PUBLISHER: The Business Research Company | PRODUCT CODE: 1455333
PUBLISHER: The Business Research Company | PRODUCT CODE: 1455333
Spend management software is an application designed to assist in the organization and administration of the spending process. This encompasses all processes related to spend management, including making charges through gateways such as cards and ACH, real-time monitoring and authorization of spending, and presenting trends and insights.
The main deployment modes for spend management software are cloud-based and on-premises. In a cloud-based solution, applications, storage, and services are made available on-demand through a provider's shared cloud-based computing framework, accessible via a web connection. The software caters to various enterprises, including large enterprises and small and medium enterprises. It finds applications in diverse sectors such as consumer goods, retail, manufacturing, healthcare and pharmaceuticals, transportation and logistics, and other industries.
The spend management software market research report is one of a series of new reports from The Business Research Company that provides spend management software market statistics, including spend management software industry global market size, regional shares, competitors with spend management software market share, detailed spend management software market segments, market trends, and opportunities, and any further data you may need to thrive in the spend management software industry. This spend management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The spend management software market size has grown rapidly in recent years. It will grow from $13.97 billion in 2023 to $15.72 billion in 2024 at a compound annual growth rate (CAGR) of 12.6%. The growth observed in the historic period can be attributed to factors such as the inefficiencies of manual processes, the increasing globalization of businesses, a focus on cost reduction, the growing complexity of regulatory compliance, and the need for real-time visibility in spend management processes.
The spend management software market size is expected to see rapid growth in the next few years. It will grow to $25.56 billion in 2028 at a compound annual growth rate (CAGR) of 12.9%. The anticipated growth in the forecast period can be attributed to increased focus on sustainability, advancements in artificial intelligence (AI) and analytics, the demand for cloud-based solutions, integration with enterprise resource planning (ERP) systems, and a heightened focus on risk management in spend management processes. Major trends expected in the forecast period include the rise of remote work and digital transformation, an increased focus on real-time analytics, the prominence of mobile and user-friendly interfaces, the incorporation of blockchain technology, and a greater emphasis on supplier collaboration in spend management practices.
The anticipated surge in the spend management software market is attributed to the increasing adoption of cloud-based solutions. Cloud-based solutions encompass applications, storage spaces, on-demand services, computer networks, or additional resources accessed through a shared cloud-based computing framework provided by a different provider via an internet connection. In contemporary spend management software, these cloud-based solutions play a crucial role in offering immediate insights into spending patterns and ensuring adherence to budgets. As an example, Eurostat, the Luxembourg-based statistical office responsible for producing high-quality data and indicators for all of Europe, reported in December 2021 that 42% of EU businesses had adopted cloud computing, marking a 6-percentage point increase from 2020 (36%). The countries with the highest adoption rates were Sweden and Finland (both at 75%), followed by Denmark and the Netherlands (both at 65%). Hence, the upward trajectory in the adoption of cloud-based solutions is a driving force behind the growth of the spend management software market.
The growth of the spend management software market is expected to be fueled by the increasing trend of digitization. Digitization involves the conversion of analog information into digital format, representing data, media, or objects using discrete numerical values. This digital transformation enhances spend management software by enabling the automation, centralization, and optimization of financial transactions. It provides organizations with real-time visibility, control, and analytics over their spending, thereby enhancing operational efficiency, cost-effectiveness, and strategic decision-making in the digital landscape. For instance, data from Augusta Free Press, a US-based news service company, in December 2022 revealed that global digital transformation spending reached approximately $1.85 trillion, reflecting a 16% increase from the previous year. Consequently, the growing wave of digitization is a significant driver for the expansion of the spend management software market.
The anticipated growth of the spend management software market is expected to face constraints due to escalating concerns regarding privacy and security. Heightened worries about privacy and security are projected to hinder the expansion of the spend management software market, as organizations prioritize implementing robust measures to safeguard sensitive financial data. This cautious approach is impeding widespread adoption and acting as a barrier to market growth. For instance, in 2023, the CISCO Data Privacy Benchmark Study 2023 by Cisco Systems Inc., a US-based technology company, revealed that 95% of respondents consider privacy a crucial business necessity, up from 90% in 2022. Additionally, 94% believe that customers are unlikely to make purchases from businesses lacking proper data protection. As a result, the rising concerns about privacy and security are constraining the growth of the spend management software market.
Leading companies in the spend management software sector are strategically focusing on innovative platforms, such as the Coupa app marketplace, to better cater to the needs of their existing consumers. The Coupa app marketplace serves as a centralized location for Coupa clients to explore and install certified applications that enhance the functionality of their business spend management (BSM) solution. Notably, in August 2021, Coupa Software Inc., a US-based company specializing in spend management solutions, introduced the Coupa app marketplace. This groundbreaking platform, the first in the entire BSM field, offers solutions that enhance and broaden a customer's existing tech stack and BSM capabilities. The aim is to facilitate seamless information exchange, workflow automation, and essential activities. The diverse offerings in the Coupa app marketplace range from supply chain analytics to vendor risk analysis, travel and expenditure management, and IT management, designed to be adaptive, connected, and efficient.
In July 2023, Medius Group, a Sweden-based company providing spend management solutions, completed the acquisition of Expensya for an undisclosed amount. This strategic move enables the Medius group to expand into new geographies and enhance its product capabilities, strengthening its ability to develop and cross-sell in highly competitive business application areas. Expensya, a France-based company specializing in spend management software, brings valuable product capabilities, particularly in France, where it has established a leading employee spend management platform.
Major companies operating in the spend management software market report are International Business Machines Corporation, Oracle Corporation, Sage Group PLC, Concur Technologies Inc., Zoho Corporation Pvt. Ltd., Coupa Software Inc., Navan Inc., Zycus Inc., Emburse LLC, Expensify Inc., Jaggaer LLC, Procurify Technologies Inc., Ramp Corporation, Brex Inc., Proactis Holdings Limited, Simfoni Limited, Precoro Inc., Fraxion Spend Management LLC, SynerTrade S.A., Negotiatus Corp., Empronc Solutions Pvt. Ltd., Claritum Limited, Airbase Inc., VV Finly Technology Pvt. Ltd., Accrualify Inc., Rosslyn Data Technologies PLC, Travelator Inc., Vroozi Inc., Team Labs Inc., BILL Operations LLC
Europe was the largest region in the spend management software market in 2023. The regions covered in the spend management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the spend management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The spend management software market includes revenues earned by entities by providing services such as real-time spending control and keeping a watch on spending, avoiding overbudget or unapproved costs, as well as detailed spending reporting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The spend management software market consists of sales of operating systems, device drivers, and smartphones. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Spend Management Software Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on spend management software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for spend management software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The spend management software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.