software capabilities Workday completed the acquisition of Scout RFP, a cloud-based sourcing and procurement platform, to bolster its enterprise procurement software offerings.
    • Q2 2025: ProcureTech raises $30M Series B to scale AI-driven procurement solutions ProcureTech, a provider of AI-driven procurement software, secured $30 million in Series B funding to expand its product suite and accelerate global growth.
    • Q2 2025: SynerTrade opens new R&D facility in Berlin to advance procurement software innovation SynerTrade inaugurated a new research and development center in Berlin focused on developing next-generation procurement software technologies.

    Report Scope

    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:

    By Deployment

    • On-cloud
    • On-premise

    By Software Type

    • Supplier Management
    • Contract Management
    • E-procurement
    • E-sourcing
    • Spend Analysis

    By Organization Size

    • Small and medium size Enterprises (SME)
    • Large Enterprises

    By Vertical

    • Travel & Logistics
    • IT & Telecommunications
    • Electronics
    • Automotive
    • Retail
    • Mining
    • Others

    Future Outlook

    Procurement Software Market Future Outlook

    The Procurement Software Market is projected to grow at a 10.18% CAGR from 2024 to 2035, driven by digital transformation, increased automation, and demand for cost efficiency.

    New opportunities lie in:

    • Leverage AI-driven analytics for enhanced supplier selection processes. Develop cloud-based solutions to improve scalability and accessibility. Integrate procurement software with IoT for real-time inventory management.

    By 2035, the Procurement Software Market is expected to achieve substantial growth, reflecting evolving business needs and technological advancements.

    Report Scope

    Attribute/MetricDetails
      Market Size  USD 15.2 billion
      CAGR  10.2%
      Base Year  2023
      Forecast Period  2024-2032
      Historical Data  2018
      Forecast Units  Value (USD Billion)
      Report CoverageRevenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered  By Deployment, Type
      Geographies Covered  North America, Europe, Asia-Pacific
      Key VendorsCoupa 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.).
      Key Market Opportunities  Mobile Procurement Software Applications
      Key Market Drivers  Centralized Procurement Process

    Market Highlights

    Author
    Shubham Munde
    Research Analyst Level II

    With a technical background in information technology & semiconductors, Shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the ICT/Semiconductor domain. Shubham holds a Bachelor’s in Information and Technology and a Master of Business Administration (MBA). Shubham has executed over 150 research projects for our clients under the brand name Market Research Future in the last 2 years. His core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. He is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. He has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. He has worked on the projects of top tech brands such as IBM, Google, Microsoft, AWS, Meta, Oracle, Cisco Systems, Samsung, Accenture, VMware, Schneider Electric, Dell, HP, Ericsson, and so many others. He has worked on Metaverse, Web 3.0, Zero-Trust security, cyber-security, blockchain, quantum computing, robotics, 5G technology, High-Performance computing, data centers, AI, automation, IT equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.

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    FAQs

    How big is the procurement market?

    The procurement Software Market is predicted to grow at a 10.2% CAGR by 2032 end and will reach US$ 15.2 billion.

    Who are the top players contributing towards the growth of the market?

    IBM Corporation (US), Oracle Corporation (US), SAP SE (Germany), Coupa Software Incorporated (US), Infor Inc. (US), Epicor Software Corporation (US), Zycus Inc. (US), JDA Software Inc. (US), and Mercateo AG (Germany).

    Which region is leading the global market and what the reasons behind its dominance?

    The procurement software market in North America is the largest, on account of the presence of key market players such as IBM Corporation, Oracle Corporation, and Coupa Software Incorporated. Moreover, developed infrastructure and rising demand for centralized procurement process in the region is further expected to propel the growth of procurement software market in North America shortly.

    What are some of the emerging trends noted in the market?

    Adoption of blockchain and AI in procurement and supply chain process and E-procurement are the emerging trends having a positive impact on market growth. Review reporting and tail spend management are the use cases of the procurement software market.

    What will be the growth rate by 2032?

    The Global Procurement Software Market is expected to expand at a 10.4% CAGR during the forecast period from 2024 to 2032.

    What are the segments mentioned on the basis of deployment?

    On-cloud and on-premise are the primary segments mentioned with respect to deployment.

    What software is used for procurement?

    SAP SE Easily manage the entire procurement cycle.

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