Procurement Software Market Outlook

According to the report by Expert Market Research (EMR), the global procurement software market size attained a value of USD 7.41 billion in 2024. Aided by the increasing adoption of digital procurement solutions and the growing need for efficient supply chain management, the market is projected to further grow at a CAGR of 12.0% between 2025 and 2034 to reach a value of USD 20.53 billion by 2034.

Procurement software is designed to automate and streamline the purchasing process in organisations, enabling efficient management of supplier relationships, contract negotiations, and cost control. The software integrates various functions such as e-sourcing, e-invoicing, contract lifecycle management, and spend analysis, providing organisations with enhanced visibility and control over their procurement activities. The rising demand for digital transformation and the need to optimise procurement operations are driving the adoption of procurement software across various industries.

The increasing complexity of global supply chains and the need for cost reduction are key factors driving the global procurement software market growth. Companies are increasingly leveraging advanced technologies such as artificial intelligence (AI), machine learning (ML), and blockchain to enhance procurement efficiency and transparency. The integration of AI-powered analytics in procurement software enables organisations to make data-driven decisions, optimise supplier selection, and mitigate risks.

The growing adoption of cloud-based procurement solutions is another significant factor propelling the market. Cloud-based platforms offer scalability, flexibility, and real-time access to procurement data, making them a preferred choice for enterprises looking to improve operational efficiency. Furthermore, the shift towards software-as-a-service (SaaS) procurement solutions is enabling businesses to reduce IT infrastructure costs while benefiting from regular software updates and enhanced security features.

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Market Drivers Of Growth

One of the primary drivers of the global procurement software market is the increasing emphasis on cost efficiency and spend management. Organisations across various sectors are focusing on optimising procurement expenditures, reducing supplier risks, and enhancing compliance with regulatory requirements. Procurement software solutions provide comprehensive analytics and reporting tools that help businesses track and manage their expenses effectively.

Another crucial factor contributing to market growth is the rising need for supplier collaboration and risk management. Procurement software enables organisations to assess supplier performance, ensure compliance with contracts, and maintain strong supplier relationships. The implementation of automated procurement solutions helps in reducing procurement cycle times, minimising manual errors, and improving overall supply chain efficiency.

Additionally, the increasing penetration of artificial intelligence and blockchain technology in procurement processes is revolutionising the industry. AI-powered procurement solutions enhance demand forecasting, supplier negotiations, and contract management, while blockchain technology ensures transparency and security in transactions, reducing the risks of fraud and data manipulation.

Procurement Software Market Segmentation

The market can be divided based on deployment, end use, and region.

Breakup by Deployment

• On-Premise
• Cloud

Breakup by End User

• Retail
• Manufacturing
• Transportation and Logistics
• Healthcare
• Food and Beverage
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Fraxion
• GEP
• Kissflow Procurement Cloud
• Epicor Software Corporation
• Jaggaer
• Basware Inc.
• SAP SE
• Proactis Holdings Limited.
• Procurify Technologies Inc.
• Zycus Inc.
• Ivalua Inc.
• Microsoft Corporation
• Others

Future Trends

The future of the global procurement software market is expected to be shaped by several emerging trends. One of the key trends is the increasing adoption of AI and automation in procurement processes. AI-driven procurement solutions are enabling organisations to automate routine tasks, enhance decision-making, and improve supplier negotiations.

Another significant trend is the rising demand for sustainability and ethical sourcing in procurement operations. Companies are increasingly focusing on supplier diversity, responsible sourcing, and environmental sustainability. Procurement software solutions with sustainability tracking and compliance monitoring features are gaining traction among businesses aiming to align with corporate social responsibility (CSR) initiatives.

Furthermore, the integration of predictive analytics in procurement software is expected to revolutionise demand forecasting and supplier risk assessment. Predictive analytics enables organisations to anticipate market trends, optimise inventory levels, and mitigate supply chain disruptions, thereby enhancing procurement efficiency.

Challenges and Opportunities

Despite the promising growth prospects, the global procurement software market faces certain challenges. Data security concerns, integration complexities, and resistance to change in traditional procurement processes pose potential obstacles to market expansion. Additionally, small and medium-sized enterprises (SMEs) may face budget constraints in implementing advanced procurement solutions.

However, the market also presents numerous opportunities. The growing demand for cloud-based procurement solutions, increasing adoption of AI-driven analytics, and the expansion of procurement software applications in emerging economies offer significant growth potential. Furthermore, government initiatives promoting digital transformation and automation in procurement processes are expected to boost market adoption.