What Has Been the Progress and Growth of the Sourcing Software Market in Recent Years?
The sourcing software market has seen considerable growth due to a variety of factors.
• In recent times, the market size of sourcing software has experienced brisk growth. It is projected to inflate from $10.29 billion in 2024 to $11.7 billion in 2025, marking a Compound Annual Growth Rate (CAGR) of 13.7%.
The surge in this historic era can be linked to the rising uptake of cloud computing technology, mounting focus on cost minimization and operational effectiveness, increasing complexity in international supply chains, growing demand for immediate data analytics and insights, and regulatory compliance obligations promoting the urgency for digitization.
What Can Be Expected from the Sourcing Software Market Size?
The sourcing software market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the sourcing software market is projected to experience swift expansion, reaching a size of $19.34 billion in 2029 with a compound annual growth rate (CAGR) of 13.4%.
The growth anticipated during this period can be associated with the rapid acceptance of artificial intelligence and machine learning, the integration of Internet of Things (IoT) in supply chain operations, the surge in e-commerce and web-based marketplaces, increasing emphasis on sustainable and ethical sourcing techniques, and the emergence of blockchain technology for guaranteeing supply chain transparency and safety. The key trends that will dominate the forecast period include the incorporation of artificial intelligence and machine learning, cloud-centric solutions, focus on sustainability and ethics, cooperation with suppliers, and blockchain assimilation.
What Are the Critical Driver Fuelling The Sourcing Software Market's Growth?
The forecasted expansion of the sourcing software market is largely attributed to the increasing prevalence of remote work. This concept, also termed as telecommuting or telework, denotes carrying out job responsibilities from a location separate from a conventional office space. The surge in remote work is a result of numerous factors including technological progress, changes in employee preferences, business necessities, and societal shifts. Employing sourcing software is crucial in supporting the rise of telework as it equips remote teams with necessary resources, abilities, and setup for effectively handling procurement methods, interacting with suppliers, and steering strategic sourcing endeavours from any global location. For example, data from the US-based Department of Labor’s Bureau of Labor Statistics in September 2023 indicated that the proportion of the workforce working remotely or telecommuting, has fluctuated between 17.9% and 20.0% from October 2022 and August 2023. As such, the upward trend of remote work significantly contributes to the expansion of the sourcing software market.
How Is The Sourcing Software Market segmented?
The sourcing software market covered in this report is segmented –
1) By Type: On-premise, Cloud-based
2) By Enterprise Size: Large Enterprise, Small And Medium Enterprises
3) By End-User Industry: Retail, Manufacturing, Transportation And Logistics, Healthcare, Other End-User Industries
Subsegments:
By On-Premise: Enterprise Solutions, Small And Medium Business Solutions
By Cloud-Based: Public Cloud Solutions, Private Cloud Solutions, Hybrid Cloud Solutions
Pre-Book The Sourcing Software Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Influencing The Growth Of The Sourcing Software Market?
Leading businesses in the sourcing software market are creating innovative solutions such as AI-based autonomous sourcing platforms to gain a competitive advantage. An autonomous sourcing platform driven by AI is an advanced software solution intended to simplify and automate various facets of the sourcing and procurement process using AI technologies. For example, LTIMindtree Limited, a leading IT firm based in India, launched Navisource.AI, an autonomous sourcing platform powered by GenAI, in February 2024. This platform uses AI algorithms to automate and simplify the sourcing process. It proposes to reform procurement by using AI for pricing and negotiations, aiming to reduce procurement expenses by 10-15% and simplify the workflows from requisition to risk control. Navisource.AI is congruent with major business platforms like Ariba and SAP S/4HANA, providing predictability and productivity to indirect procurement procedures and enabling procurement teams to focus on strategic goals.
Who Are the Key Players In The Sourcing Software Market?
Major companies operating in the sourcing software market are:
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Workday Inc.
• GEP Corporation
• Coupa Software Incorporated
• Zycus Inc.
• Ivalua Inc.
• Corcentric Inc.
• Jaggaer
• CBX Software
• Determine Inc.
• Xeeva
• Vroozi Revenue
• Promena
• BirchStreet Systems
• Scoutbee Revenue
• Proactis Holdings PLC
• DealCloud
• LevaData Inc.
• Keelvar Systems Ltd.
• Aavenir
• Market Dojo Ltd.
• Winddle
• Real Sourcing Network LLC
What Is The Most Dominant Region In The Sourcing Software Market?
North America was the largest region in the sourcing software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sourcing software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
