USD 3.45 Billion
Procurement Analytics Market Size, Share, Growth Analysis, By Analytics Component(Solution, and Services), By Analytics Deployment(On-premise, and Cloud), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45J2111 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
61
|Figures:
75
Procurement Analytics Market Insights
Procurement analytics Market size was valued at USD 3.45 Billion in 2022 and is poised to grow from USD 4.25 Billion in 2023 to USD 22.39 Billion by 2031, at a CAGR of 23.10% during the forecast period (2024-2031).
Companies benefit from the need for efficiency as most businesses move towards efficiency. Through improved data analytics in communications, performance management, vendor segmentation, and annual procurement planning, the company gains new insights. The purchasing department contains a wealth of information including sales history, cost data, and other information. Applying analytics to data backed by intelligent logic can improve business decisions.
The procurement analytics industry is witnessing tremendous growth as organizations are increasingly adopting the data-driven approaches to streamline their procurement processes and make informed decisions. Cloud platforms provide truly easy access to data and advanced collaboration, and provide it is particularly valuable for the global operations. Furthermore, as companies focus on increasing transparency in the supply chain and reducing weaknesses, procurement analytics is becoming an important tool for maintaining competitive advantage. This technology enables companies to analyze vast amounts of data to better manage suppliers, reduce cost opportunities and reduce risk.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Services
Fastest Growth
Solution
Growth Rate
23.10% CAGR
Global Procurement Analytics Market ($ Bn)
Country Share for North America Region (%)
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Procurement Analytics Market Segmental Analysis
The global procurement analytics market is segmented on the basis of component, deployment, and region. In terms of component, the market is segmented into solution, and services. With respect to categorization by analytics deployment, the market is segmented into on-premise, and cloud. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Procurement Analytics Market Analysis by Deployment
As per procurement analytics market analysis, the on-premises segment accounted for the largest revenue share of over 67% in 2023. On-premises solutions require an enterprise to purchase a license or copy of the software in highly regulated environments such as Europe, organizations must use the purchased software. Factors such as data security and local security controls affect the segment’s perception of the procurement analytics market due to on-premises data storage but also because on-premises software requires dedicated IT professional support and access in the organization is effective. Premises segment plays a key role in the procurement analytics market, especially for organizations that prioritize data security, compliance and control of their IT infrastructure. On-premises solutions allow companies to install procurement analytics software on their servers and feed their data management and resources.
As per the procurement analytics market forecast the cloud segment is expected to grow at a significant CAGR. Cloud-based services are delivered directly through network connectivity embedded in the cloud. Cloud-based technology is beneficial for businesses with limited budgets for security measures. Cloud-based purchasing research systems are easy to maintain and update. Thus, cloud deployment is becoming increasingly popular. The cloud segment has seen rapid growth in the procurement analytics market due to its flexibility, scalability and cost-effectiveness. Cloud-based procurement analytics solutions enable organizations to access real-time data and analytics facilitating collaboration between global teams and remote offices.
Procurement Analytics Market Analysis by Vertical
Telecom and IT dominated the market in 2023 with more than 28% of the procurement analytics market share. However, the acceptance of procurement research in manufacturing is much higher. Predictive asset protection using analytics algorithms is becoming increasingly popular in manufacturing. Sensors collect and analyze IoT data to identify problem areas and improve device performance. Thus, they lose out due to falling construction costs. Additionally, rising production in India, China and South Korea is expected to affect the growth of the segment. The telecom and IT segment plays an important role in the procurement analytics market due to its high demand for supply chain management and cost optimization.
The e-commerce segment is increasingly adopting purchasing analytics to streamline operations, manage an extensive network of suppliers and improve inventory quality. The e-commerce industry is growing rapidly due to the variety of consumers speed of search and delivery therefore puts tremendous pressure on procurement and supply chain management efficiency. Procurement analytics help e-commerce platforms track spending, predict trends, and monitor how a salesperson’s performance. These insights ensure that companies can maintain stock levels, build better relationships with suppliers, and reduce costs. A growing number of retail and e-commerce industries can embrace shopping research in large amounts. Companies use e-commerce analytics to analyze user behavior to determine which website layouts and landing pages are most likely to engage visitors and convert them into customers.
Global Procurement Analytics Market By Deployment (%)
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Procurement Analytics Market Regional Insights
North America is the dominant region in the procurement analytics industry, driven by its mature technological environment and heavy emphasis on data-driven decision-making. US. and Canada is leading, the region has many software providers and technological innovation leaders. High adoption rate of advanced technologies such as, big data analytics further fuel market growth in North America. Besides, regional infrastructure well-placed and focused on increasing operational efficiency contributes to greater demand for procurement research. It also increases the need for advanced purchasing resources for employees. This can be attributed to the early digitization of technologies such as surveys and procedures. Increased spending on risk management and supply chain analytics, as well as vendor analytics solutions, could drive regional growth.
As per procurement analytics market outlook, Asia Pacific is rapidly emerging as a dynamic region in the market, with robust economic growth, expanding technology sector and increasing digital transformation efforts. Countries such as China, India, Japan and South Korea are seeing huge investments investing in technology to support procurement research adoption. The region’s diversified and complex supply chain, combined with a push for greater transparency and cost control, is driving demand for analytics solutions. Many organizations have Asia Pacific is focusing on digital procurement practices to optimize their sourcing processes and improve risk management. Moreover, as businesses in the region aim to strengthen their global competitiveness.
