What Fueled The Previous Growth In The Procurement As A Service Market?
The procurement as a service market has seen considerable growth due to a variety of factors.
• The market size for procurement-as-a-service has seen a swift expansion over the past few years. The market, valued at $6.63 billion in 2024, is projected to increase to $7.37 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 11.2%.
The surge during the historical period can be tied to various factors such as enhanced efficiency, availability of expertise, risk management, reduction in time-to-market and exceptional supplier relationship management.
How Does the Forecast Look for the Procurement As A Service Market?
The procurement as a service market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for procurement-as-a-service is projected to experience a swift expansion in the coming years, reaching a worth of $11.11 billion by 2029 with a compound annual growth rate (CAGR) of 10.8%.
This promising growth within the forecast period can be associated with factors such as cost optimization needs, a shift towards sustainability, global changes, the complexity of the supply chain, heightened collaboration with suppliers, and an increased focus on innovation. The projected period will witness critical trends including incorporation of cutting-edge technologies, customization and personalization of services, breaking into emerging markets, the inclusion of artificial intelligence (AI) and machine learning (ML) and the adoption of blockchain technology.
What Are The Leading Drivers Of Growth In The Procurement As A Service Market?
The anticipated growth of the procurement-as-a-service market is significantly spurred by the ongoing uptick in cloud computing adoption. As a technology, cloud computing provides users the ability to both access and store data and programs via the internet, instead of limiting them to their own computer systems. This growing incorporation of cloud computing within businesses can be attributed to its inherent scalability, which permits organizations to conveniently adapt resources in line with their specific requirements, thereby facilitating cost-efficiency. Overarching the realm of procurement, Procurement-as-a-Service employs this cloud computing technology to offer scalable, budget-friendly solutions that assist organizations in streamlining procurement processes, augmenting supplier collaboration, and fueling strategic value creation. Substantiating this fact, in December 2023, the Luxembourg-based intergovernmental organization, Eurostat, reported that the use of cloud computing among European Union enterprises stood at around 42.5%, marking a rise of 4.2% as compared to figures recorded in 2021. Hence, the procurement-as-a-service market expansion is significantly prompted by the burgeoning uptake of cloud computing.
How Are The Segments Defined Within The Global Procurement As A Service Market?
The procurement-as-a-service market covered in this report is segmented –
1) By Component: Category Management, Contract Management, Transaction Management, Strategic Sourcing, Spend Management, Process Management
2) By Organization Size: Large Enterprise, Small And Medium Enterprises
3) By Vertical: Manufacturing, Retail And Consumer Packaged Goods, Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Energy And Utilities, Healthcare, Travel And Hospitality, Others Verticals
Subsegments:
1) By Category Management: Supplier Selection, market Research And Analysis, Category Strategy Development
2) By Contract Management: Contract Creation And Negotiation, Contract Compliance And Risk Management, Contract Renewal And Termination
3) By Transaction Management: Order Processing, Invoice Management, Payment Processing
4) By Strategic Sourcing: Supplier Discovery, Supplier Relationship Management, Sourcing Strategy Development
5) By Spend Management: Spend Analytics, Budgeting And Forecasting, Cost Reduction Strategies
6) By Process Management: Workflow Automation, Procurement Process Optimization, Reporting And Analytics
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How Are New Trends Impacting The Size Of The Procurement As A Service Market?
Key players in the procurement-as-a-service market are concentrating on the innovation and development of solutions like procurement service management platforms. These platforms are designed to meet the growing demands and challenges of contemporary procurement processes. They provide comprehensive, user-friendly solutions that aid in efficient time management for employees, risk management, and promote smooth collaboration between departments. For instance, Service Now Inc., an American software solutions company, unveiled its latest procurement service management offering in May 2022. This service aids businesses of all sizes in optimizing and enhancing their procurement processes. It integrates without difficulty with existing ERP and procurement technologies, delivering quicker value over time while offering real-time benchmarking of SLA risks at the process level, end-to-end SLA reporting at the procurement process scope, and intuitive and integrated analytics to control risk and rogue team actions.
Who Are the Key Players In The Procurement As A Service Market?
Major companies operating in the procurement-as-a-service market report are:
• Accenture plc
• International Business Machines Corporation (IBM)
• Cisco Systems Inc.
• Oracle Corporation
• SAP SE
• Jabil Inc.
• Hewlett Packard Enterprise Company
• Tata Consultancy Services Limited
• Capgemini SE
• Infosys Limited
• HCL Technologies Limited
• Wipro Limited
• Palo Alto Networks Inc.
• Bain & Company Inc.
• Genpact Limited
• GEP Worldwide
• WNS Global Services
• Coupa Software Inc
• Zycus Inc.
• Xchanging Limited
• Simfoni Limited.
• Ivalua Inc.
• Corbus LLC
• Scoutbee GmbH
• Aegis Components Inc.
What Is The Most Dominant Region In The Procurement As A Service Market?
North America was the largest region in the procurement-as-a-service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the procurement-as-a-service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
