Procurement Analytics Market - By Component (Solution, Services), By Deployment (On-premises, Cloud), By Enterprise Size (SMEs, Large Enterprise), By Application (Spend Analytics, Risk Analytics, Supply Chain Management, Vendor Analytics, Contract Management, Others), By End User, Forecast 2023 - 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationProcurement Analytics Market Size
Procurement Analytics Market was worth USD 3.8 billion in 2022 and is likely to achieve a CAGR of more than 23% in the forecast period from 2023 to 2032. The growing need to improve the supplier relationship as well as improve the purchasing processes has emerged as a key factor fueling the growth of the market.
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Organizations acknowledge the critical importance of strong supplier relationships in maintaining a stable supply chain. For example, in July 2023, EY and cloud data specialist, Snowflake partnered to launch EY Spend Insights (SPI), a solution that provides procurement spending insights and aligns supply chain networks across various industries. The solution empowers business owners, managers, and executives with capabilities to improve strategic decision-making, reinforce supplier relationships, and streamline purchasing processes.
The market for procurement analytics is being driven by the need to streamline procurement procedures and improve overall organizational efficiency. Using powerful analytics tools, organizations can derive in-depth insights into supply performance, cost profiles, and demand trends. The data-driven model helps in strategic decision-making, supplier partnerships, and efficient procurement procedures. As businesses become more aware of the potential for cost reduction and enhanced productivity, the need for procurement analytics solutions keeps growing, fueling innovation & market development.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Procurement Analytics Market Size in 2022 | USD 3.8 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 23% |
| 2032 Value Projection | USD 29.3 Billion |
| Historical Data for | 2018 - 2022 |
| No. of Pages | 220 |
| Tables, Charts & Figures | 414 |
| Segments covered | Component, Enterprise Size, Application, End User |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
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Maintaining data accuracy and dependability is an essential challenge to procurement analytics. Data from many sources may be incomplete or inconsistent, resulting in unreliable insights. Bringing together disparate data from an organization's many systems such as ERP systems and legacy databases creates technical challenges. In addition, coordinating data from outside sources such as suppliers further hinders data integration. All of these challenges necessitate strong data governance policies, sophisticated integration solutions, and data cleaning methods in order to come up with effective & actionable analytics outputs.
COVID-19 Impact
The COVID-19 pandemic adversely affected the market for procurement analytics in several ways. Economic uncertainty resulted in budget limitations, which forced various companies to postpone or reduce their investments in procurement analytics. Supply chain disruptions and erratic demand patterns caused difficulties in properly analyzing & predicting procurement data. Moreover, extensive remote working added complexity to data access as well as collaboration. All these converged to dampen market expansion with companies giving greater emphasis to short-term cost-saving initiatives rather than long-term analytics investments.
Procurement Analytics Market Trends
The trend in the market is being fueled by AI-based solutions that optimize business performance and mitigate risk. Through the use of cutting-edge technologies, including artificial intelligence, these solutions allow organizations to detect variances in run-of-the-mill contract terms, thereby reducing risks. For example, in May 2023, SAP and contract intelligence pioneer, Icertis partnered on a new integration that couples AI-based contract intelligence with SAP S/4HANA. The Icertis platform, which is infused with artificial intelligence, detects variations from standard terms, reducing risks. Predefined rules and templates enable contract self-generation, allowing procurement teams to play a strategic role in improving business performance while minimizing liability.
The market is picking up pace because it can quantify purchase order cycles and improve payment terms. Through historical analysis, organizations can detect inefficiencies in procurement operations, resulting in streamlined purchase order cycles. Further, optimizing payment terms with suppliers improve cash flow management and minimize costs. As companies become more aware of the importance of these insights, demand for procurement analytics solutions increases, driving the market.
Procurement Analytics Market Analysis
Learn more about the key segments shaping this market
Based on component, the market is divided into solution and services. In 2022, the market revenue of the solution segment was over USD 2.5 billion. The market is witnessing growth in the solution segment due to advancements in sourcing, purchasing, and door-to-door order management solutions. These innovations streamline procurement processes, ensuring efficient supplier sourcing, optimized purchasing strategies & seamless order management from initial to end phase. For instance, in November 2022, Procure Analytics, a prominent data-enabled group purchasing organization, introduced Amicus Spend Management, a tail spends sourcing and purchasing service. This new offering allows procure analytics members to lower the overall procurement costs without the need for additional internal labor, management fees, or commercial obligations.
Learn more about the key segments shaping this market
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Based on application, the procurement analytics market is categorized into spend analytics, risk analytics, supply chain management, vendor analytics, contract management, and others. In 2022, supply chain management segment hold over 30% business share and is projected to grow by 2032. The demand for end-to-end visibility in supply chains is a pivotal factor propelling the growth of supply chain management applications. Businesses now require comprehensive insights into their supply chains, from raw material sourcing to product delivery. Procurement analytics provides real-time monitoring of supplier performance, enabling companies to uphold quality, compliance, and delivery standards. This heightened visibility not only mitigates risks and ensures regulatory compliance but also fosters efficient supplier relationships, leading to enhanced overall supply chain efficiency and effectiveness.
Looking for region specific data?
North America led the procurement analytics market with a major share of over 32% in 2022. The emphasis on cost optimization is a pivotal factor driving the market expansion. Businesses continually seek ways to streamline operations and reduce expenditures. Procurement analytics plays a vital role by providing detailed insights into spending patterns, supplier performance, and negotiation opportunities. For instance, in March 2023, Resilinc Corporation introduced its Spend Analytics solution, a spend-management tool that links an organization's expenditure to specific suppliers, categories, or parts. This data, accessible beside other supplier risk insights on the Resilinc platform, offers companies comprehensive visibility into both direct and indirect supplier spend across the entire organization.
Procurement Analytics Market Share
Major players operating in the procurement analytics industry are
- SAP SE
- Cisco Systems, Inc.
- Coupa Software
- Genpact Itd
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- SAS Institute
- Zycus Inc.
The competitive landscape of the market is dominated by major players such as SAP SE and Oracle Corporation. These industry leaders offer comprehensive solutions, robust analytics tools & innovative technologies, creating a competitive environment marked by continuous innovation an a focus on meeting diverse customer needs.
Procurement Analytics Industry News
- In October 2023, Procurify secured USD 50 million in funding during its Series C funding round. The funding will empower Procurify to expand its global presence, introduce new payment features, and offer customers an enhanced procure-to-pay experience with the integration of artificial intelligence.
The procurement analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032, for the following segments
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By Component, 2018 – 2032
- Solution
- Services
By Deployment, 2018 – 2032
- On-premises
- Cloud
By Enterprise Size, 2018 – 2032
- SMEs
- Large Enterprise
By Application, 2018 – 2032
- Spend Analytics
- Risk Analytics
- Supply Chain Management
- Vendor Analytics
- Contract Management
- Others
By End User, 2018 – 2032
- BFSI
- Retail & e-commerce
- Telecom & IT
- Manufacturing
- Healthcare & Life Sciences
- Energy & Utilities
- Government & Defense
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- Southeast Asia
- ANZ
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
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