The Global Procurement as a Service Market Size is Expected to Grow from USD5.4 Billion in 2019 to USD7.8 Billion by 2024, at a CAGR of 7.6% During the Forecast Period.
The growing demand to improve procurement operations and need to reduce the cost associated with procurement among the organizations to drive the market growth
The procurement as a service market is driven by various factors, such as growing need to handle compliance policies and contracts, growing demand among enterprises to streamline the procurement processes. However, the integration issues with the legacy systems can hinder the growth of the market.
Spend management segment to grow at the highest CAGR during the forecast period
Spend includes analyzing companies spending patterns, spend categorization/spend classification, spend data management, and spend performance management. Effective spend management helps a company ensure that supplier data is kept up to date so that procurement executives are empowered with the right information, and supplier databases throughout a company are integrated to avoid duplication of suppliers. It also involves identifying where procurement inefficiencies exist and the correction of these inefficiencies. Key activities within spend management include spend monitoring and analysis, spend planning and disbursement, and buyer management.
Retail and consumer packaged goods vertical to grow at the highest CAGR during the forecast period
With time, many retail organizations have deployed a mix of technologies, computer systems, and disparate applications to cater to the growing demands of customers. Customer experience proves to be a very vital differentiating factor among a wide array of online shopping options. To improve their performance and achieve higher profits, it is important to have skilled employees and offer best-in-class offerings through touchpoints, such as stores and web or mobile applications. Hence, retailers across the globe are formulating data-driven strategies for targeting more customer with a better convergence rate. Procurement as a service helps retailers in streamlining the procurement process and also enables them to reduce the overall procurement cost.
Small and Medium-sized Enterprises (SMEs) segment to grow at a higher growth rate during the forecast period
The SMEs segment is expected to grow at a higher CAGR in the procurement as a service market during the forecast period. More than larger enterprises, the SMEs face a greater resource crunch and require better methods to solve the complexities for cost optimization on their assets and requirements. Therefore, these days, the SMEs are majorly focusing on utilizing the procurement as a service to work globally and manage multiple suppliers.
Asia Pacific (APAC) to record the highest growth rate during the forecast period
APAC is expected to grow at the highest CAGR during the forecast period. The rapid digital transformation in the region has increased the need for procurement outsourcing services. Procurement as a service enables enterprises to free up their procurement departments and also to improve the efficiency of the overall procurement process. Australia and New Zealand (ANZ), India, and China have emerged as the undisputed leaders in the procurement as a service market. North America is projected to hold the largest market size during the forecast period.
Key players in the procurement as a service market include:
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Opportunities in the Procurement as a Service Market 4.2 Market in North America, By Vertical and Country 4.3 Market: Major Countries
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 188.8.131.52 Growing Demand Among Enterprises to Streamline the Procurement Processes 184.108.40.206 Imminent Need to Handle Compliance Policies and Contracts 5.2.2 Restraints 220.127.116.11 Growing Concerns for Data Security and Privacy Across Enterprises 5.2.3 Opportunities 18.104.22.168 Advent of Artificial Intelligence and Machine Learning in the Procurement Process 22.214.171.124 High Adoption of Analytics Solutions to Improve the Procurement Process 5.2.4 Challenges 126.96.36.199 Integration Issues With the Legacy Systems 188.8.131.52 Outages and Third-Party Dependence 5.3 Industry Trends
6 Procurement as a Service Market, By Component 6.1 Introduction 6.2 Strategic Sourcing 6.2.1 Increasing Need to Manage the Network of Global Suppliers Among Enterprises to Draw the Demand for Strategic Sourcing 6.3 Spend Management 6.3.1 Growing Need Among Enterprises for Effectively Managing the Spending Expenditure to Boost the Demand for Spend Management 6.4 Category Management 6.4.1 Growing Need to Effectively Manage Various Categories and Ensuring Compliance With Contracts to Drive the Demand for Category Management 6.5 Process Management 6.5.1 Increasing Complexities of Procurement Processes to Drive the Demand for Process Management 6.6 Contract Management 6.6.1 Growing Demand Among Enterprises to Comply With the Financial Compliances to Boost the Demand for Contract Management 6.7 Transactions Management 6.7.1 Need for Simplifying Transactional Processes Across Verticals to Fuel the Demand for Transactions Management
7 Market, By Organization Size 7.1 Introduction 7.2 Large Enterprises 7.2.1 Need to Manage Complex Procurement Contracts to Drive the Adoption of Procurement as a Service Among Large Enterprises 7.3 Small and Medium-Sized Enterprises 7.3.1 Need for Eliminating Expenditures Associated With Staff Contracting and Technology Deployment to Boost the Demand for Procurement as a Service Among Small and Medium-Sized Enterprises
8 Market, By Vertical 8.1 Introduction 8.2 Manufacturing 8.2.1 Achieving Shorter Production Time and Reducing Supply Chain Costs to Drive the Adoption of Procurement as a Service in the Manufacturing Vertical 8.3 Retail and Consumer Packaged Goods 8.3.1 Developing a Strong Procurement Infrastructure and Maintaining Ethical and Sustainable Business Practices to Drive the Growth of Procurement as a Service in Retail and Consumer Packaged Goods Vertical 8.4 Banking, Financial Services, and Insurance 8.4.1 Capabilities, Such as Spend Analytics, Market Intelligence, and Supplier Performance Management, to Accelerate the Growth of Procurement as a Service in BFSI Vertical 8.5 IT and Telecom 8.5.1 Improving Total Cost of Ownership and Achieving Success in Mergers and Acquisitions to Boost the Market Growth in the IT and Telecom Vertical 8.6 Energy and Utilities 8.6.1 Understanding Global and Regional Markets for Sourcing, Improving Protection Requirements, and Meeting Warranty Obligations to Drive the Growth of the Market in Energy and Utilities Vertical 8.7 Travel and Hospitality 8.7.1 Managing Suppliers and Contracts, and Enabling Strategic Sourcing to Bolster the Adoption of Procurement as a Service in Travel and Hospitality Vertical 8.8 Healthcare 8.8.1 Need for Increasing R&D and Business Efficiencies to Accelerate the Growth of the Market in Healthcare Vertical 8.9 Others