Business Spend Management Software Market Overview
As per MRFR analysis, the Business Spend Management Software Market Size was estimated at 16.15 (USD Billion) in 2022.
The Business Spend Management Software Market Industry is expected to grow from 18.2(USD Billion) in 2023 to 53.18 (USD Billion) by 2032. The Business Spend Management Software Market CAGR (growth rate) is expected to be around 12.65% during the forecast period (2024 - 2032).
Key Business Spend Management Software Market Trends Highlighted
Recent trends in the business spend management software market include the adoption of artificial intelligence (AI) and machine learning (ML) to automate tasks and enhance decision-making. Cloud-based solutions are also gaining popularity, offering scalability, flexibility and cost-effectiveness. Additionally, there is a growing focus on supplier management and collaboration to optimize procurement processes and reduce costs.Key market drivers include the need for businesses to streamline spending processes, improve control over corporate expenses, and enhance compliance with increasing regulatory requirements. The market is also benefiting from the growing adoption of procure-to-pay (P2P) solutions, which automate the entire procurement process from requisition to payment.
Opportunities for exploration and capture in the business spend management software market lie in the adoption of advanced technologies such as AI, ML and blockchain. Integration with enterprise resource planning (ERP) systems and other business applications can also offer significant benefits. Furthermore, there is potential for growth in the market through the development of industry-specific solutions that address the unique needs of different sectors.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Business Spend Management Software Market Drivers
Rising Need for Cost Optimization and Efficiency
Organizations are increasingly recognizing the importance of optimizing their spending to improve profitability and efficiency. Business spend management software provides real-time visibility into spending patterns, allowing businesses to identify areas where they can reduce costs. The software also helps to automate and streamline procurement processes, which can lead to significant savings in time and resources. In addition, business spend management software can help businesses improve compliance with regulations and reduce the risk of fraud.
Growing Adoption of Cloud-Based Solutions
The core driver for the market growth of business spend management software is the rising adoption of cloud-based solutions. Cloud-based solutions have advantages over on-premises solutions, such as lower upfront expenses to set up programmed applications and the ability to upgrade the solution as needed. Accordingly, business spend management software can be accessed from anywhere due to the cloud-based model being utilized by the user, making it easier for the business to monitor its spending with solutions on the go.Moreover, the integration of cloud-based solutions with other cloud-based solutions, such as applications that manage enterprise resource planning and customer relationships, can support the efficiency and productivity of the firm.
Increasing Demand for Real-Time Data and Analytics
Businesses are increasingly demanding real-time data and analytics to help them make better decisions. Business spend management software provides real-time visibility into spending patterns, which allows businesses to identify trends and make adjustments to their spending strategies. The software also provides analytics that can help businesses identify areas where they can improve efficiency and reduce costs. The increasing demand for real-time data and analytics is expected to drive the growth of the business spend management software market in the coming years.
Business Spend Management Software Market Segment Insights
Business Spend Management Software Market Deployment Model Insights
In 2023, the cloud-based segment constituted the leading market share and is likely to remain the most successful in the forecast period of 2024-2032. The growing value of the cloud-based segment is linked to the increasing number of businesses of all sizes using cloud-based solutions for a range of reasons. Specifically, Business Spend Management software in a cloud format is associated with numerous advantages compared with on-premise solutions. Such a model of handling business spend is often less costly to implement and deploy, is more scalable and thus applicable to help all types of businesses and support their growth.
Also, cloud-based BSM software can be integrated with other cloud-based applications, such as enterprise resource planning and customer relationship management platforms, thus providing companies with a holistic understanding of their overall spending. The on-premise business spend management software is projected to grow at a sustainable rate. However, overall growth in the coverage of this software type is likely to be slower than that of its cloud-based counterpart. There are several reasons for such a trend, namely, the dominant position of large-sized corporations and complex businesses in on-premise BSM software usage.
It happens because the model is more customizable and allows for a higher degree of control and reliability which is essential for advanced and larger businesses. To summarize, the cloud-based BSM software is likely to a faster-growing rate as its usage will be intensified in different types of businesses, while the on-premise software will also grow in coverage but in limited market segments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Business Spend Management Software Market Organization Size Insights
The organization size segment of the Global Business Spend Management Software Market is categorized into Small and Medium-sized Enterprises and Large Enterprises. The Large Enterprises segment is expected to hold a larger market share in 2023. This is due to the increased adoption of Business Spend Management software by organizations as a result of the need to streamline procurement processes and cut costs. The awareness of the benefits of business spend management software by the SME segment has led to an increase in the product’s CAGR over the forecast period. This is resultant of the increased need by the organizations to enhance the visibility and control of their spend and cut costs by increasing compliance.
