| Report Code: A06956 | Pages: 344 | Oct 2022 | 3360 Views | ||
| Author(s) : Mohd K, Apoorv P , Vineet K | Tables: 242 | Charts: 69 |
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The global procurement analytics market size was valued at $3.3 billion in 2021, and is projected to reach $32.3 billion by 2031, growing at a CAGR of 25.8% from 2021 to 2031.
The COVID-19 outbreak has high impact on the growth of procurement analytics market, as increasing number of smartphone users, growing adoption of connected devices, and surging e-commerce sector provide lucrative opportunities for the growth of the procurement analytics market. COVID has caused crises in social, economic, and energy areas and medical life worldwide throughout 2020.
Procurement analytics is the process of tapping into the large reservoir of procurement data using quantitative and analytical methods to develop a set of actionable insights to drive value and improve operations. The need for procurement analytics has developed from organizations' desire to get a consolidated view of procurement spend. Procurement analytics has developed through one-off projects, such as spend cubes, to cover a number of specialized solutions, dashboards, and types of automation software. Procurement analytics is about much more than data visualization. One way to think about procurement analytics is that it's like refining oil. It's about collecting, cleansing, and enriching large amounts of data from disparate systems to add business value. In procurement analytics, value comes from more timely, accurate, and actionable business insights, and the ability to measure procurement's contribution to the bottom line.
Furthermore, growing demand for procurement and demand management solutions and newer applications for procurement solutions in the healthcare sector is boosting the growth of the global procurement analytics market. In addition, need to optimize global supply chain impacts growth of the procurement analytics market. However, high cost associated with the implementation and maintenance of procurement solutions is hampering the procurement analytics market growth. On the contrary, growing integration of advanced technologies such as blockchain and cloud technology is expected to offer remunerative opportunities for expansion during the procurement analytics market forecast.
The procurement analytics market is segmented into Deployment Mode, Enterprise Size, Component, Application and Industry Vertical.
Segment Review
The procurement analytics market is segmented on the basis of component, deployment mode, enterprise size, application, industry vertical, and region. Based on component, it is segmented into solution and services. Based on deployment mode, the market is categorized into on-premise and cloud. Based on enterprise size, the market is categorized into large enterprise and SMEs. Based on application, the market is categorized into strategic sourcing, spend management, process management, category management, contract management, and transaction management. Based on industry vertical, the market is categorized into BFSI, manufacturing, retail, IT and telecom, healthcare, and others. Based on manufacturing, the market is categorized into food and beverages, industrial machinery and heavy equipment, high tech and consumer electronics, automotive, and others. Based on high tech and consumer electronics, the market is categorized into consumer electronics, PCs & laptops, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
The key players operating in the Procurement Analytics industry include Amazon Web Services (AWS), BirchStreet Systems, Cisco System, Inc., Coupa Software Inc., Genpact, International Business Machine (IBM), Jaggaer, Microsoft Corporation, Oracle Corporation, Proactis, Rosslyn Data Technologies, SAP SE, SAS Institute, Sievo, Simfoni, Workday, Inc., and Zycus Inc.. Furthermore, it highlights the strategies of the key players to improve the market share and sustain competition.
On the basis of industry vertical, the BFSI segment dominated the procurement analytics market in 2021, and is expected to maintain its dominance in the upcoming years. With the use of contemporary technology and digital advancements, the majority of modern banks have already started their full digital transformation. In addition, due to shifting regulatory landscapes and rising consumer expectations, procurement analytics tools are essential for businesses in the banking and financial sector to effectively manage their primary expenditure categories and better control supplier risks, which will help them save money and operate more innovatively, agilely, and flexible. Such uses of procurement management solutions are promoting the expansion of the BFSI industrial market.
North America is anticipated to account for the largest share of the Procurement analytics industry during the forecast period, owing to presence of a substantial industrial base in the U.S., government initiatives to promote innovation, and large purchasing power. The growth is primarily concentrated in the U.S. Companies that use big data software frequently use print management systems to cut costs, improve industry vertical, and boost worker productivity. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing economies such as India and China and cloud native countries like Japan.
Impact of COVID-19
The COVID-19 outbreak has high impact on the growth of procurement analytics market, as increasing number of smartphone users, growing adoption of connected devices, and surging e-commerce sector provide lucrative opportunities for the growth of the procurement analytics market. COVID has caused crises in social, economic, and energy areas and medical life worldwide throughout 2020. This crisis had many direct and indirect effects on all areas of society. In the meantime, the digital and artificial intelligence industry can be used as a professional assistant to manage and control the outbreak of the virus. In post-pandemic circumstances, enterprises strived to minimize operational and running costs around all the business functions to recover the losses incurred in COVID times. Moreover, this the rising demands of online facilities across different industries for instance, retail and marketing, manufacturing, energy and utilities drove the growth in demand of procurement analytics solutions. In addition, the disruptions in the supply chain also triggered the demand of procurement analytics services across the globe. Furthermore, many enterprises are investing highly in this market to thrive the changes in working environment and increased complexity of supply chain. These factors are anticipated to drive the procurement analytics market growth.
