Supplier Relationship Management Software Market Overview
As per MRFR analysis, the Supplier Relationship Management Software Market Size was estimated at 15.98 (USD Billion) in 2022. The Supplier Relationship Management Software Market Industry is expected to grow from 17.89(USD Billion) in 2023 to 49.3 (USD Billion) by 2032. The Supplier Relationship Management Software Market CAGR (growth rate) is expected to be around 11.92% during the forecast period (2024 - 2032).
Key Supplier Relationship Management Software Market Trends Highlighted
Advanced analytics, cloud computing, and artificial intelligence (AI) are driving innovation in the Supplier Relationship Management (SRM) software market. These technologies enable businesses to gain deeper insights into supplier performance, automate processes, and predict future trends.Key market drivers include the increasing complexity of global supply chains, the need for greater transparency and collaboration, and the growing emphasis on sustainability.
Opportunities lie in the potential to leverage AI for supplier risk mitigation, explore new procurement strategies, and foster innovation through supplier collaboration.Recent trends show a shift towards cloud-based deployments, which offer scalability, flexibility, and reduced IT costs. Integration with other business applications, such as enterprise resource planning (ERP) and customer relationship management (CRM), is also becoming increasingly important for seamless data sharing and enhanced decision-making.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Supplier Relationship Management Software Market Drivers
Rise of Digital Supply Chains
The rapid adoption of digital supply chains is a major driver of growth in the Supplier Relationship Management Software Market Industry. As businesses increasingly rely on complex, global supply chains, they need robust tools to manage supplier relationships and ensure efficient operations. Supplier relationship management (SRM) software provides a centralized platform for managing supplier data, performance, and collaboration. It helps businesses to identify and mitigate risks, improve supplier performance, and optimize the procurement process.As digital supply chains become more prevalent, the demand for SRM software is expected to grow significantly.
Increasing Focus on Supply Chain Resilience
The COVID-19 pandemic has highlighted the importance of supply chain resilience. Businesses are increasingly recognizing the need to have a robust and agile supply chain that can withstand disruptions. SRM software can help businesses achieve supply chain resilience by providing visibility into supplier performance, risk management capabilities, and collaboration tools. By using SRM software, businesses can identify and mitigate potential disruptions and build more resilient supply chains.
Growing Adoption of Cloud-Based SRM Solutions
The growing adoption of cloud-based SRM solutions is another key driver of growth in the Supplier Relationship Management Software Market Industry. Cloud-based SRM solutions offer a number of benefits over on-premises solutions, including lower upfront costs, increased flexibility, and scalability. Cloud-based SRM solutions are also easier to deploy and maintain, making them a more attractive option for businesses of all sizes.
Supplier Relationship Management Software Market Segment Insights
Supplier Relationship Management Software Market Deployment Type Insights
Deployment Type Insights The Supplier Relationship Management Software Market is segmented based on deployment type into on-premise, cloud, and hybrid. On-Premise On-premise deployment involves installing and managing the Supplier Relationship Management (SRM) software on the organization's own servers and infrastructure. This deployment type offers greater control and customization over the software, enabling organizations to tailor it to their specific requirements.
However, on-premise deployment requires significant upfront investment in hardware, software, and IT resources for maintenance and upgrades.Cloud deployment involves accessing the SRM software over the internet, typically through a subscription-based model. Cloud-based SRM solutions offer flexibility, scalability, and reduced IT burden as the vendor manages the infrastructure and maintenance.
This deployment model is gaining popularity due to its cost-effectiveness and ease of use. Hybrid deployment combines elements of both on-premise and cloud deployments. Organizations can deploy the core SRM functionality on-premise while leveraging cloud services for specific modules or features.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Supplier Relationship Management Software Market Organization Size Insights
The Supplier Relationship Management Software Market is segmented by organization size into small and medium-sized enterprises (SMEs) and large enterprises. In 2023, the large enterprises segment accounted for a larger share of the market with a revenue of 16.8 Billion USD. However, the SMEs segment is expected to exhibit a higher growth rate of 12.5% CAGR during the forecast period, owing to the increasing adoption of cloud-based SRM solutions and the growing need for efficient supplier management among SMEs. By 2032, the SMEs segment is projected to reach USD 28.5 Billion in revenue, while the large enterprises segment is expected to reach USD 41.1 Billion.
