What Fueled The Previous Growth In The Vendor Management Software Market?
The vendor management software market has seen considerable growth due to a variety of factors.
• The vendor management software market has grown rapidly in recent years. It will grow from $10.32 billion in 2024 to $11.93 billion in 2025, with a CAGR of 15.6%.
This growth can be attributed to the shift toward digitalization, the rise in outsourcing, the demand for greater transparency, the need for regulatory compliance, and the increasing complexity of supply chains.
What Is The Expected Growth In The Vendor Management Software Market Size Evolve over the Forecast Period?
The vendor management software market is expected to maintain its strong growth trajectory in upcoming years.
• The vendor management software market is expected to reach $21.02 billion by 2029 with a CAGR of 15.2%.
Growth is driven by the complexity of vendor ecosystems, focus on compliance and efficiency, and demand for real-time data. Trends include cloud-based solutions, AI adoption, product innovations, and strategic partnerships.
What Main Forces Are Fueling Expansion In The Vendor Management Software Market?
The expansion of the retail industry is projected to drive the vendor management software market's growth. This industry comprises businesses selling products and services directly to consumers for their personal or household consumption. The evolution of the retail sector is due to increased consumer spending, the growth of e-commerce channels, changes in consumer preferences, and the global reach of markets. Vendor management software supports retailers in enhancing vendor relationships, bolstering inventory management, cutting costs, securing compliance, and streamlining product lifecycle management. This, in turn, inspires operational efficiency and a competitive edge in the retail industry. For instance, as stated by the Department of Commerce's Census Bureau, a US government department, in February 2024, the total fourth quarter retail sales for 2023 were calculated to be $1,831.4 billion, a 0.4% surge from 2023's third quarter. Consequently, the expanding retail industry encourages the growth of the vendor management software market.
What Are The Primary Segments In The Global Vendor Management Software Market?
The vendor management software market covered in this report is segmented –
1) By Software: Procurement And Sourcing Software, Vendor Analytics And Reporting Software, Vendor Contract Management Software, Vendor Information Management Software, Vendor Onboarding And Compliance Software, Vendor Performance Management Software, Vendor Relationship Management Software
2) By Deployment Type: Cloud-Based, On-Premises
3) By Enterprise Size: Large Enterprise, Small And Medium Enterprise
4) By End-User: Banking, Financial Services And Insurance, Energy And Utilities, Government, Healthcare, IT And Telecommunications, Manufacturing, Retail And Consumer Goods
Subsegments:
1) By Procurement And Sourcing Software: E-Sourcing Software, Purchase Order Management Software, Supplier Management Software, Spend Analysis Software, Contract Lifecycle Management (CLM) Software
2) By Vendor Analytics And Reporting Software: Data Visualization Tools: Supplier Performance Dashboards, Predictive Analytics Tools, Reporting Automation Tools, Risk And Compliance Analytics
3) By Vendor Contract Management Software: Contract Creation And Authoring Tools, Contract Negotiation And Approval Tools, Contract Compliance Management, Digital Signature And E-Signature Tools, Contract Renewal And Termination Tracking
4) By Vendor Information Management Software: Supplier Database Management, Vendor Profile Management, Supplier Self-Service Portals, Data Cleansing And Enrichment Tools, Document Management For Vendors
5) By Vendor Onboarding And Compliance Software: Supplier Onboarding Portals, KYC (Know Your Customer) Compliance Tools, Vendor Verification And Authentication, Supplier Risk Assessment And Compliance, Integration With ERP And CRM Systems
6) By Vendor Performance Management Software: Supplier Performance Evaluation Tools, KPI Tracking And Metrics Analysis, Scorecards And Performance Dashboards, Risk Management And Issue Tracking, Vendor Auditing Tools
7) By Vendor Relationship Management Software: Communication And Collaboration Tools, Vendor Engagement Platforms, Contract Negotiation Tools, Vendor Collaboration Portals, Relationship Analytics And Sentiment Analysis
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How Are New Trends Impacting The Size Of The Vendor Management Software Market?
Leading companies in the vendor management software market are producing innovative products like automated vendor management software to improve efficiency, streamline operations, and satisfy the dynamic needs of businesses. This automation simplifies the vendor onboarding, performance monitoring, and contract management procedures through cutting-edge automated and workflow features. For instance, in March 2022, a Canadian company named PayMyTuition, which specializes in automated vendor management software, introduced this system for colleges and universities. The vendor management solution from PayMyTuition gives academic organizations the ability to optimize payment processing procedures, send invoices, pay vendors, and merge with their current student information systems. The software includes a unique vendor payments module and an automated vendor management software aiming to revolutionize the way educational enterprises control international business payments.
Who Are the Key Players In The Vendor Management Software Market?
Major companies operating in the vendor management software market are:
• Workday Inc.
• GEP SMART
• SAP Ariba
• PRO Unlimited
• Upwork Global Inc.
• Field Nation
• Zycus Inc.
• Jaggaer
• Tipalti
• Esker
• Coupa Software Inc.
• WorkMarket
• Beeline
• BirchStreet Systems
• UpGuard Inc.
• Vroozi
• ProcurePort
• EC Sourcing Group
• Intelex Technologies
• Rosslyn Data Technologies
What Is The Most Dominant Region In The Vendor Management Software Market?
North America was the largest region in the vendor management software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vendor management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