Top Impacting Factors
Growing demand for procurement and demand management solutions
One of the main factors driving the expansion of the procurement analytics market is the growing demand for efficient demand and supply management solutions. A procedure called "demand management" allows organizations to adjust their capacity to meet changing demand or to control the level of demand using marketing or procurement analytics techniques. For a variety of companies, procurement management solutions can assist in producing statistics-based projections from data, recent occurrences, and random elements. An automated ecosystem can be used by procurement management services to evaluate supply constraints, financial projections, client commitments, inventory count, demand, and cost management. The solution predictions all demand for products and services to support the marketing team and involves prioritizing demand when supply is defecating. Organizations are increasingly focusing on proper procurement management as it simplifies the planning and use of resources for profitable business results. Such trends are promising great opportunities for the growth of the market in the coming years.
Newer applications for procurement solutions in the healthcare sector
The transportation of medications, surgical tools, and other products as required by healthcare personnel to perform their duties is made possible by a number of processes supported by healthcare supply chain and procurement management services. Finding departmental weaknesses and suggesting remedies are the goals of procurement management services in the healthcare industry. The procurement analytics services guarantee that hospital departments, operations, and the revenue cycle are properly linked. In addition, it is possible to see the supply chain and procurement management systems as a back-end programme that is essential for integrating all the various activities. The use of supply chain and procurement analytics software in the healthcare industry is driven by the growing pressure on healthcare providers to increase operational efficiency and profitability. In the current environment, rising healthcare expenses and national healthcare spending characterize the global healthcare market. Consequently, it is crucial for them to streamline their procedures while cutting costs.
KEY BENEFITS FOR STAKEHOLDERS
Procurement Analytics Market Report Highlights
| Aspects | Details |
|---|---|
| Market Size By 2031 | USD 32.3 billion |
| Growth Rate | CAGR of 25.8% |
| Forecast period | 2021 - 2031 |
| Report Pages | 344 |
| Deployment Mode |
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| Enterprise Size |
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| Component |
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| Application |
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| Industry Vertical |
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| By Region |
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| Key Market Players | SAP SE, Oracle Corporation, SAS Institute, Genpact, Microsoft, Data Technologies, IBM, Cisco Systems Inc. |
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In accordance with insights by CXOs of leading companies, rising focus on enhancing procurement channels’ operational efficiencies have been directly influencing the growth of procurement analytics market over the forecast period of 2021 to 2028. Also the impending need to handle compliance polices and contracts as well as organizations’ struggle to maintain their position in the competitive environment are also flourishing the growth of the procurement analytics market. In addition, the rapid technological developments such as the internet of things (IoT) and cognitive computing is also positively impacting the growth of the market. Furthermore, the rising need for highly efficient procurement solutions to improve operational performance is also acting as an active growth driver towards the growth of the procurement analytics market. Moreover, the high demand for cloud-based procurement solutions and increasing demand for data-driven solutions are creating a huge demand for procurement analytics as well as lifting the growth of the procurement analytics market.
In the digital era where artificial intelligence and internet of things have taken over the world, there seems to be a comparatively less growth rate of the procurement analytics market than digital marketing. Through various studies it has been observed that procurement analytics market is expanding as a result of the quickening pace of digital transformation in all parts of the world. Industries such as e-commerce or retail has been more focused on gathering data on consumers for better understanding and predicting the purchasing behavior of the consumers. Moreover, complex policies are handled by many organizations. However, with proper reports taking good decisions is impossible. Procuring information and making the best decision with the results is a crucial task of the market. Through procurement analytic reviewing market decisions and tasks are possible. SMEs are key end-users of the procurement analytics market having a higher adoption rate. The surge of procurement analytic is advantageous to these enterprises.
A. Furthermore, growing demand for procurement and demand management solutions and newer applications for procurement solutions in the healthcare sector is boosting the growth of the global procurement analytics market. In addition, need to optimize global supply chain impacts growth of the procurement analytics market. However, high cost associated with the implementation and maintenance of procurement solutions is hampering the procurement analytics market growth. On the contrary, growing integration of advanced technologies such as blockchain and cloud technology is expected to offer remunerative opportunities for expansion during the procurement analytics market forecast.
A. North America is anticipated to account for the largest share of the Procurement analytics market during the forecast period, owing to presence of a substantial industrial base in the U.S., government initiatives to promote innovation, and large purchasing power. The growth is primarily concentrated in the U.S. Companies that use big data software frequently use print management systems to cut costs, improve industry vertical, and boost worker productivity.
A. The global Procurement analytics market was valued at $3,245.98 million in 2021, and is projected to reach $32,294.18 million by 2031, registering a CAGR of 25.8% from 2021 to 2031.
A. The key players operating in the market include Amazon Web Services (AWS), BirchStreet Systems, Cisco System, Inc., Coupa Software Inc., Genpact, International Business Machine (IBM), Jaggaer, Microsoft Corporation, Oracle Corporation, Proactis, Rosslyn Data Technologies, SAP SE, SAS Institute, Sievo, Simfoni, Workday, Inc., and Zycus Inc.. Furthermore, it highlights the strategies of the key players to improve the market share and sustain competition.
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