Supplier Relationship Management Software Market Industry Vertical Insights
The Supplier Relationship Management Software Market is segmented by industry vertical into manufacturing, retail, healthcare, financial services, and IT and telecom. The manufacturing segment is expected to account for the largest share of the market in 2023, followed by the retail and healthcare segments. The financial services and IT and telecom segments are also expected to grow at a significant pace in the coming years.
The manufacturing segment is expected to grow due to the increasing need for supplier relationship management software to improve supply chain efficiency and reduce costs.The retail segment is also expected to grow due to the increasing adoption of e-commerce and the need for better supplier management to meet customer demand. The healthcare segment is expected to grow due to the increasing need for supplier relationship management software to improve patient care and reduce costs.
The financial services segment is expected to grow due to the increasing need for supplier relationship management software to manage risk and compliance. The IT and telecom segment is expected to grow due to the increasing need for supplier relationship management software to manage complex supply chains and reduce costs.
Supplier Relationship Management Software Market Functionality Insights
The Functionality segment of the Supplier Relationship Management Software Market is anticipated to grow significantly in the coming years. In 2023, the Vendor Management sub-segment held the largest market share, and it is projected to continue its dominance throughout the forecast period. This growth can be attributed to the increasing need for organizations to manage their supplier relationships effectively and efficiently.
The Performance Management sub-segment is also expected to witness substantial growth, driven by the rising demand for tools that can help organizations measure and improve supplier performance.The Risk Management sub-segment is gaining traction due to the growing need for organizations to mitigate risks associated with their supply chains. The Collaboration sub-segment is expected to grow at a steady pace, driven by the increasing adoption of cloud-based SRM solutions that facilitate collaboration between organizations and their suppliers.
The Analytics sub-segment is anticipated to witness significant growth, fueled by the growing demand for data-driven insights to improve decision-making. Overall, the Functionality segment is expected to drive the growth of the Supplier Relationship Management Software Market, contributing significantly to its overall valuation.
Supplier Relationship Management Software Market Solution Type Insights
The Supplier Relationship Management Software Market segmentation by Solution Type includes Basic, Advanced, and Enterprise. The Advanced segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growing adoption of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and cloud computing is driving the growth of this segment.
The Enterprise segment is also expected to witness significant growth due to the increasing demand for comprehensive solutions that can manage complex supplier relationships.The Basic segment, which caters to small and medium-sized businesses, is expected to grow steadily over the forecast period. The Supplier Relationship Management Software Market revenue for the Advanced segment is projected to reach USD 12.5 billion by 2024, growing at a CAGR of 12.1%.
Supplier Relationship Management Software Market Regional Insights
The Supplier Relationship Management Software Market is segmented into North America, Europe, APAC, South America, and MEA. North America and Europe are the largest regional markets for Supplier Relationship Management Software, accounting for a significant portion of the global market revenue.
The growth in these regions is attributed to the presence of a large number of enterprises and the increasing adoption of digital transformation initiatives. APAC is expected to witness the highest growth rate during the forecast period due to the increasing adoption of cloud-based Supplier Relationship Management Software solutions and the growing number of small and medium-sized enterprises in the region.South America and MEA are expected to experience moderate growth over the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Supplier Relationship Management Software Market Key Players And Competitive Insights
Major players in Supplier Relationship Management Software Market industry are continuously developing advanced technologies to gain a competitive edge. Leading Supplier Relationship Management Software Market players are focusing on providing comprehensive solutions that cater to the evolving needs of businesses. The Supplier Relationship Management Software Market development landscape is characterized by strategic partnerships and collaborations among key players to enhance their offerings and expand their market reach.
The competitive landscape is expected to remain dynamic as new entrants emerge and established players strengthen their positions through product innovation and strategic acquisitions.A prominent competitor in the Supplier Relationship Management Software Market, SAP SE, offers a comprehensive suite of SRM solutions designed to optimize supplier relationships throughout the procurement lifecycle. SAP's SRM offerings include capabilities for supplier selection, performance management, and risk assessment, enabling businesses to streamline their supply chain operations. SAP's global presence and strong brand recognition contribute to its competitive advantage in the market.
Another key player, Oracle Corporation, provides a robust SRM solution as part of its Oracle Cloud Applications suite. Oracle's SRM offering includes features for supplier onboarding, collaboration, and contract management, helping organizations improve supplier engagement and drive cost savings. Oracle's focus on cloud-based solutions and its extensive customer base position it as a formidable competitor in the market.IBM is another major player in the Supplier Relationship Management Software Market with its IBM Sterling Supply Chain Suite. IBM's SRM solution offers capabilities for supplier management, performance monitoring, and risk mitigation.
