USD 5.52 billion
Report ID: SQSG45C2016 | Region: Global | Published Date: November, 2022 | Pages: 260 | Tables: 67 | Figures: 75
Procurement As A Service Market size was valued at USD 5.52 billion in 2021 and is poised to grow from USD 6.15 billion in 2022 to USD 14.62 billion by 2030, growing at a CAGR of 11.1% in the forecast period (2023-2030).
The emergence of high-scale digitalization and advancement in the process of automating critical business, such as sourcing and procurement is gaining traction, and this is projected to have in the favour of the global procurement as a service market growth. Technology integrations into procurement functions is enabling strategic sourcing and supplier management to become more proactive and efficient; it is anticipated to enable cost reduction of cost and improve the profitability of business.
The significance of global procurement service providers has shifted from negotiation contracts to the exclusive business partnerships and strategic agreements to ensure and consolidate short-and-long-term business continuity. For instance, in 2020, Proactis announced a partnership with global change-ready technology and implementation specialist Agilyx Group to provide a wide range of management solutions and services to Agilyx customers.
Cloud offers flexibility with ease is subsequently helping service provides of procurement through lower storage data costs. This further helps service providers in improving business operations and creating custom solutions available to the end users of the global procurement as a service market. In addition, AI is also having its way into the procurement service business with a unique selling point (USP) of providing data analytics while enhancing operations.
US Procurement As A Service Market Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 5.52 billion
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Global Procurement As A Service Market is segmented on the basis of component and vertical. By component, the market is segmented into category management, strategic sourcing, contract management, spend management, and others. By vertical, the market is categorized into BFSI, manufacturing, retail, healthcare, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA.
Procurement As A Service Market Analysis by Component
Based on component, the market is segmented into category management, strategic sourcing, contract management, spend management, and others. The strategic sourcing segment held the largest share of over 44% in 2022. The rising number of challenges, such as natural disasters and international political unrest that impact negatively on businesses, enable organization for opting for better strategic sourcing. In addition, strategic sourcing helps and support companies to meet efficiency, internal processes, effective executions.
The transaction management segment is expected to register a considerable growth over the forecast period. The increasing focus of organizations on optimizing price & terms, invoicing applications, delivery, and purchase order is projected to be the major driving factor of the segment throughout the forecast period.
Procurement As A Service Market Analysis by Vertical
Based on vertical, the Procurement As A Service Market is categorized into BFSI, manufacturing, retail, healthcare, and others. In which, manufacturing segment dominated the market in 2022 with a contribution of more than 35% in the terms of revenue and is expected to maintain its dominance over the forecast period. Manufacturing companies are continuously adopting procurement outsourcing and technology driven solutions which helps them to streamline their manufacturing processes and obtain significant cost savings.
Moreover, the retail sector is expected to have a significant growth during the forecast period. With the integration of latest technologies, such as machine learning and AI, the procurement service offerings has started providing many additional service features including analytics, avenues for the future growth. These factors are likely to drive the demand for procurement as a service market in the segment during the forecast period.
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Europe dominated the global procurement as a service market in 2022 accounting for more than 48% share of the global revenue. The increasing focus of procurement service providers to offer customized service plans with more efficiency to their consumers and growing demand from European manufacturing companies to enhance the procurement process are key factors driving the market growth in the region. In addition, increasing need of modernized solutions that enables organizations make data driven decisions for managing their procurement operations is also an expected factor contributing to the market growth.
Asia Pacific is projected to grow at the fastest CAGR during the forecast period owing to a considerable growth in the demand for managing and streamline supply chain operations through digital solutions. Additionally, the growing use of internet for direct and indirect procurement services is facilitating the adoption of procurement services in the region. For instance, in April 2021, Tata Consultancy Services entered into an agreement with Wavin, a Netherlands-based global innovative solutions provider for the building infrastructure industry. In this agreement, QWavin deployed TCS ERP on the cloud platform to expand its services in new growing markets in Indonesia & India.
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Procurement As A Service Market Drivers
Procurement As A Service Market Restraints
Lack of Awareness is likely to impede the market growth
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Global procurement as a service market is moderately competitive in nature. Partnership, expansion, acquisition are the major key strategies opting by several key players of the market. For instance, in 2020, Epicor Software Corporation announced the launch of Epicor Commerce Connect Express, a new portal replacing its existing Epicor Commerce Connect Solution. It is designed for businesses that need an effective and immediate way to improve productivity, offer high quality online experiences, and stay connected to their customers and suppliers.
Top Players in the Global Procurement As A Service Market
Procurement As A Service Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, the global procurement as a service market is witnessing a significant growth throughout the forecast period owing to their high growth in the advancement of technology, increasing investments in research and development. The increasing awareness among several organizations towards transaction management, strategic management are others factors likely to drive the market growth in the near future. In addition, the growing dependency on outsourcing business process to manage business operations is anticipated to scale up the market during the forecast period.
|Market size value in 2021||USD 5.52 billion|
|Market size value in 2030||USD 6.15 billion|
|Forecast Unit (Value)||USD Billion|
|Regions covered||North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)|
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Parent Market Analysis
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For the Global Procurement As A Service Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Procurement As A Service Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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