PUBLISHER: The Business Research Company | PRODUCT CODE: 1695096
PUBLISHER: The Business Research Company | PRODUCT CODE: 1695096
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 $15.72 billion in 2024 to $17.68 billion in 2025 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to manual processes inefficiencies, increasing globalization of businesses, focus on cost reduction, growing complexity of regulatory compliance, need for real-time visibility.
The spend management software market size is expected to see rapid growth in the next few years. It will grow to $28.81 billion in 2029 at a compound annual growth rate (CAGR) of 13.0%. The growth in the forecast period can be attributed to increased focus on sustainability, advancements in artificial intelligence (ai) and analytics, demand for cloud-based solutions, integration with enterprise resource planning (erp) systems, focus on risk management. Major trends in the forecast period include rise of remote work and digital transformation, focus on real-time analytics, rise of mobile and user-friendly interfaces, incorporation of blockchain technology, greater emphasis on supplier collaboration.
The increasing adoption of cloud-based solutions is expected to drive the growth of the spend management software market in the near future. Cloud-based solutions refer to applications, storage spaces, service-on-demand, and computer networks accessed through a third-party provider's shared cloud infrastructure via an internet connection. These solutions are utilized in modern spend management software to offer real-time insights into spending patterns and ensure budget compliance. For example, in April 2024, the European Commission, a Belgium-based government body, reported that in 2023, 77.6% of large enterprises were using cloud computing services, marking a 6 percentage point increase from 2021. For medium-sized enterprises, cloud service adoption reached 59% in 2023, up from 53% in 2021. Therefore, the growing use of cloud-based solutions is driving the expansion 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.
Key players in the spend management software market are increasingly focusing on innovative technologies, such as integrated external workforce solutions, to streamline the management of both external workforce and supplier spend. Integrated external workforce solutions are all-encompassing systems that enable the management of freelancers, contractors, and temporary staff alongside the internal workforce and supplier expenses. For example, in June 2024, Ivalua Inc., a US-based software company, introduced its external workforce management solution. This comprehensive tool allows organizations to efficiently manage every aspect of their external workforce within a unified spend management platform. The solution offers valuable insights into external workforce costs, helps assess the performance and value of contingent workers, and mitigates related risks. By addressing challenges like fragmented engagement processes, hidden costs, and regulatory compliance, the solution enhances the selection, onboarding, and management of external talent. Its customizable features allow for adaptations based on specific organizational needs and local regulations, improving operational efficiency and providing better financial oversight of external workforce expenditures.
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 2024. 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 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 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 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.