Procurement Software Market
February 6, 2025

Procurement Software Market Report 2025-2033: Share, Outlook, Size, Trends, Forecast and Analysis

IMARC Group’s report titled “Procurement Software Market Report by Software Type (Spend Analysis, E-Sourcing, E-Procurement, Contract Management, Supplier Management, and Others), Deployment (Cloud-based, On-premises), Organization Size (Small and Medium-sized Enterprises, Large Enterprise), Vertical (Retail, Automotive, Travel and Logistics, Electronics, IT and Telecommunication, and Others), and Region 2025-2033“. The global procurement software market size reached USD 8.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 17.5 Billion by 2033, exhibiting a growth rate (CAGR) of 8.38% during 2025-2033.

Factors Affecting the Growth of the Global Procurement Software Industry:

  • Increasing Demand for Smart Automation and Efficiency:

The global market for procurement software is largely propelled by the rising need for automation and enhanced efficiency in procurement operations. Businesses in diverse industries are actively pursuing methods to optimize their procurement functions, aiming to minimize manual labor, reduce errors, and lower operational expenses. Procurement software facilitates the automation of standard tasks, including purchase order management, vendor oversight, and invoice reconciliation, resulting in greater accuracy and quicker processing durations. Furthermore, this automation allows organizations to concentrate on strategic sourcing and expenditure analysis, thereby improving overall procurement effectiveness.

  • Advancements in Technologies:

The incorporation of cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and blockchain into procurement software significantly contributes to the expansion of the market. AI and ML facilitate predictive analytics, aiding in demand forecasting, inventory optimization, and the identification of potential cost reductions. Meanwhile, blockchain technology improves transparency and security in procurement transactions, thereby minimizing fraud and ensuring regulatory compliance. These technological innovations enhance the efficiency and effectiveness of procurement processes, granting businesses a competitive advantage through more intelligent and informed decision-making.

  • Growing Emphasis on Supply Chain Visibility:

The growing focus on supply chain transparency and risk management serves as a significant catalyst for the procurement software market. In the contemporary global economy, organizations encounter a variety of supply chain obstacles, such as geopolitical conflicts, shifts in regulations, and unforeseen disruptions. Procurement software offers real-time insights into the supply chain, empowering businesses to assess supplier performance, adherence to regulations, and risk factors. This level of visibility is vital for effective risk management, allowing companies to address potential challenges before they adversely affect operations.

Leading Companies Operating in the Global Procurement Software Industry:

  • Basware Corporation
  • Coupa Software Inc.
  • Epicor Software Corporation
  • GEP Worldwide
  • Infor (Koch Industries Inc.)
  • Ivalua Inc.
  • Jaggaer
  • OpusCapita Solutions Oy
  • Proactis Holdings Limited
  • SAP SE.
  • Tradeshift Holdings Inc.
  • Workday Inc.
  • Zycus Inc.

For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/procurement-software-market/requestsample

Procurement Software Market Report Segmentation:

By Software Type: 

  • Spend Analysis
  • E-Sourcing
  • E-Procurement
  • Contract Management
  • Supplier Management
  • Others

E-procurement represented the largest segment as it facilitates the digitalization of the entire procurement process.

By Deployment:

  • Cloud-based
  • On-premises

Cloud-based accounted for the largest market share as it offers scalability, flexibility, and cost-efficiency, making it highly attractive to organizations of all sizes. 

By Organization Size: 

  • Small and Medium-sized Enterprises
  • Large Enterprise

Large enterprises represented the largest segment as they require robust and scalable procurement solutions to manage a wide range of suppliers.

By Vertical:

  • Retail
  • Automotive
  • Travel and Logistics
  • Electronics
  • IT and Telecommunication
  • Others

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes retail, automotive, travel and logistics, electronics, IT and telecommunication, and others.

Market Breakup by Region:

  • North America (United States, Canada)
  • Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
  • Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
  • Latin America (Brazil, Mexico, Others)
  • Middle East and Africa

Procurement Software Market Trends:

The transition to cloud-based procurement software represents a major trend within the industry. Cloud solutions provide scalability, flexibility, and cost efficiency, enabling organizations of various sizes to access sophisticated procurement capabilities without requiring significant initial investments in IT infrastructure. Furthermore, there is an increasing focus on supplier collaboration, with procurement software serving a crucial function in enhancing communication and cooperation between companies and their suppliers. Contemporary procurement platforms include features such as supplier portals, real-time messaging, and collaborative tools, which facilitate smooth information sharing and collective problem-solving.

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.