PUBLISHER: KBV Research | PRODUCT CODE: 1586949
PUBLISHER: KBV Research | PRODUCT CODE: 1586949
The Global Retail Sourcing And Procurement Market size is expected to reach $14.5 billion by 2031, rising at a market growth of 15.8% CAGR during the forecast period.
The North America segment procured 35% revenue share in this market in 2023. The region's advanced retail sector and widespread adoption of digital procurement technologies drive the market. North American retailers are early adopters of innovative solutions, including AI, cloud-based platforms, and automation, to optimize sourcing, enhance supply chain visibility, and drive cost efficiencies.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2024, GEP Software unveiled the industry's first AI-driven Total Orchestration Solution to enhance the user experience in procurement. Designed for non-procurement professionals, it simplifies complex workflows with a built-in co-pilot, enabling guided processes and improved visibility. This solution streamlines procurement, enhances collaboration, and optimizes enterprise spending through generative AI and low-code capabilities. Moreover, In June, 2024, Ivalua Inc. unveiled its External Workforce Management solution, allowing organizations to manage external workforce costs and risks alongside supplier spend. This solution addresses challenges in engagement processes, hidden expenses, and regulatory risks, providing enhanced visibility and insights to ensure effective management and a better return on investment for external talent.
KBV Cardinal Matrix - Retail Sourcing And Procurement Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; Infor, Inc., Oracle Corporation, and SAP SE are the forerunners in the Retail Sourcing And Procurement Market. In June, 2024, Infor, Inc. unveiled the Procure-to-Pay process for direct procurement by providing a unified view of the supply chain. It automates document generation, purchase order management, and invoice approvals, leading to streamlined operations, reduced costs, better cash flow visibility, and improved supplier performance. Companies such as Blue Yonder Group, Inc., GEP Software, and Coupa Software, Inc. are some of the key innovators in Retail Sourcing And Procurement Market.
Market Growth Factors
The shift to digital platforms enables retailers to leverage AI, analytics, and cloud-based solutions for better decision-making, real-time insights, and automated procurement processes, which boosts efficiency. AI, for instance, offers predictive insights into market trends, demand forecasting, and supplier performance, which can be critical for retailers aiming to manage inventory efficiently and avoid stockouts or overstocks. Hence, such factors will aid in the expansion of the market.
Additionally, Globalization has significantly expanded supply chain networks, allowing retailers to source products and materials from multiple locations worldwide. While this global reach offers opportunities for cost reduction and market access, it also adds complexity. Retailers now face logistical challenges such as coordinating suppliers across different regions, managing transportation, and ensuring that products reach consumers on time. Advanced sourcing and procurement solutions help streamline these processes by providing centralized visibility and tools for efficient coordination, which is essential to maintaining a smooth, global supply chain. Thus, these solutions will increase as globalization increases.
Market Restraining Factors
However, Implementing these systems often involves purchasing advanced software and substantial expenses related to infrastructure upgrades, employee training, and system customization to align with the organization's unique needs. For large corporations, these investments may be manageable within their broader budgets. However, SMEs, which operate on tighter financial margins, frequently find these upfront costs prohibitive, hindering their ability to adopt such systems. Hence, the high initial implementation costs remain a critical factor hampering the growth of this market.
Deployment Outlook
On the basis of deployment, the retail sourcing and procurement market is classified into cloud and on-premise. The on-premise segment recorded 37% revenue share in this market in 2023. Retail companies seeking greater control over their data often prefer on-premise deployment, with concerns around data privacy and security driving this choice. Large enterprises and businesses in regulated industries may favor on-premise solutions to maintain compliance with data protection standards and retain full ownership of their procurement systems.
Component Outlook
Based on component, the retail sourcing and procurement market is bifurcated into solution and service. The service segment procured 40% revenue share in this market in 2023. This segment encompasses consulting, implementation, support, and maintenance services, which are critical for successfully deploying and managing procurement solutions. Retail companies often rely on these services to guide complex implementations, ensure compliance with industry regulations, and maintain system performance, especially as they transition to more digital and automated procurement systems.
Enterprise Size Outlook
By enterprise size, the retail sourcing and procurement market is divided into large enterprises and small & medium enterprises. The small & medium enterprises segment garnered 38% revenue share in this market in 2023. As SMEs face increasing competition and aim to scale efficiently, they are adopting sourcing and procurement tools to gain better control over their supply chains and enhance cost-effectiveness. Cloud-based solutions offer affordability and scalability, especially appeal to SMEs, as they can quickly deploy these tools without extensive infrastructure investments.
Regional Outlook
Region-wise, the retail sourcing and procurement market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment acquired 32% revenue share in this market in 2023. The regional market's expansion underscores the region's focus on digital transformation and sustainability in procurement practices. European retailers increasingly adopt cloud solutions and data analytics tools to manage sourcing operations and align with stringent data privacy and environmental sustainability regulatory standards.
Market Competition and Attributes
The Retail Sourcing and Procurement Market is characterized by a competitive landscape marked by numerous mid-tier and regional players. These companies leverage innovative technologies, data analytics, and agile supply chain practices to differentiate themselves. While they may lack the extensive resources of top key players, their focus on niche markets, personalized services, and local partnerships enables them to effectively compete and capture market share.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Retail Sourcing And Procurement Market Report Segmentation
By Deployment
By Component
By Enterprise Size
By Geography