Procurement-as-a-Service (PaaS) Market Research, 2031
The global procurement-as-a-service (paas) market size was valued at $6.2 billion in 2021, and is projected to reach $20 billion by 2031, growing at a CAGR of 12.5% from 2022 to 2031.
Procurement management is the process of allying centralized management tools that facilitates the automated procurement and inventory management activities of the entire supply chain. This solution is used in supply chain transactions and helps to manage supplier relationships and business processes. In addition, it provides accurate information and an end-to-end view of supply chain processes with the help of a central dashboard. It integrates the organization and supply chain together into a single system, and helps end users oversee areas such as warehousing, purchasing, marketing, sales, shipping, and others, which help enterprises to make efficient business decisions. The management of the supply chain enables companies to cut excess costs as well as speedily deliver products to the consumer.
The growing market competition and the demand for work from home and remote working policies during the period of the COVID-19 pandemic aided in propelling the growth of the global remote and automated solutions such as procurement solutions and services during the period, hence empowering the demand for procurement-as-a-service industry. Moreover, the sudden economic imbalance and supply chain challenges during the period positively impacted the need for procurement-as-a-service industry. However, data privacy and sharing risks associated with third-party procurement as service vendors can hamper the procurement-as-a-service market forecast. On the contrary, the integration of advanced tools such as machine learning and data analytics with procurement management suite is expected to offer remunerative opportunities for expansion of the procurement-as-a-service market during the forecast period.
The procurement-as-a-service (paas) market is segmented into Component, Organization Size and Industry Vertical.
Segment Review
The procurement-as-a-service market is segmented on the basis of component, organization size, industry vertical, and region. On the basis of component, the industry is divided into strategic sourcing, spend management, process management, category management, contract management, and transaction management. Based on organization size, the market is bifurcated into large enterprises and small and medium enterprises. The industry vertical covered in the study include BFSI, manufacturing, retail, IT and telecom, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the procurement-as-a-service market analysis are Accenture, Plc, Aegis One Consults Ltd, CA Technologies, Capgemini, Corbus India LLP, F-code, Genpact, HCL Technologies Limited, IBM Corporation, Infosys Limited, Proxima Group, TATA Consultancy Services, Wipro, WNS Global, X Changing Solutions, GEP, Simfoni Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Depending on industry vertical, the manufacturing segment dominated the procurement-as-a-service market share in 2021, and is expected to continue this trend during the forecast period owing to the large size of supply chain networks being maintained by manufacturing sector businesses, which are many businesses to invest in effective procurement management solutions for their organization. However, the retail segment is expected to witness the highest growth in the upcoming years, owing to the rise in technological investments and upscaling of the sector, which is expected to aid in driving investments in procurement-as-a-service market.
Region wise, the procurement-as-a-service market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to its high concentration of procurement as service vendors. which is expected to drive the market for procurement-as-a-service offering within the region during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the rapid economic and technological transformation of the region, which is expected to fuel the growth of procurement management services in the region in the coming few years.
The report focuses on growth prospects, restraints, and analysis of the global procurement-as-a-service market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global procurement-as-a-service market share.
COVID-19 Impact Analysis
The alarming increase in COVID-19 cases has compelled many businesses and their employees to adjust to remote working and work-from-home standards. Moreover, with the outbreak of COVID-19, businesses have been forced to shift their attention and increase their online presence, needing to rely on digital solutions more than ever before post the outbreak of the pandemic. Procurement-as-a-service (PaaS) providers assisted small businesses in catching up with the rising digital transformation trends while helping small businesses in maintaining their business operations as normal amidst the outbreak of the COVID-19 pandemic. Moreover, the growing demand for cloud services and the lower availability of skilled employees during the period drove the demand for procurement-as-a-service (PaaS) during the period.
Top Impacting Factors
Growing demand for procurement and demand management solutions
The increasing need for effective demand and supply management solutions is one of the key factors that is fueling the growth of the procurement-as-a-service (PaaS) industry. Demand management is a process within an organization that enables businesses to tailor their capacity to meet variations in demand or to manage the level of demand using marketing or procurement management strategies. Procurement management solutions can help generate statistics-based forecasts from data, recent events, and casual factors for various organizations. Procurement management services can apply an automated ecosystem to assess supply restrictions, financial predictions, customer commitments, and inventory count, demand and cost management enables an automated ecosystem. 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.
