What Is The Current and Historic Market Size Analysis Of The Spend Analytics Market?
The spend analytics market has seen considerable growth due to a variety of factors.
• The market size of spend analytics has seen a quick expansion in recent years. It is projected to escalate from $2.56 billion in 2024 and reach up to $3.06 billion in 2025, reflecting a compound annual growth rate (CAGR) of 19.8%.
Factors contributing to this growth throughout the historic period include a surge in globalization, broader acceptance of digital technologies, compliance with regulatory requirements, heightened requirement for cost reduction, and growing recognition of the benefits.
What are the Market Size and Expected Growth Rates for the Spend Analytics Market?
The spend analytics market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of spend analytics is predicted to witness a quick expansion in the forthcoming years. By 2029, it is projected to balloon to $6.24 billion with a compound annual growth rate (CAGR) of 19.5%.
The predicted growth in the upcoming time frame is linked to progress in artificial intelligence and machine learning, growth of cloud-based solutions, an increased focus on sustainability and ethical sourcing, attention to risk management, and incorporation of internet of things (IoT) devices. Key trends predicted for the future include a growing emphasis on predictive analytics, the integration of blockchain technology for improved transparency, the rapid increase of data-driven decision-making tools, the advent of augmented analytics for more profound insights, and the rise of spend analytics as a service (SaaS) offerings.
Which Key Drivers Are Propelling The Spend Analytics Market's Growth?
The increasing popularity of the retail and e-commerce industry is predicted to fuel the expansion of the spend analytics market in the future. The retail and e-commerce industry is identified as business entities that sell products and services straight to the customers through physical outlets or online platforms, streamlining transactions, and product distribution. The expansion of the retail and e-commerce industry is attributed to shifting consumer tastes, convenience, advantageous pricing, and opportunities for market growth. In the retail and e-commerce industry, spend analytics revolves around analyzing purchase data to fine-tune sourcing strategies, bolster supplier relations, and boost cost efficiency all throughout the supply chain. For example, the United States Census Bureau, which is a governmental agency in the U.S, reported in February 2024 that the total e-commerce sales in 2023 amounted to an estimated $1,118.7 billion, demonstrating a 7.6% increase from 2022. Therefore, the expansion of the retail and e-commerce industry is propelling the spend analytics market's growth.
What Are The Key Segments Within 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
Subsegments:
1) By Software: On-Premise Software, Cloud-Based Software
2) By Service: Consulting Services, Implementation Services, Support And Maintenance Services
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How Are New Trends Impacting The Size Of The Spend Analytics Market?
Top corporations that are active in the spend analytics market are spearheading advancements such as superior spend analytics and vendor management skills, in a bid to secure a competitive edge. Spend analytics and vendor management skills are part of a strategic approach to gather, dissect, and decipher expenditure data to fine-tune procurement strategies, foster better supplier relationships, and boost organizational productivity. An exemplification of this was seen in June 2024, when the American fintech enterprise, Airbase, Inc., rolled out superior spend analytics and vendor management competencies, demonstrating particular expertise in crafting potent tools to streamline procurement processes in organizations. The spend analytics component offers comprehensive insights into expenditure habits, allowing companies to derive strategic understandings that improve effectiveness and lower operating costs. Concurrently, vendor management competencies facilitate easier vendor integration, automate invoice operations, and enhance risk management, thus, fortifying supplier relationships.
Who Are the Key Players In The Spend Analytics Market?
Major companies operating in the spend analytics market are:
• International Business Machines Corporation (IBM)
• Oracle Corporation
• SAP SE
• Genpact
• SAS Institute Inc.
• GEP
• Coupa Software Inc.
• Anaplan Inc.
• Icertis Inc.
• Zycus Inc.
• Ivalua Inc.
• Jaggaer Inc.
• Zageno Inc.
• Sievo Oy
• Insight Sourcing Group
• Proxima Group
• BirchStreet Systems LLC
• Proactis Holdings Plc
• Tejari Solutions Pvt Ltd.
• Apex Analytix LLC
• Rosslyn Data Technologies PLC
• Spendency AB
• TealBook
• Empronc Solutions Pvt. Ltd.
• Dhatim SAS
What Are The Regional Insights Into The Spend Analytics Market?
North America was the largest region in the spend analytics market in 2024. 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.
