Global Business Spend Management (BSM) Software Market Report and Forecast 2024-2032

Global Business Spend Management (BSM) Software Market Outlook

The global business spend management (BSM) software market size is projected to grow at a CAGR of 10.00% between 2024 and 2032.

Key Takeaways

• 90% of major businesses now use a multi-cloud infrastructure to store data and increase efficiency.

• Using contract management software, administrative expenses can be reduced by 25% to 30%.

• Popular spend management software includes TripActions, Airbase, Ramp, Spendesk, Brex, Divvy, Center, Precoro, Expensya, and Mesh Payments, among others.

Business spend management (BSM) software is a type of software that enables organisations to manage, optimise, and automate their spending across various categories, such as procurement, travel, expenses, invoices, contracts, and budgets. Business spend management (BSM) works closely with human capital management (HCM), enterprise resource planning (ERP), and customer relationship management (CRM), and caters to all operating processes in firms. Business spend management (BSM) combines these aspects to form a single management system to manage business operations.

The global business spend management (BSM) software market is experiencing substantial growth driven by multiple factors. BSM software helps organisations to gain visibility and control over their spending, improve compliance and efficiency, reduce costs and risks, and enhance business performance. Also, organisations are now digitalising their spending processes to address challenges posed by supply chain disruptions and fluctuating cash flows. Additionally, the rise of cloud-based and Software-as-a-Service (SaaS) solutions offers advantages like greater scalability, flexibility, accessibility, and security, have resulted in business spend management (BSM) software market development.

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Key Trends and Developments

High deployment of cloud-based model, availability of finance automation platforms, and increasing focus on regulations are boosting the market growth

Global Business Spend Management (BSM) Software Market Trends

There is a growing demand for data-driven and analytical tools capable of providing valuable insights and optimisation opportunities within organisational spending. Emerging technologies such as AI and ML are enhancing the functionality of BSM software, enabling features like task automation, anomaly detection, trend prediction, and reporting generation. These factors have created a favourable environment for the business spend management (BSM) software market growth.

Moreover, the compliance requirements, such as General Data Protection Regulation (GDPR), Sarbanes-Oxley Act (SOX), and International Financial Reporting Standards (IFRS), necessitate organisations to maintain precise and transparent records of their spending activities, thereby fostering the adoption and demand of business spend management (BSM) software.

Additionally, companies seek to decrease supply chain risk, optimise market routes, and automate maintenance, repair, and overhaul (MRO) processes to prevent log jams. Spending management software facilitates these activities. Such solutions are expected to stimulate business spend management (BSM) software market expansion.

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Market Segmentation

Global Business Spend Management (BSM) Software Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Solutions is further divided into procure- to- pay solutions, supply and risk management, travel and expense management, contract and e-tender management, and spend management/spend analytics, among others, while services are sub-divided into managed services and professional services.

High demand for cost management software from healthcare industries aids in business spend management software market growth as it helps improve patient outcomes and reduce errors

The banking, financial services, and insurance (BFSI) sector is one of the major end users of BSM software, as it requires efficient management of various business processes such as procurement, contract management, invoicing, budgeting, and compliance. BSM software helps the BFSI sector to automate and streamline these processes, reduce operational costs, and mitigate risks, which, in turn, increases the business spend management (BSM) software market value for this segment.

The healthcare industry is also a prominent end user of business spend management system, as it faces challenges such as rising costs, regulatory compliance, quality of care, and data security. BSM software helps the healthcare sector to automate and simplify various business functions such as purchasing, invoicing, supplier management, contract management, and analytics. BSM software also helps the healthcare sector to improve patient outcomes, reduce errors, and ensure safety.

According to business spend management (BSM) software market analysis, IT and telecom sector is another key end user of BSM software, as it requires effective management of diverse and distributed business processes such as project management, vendor management, resource allocation, billing, and reporting. BSM software helps the IT and telecom sector to automate and integrate these processes, enhance efficiency and productivity, reduce costs and errors, and improve customer service.

The retail and e-commerce sectors are also a major end user of BSM platforms, as it involves multiple and complex business activities such as sourcing, merchandising, inventory, delivery, and customer service. BSM software helps this sector to manage and optimise their warehousing needs, increase sales and profitability, and enhance customer loyalty. High adoption of such software is likely to increase the business spend management (BSM) software market size across regions.

Small and medium enterprises hold a significant business spend management (BSM) software market share due to the rising need of managing expenses and optimise business performance

The SMEs accounted for a larger business spend management (BSM) software market share in the historic period and is expected to grow at a higher CAGR during the forecast period. The main factors driving the adoption of BSM software among SMEs are the need to optimise business processes, reduce operational costs, enhance compliance, and improve visibility and control over spending. Moreover, the availability of cloud-based and SaaS-based BSM solutions has made it easier and more affordable for SMEs to access and implement the software. Some of the key spend management vendors catering to the SME segment are Coupa Software Inc., Procurify, and AvidXchange.

On the other hand, the large enterprise segment is also expected to witness significant growth in the business spend management (BSM) software market, as these firms face complex and diverse challenges related to managing their spending across multiple geographies, business units, and categories. Large enterprises require BSM software that can integrate with their existing ERP systems, support multiple languages and currencies, and provide advanced analytics and reporting capabilities. Additionally, large enterprises are increasingly adopting BSM software to enhance their corporate social responsibility (CSR) initiatives, such as ensuring ethical sourcing, reducing environmental impact, and promoting diversity and inclusion among suppliers, aiding the business spend management (BSM) software market growth.

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Competitive Landscape

Prominent players are engaging in strategic partnerships to strengthen their position and market share

Other key players in the global business spend management (BSM) software market include SAP SE, and Sage Intacct, Inc, among others.

Global Business Spend Management (BSM) Software Market Analysis by Region

North America is one of the leading regions due to high adoption of cloud-based technologies

The North American region is anticipated to hold a dominant position in the business spend management (BSM) software market. This is due to the high adoption of cloud-based technologies, advanced IT infrastructure, and presence of key players such as Coupa, SAP, Oracle, and Workday. The increasing demand for automation, optimisation, and visibility of business spending across various industries is also driving the growth of the market in this region.

Europe business spend management (BSM) software market is expected to witness significant growth during the forecast period, due to the rising need for compliance management, risk management, and data analytics in business spending. The adoption of BSM software is also supported by the digital transformation initiatives and regulatory frameworks of the European Union. Some of the prominent spend management companies in this region include Basware, Proactis, Ivalua, and Jaggaer.

Asia Pacific region is projected to be the fastest-growing market for BSM software in the next five years, owing to the rapid economic development, globalisation, and growing adoption of cloud-based solutions in emerging countries such as China, India, Japan, and Australia. According to the business spend management (BSM) software market report, the demand for BSM software in this region is also driven by the growing need for cost reduction, efficiency improvement, and competitive advantage in business spending.

Key Highlights of the Report