What Is The Definition Of The Global Spend Analytics Market?
Spend analytics refers to the process of collecting, cleansing, classifying, and analyzing expenditure data to minimize procurement costs, improve efficiency, and monitor controls and compliance. It involves identifying spending patterns, extracting insights, and making data-driven decisions aligned with company goals and objectives to optimize their supply chain, increase procurement value, and enhance supplier relationships.
Spend Analytics Global Market Report 2024 provides data on the global spend analytics market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The spend analytics market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Spend Analytics Market Size Expected To Change, And What Are The Growth Rate Projections?
The spend analytics market has experienced rapid growth, increasing from $2.15 billion in 2023 to $2.56 billion in 2024 at a CAGR of 19.1%. This growth can be attributed to globalization, rising adoption of digital technologies, regulatory compliance demands, and the growing emphasis on cost reduction and the benefits of analytics. The market is expected to expand to $5.23 billion in 2028 at a CAGR of 19.6%, driven by AI and machine learning advancements, expansion of cloud solutions, a focus on sustainability and ethical sourcing, and risk management. Key trends include predictive analytics adoption, blockchain integration for transparency, data-driven decision-making tools, emergence of augmented analytics, and growth of spend analytics as a service.
Which Drivers Are Accelerating Growth In The Spend Analytics Market?
The growth of the retail and e-commerce sector is expected to accelerate the development of the spend analytics market. The retail and e-commerce sector has expanded due to consumer preferences for convenience, competitive pricing, and the growth of online shopping platforms. Spend analytics helps optimize procurement strategies, enhance supplier relationships, and improve cost efficiency in retail and e-commerce. For instance, the United States Census Bureau reported that e-commerce sales in 2023 reached $1,118.7 billion, a 7.6% increase from the previous year. Therefore, the rise of retail and e-commerce is boosting the spend analytics market.
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What Are The Core Segments Of The Global Spend Analytics Market?
The spend analytics market covered in this report is segmented –
1) By Type: Software, Service
2) By Analysis: Descriptive, Prescriptive, Predictive
3) By Application: Financial Management, Risk Management, Governance And Compliance Management, Supplier Sourcing And Performance Management, Demand And Supply Forecasting, Other Applications
4) By End-User Industry: Manufacturing, Supply Chain And Logistic, Retail, Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunication, Education, Healthcare, Other End-User Industries
Which Emerging Trends Are Reshaping The Spend Analytics Market?
In the spend analytics market, companies are developing advanced legal spend analytics tools to gain a competitive advantage. Legal spend analytics helps organizations manage financial expenditures on legal services more effectively. For instance, in January 2021, Epiq Systems, a US-based legal services provider, launched an advanced spend analytics offering to support legal teams in making data-driven decisions. Powered by Microsoft Power BI, this platform offers targeted insights and comprehensive solutions for managing legal expenses. It enhances efficiency, optimizes costs, and enables informed decision-making, ultimately improving operational effectiveness and competitiveness for Epiq's clients.
What Is The Largest Region In The Spend Analytics Market?
North America was the largest region in the spend analytics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the spend analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
