What Fueled The Previous Growth In The Procurement Analytics Market?
The procurement analytics market has seen considerable growth due to a variety of factors.
• The market size of procurement analytics has seen a notable rise in the past few years. It is projected to enlarge from $5.36 billion in 2024 to $6.29 billion in 2025, with a compound annual growth rate (CAGR) of 17.4%.
The surge experienced in the historical period can be associated with the need for cost reduction, management of supplier performance, compliance and risk mitigation, optimization of strategic sourcing, and improved visibility of spend.
What Is The Expected Growth In The Procurement Analytics Market Size?
The procurement analytics market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of procurement analytics is predicted to experience massive expansion over the forthcoming years, ballooning to $14.59 billion by 2029 with a CAGR of 23.4%.
The surge in growth during the forecast period can be credited to a focus on sustainable procurement, configurable dashboards and reports, improved contract management analytics, and dynamic pricing optimization. Key trends for the forecast period involve a heightened adoption of advanced analytics, emphasis on spend visibility, the convergence of other procurement technologies, real-time analytics for agile decision-making, and AI-powered insights for managing supplier relationships.
What Main Forces Are Fueling Expansion In The Procurement Analytics Market?
The anticipated uplift of the procurement analytics market is primarily attributed to the development of the e-commerce and organized retail sector. E-commerce is basically an online platform that allows customers and sellers to trade goods and services over the internet using various instruments such as websites, applications, and other channels via computers, tablets, smartphones, and other connected devices. Organized retailers and e-commerce giants are frequent patrons of procurement analytics due to its capability to analyze customer behaviors and spending trends based on data. For example, as reported by the United States Census Bureau—an American government agency—there was an estimate that depicted a 7.5% (or 1.4%) increase in e-commerce operations in the second quarter of 2023, compared to the same period in 2022. There was also an overall 0.6% (or 0.4%) increase in retail sales in the same period. Remarkably, 15.4% of the total sales made in the second quarter of 2023 are credited to online stores. Consequently, an upturn in the repercussions of both e-commerce and the organized retail sector may augment the demand for procurement analytics throughout the projection period.
What Are The Primary Segments In The Global Procurement Analytics Market?
The procurement analytics market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Deployment Mode: Cloud, On-Premises
3) By End User: Retail And E-commerce, Manufacturing, Government And Defense, Healthcare And Life Sciences, Telecom And IT, Energy and Utilities, Banking, Financial Services, And Insurance, Other End Users
4) By Application: Supply Chain Analytics, Risk Analytics, Spend Analytics, Demand Forecasting, Contract Management, Vendor Management, Category Management
Subsegments:
1) By Solutions: Spend Analytics Solutions, Supplier Analytics Solutions, Contract Analytics Solutions, Procurement Performance Analytics Solutions, Risk Management Analytics Solutions
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Training And Education Services
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Which Key Trends Are Driving Changes In The Procurement Analytics Market?
Leading firms in the procurement analytics market are introducing new analytic tools, such as EY Spend Insights, enhancing a full-circle understanding of spend patterns, revolutionizing procurement spend visibility, and building coordinated supply chain systems throughout various industries. For example, EY, a consulting firm based in the UK, launched EY Spend Insights (EY SPI) in June 2023 on the Snowflake Data Cloud, a platform that eliminates the requirement for manual management tasks. This solution harnesses advanced analytics, automation, and machine learning capabilities. EY SPI revolutionizes procurement spend visibility and encourages harmonized supply chain networks across many industries, including retail, consumer packaged goods, advanced manufacturing, and mobility.
Who Are the Key Players in the Procurement Analytics Market?
Major companies operating in the procurement analytics market include:
• SAP SE
• Oracle Corporation
• Statistical Analysis Systems
• Coupa Software Inc.
• Genpact
• Jaggaer
• GEP Worldwide
• Ivalua Inc.
• Zycus
• ProcurePort
• Basware
• SynerTrade
• Corcentric
• Scout RFP
• BirchStreet
• Periscope Holdings
•Tealbook
•Keelvar
•Proactis
•Sievo
•Xeeva Inc.
• POOL4TOOL AG
•Vroozi
•Rosslyn Data Technologies
•Simfoni
•Applegate
•Scanmarket
•EC Sourcing Group
What Is The Most Dominant Region In The Procurement Analytics Market?
North America was the largest region in the procurement analytics market in 2024 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the procurement analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
