Procurement analytics is a process by which quantitative approaches are used to derive actionable insights and conclusions from the data collected. It includes the collection and use of information to order to make decisions based on facts and achieve competitive advantages. This typically analyses past incidents by using its analytics-based tools on historical data to formulate future predictions.

Procurement analytics market size was estimated to be worth USD 2.78 billion in 2021 and is expected to increase at a compound annual growth rate (CAGR) of 23.9 percent from USD 3.45 billion in 2022 to USD 18.15 billion by 2030. (2023-2030)

The rising necessity of improving return on investment (ROI)

The global procurement analytics market is driven by rapid growth in technology and automation across various industry verticals. Growing digitization and the growing need for data-driven solutions for multiple entities to make better decisions based on facts and historical statistics also expected to drive the global procurement analytics market around the world. Procurement analytics plays a vital role in several end-use industries, as it helps to reduce operating and capital costs and raise return on investment (ROI) that further increase the market demand. In addition, procurement analytics tools support companies in various areas of operation, such as supply chain analytics, risk analytics, spending analytics, demand forecasting, vendor management, and contract management, which will ultimately direct and enable organizations to take statistical-based decisions and avoid losses.

Growing implementation of procurement analytics in the retail and e-commerce sectors

Increasing new product launches and the convergence of different business processes, as well as high demand for incorporation of machine learning and artificial intelligence in the procurement process for smart systems, are opportunities that will fuel revenue growth in the global procurement analytics market over the forecasted period. Another factor expected to drive the market growth globally is growing implementation of procurement analytics in the retail and e-commerce sectors. Implementation of procurement analytics in retail data processing structure can provide insights on the inventory, revenue, supply chain, consumer demand, and others. This will help in making production and marketing decisions.

The SME segment is expected to have a significant growth rate

Based on enterprise size the global procurement analytics market is categorized into large enterprises and SMEs. The SME segment is expected to have a significant growth rate during the analysis period. Various SMEs are concerned about the costs of deploying on-premise procurement software tools and hiring skilled employees, and IT staff for their maintenance. This enables SMEs to shift towards cloud-based procurement analytics solutions.

North America holds the largest share in the global market

Geographic regions included in the global procurement analytics market study are North America, Europe, Asia Pacific, South America, and Middle East & Africa along with its major countries. Among these, North America is expected to hold the largest share in the global procurement analytics market in a given forecasted period. Major factors expected to drive global procurement analytics market growth in the region are increased adoption of emerging technologies such as cloud computing, the Internet of Things (IoT), and increasing need for an efficient supply chain, and demand for intelligent procurement processes. The Asia Pacific will be the fastest-growing region in the procurement analytics market due to the increasing demand for predictive analytics in emerging economies such as India, China, etc.

Key Market Players

    •    Oracle
    •    SAS
    •    SAP
    •    Coupa Software
    •    Genpact
    •    Proactis
    •    BirchStreet
    •    Simfoni
    •    BRIDGEi2i
    •    Rosslyn Data Technologies
    •    JAGGAER
    •    Zycus
    •    Others

Procurement Analytics Market Scope

Key Segment Of The Procurement Analytics Market

By Component (USD Billion)            
    o    Solutions
    o    Services
        •    Managed Services
        •    Professional Services
By Application, (USD Billion)          
    •    Supply Chain Analytics
    •    Risk Analytics
    •    Spend Analytics
    •    Demand Forecasting
    •    Contract Management
    •    Vendor Management
    •    Category Management
By Deployment Mode, (USD Billion)          
    •    Cloud based Procurement Analytics Solutions
    •    On-premises Procurement Analytics Solution
By Organization Size, (USD Billion)          
    •    Large Enterprises
    •    Small and Medium-sized Enterprises (SMEs)
By Industry Vertical, (USD Billion)          
    •    BFSI
    •    Retail and e-Commerce
    •    Telecom and IT
    •    Manufacturing
    •    Healthcare and Life Sciences
    •    Energy and Utilities
    •    Government and defence
Regional Overview, (USD Billion)          
    North America
      •    US
      •    Canada
    Europe
      •    Germany
      •    France
      •    UK
      •    Rest of Europe
    Asia Pacific
      •    China
      •    India
      •    Japan
      •    Rest of Asia Pacific
    South America
      •    Mexico
      •    Brazil
      •    Rest of South America
    Middle East and South Africa