PUBLISHER: The Business Research Company | PRODUCT CODE: 1653282
PUBLISHER: The Business Research Company | PRODUCT CODE: 1653282
Procurement analytics refers to software which automates spend analysis and purchase analysis and operates completely organizations' expenditure through an insightful dashboard. These procurement analytics solutions collect data from various sources such as ERPs, process raw data into use-case taxonomies, and display in visualization dashboards.
The main components of procurement analytics are solutions and services. The procurement analytics solutions refer to procurement analytics software and tools that operate on on-premise or cloud platforms. The key applications of procurement analytics include supply chain analytics, risk analytics, spend analytics, demand forecasting, contract management, vendor management, and category management. They are used by end-use industries ranging from retail and e-commerce, manufacturing, government and defense, healthcare and life sciences, telecom and IT, energy and utilities, banking, financial services, and insurance (BFSI), others.
The procurement analytics market research report is one of a series of new reports from The Business Research Company that provides procurement analytics market statistics, including procurement analytics industry global market size, regional shares, competitors with a procurement analytics market share, detailed procurement analytics market segments, market trends and opportunities, and any further data you may need to thrive in the procurement analytics industry. This procurement analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The procurement analytics market size has grown rapidly in recent years. It will grow from $5.36 billion in 2024 to $6.29 billion in 2025 at a compound annual growth rate (CAGR) of 17.4%. The growth in the historic period can be attributed to cost reduction imperatives, supplier performance management, compliance and risk mitigation, strategic sourcing optimization, enhanced spend visibility.
The procurement analytics market size is expected to see exponential growth in the next few years. It will grow to $14.59 billion in 2029 at a compound annual growth rate (CAGR) of 23.4%. The growth in the forecast period can be attributed to focusing on sustainable procurement, dynamic pricing optimization, customizable dashboards and reports, enhanced contract management analytics. Major trends in the forecast period include increased adoption of advanced analytics, focus on spend visibility, integration with other procurement technologies, real-time analytics for dynamic decision-making, ai-driven insights for supplier relationship management.
The growth of the e-commerce and organized retail sectors is anticipated to drive the expansion of the procurement analytics market. E-commerce provides a platform for customers and vendors to buy and sell goods and services online through websites, applications, and other means using computers, tablets, smartphones, and other smart devices. Procurement analytics is extensively utilized by e-commerce leaders and organized retail stores, as it delivers data-driven insights into customer behaviors and spending patterns. For example, in August 2023, the United States Census Bureau, a US-based government agency, reported that the estimate for e-commerce in the second quarter of 2023 rose by 7.5% (or 1.4%) compared to the second quarter of 2022, while overall retail sales increased by 0.6% (or 0.4%). Furthermore, 15.4% of all sales in the second quarter of 2023 occurred through online stores. Therefore, the growing prevalence of e-commerce and organized retail is expected to enhance the demand for procurement analytics in the upcoming years.
The proliferation of smartphones is anticipated to be a significant factor propelling the growth of the procurement analytics market. Smartphones, devices combining mobile computing and cellular functions, have become integral in transforming supply chain management, cost control, and vendor interactions through the integration of procurement analytics. According to Demand Sage in 2023, the global count of smartphone users reached 6. 8 billion, marking an increase from around 6. 6 billion users in 2022. Thus, the widespread use of smartphones is a driving force behind the expansion of the procurement analytics market.
Leading companies in the procurement analytics market are introducing new analytics solutions, such as EY Spend Insights, which offers a comprehensive view of spending profiles, enhancing procurement spend visibility and establishing harmonized supply chain networks across various industries. For example, in June 2023, EY, a UK-based consulting firm, launched EY Spend Insights (EY SPI) on the Snowflake Data Cloud, a platform designed to eliminate manual management tasks. This solution utilizes advanced analytics, automation, and machine learning capabilities to enhance the visibility of procurement spending and promote unified supply chain networks across a range of sectors, including retail, consumer packaged goods, advanced manufacturing, and mobility.
Major companies in the procurement analytics market are rolling out enhanced spend analytics. Enhanced spend analytics involves the advanced use of data analysis and technology to gain deeper insights into an organization's spending patterns, ultimately optimizing procurement and cost management. In October 2023, AirPlus, a US-based corporate payment specialist, introduced the AirPlus Intelligence Hub, a spend analytics platform that enables customers to manage and monitor spending metrics through a new dashboard. This platform provides a two-year spend overview, customizable filters by various categories, and multilingual support, with additional data modules planned for 2024, offering customizable data downloads and advanced analytics capabilities, including a global spend overview and deeper insights into business trips and emissions data.
In July 2024, Procure Analytics, a data and technology company based in the US, acquired DSSI for an undisclosed amount. This strategic acquisition enhances Procure Analytics' status as a comprehensive solution provider for indirect goods and related services. DSSI LLC is a procurement analytics company located in the US.
Major companies operating in the procurement analytics market include SAP SE, Oracle Corporation, Statistical Analysis Systems, Coupa Software Inc., Genpact, Jaggaer, GEP Worldwide, Ivalua Inc., Zycus, ProcurePort, Basware, SynerTrade, Corcentric, Scout RFP, BirchStreet, Periscope Holdings,Tealbook,Keelvar,Proactis,Sievo,Xeeva Inc., POOL4TOOL AG,Vroozi,Rosslyn Data Technologies,Simfoni,Applegate,Scanmarket,EC Sourcing Group
North America was the largest region in the procurement analytics market in 2024 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the procurement analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the procurement analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The procurement analytics market includes revenues earned by entities by providing services such as identifying need, supplier evaluation and selection, purchase order, and delivery. 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 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.
Procurement Analytics Global Market Report 2025 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 procurement analytics 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 procurement analytics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The procurement analytics 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.