Need to optimize global supply chain
Procurement management services allow supply chain managers to monitor exactly how their current operations are performing, helping them prepare for supply chain challenges in advance, and redirect resources for significant outcomes. In addition, it generates data-driven, reliable solutions. Which can be used to make improvements in the efficiency of business operations. Procurement management software provides better visibility to organizations with cross-functional access and offers exception-based process management platforms that enable staff to micro-manage steady-state processes. This fuels the adoption of procurement management software among the end users. Moreover, the increase in the need to improve supply chain visibility and the desire for better transparency of orders and shipment information further boost the growth of the market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the procurement-as-a-service (paas) market analysis from 2021 to 2031 to identify the prevailing procurement-as-a-service (paas) market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the procurement-as-a-service (paas) market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global procurement-as-a-service (paas) market trends, key players, market segments, application areas, and market growth strategies.
Procurement-as-a-Service (PaaS) Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 20 billion |
 Growth Rate | CAGR of 12.5% |
 Forecast period | 2021 - 2031 |
 Report Pages | 343 |
 By Component |
|
 By Organization Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Simfoni Limited, F-code, IBM Corporation, Accenture, Plc, HCL Technologies Limited, Wipro, Capgemini, Corbus India LLP, WNS Global, Proxima Group, Aegis One Consults Ltd, CA Technologies, X Changing Solutions, GEP, Infosys Limited, TATA Consultancy Services, Genpact |
Analyst Review
The demand for procurement management solutions has been on a rise for the past few years and the market is expected to continue this trend in the coming years as well, owing to the growth in number of startups and the adoption of advanced supply chains optimization technologies that support growth of the procurement management solutions, as they can provide efficient procurement management techniques for businesses and corporations.
Key providers of the procurement management market such as Accenture, Plc, Aegis One Consults Ltd, and CA Technologies account for a significant share of the market. With larger requirements for procurement management tools and services, various companies are establishing partnerships to increase their supply chain management capabilities. For instance, in November 2021, IBM Corporation announced a partnership with Europe Honda. Under this partnership, IBM will help Honda to manage and run its finance and procurement operations across Europe regions.
In addition, with increase in demand for procurement management solutions, various companies are expanding their current product portfolio with increasing diversification among customers. For instance, in December 2021, Wipro Limited, an Indian technological solutions provider, announced the launch of its Supply Chain Command Center to help organizations drive supply-chain transformation. The solution enables companies to automatically identify and fix process bottlenecks and inefficiencies, gain powerful business insights, open new growth opportunities, manage risks and maintain business continuity even in disruptive times. It improves the supply-chain efficiency by working across the four stages - planning, sourcing, developing, and delivering
Moreover, market players are expanding their business operations and customers by increasing their acquisitions. For instance, in May 2020, X changing Plc., announced the acquisition of MarketMaker4 (MM4), an e-Sourcing technology company based in the U.S. The acquisition increases the procurement services Xchanging offers, as well as contributes to the company’s technology-enablement strategy.
The growing market competition and the demand for work from home and remote working policies during the period of the COVID-19 pandemic aided in propelling the growth of the global remote and automated solutions such as procurement solutions and services during the period, hence empowering the demand for procurement-as-a-service industry.
Region wise, the procurement-as-a-service market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to its high concentration of procurement as service vendors. which is expected to drive the market for procurement-as-a-service offering within the region during the forecast period.
The global procurement-as-a-service market size was valued at $6.23 billion in 2021, and is projected to reach $19.98 billion by 2031, growing at a CAGR of 12.5% from 2022 to 2031.
The key players profiled in the procurement-as-a-service market analysis are Accenture, Plc, Aegis One Consults Ltd, CA Technologies, Capgemini, Corbus India LLP, F-code, Genpact, HCL Technologies Limited, IBM Corporation, Infosys Limited, Proxima Group, TATA Consultancy Services, Wipro, WNS Global, X Changing Solutions, GEP, Simfoni Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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