How Has the Spend Management Software Market Evolved Historically and What is its Current Size?
The spend management software market has seen considerable growth due to a variety of factors.
• In recent times, there has been a swift expansion in the market size for spend management software. The market, currently valued at $15.72 billion in 2024, is set to escalate to reach a value of $17.68 billion in 2025, making for a compound annual growth rate (CAGR) of 12.5%.
This upward trend in the historical period can be credited to the inefficiencies of manual processes, the escalating globalization of enterprises, the focus on cost-cutting, the mounting intricacy of regulatory compliance, and the requirement for real-time visibility.
What Does Future Hold for The Spend Management Software Market By 2029?
The spend management software market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of spend management software is predicted to witness significant expansion in the upcoming years, reaching a peak of $28.81 billion in 2029 while boasting a compound annual growth rate (CAGR) of 13.0%.
This expansion in the speculated period can be credited to an amplified emphasis on sustainability, progresses in artificial intelligence (AI) and data analysis, a surge in the necessity for cloud-based resolutions, amalgamation with enterprise resource planning (erp) structures, and a centrality on risk management. Key trends during the anticipated period include increase in remote work and digital transitions, concentration on real-time data analytics, emergence of mobile and user-friendly interfaces, the application of blockchain technology, and heightened focus on collaboration with suppliers.
What Are The Primary Growth Drivers In The Spend Management Software Market?
The expansion of cloud-based solutions usage is anticipated to fuel the spend management software market's ascension in the foreseeable future. Cloud-based solutions, which involve applications, storage spaces, on-demand services, interconnected computer networks, or other resources accessed via a third-party cloud-based computing architecture through the internet, are being increasingly implemented in contemporary spend management software to provide instant intelligence regarding spending behaviors and budget adherence. For example, as per the European Commission in April 2024, a Belgium-based governmental organization, 77.6% of large scale businesses reported utilizing cloud computing services in 2023, demonstrating a 6 percentage point increment from 2021. For medium scale businesses, the utilization of cloud services was reported to have grown from 53% in 2021 to 59% in 2023. Consequently, the accelerating adoption of cloud-based solutions is a significant contributor to the expansion of the spend management software market. An increase in digitization is also anticipated to boost the spend management software market's growth. Digitization, or the conversion of analog information into a digital form that represents data, media, or objects as discrete numerical values, contributes to the improvement of spend management software by enabling the automation, centralization, and optimization of financial transactions. This grants organizations immediate visibility, control, and analytical insights of their expenditure, thereby improving operational effectiveness, cost-efficiency, and strategic decision-making in the digital environment. For example, the Augusta Free Press, a US news company, reported in December 2022 that spending on global digital transformation had surged to approximately $1.85 trillion, a rise of 16% from the previous year. Therefore, the increasing trend of digitization is also a significant factor driving the growth of the spend management software market.
What Is The Segmentation Of The Global Spend Management Software Market?
The spend management software market covered in this report is segmented –
1) By Deployment Mode: Cloud-Based, On-Premises
2) By Enterprise: Large Enterprises, Small And Medium Enterprises,
3) By Application: Consumer Goods, Retail, Manufacturing, Healthcare And Pharmaceuticals, Transportation And Logistics, Other Applications
Subsegments:
1) By Cloud-Based: Public Cloud-Based Spend Management Software, Private Cloud-Based Spend Management Software
2) By On-Premises: On-Premises Spend Management Software, On-Premises Spend Management Software
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How Are Emerging Trends Reshaping The Dynamics Of The Spend Management Software Market?
Prominent businesses in the spend management software market are prioritizing novel technology like integrated external workforce solutions, which combine the management of supplier spending and the external workforce. These solutions offer comprehensive systems that manage freelancers, contractors, temporary workers, internal workforce, and supplier expenditure. As an example, Ivalua Inc., a US-based software firm, introduced its external workforce management solution in June 2024. This all-encompassing tool facilitates organizations to efficiently manage all aspects of their external workforce within a unified spend management platform. This offering gives companies an overview of their external workforce costs, supports evaluation of contingent workers' worth and performance, and aids in minimizing related risks. The solution tackles challenges such as fragmented engagement processes, undisclosed expenses, and regulation compliance, streamlining the selection, integration and supervision of external talent. The bespoke features of the solution can be tailored to align with individual organizational necessities and regional regulations, thereby augmenting operational efficiency and improving financial supervision of external workforce costs.
Who Are the Key Players In The Spend Management Software Market?
Major companies operating in the spend management software market report are:
• International Business Machines Corporation
• Oracle Corporation
• Sage Group PLC
• Concur Technologies Inc.
• Zoho Corporation Pvt. Ltd.
• Coupa Software Inc.
• Navan Inc.
• Zycus Inc.
• Emburse LLC
• Expensify Inc.
• Jaggaer LLC
• Procurify Technologies Inc.
• Ramp Corporation
• Brex Inc.
• Proactis Holdings Limited
• Simfoni Limited
• Precoro Inc.
• Fraxion Spend Management LLC
• SynerTrade S.A.
• Negotiatus Corp.
• Empronc Solutions Pvt. Ltd.
• Claritum Limited
• Airbase Inc.
• VV Finly Technology Pvt. Ltd.
• Accrualify Inc.
• Rosslyn Data Technologies PLC
• Travelator Inc.
• Vroozi Inc.
• Team Labs Inc.
• BILL Operations LLC
What Are The Regional Insights Into The Spend Management Software Market?
Europewas the largest region in the spend management software market in 2024. The regions covered in the spend management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