Business Spend Management Software Market Industry Vertical Insights
The Global Business Spend Management Software Market is segmented into various industry verticals, including Manufacturing, Healthcare, Retail, Financial Services and Technology. Among these, Manufacturing held the largest market share in 2023, accounting for over 25% of the global revenue. The industry's complex supply chains and need for efficient spend management drive this dominance. Other significant verticals include Healthcare, with a growing demand for cost optimization in healthcare spending, and Retail, where businesses seek to streamline procurement and reduce expenses.Financial Services and Technology are also witnessing notable adoption of Business Spend Management Software solutions to enhance transparency and control over spending.
Business Spend Management Software Market Functionality Insights
The Global Business Spend Management Software Market is segmented by Functionality into Expense Management, Invoice Processing, Vendor Management and Travel and Entertainment (T) Management. Expense Management is expected to hold the largest market share in 2023, owing to the increasing need for organizations to control and track employee expenses. The growing adoption of cloud-based expense management solutions is also driving the growth of this segment. Invoice Processing is expected to witness significant growth in the coming years due to the increasing volume of invoices being processed by organizations.
The adoption of AI-powered invoice processing solutions is also expected to contribute to the growth of this segment. Vendor Management is expected to grow at a steady pace, owing to the increasing need for organizations to manage their vendor relationships effectively. The growing adoption of vendor management software is also driving the growth of this segment. Travel and Entertainment (T) Management is expected to witness moderate growth in the coming years due to the increasing demand for solutions that can help organizations manage their travel and entertainment expenses effectively.
Business Spend Management Software Market Price Range Insights
The Global Business Spend Management Software Market is segmented by price range into low-end, mid-range and high-end. The low-end segment is expected to account for the largest share of the market in 2023 and is projected to grow at a CAGR of 10.5% over the forecast period. The mid-range segment is expected to grow at a CAGR of 12.5%, and the high-end segment is expected to grow at a CAGR of 14.5%. The low-end segment is primarily driven by the increasing adoption of cloud-based business spend management solutions by small and medium-sized businesses.
The mid-range segment is expected to witness significant growth due to the rising demand for advanced features and functionality, such as spend analytics and supplier management. The high-end segment is expected to be driven by the increasing adoption of AI-powered business spend management solutions by large enterprises.
Business Spend Management Software Market Regional Insights
Regionally, the Global Business Spend Management Software Market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. North America is the largest regional segment, accounting for 38.6% of the global market revenue in 2023. The region is expected to maintain its dominance throughout the forecast period, driven by the early adoption of advanced technologies and the presence of a large number of Fortune 500 companies. Europe is the second-largest regional segment, with a market share of 29.2% in 2023.
The region is home to several large economies, such as Germany, the United Kingdom, and France, which are driving the growth of the Business Spend Management Software Market. The Asia-Pacific region is expected to be the fastest-growing regional segment during the forecast period, with a CAGR of 13.5%. The region is witnessing a rapid increase in the adoption of Business Spend Management Software solutions due to the growing awareness of cost optimization and compliance. South America, Middle East and Africa are expected to experience moderate growth during the forecast period, with CAGRs of 11.2% and 10.9%, respectively.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Business Spend Management Software Market Key Players And Competitive Insights
The main players operating in this market are constantly innovating and launching new products and solutions to meet the evolving needs of their target customer base. The growth of the market is driven by increasing adoption of cloud-based solutions and availability of mobile applications. The leading players operating in the market segment are investing heavily in research and development activities to expand the capabilities of their products and solutions. They are also focused on an increased presence in the global market and are entering new markets to drive the market segment’s Business Spend Management Software Market further growth. The competitive scenario of the Business Spend Management Software Market is expected to be highly competitive. Companies operating in the Business Spend Management Software Market segment are focusing on providing advanced and innovative solutions to their target customers, improving their customer service, and introducing new products to attract more customers.
