Procurement Software Market is Expected to reach Approximately USD 9.9 Billion by 2023

Pune, India, October, 2018 /press release/- Market Research Future Published a Cooked Research Report on Procurement Software Market Research Report

Procurement Software Market Overview

Market Research Future (MRFR)’s latest study reveals that the global procurement software market is set to expand at 9.6% CAGR during the forecast period 2018 to 2023. The valuation of the market is poised to reach USD 9,967.2 Mn by 2023-end up from USD 5,881.1 Mn in 2017. The market is expected to witness an upsurge in demand for procurement software from different industry verticals such as IT & communications, automotive, retail, mining, etc. The need for centralized procurement process across the end-user industries is likely to fuel demand in the market over the assessment period.

Procurement software assists the organizations in their ventures into new markets by consolidating supply chain. It accelerates the penetration of the customer-centric markets by enhancing operational efficiency and establishing strong distribution systems for prompt delivery. Additionally, procurement software facilitates uninterrupted flow of raw materials and simplifies the decision making regarding demand and sales forecast. This, in turn, is anticipated to catapult the market on an upward trajectory. The small and medium enterprises are prognosticated to exhibit a higher rate of adoption over the next couple of years.

The development of mobile applications for the digitization of the procurement process has intensified the competition in the market. Oracle, a global leader in procurement software, introduced a mobile application, i.e., Oracle Fusion Self Service Procurement that functions efficiently through smartphones. However, the lack of skilled personnel remains a challenge for the market participants.

Global Market for Procurement Software-Segmental Analysis:

MRFR’s report offers a comprehensive segmental analysis of the market based on deployment, software type, organization size, and vertical. By deployment, the procurement software market has been segmented into on-cloud and on-premise. The on-premise segment is currently dominating the market by holding 59% of the market share. It is likely to retain its pole position over the assessment period. Meanwhile, the on-cloud segment is projected to witness an increase of USD 1858.8 Mn in market revenue from 2017 to 2023, expanding at 10.5% during the forecast period.

By software type, the market is segmented into spend analysis, e-sourcing, e-procurement, contract management, supplier management, and others. The e-procurement segment holds the dominant share of the market and is likely to retain its prominence over the next couple of years. The growth of the segment is attributable to low transactional cost, enhanced transparency, minimized time span of the procurement process.

By organization size, the market is segmented into small and medium enterprises, and large enterprises. The large enterprises segment presently holds the major share of the market due to growing inclination towards the deployment of procurement software. However, the small and medium enterprises segment is expected to witness a surge in demand in the forthcoming years. It is projected to register a relatively higher CAGR of over 10% across the review period.

By vertical, the market is segmented into retail, automotive, travel & logistics, electronics, IT & telecommunication, mining, and others. The retail segment holds the most substantial market share and is estimated to strike a high CAGR through the projection period. The growing demand from FMCG producers for automation of inventory management is likely to drive the expansion of the segment.

Regional Outlook:

The global market for procurement software, by region, has been segmented into North America, Europe, Asia Pacific, and the Rest of the World. North America is currently the largest market for procurement software and is likely to retain its dominance in the foreseeable future. The factors aiding the proliferation of the regional market include the presence of key players, developed infrastructure, and rising demand for the centralized procurement process.

Europe has gained control over the second-largest share of the market. Germany is estimated to lead the regional market, trailed by the U.K. The increasing adoption of procurement software in the IT & communications industry is prognosticated to favor the expansion of the regional market during the forecast period.

Asia Pacific is estimated to exhibit a steeper rise in the growth of the market, expanding at a higher CAGR. The factors responsible for complementing the regional market proliferation are increasing manufacturing units, catalyzed investments by global players in the region, and the thriving retail sector in country-level markets among others.

The Rest of the World is estimated to witness healthy growth across the projection period. The growth of the Middle East is poised to catalyze the expansion of the regional market.

Global Market for Procurement Software-Competitive Dashboard:

Some of the key players profiled in the report include IBM Corporation, JDA Software Inc., Oracle Corporation, Coupa Software Incorporated, Epicor Software Corporation, SAP SE, Infor Inc, Zycus Inc, and Mercateo AG.

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