Procurement Analytics Market size was over USD 4.59 billion in 2024 and is anticipated to exceed USD 77.61 billion by the end of 2037, growing at over 24.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of procurement analytics is evaluated at USD 5.48 billion.
The use of procurement analytics technology and services is expected to be fueled by rising corporate spending on marketing and advertising, a shifting customer intelligence environment to drive the market, and the expansion of customer channels. The annual global expenditure on advertising is estimated to be USD 674 billion.
In addition, one of the major drivers for procurement analytics is automation. The tremendous requirement that enterprises have for contract and compliance management contributes to the rising demand. For example, the U.S. software giant ServiceNow updated its current product to include a procurement service management component that helps with other field activity management. The goal of ServiceNow is to automate workflows related to and involved in procurement.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
24.3% |
Base Year Market Size (2024) |
USD 4.59 billion |
Forecast Year Market Size (2037) |
USD 77.61 billion |
Regional Scope |
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Component (Solutions, Services)
Based on component, the solutions segment in the procurement analytics market is expected to hold 60% of the revenue share during the forecast period. Working capital management is improved and growth is accelerated by the procurement analytics software provided by procurement analytics firms. The market offers a wide range of solutions. Oracle and SAP, which offer products including risk analytics, spend analytics, and supply chain management, are a couple of instances of procurement analytics companies. When considering social, economic, and environmental concerns, emerging technologies offer new prospects for sustainable development and green technology. Therefore, one of the main factors driving the use of procurement analytics solutions across verticals globally and driving the market ahead is growing awareness of technology's negative environmental effects. For example, The Hong Kong and Shanghai Banking Corporation Limited is stepping up its efforts to assist companies of all kinds in making the switch to more sustainable business models beginning of October 2020. A little over USD 1 trillion has been invested to funding environmentally friendly companies and creating climate solutions to safeguard the expansion of new firms.
Deployment Mode (Cloud, On-Premises)
Based on deployment mode, on-premises segment in the procurement analytics market is expected to hold largest revenue share of about 55% during the forecast period. An organization using on-premises solutions must buy a license or a copy of the software. Firms in heavily regulated areas, such as Europe, are required to utilize software that they have bought. The segment's market share in procurement analytics is influenced by variables including local security controls and data protection resulting from on-premises data storage. But because on-premises software needs specialized IT staff, accessibility and support are better within the company.
Our in-depth analysis of the global market includes the following segments:
Component |
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Application |
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Deployment Mode |
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Organization Size |
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Vertical |
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North American Market Forecast
Procurement analytics market in North America region is attributed to hold largest revenue share of about 34% during the forecast period due to the early use of digital processes and technologies like analytics. Regional growth is probably going to be driven by the rise in spending on risk management, supply chain analytics, and vendor analytical solutions. Furthermore, leading North American companies in the procurement analytics space are always adding new products to their lineup and improving the ones they already have. To assist clients in enhancing equipment uptime and supply chain resilience, PartsSource announced in June 2022 the release of a visual formulary control and supply chain risk monitor. It is anticipated that in 2023, spending on risk management and information security goods and services would increase by 11.3% to exceed USD 188.3 billion.
APAC Market Statistics
Procurement analytics market in Asia Pacific region is projected to hold largest revenue share of about 27% during the forecast period. Big data analytics is revolutionizing businesses and governments in the Asia Pacific area. China and India are two nations that are integrating technology to enhance supply chain management and operations. The expansion of the market is also being driven by an increase in IoT use and data analysis of manufacturing processes. In February 2022, Google Inc. published an article stating that over 200 unicorn companies were located in the region in 2021. The region's increasing start-up scene is probably going to have an impact on the market's expansion.
Author Credits: Abhishek Verma
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