One of the key companies offering Business Spend Management Software Market software solutions is SAP Ariba. The company offers a comprehensive suite of products and solutions enabling businesses to manage their spending throughout the entire procure-to-pay process. The solutions offered by SAP Ariba enable businesses to streamline and automate their purchasing processes, reduce costs, and achieve higher levels of compliance. The company has a strong global reach and serves customers throughout the world, as well as in several different industries.
Coupa Software is another leading provider of cloud-based Business Spend Management Software Market software solutions. Coupa offers solutions that leverage the power of its cloud platform to help businesses manage spending in a smarter manner. The solutions provided by Coupa help organizations automate their purchases, lower costs, and become more compliant. Similarly to SAP Ariba, Coupa has a strong global presence.
Key Companies in the Business Spend Management Software Market Include
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IBM Corporation
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Coupa Software
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Microsoft Corporation
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Procuria
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Zycus
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Ivalua, Inc.
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Corcentric
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Denali Software, Inc.
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Oracle Corporation
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SAP SE
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Basware Corporation
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Determine, Inc.
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Infor
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Emburse, Inc.
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Esker, Inc.
Business Spend Management Software Market Industry Developments
The Global Business Spend Management Software Market is projected to reach USD 53.18 billion by 2032, exhibiting a CAGR of 12.65% during the forecast period (2024-2032). The market growth is attributed to the increasing adoption of digital transformation initiatives, rising need for cost optimization, and growing compliance requirements.
Key industry developments include the acquisition of Coupa Software by Thoma Bravo in 2023, the launch of SAP Concur's new expense management solution, and the partnership between Ivalua and Coupa to provide integrated spend management solutions. The market is expected to witness continued growth due to the increasing adoption of cloud-based solutions, the rise of artificial intelligence (AI) and machine learning (ML) technologies, and the growing focus on sustainability.
Business Spend Management Software Market Segmentation Insights
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Business Spend Management Software Market Deployment Model Outlook
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Business Spend Management Software Market Organization Size Outlook
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Business Spend Management Software Market Industry Vertical Outlook
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Manufacturing
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Healthcare
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Retail
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Financial Services
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Technology
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Business Spend Management Software Market Functionality Outlook
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Business Spend Management Software Market Price Range Outlook
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Low-end ($50K)
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Mid-range ($50K-$250K)
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High-end (>$250K)
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Business Spend Management Software Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
16.15(USD Billion) |
| Market Size 2023 |
18.2(USD Billion) |
| Market Size 2032 |
53.18(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.65% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
IBM Corporation, Coupa Software, Microsoft Corporation, Procuria, Zycus, Ivalua, Inc., Corcentric, Denali Software, Inc., Oracle Corporation, SAP SE, Basware Corporation, Determine, Inc., Infor, Emburse, Inc., Esker, Inc. |
| Segments Covered |
Deployment Model, Organization Size, Industry Vertical, Functionality, Price Range, Regional |
| Key Market Opportunities |
Cloud deployment AI-powered automation Integration with ERP systems Mobile access and analytics Compliance and risk management |
| Key Market Dynamics |
Increased cloud adoption growing need for cost optimization AI and automation integration rising adoption in SMBs and enhanced data analytics capabilities |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Business Spend Management Software Market was expected to reach a valuation of 18.2 billion USD in 2023.
The Global Business Spend Management Software Market is expected to reach a valuation of 53.18 billion USD in 2032.
The Global Business Spend Management Software Market is expected to grow at a CAGR of 12.65% from 2024 to 2032.
North America is expected to have the largest market share in the Global Business Spend Management Software Market.
The IT and telecom industry is expected to have the largest market share in the Global Business Spend Management Software Market.
Some of the key competitors in the Global Business Spend Management Software Market include SAP, Oracle, Coupa and Ivalua.
Some of the key trends in the Global Business Spend Management Software Market include the increasing adoption of cloud-based solutions and the growing demand for data analytics and reporting capabilities.
Some of the challenges facing the Global Business Spend Management Software Market include the lack of standardization and the high cost of implementation.
Some of the opportunities for growth in the Global Business Spend Management Software Market include the increasing adoption of digital technologies and the growing awareness of the benefits of spend management software.
Some of the key factors driving the growth of the Global Business Spend Management Software Market include the increasing need for cost control and the growing adoption of digital technologies.