Global Procurement Analytics Market By Geography
- Largest
- Fastest
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Procurement Analytics Market Dynamics
Procurement Analytics Market Drivers
Growing Need for Cost Efficiencies and Operational Efficiencies
- Companies across sectors are under increasing pressure to reduce costs and improve efficiencies Analytical tools provide deeper insights into cost structures, supplier performance, and contract management, and enables the organizations to make data-driven decisions. The demand for analytics solutions has increased exponentially, as companies seek to streamline their procurement processes and maximize return on investment.
Increased Data-driven Decision-making
- Big statistics and the proliferation of superior analytics technologies have modified the way corporations buy. The ability to research the historic facts and are expecting future desires affords strategic gain, helps to higher sourcing selections and powerful communication with the suppliers. This awareness on information-driven insights is a robust motive factor of the procurement analytics industry. Organizations are an increasing number of the use of those gear to enhance supplier relationships, expect market tendencies and mitigate the risks.
Procurement Analytics Market Restraints
High Implementation Costs
- Despite the benefits, the high costs associated with implementing a procurement analysis solution can be prohibitive, especially for small and medium-sized enterprises (SMEs). These costs include software licensing, data integration, training and maintenance, which can be difficult for businesses with limited budgets. This economic constraint slows down adoption and limits procurement analytics market growth.
Data Privacy and Security Concerns
- Procurement research is heavily dependent on many important business's financial information, data privacy and security concerns are important. Companies are wary of potential breaches and unauthorized access to confidential information. Stricter data protection laws around the world make the situation more difficult for the software providers, making compliance an important but challenging part of their operations.
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Procurement Analytics Market Competitive Landscape
The procurement analytics industry is highly competitive, with established tech giants and specialist solution providers vying for market share. Collaboration and collaboration play an important role in strengthening the market and expanding the service sector. Major players often partner with technology companies, data providers, and consulting firms to enhance the capabilities of their procurement analytics tools. For example, partnerships that combine procurement analytics with AI-driven insights enable companies to deliver more robust, predictive and regulatory analytics.
Top Player’s Company Profiles in Procurement Analytics Market
- SAS Institute Inc. (US)
- Coupa Software Inc. (US)
- Zycus Inc. (US)
- Jaggaer Inc. (US)
- Tungsten Corporation Plc (UK)
- Genpact Limited (Bermuda)
- GEP (US)
- Rosslyn Data Technologies (UK)
- Proactis Holdings Plc (UK)
- Sievo (Finland)
- BirchStreet Systems Inc. (US)
- Simfoni (UK)
- Empronc Solutions Pvt. Ltd. (India)
- BravoSolution SPA (Italy)
- Determine Inc. (US)
- Ivalua Inc. (US)
- Xeeva Inc. (US)
Procurement Analytics Market Recent Developments
- October 2023: SAP announced that Tata Projects Limited, one of India's fastest growing engineering, procurement and construction companies, is accelerating its business transformation journey.
- August 2022: SAS Institute Inc. and SingleStore came together to help organizations remove barriers to data access, increase efficiency and scalability, and unlock critical data-driven insights. SingleStore uses SAS Viya SingleStore's cloud-native solution was established on data stored in a real-time database. The integration provides access to flexible, open data stores to accelerate value in cloud, hybrid, and on-premises applications.
- In July 2021, Bain Capital, a private equity firm based in Boston, acquired Partssource. PartsSource is a B2B marketplace and provides healthcare services. In the U.S. the PartsSource connects approximately 19,000 hospitals and clinics with over 6000 OEM manufacturers. Its comprehensive procurement analytics solution helps hospitals reduce waste, reduce risk, and increase supply chain visibility.
Procurement Analytics Key Market Trends
- Integrating AI and Machine Learning: The combination of artificial intelligence (AI) and machine learning (ML) in procurement research is a notable factor that is reshaping the procurement analytics market trend. This technology for products increases the predictive capabilities of purchases, enabling businesses to potential problems, improve supplier selection and automate routine business operations. It not only improves operational efficiency but adds a series of intelligent decisions to the procurement process.
- Increased Focus on Sustainable Procurement: Sustainability has become a priority for many organizations, influencing procurement strategies. Companies use procurement surveys to monitor and report on the environmental and social impact of their supply chains. This shift towards responsible evaluation is driven by the legal requirements and the consumer demands for ethical practices. Procurement analytics tools that provide transparency into supply chain and supply chain operations are gaining momentum as sustainability becomes an integral part of corporate strategies.
Procurement Analytics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the procurement analytics market growth is driven by the increasing need for the cost optimization and the adoption of data-driven decision-making practices. While businesses deliver efficiency and ethics with practices taking greater priority, procurement research will continue to play an important role in the procurement environment. Procurement analytics can quickly be adopted by the expanding retail and e-commerce industries. However, challenges such as high implementation costs and data privacy concerns pose significant barriers. On the other hand, emerging trends such as the integration of AI and focus on sustainability are redefining the market and paving the way for future growth. Companies use e-commerce analytics to analyze user behavior and determine the layout and content of product pages that are most likely to engage visitors and drive sales.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 3.45 Billion |
| Market size value in 2031 | USD 22.39 Billion |
| Growth Rate | 23.10% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Procurement Analytics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Procurement Analytics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Procurement Analytics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Procurement Analytics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Procurement Analytics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Procurement Analytics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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