IBM's commitment to innovation and its strong presence in the supply chain management market make it a significant competitor. Infor, a provider of industry-specific enterprise software applications, offers a comprehensive SRM solution tailored to the needs of various industries. Infor's SRM offering includes features for supplier onboarding, performance management, and collaboration, enabling businesses to enhance their supplier relationships and improve supply chain efficiency. Infor's focus on industry-specific solutions and its strong customer base in manufacturing, healthcare, and other industries contribute to its competitive position in the market.
Key Companies in the Supplier Relationship Management Software Market Include
- ProcessGene
- JAGGAER
- Oracle
- Keelvar
- SciQuest
- Coupa
- Basware
- Ivalua
- GEP
- SAP
- Epicor Software
- IBM
- Una
- TealBook
- Medius
Supplier Relationship Management Software Market Industry Developments
Recent news developments and current affairs in the Supplier Relationship Management Software Market are focused on the increasing adoption of digital transformation initiatives by businesses. This has led to a growing demand for Supplier Relationship Management (SRM) solutions that can help organizations streamline their supply chains, improve collaboration with suppliers, and manage risk. Additionally, the growing awareness of the importance of supplier diversity and sustainability is driving demand for SRM solutions that can help organizations achieve their ESG goals. Some of the companies that are making significant progress in the market include SAP, Oracle, IBM, and Coupa Software. They are investing in research and development to provide innovative solutions that meet the evolving needs of businesses.
Supplier Relationship Management Software Market Segmentation Insights
Supplier Relationship Management Software Market Deployment Type Outlook
Supplier Relationship Management Software Market Organization Size Outlook
-
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Supplier Relationship Management Software Market Industry Vertical Outlook
-
- Manufacturing
- Retail
- Healthcare
- Financial Services
- IT and Telecom
Supplier Relationship Management Software Market Functionality Outlook
-
- Vendor Management
- Performance Management
- Risk Management
- Collaboration
- Analytics
Supplier Relationship Management Software Market Solution Type Outlook
-
- Basic
- Advanced
- Enterprise
Supplier Relationship Management Software Market Regional Outlook
-
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.98(USD Billion) |
| Market Size 2023 |
17.89(USD Billion) |
| Market Size 2032 |
49.3(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
11.92% (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 |
ProcessGene, JAGGAER, Oracle, Keelvar, SciQuest, Coupa, Basware, Ivalua, GEP, SAP, Epicor Software, IBM, Una, TealBook, Medius |
| Segments Covered |
Deployment Type, Organization Size, Industry Vertical, Functionality, Solution Type, Regional |
| Key Market Opportunities |
1 Digital transformation2 Increased demand for supply chain visibility3 Growing number of suppliers4 Need for supplier performance management5 Integration with other business systems |
| Key Market Dynamics |
Rising demand for supplier collaboration Need for improved supply chain visibility. Increasing focus on risk management Growing adoption of cloud-based solutions Emergence of AI and ML technologies |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Supplier Relationship Management Software Market is anticipated to reach a valuation of approximately 17.89 billion USD in 2023.
The Supplier Relationship Management Software Market is projected to reach a valuation of approximately 49.3 billion USD by 2032.
The Supplier Relationship Management Software Market is estimated to exhibit a CAGR of approximately 11.92% from 2024 to 2032.
North America is expected to hold the largest market share in the Supplier Relationship Management Software Market, followed by Europe and Asia-Pacific.
Key applications of Supplier Relationship Management Software include supplier performance management, risk management, spend analysis, and collaboration.
Major competitors in the Supplier Relationship Management Software Market include SAP, Oracle, IBM, and Infor.
Growth drivers of the Supplier Relationship Management Software Market include the increasing need for supply chain optimization, the adoption of cloud-based solutions, and the rising adoption of digital transformation initiatives.
Challenges faced by the Supplier Relationship Management Software Market include data integration issues, security concerns, and the lack of skilled professionals.
Key trends shaping the Supplier Relationship Management Software Market include the adoption of artificial intelligence, the integration of blockchain technology, and the rise of predictive analytics.
Opportunities for growth in the Supplier Relationship Management Software Market include the expansion into emerging markets, the development of new applications, and the adoption of innovative technologies.
