USD 5.52 billion
Procurement As A Service Market Size, Share, Growth Analysis, By Component(Category Management, Strategic Sourcing, Spend Management, Contract Management), By Vertical(BFSI, Manufacturing, Retail, Healthcare), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2056 |
Region:
Global |
Published Date: July, 2001
Pages:
260
|Tables:
67
|Figures:
75
Procurement As A Service Market Insights
Procurement As A Service Market size was valued at USD 5.52 billion in 2019 and is poised to grow from USD 6.15 billion in 2023 to USD 14.62 billion by 2031, growing at a CAGR of 11.1% in the forecast period (2024-2031).
The emergence of high-scale digitalization and advancement in the process of automating critical business, such as sourcing and procurement is gaining traction, and this is projected to have in the favour of the global procurement as a service market growth. Technology integrations into procurement functions is enabling strategic sourcing and supplier management to become more proactive and efficient; it is anticipated to enable cost reduction of cost and improve the profitability of business.
The significance of global procurement service providers has shifted from negotiation contracts to the exclusive business partnerships and strategic agreements to ensure and consolidate short-and-long-term business continuity. For instance, in 2019, Proactis announced a partnership with global change-ready technology and implementation specialist Agilyx Group to provide a wide range of management solutions and services to Agilyx customers.
Cloud offers flexibility with ease is subsequently helping service provides of procurement through lower storage data costs. This further helps service providers in improving business operations and creating custom solutions available to the end users of the global procurement as a service market. In addition, AI is also having its way into the procurement service business with a unique selling point (USP) of providing data analytics while enhancing operations.
US Procurement As A Service Market Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Manufacturing
Fastest Growth
Manufacturing
Growth Rate
11.1% CAGR
Global Procurement As A Service Market, 2021-2028 ($ Bn)
Country Share for Europe Region- 2021 (%)
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Procurement As A Service Market Segmental Analysis
Global Procurement As A Service Market is segmented on the basis of component and vertical. By component, the market is segmented into category management, strategic sourcing, contract management, spend management, and others. By vertical, the market is categorized into BFSI, manufacturing, retail, healthcare, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA.
Procurement As A Service Market Analysis by Component
Based on component, the market is segmented into category management, strategic sourcing, contract management, spend management, and others. The strategic sourcing segment held the largest share of over 44% in 2022. The rising number of challenges, such as natural disasters and international political unrest that impact negatively on businesses, enable organization for opting for better strategic sourcing. In addition, strategic sourcing helps and support companies to meet efficiency, internal processes, effective executions.
The transaction management segment is expected to register a considerable growth over the forecast period. The increasing focus of organizations on optimizing price & terms, invoicing applications, delivery, and purchase order is projected to be the major driving factor of the segment throughout the forecast period.
Procurement As A Service Market Analysis by Vertical
Based on vertical, the Procurement As A Service Market is categorized into BFSI, manufacturing, retail, healthcare, and others. In which, manufacturing segment dominated the market in 2022 with a contribution of more than 35% in the terms of revenue and is expected to maintain its dominance over the forecast period. Manufacturing companies are continuously adopting procurement outsourcing and technology driven solutions which helps them to streamline their manufacturing processes and obtain significant cost savings.
Moreover, the retail sector is expected to have a significant growth during the forecast period. With the integration of latest technologies, such as machine learning and AI, the procurement service offerings has started providing many additional service features including analytics, avenues for the future growth. These factors are likely to drive the demand for procurement as a service market in the segment during the forecast period.
Global Procurement As A Service Market Size By Vertical 2021-2028 (%)
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Procurement As A Service Market Regional Insights
Europe dominated the global procurement as a service market in 2022 accounting for more than 48% share of the global revenue. The increasing focus of procurement service providers to offer customized service plans with more efficiency to their consumers and growing demand from European manufacturing companies to enhance the procurement process are key factors driving the market growth in the region. In addition, increasing need of modernized solutions that enables organizations make data driven decisions for managing their procurement operations is also an expected factor contributing to the market growth.
Asia Pacific is projected to grow at the fastest CAGR during the forecast period owing to a considerable growth in the demand for managing and streamline supply chain operations through digital solutions. Additionally, the growing use of internet for direct and indirect procurement services is facilitating the adoption of procurement services in the region. For instance, in April 2021, Tata Consultancy Services entered into an agreement with Wavin, a Netherlands-based global innovative solutions provider for the building infrastructure industry. In this agreement, QWavin deployed TCS ERP on the cloud platform to expand its services in new growing markets in Indonesia & India.
Global Procurement As A Service Market By Geography, 2021-2028
- Largest
- Fastest
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Procurement As A Service Market Dynamics
Procurement As A Service Market Drivers
- Increasing number of market collaboration has led to the rise in the funds to be allocated in the growth & development of technology and machinery against fraudulent activities. Furthermore, growth in the investment for research and development would carve the way for innovations in the sector.
- Growing number of small and medium sized companies across the globe is one of the major factors driving the market growth during the forecast period. BFSI, education, energy and utilities, healthcare and life sciences, manufacturing, retail, e-commerce, and IT industries, are directly having a positive impact on the growth and demand of the global procurement as a service market.
Procurement As A Service Market Restraints
Lack of Awareness is likely to impede the market growth
- Lack of awareness about procurement software along with limited technical expertise can create hindrances for the growth of the market during the forecast period.
- In addition, many industries are unaware to the existence of technology which will narrow down the scope of growth of the market.
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Procurement As A Service Market Competitive Landscape
Global procurement as a service market is moderately competitive in nature. Partnership, expansion, acquisition are the major key strategies opting by several key players of the market. For instance, in 2020, Epicor Software Corporation announced the launch of Epicor Commerce Connect Express, a new portal replacing its existing Epicor Commerce Connect Solution. It is designed for businesses that need an effective and immediate way to improve productivity, offer high quality online experiences, and stay connected to their customers and suppliers.
Top Players in the Global Procurement As A Service Market
- Accenture
- GEP
- IBM
- Infosys
- Proxima
- WNS
- Capgemini
- Genpact
- TCS
- HCL Technologies
- Corbus
- Xchanging
- Aquanima
- Denali
- Wipro
- KPMG
- DSSI
- HP
- Nitor Partners
- CGI
Procurement As A Service Market Recent Developments
- In February 2022, Bain & Company acquired ArcBlue, a leading procurement service provider across Asia Pacific region. In this acquisition, ArcBlue will be operating independently as Bain’s special procurement implementation service line
- In March 2021, HCL Technologies extended its partnership with Google Cloud. This expansion aims to integrate HCL Software’s Digital Experience (DX) and Unica Marketing cloud-native platforms to Google Cloud.
Procurement As A Service Key Market Trends
- Rising urbanization, globalization, and modernization across the globe is fueling the market growth. And, introduction to machine learning and artificial intelligence with the adoption of analytical services among small and medium sized companies mainly in the developing countries.
- Rising need to fortify the enterprises network against unprecedented and unauthorized strikes and rapid growth in the sector of transaction management is further expected to have positive impact on the growth of the market.
Procurement As A Service Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, the global procurement as a service market is witnessing a significant growth throughout the forecast period owing to their high growth in the advancement of technology, increasing investments in research and development. The increasing awareness among several organizations towards transaction management, strategic management are others factors likely to drive the market growth in the near future. In addition, the growing dependency on outsourcing business process to manage business operations is anticipated to scale up the market during the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 5.52 billion |
| Market size value in 2031 | USD 14.62 billion |
| Growth Rate | 11.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 As A Service 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 As A Service 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 As A Service 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 As A Service 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 As A Service Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Procurement As A Service 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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