How Has the Generative AI In Procurement Market Evolved Historically and What is its Current Size?
The generative ai in procurement market has seen considerable growth due to a variety of factors.
• In the past few years, we have seen significant growth in the market size of generative AI in procurement. The market is expected to expand from $0.16 billion in 2024 to $0.2 billion in 2025, reflecting a compound annual growth rate (CAGR) of 29.3%.
Factors such as increased availability of data, intricate supply chains, vendor relationships, a concentrated effort towards strategic procurement and the emergence of big data have all contributed to the growth experienced during the historic period.
What Does Future Hold for The Generative AI In Procurement Market By 2029?
The generative ai in procurement market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for generative AI in procurement is predicted to experience substantial growth in the coming years, projecting to reach $0.56 billion by 2029 with a compound annual growth rate (CAGR) of 28.9%.
This surge during the forecast period is likely due to factors such as greater utilization of cloud computing, integration with IoT and big data, proliferation of industry-specific solutions, focus on sustainability, and the emergence of autonomous procurement. Key trends during this forecast period encompass AI-driven predictive analytics, autonomous procurement, dynamic pricing optimization, conversational AI interfaces, and multi-modal data fusion.
What Are The Primary Growth Drivers In The Generative AI In Procurement Market?
The growing demand for cloud services is anticipated to stimulate the expansion of generative artificial intelligence (AI) in the procurement sector. Cloud services, which are web-based computing services encompassing storage, databases, and software provided by cloud computing providers, permit users to utilize these facilities without needing on-site infrastructure. The increasing interest in cloud services is a result of the quest for agility, novelty, cost reductions, and a competitive edge in a progressively digital and interconnected global environment. The computing power and scalability offered by cloud services enhance generative AI technology in procurement, allowing businesses to take full advantage of generative AI algorithms while enjoying the flexibility, ease of access, and affordability of cloud computing infrastructure. For instance, in December 2023, Eurostat, the European Union's statistical office based in Luxembourg, recorded a rise in the adoption rate of cloud computing services among mid-sized enterprises to 59% in 2022, up from 53% in 2021. As a result, the increasing requirement for cloud services is fuelling the growth of generative AI in the procurement industry.
What Is The Segmentation Of The Global Generative AI In Procurement Market?
The generative AI in procurement market covered in this report is segmented –
1) By Type: Direct Procurement, Indirect Procurement, Goods Procurement, Services Procurement
2) By Organization Size: Large Enterprise, Small And Medium Enterprises
3) By Application: Supplier Identification, Product Or Service Recommendation, Negotiation Support, Risk Assessment, Contract Analysis, Fraud Detection, Predictive Modeling, Other Applications
Subsegments:
1) By Direct Procurement: Raw Material Sourcing, Supplier Relationship Management, Production And Manufacturing Materials Procurement
2) By Indirect Procurement: Office Supplies And Equipment Procurement, marketing And IT Services Procurement, Facility And Logistics Procurement
3) By Goods Procurement: Physical Product Sourcing, Inventory Management And Restocking, Supplier Selection For Goods
4) By Services Procurement: Consulting And Professional Services, Outsourced Services And Contracts, Software And IT Services Procurement
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How Are New Trends Impacting The Size Of The Generative AI In Procurement Market?
Leading firms in the generative artificial intelligence (AI) in procurement market are focusing on creating groundbreaking products such as the generative AI Suite, to boost procurement and finance teams' competitive edge. This suite for procurement teams implements an array of AI-enhanced tools and services that aim to refine and streamline various components of the procurement process. For example, in October 2023, a company from the U.S known as ZIP which specializes in innovative software solutions, unveiled the generative AI suite, intending to revolutionize team workflows through advanced tools and capacities. This Generative AI Suite offers automated insights, predictive analytics, contract management, and supplier relationship management. The innovative AI feature directly incorporates AI into workflows for contract renewal, request intake, and approval, saving thousands of hours that employees would alternatively devote to meticulous vendor contract examinations and data entry often associated with errors for purchase orders, purchase requests, and invoices.
Who Are the Key Players In The Generative AI In Procurement Market?
Major companies operating in the generative AI in procurement market report are:
• Google LLC
• Microsoft Corporation
• Dell Technologies Inc.
• Amazon Web Services Inc.
• International Business Machines Corporation (IBM)
• Oracle Corporation
• Jabil Optics Germany GmbH
• SAP SE
• Genpact Limited
• GEP Worldwide
• Zoho Corporation Pvt. Ltd.
• Coupa Software Inc.
• Basware Corporation
• Zycus Inc.
• Jaggaer Holdings Inc.
• Tradeshift Holdings Inc.
• Ivalua Inc.
• Agiloft Inc.
• Master of Code Global Inc.
• Sirion Inc.
• Scoutbee GmbH
• Simfoni Limited
• LevaData Inc.
• Aavenir Inc.
• Suplari Inc.
What Are The Regional Insights Into The Generative AI In Procurement Market?
North America was the largest region in the generative AI in procurement market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in procurement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
