Global Procurement Software Market Report and Forecast 2024-2032

Global Procurement Software Market Size

The global procurement software market reached a value of approximately USD 7.41 billion in 2023. The market is projected to grow at a CAGR of 12.0% between 2024 and 2032, reaching a value of around USD 20.53 billion by 2032.

Procurement Software Market Outlook

• The manufacturing sector's net turnover in the EU business economy reached 8.3 trillion, up 16% from 2020.

• Germany automotive industry generated a total revenue volume of EUR410.9 billion in 2021 increased by 8% from 2020.

• As per the National Retail Foundation, the United States has annual retail sales growth of $5.1 trillion in 2023.

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Procurement Software Market Growth Rate

Procurement software streamlines and simplifies the purchasing process, encompassing source-to-pay activities. It enables requesting and approving purchase orders, comparing invoices, managing billing, and verifying payments, ultimately optimizing buying cycles and inventory management. According to the data from the Australian Bureau of Statistics (ABS), the number of Financial and Insurance Services businesses in Australia has increased by 2.8% in 2022-2023, significantly driving the market demand as it will simplify processes and activities.

Key Trends and Developments

Increasing use by SMEs, growing integration of emerging technologies, increasing international trade and procurement, and increasing need for automation are the major trends impacting global procurement software market growth.

October 26, 2023

GEP has introduced a new AI-focused, low-code solution for sustainable procurement and supply chains. This technology, powering GEP SMART, GEP NEXXE, and GEP GREEN, offers expanded capabilities to workflow applications.

October 13, 2023

Atamis will deliver advanced procurement software to optimize Maximus UK's sourcing processes, boosting efficiency and cost-effectiveness. Maximus UK aims to enhance procurement operations through streamlined processes with Atamis software.

April 19, 2023

Airbase, a top provider of modern spend management software, has introduced Guided Procurement. This customizable, no-code workflow guides employees through purchase processes, ensuring comprehensive information capture.

March 13, 2023

Amazon Business introduces a new tool aimed at expediting purchase order reconciliation, eliminating the need for desktop computers or handheld scanners.

Increasing use by SMEs

Smaller businesses prioritize streamlined procurement to minimize costs and ensure smooth operations, making procurement software an ideal, cost-efficient solution, that drives the market demand.

Increasing need for automation

The rising demand for automating procurement processes, and enhancing transparency, positively impacts the procurement software market expansion, with e-procurement technology expected to offer new growth opportunities.

Increasing international trade and procurement

Growing international trade demands efficient supply chain management. Procurement software automation enhances processes, ensuring transparency and competitiveness, driven by increasing software integration.

Growing integration of emerging technologies

Market expansion involves integrating emerging technologies like artificial intelligence (AI) with procurement software, enhancing report quality and ensuring accuracy in purchasing processes.

Procurement Software Market Trends

Emerging trends in the procurement software market, such as the integration of AI and increased adoption by SMEs, drive market expansion. AI enhances report quality and accuracy. SMEs prioritize cost-effective procurement solutions for streamlined operations.

Various industries benefit from procurement software for inventory management, purchase orders, and payment verification, supporting market growth. Automation reduces complexity and provides transparency, fostering market expansion. The development of e-procurement technology presents further growth opportunities.

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Procurement Software Industry Segmentation

“Procurement Software Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Deployment

• On-Premise

• Cloud

Market Breakup by End Use

• Retail

• Manufacturing

• Transportation and Logistics

• Healthcare

• Food and Beverage

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Procurement Software Market Share

As per the procurement software market report, retail end users are anticipated to increase at the fastest rate.

Procurement teams in retail businesses are increasingly relied upon to reduce costs, mitigate supplier risks, and enhance value. This trend has prompted more businesses to adopt procurement software. For retailers purchasing large volumes of items, this software automates procurement operations, securing the best prices from vendors through tenders.

It also promotes transparency in financial supply chains, enhances overall value, and streamlines business processes. These factors are expected to drive the adoption of procurement software by retail end users, thereby boosting the market share of procurement software in the forecast period.

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Leading Manufacturers in the Procurement Software Market

The companies provides industry-specific software to a variety of sectors and verticals, develops and provides automated technologies to help make finance and procurement procedures easier and more efficient, and manufactures various software for computers, tablets, servers, and mixed reality.

Epicor Software Corporation: Founded in 1972, with its headquarters in the United States, Epicor provides industry-specific software to a variety of sectors and verticals, such as manufacturing, distribution, retail, and service.

Basware Inc.: Founded in 1985, with its headquarters in Finland, Basware develops and provides automated technologies to help make finance and procurement procedures easier and more efficient.

Zycus Inc.: Founded in 1998, with its headquarters in the United States, Zycus assists businesses in achieving significant cost reductions, risk reduction, and compliance enhancements through its solutions.

Microsoft Corporation: Founded in 1975, with its headquarters in the United States, the company manufactures various software for computers, tablets, servers, and mixed reality, including Internet search, digital services, cloud computing, and software development.

Other global procurement software market key players are Fraxion, GEP, Kissflow Procurement Cloud, Jaggaer, SAP SE, Proactis Holdings Limited., Procurify Technologies Inc., and Ivalua Inc. among others.

Procurement Software Market Analysis by Region

North America holds a significant portion of the procurement software market. Market growth is expected to be driven by the consolidation of enterprises in the region. The United States is focused on enhancing manufacturing productivity and streamlining industrial supply chain operations.

E-retailers in North America aim to enhance the consumer experience with same-day delivery, facilitated by efficient supply chain management using procurement software. Additionally, the region benefits from the strong presence of key market players, further fueling market growth.

Key Highlights of the Report

Procurement Software Market Report Snapshots

Procurement Software Market Size

Procurement Software Market Growth

Procurement Software Market Trends

Procurement Software Market Share

Procurement Software Manufacturers

Procurement Software Market Regional Analysis