Procurement Analytics Market Expected to Reach $32.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Procurement Analytics Market," The procurement analytics market size was valued at $3.3 billion in 2021, and is estimated to reach $32.3 billion by 2031, growing at a CAGR of 25.8% from 2021 to 2031.

Procurement analytics is a method to retrieve useful information to make effective decisions in the organization. It provides insight for a company to come to the right conclusion. Developing the business is possible through this technique. Mostly historic data is used to know about the future trend of the market. Increasing operational costs, improving decision making and efficiency are benefits of this analytics market.

Furthermore, growing demand for procurement and demand management solutions and newer applications for procurement solutions in the healthcare sector is boosting the growth of the global procurement analytics market. In addition, need to optimize global supply chain impacts growth of the procurement analytics market. However, high cost associated with the implementation and maintenance of procurement solutions is hampering the procurement analytics market growth. On the contrary, growing integration of advanced technologies such as blockchain and cloud technology is expected to offer remunerative opportunities for expansion during the procurement analytics market forecast.

On the basis of component, the solution segment exhibited the highest growth in the procurement analytics market share in 2021, and is expected to maintain its dominance in the upcoming years, owing to several advantages offered by procurement analytics such as complete transparency offered. As it increased efficiency and improved data quality further propels the growth of this segment. However, service is expected to witness significant growth during forecasting period, owing to adoption of deployment and integration services among end users, as it ensures effective functioning of procurement analytics solution throughout the process, in addition, the market players are actively introducing integrated procurement analytics solutions with enhanced deployment, integration, support and maintenance capabilities, further fueling the market growth.

The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has high impact on the growth of procurement analytics market, as increasing number of smartphone users, growing adoption of connected devices, and surging e-commerce sector provide lucrative opportunities for the growth of the procurement analytics market. COVID has caused crises in social, economic, and energy areas and medical life worldwide throughout 2020. This crisis had many direct and indirect effects on all areas of society. In the meantime, the digital and artificial intelligence industry can be used as a professional assistant to manage and control the outbreak of the virus. In post-pandemic circumstances, enterprises strived to minimize operational and running costs around all the business functions to recover the losses incurred in COVID times. Moreover, this the rising demands of online facilities across different industries for instance, retail and marketing, manufacturing, energy and utilities drove the growth in demand of procurement analytics solutions. In addition, the disruptions in the supply chain also triggered the demand of procurement analytics services across the globe. Furthermore, many enterprises are investing highly in this market to thrive the changes in working environment and increased complexity of supply chain. These factors are anticipated to drive the procurement analytics market growth.

KEY FINDINGS OF THE STUDY

• By component, the solution segment dominated the procurement analytics industry in 2021. However, the service segment is expected to exhibit significant growth during the forecast period.

• On the basis of deployment, the on-premise segment dominated the pprocurement analytics industry in 2021. However, the cloud segment is expected to witness the highest growth rate during the forecast period.

• By enterprise size, the large enterprise dominated the procurement analytics market in 2021. However, the SME’s segment is expected to exhibit significant growth during the forecast period.

• On the basis of application, the strategic sourcing segment dominated the procurement analytics market analysis in 2021. However, the transaction management segment is expected to witness the highest growth rate during the forecast period.

• Region-wise, the procurement analytics market was dominated by North America in 2021. However, Asia-Pacific is expected to witness significant growth in the coming years.

The key players operating in the market include Amazon Web Services (AWS), BirchStreet Systems, Cisco System, Inc., Coupa Software Inc., Genpact, International Business Machine (IBM), Jaggaer, Microsoft Corporation, Oracle Corporation, Proactis, Rosslyn Data Technologies, SAP SE, SAS Institute, Sievo, Simfoni, Workday, Inc., and Zycus Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which propel the growth of the procurement analytics market globally.