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Procurement Analytics Market - By Component (Solution, Services), By Deployment (On-premises, Cloud), By Enterprise Size (SMEs, Large Enterprise), By Application (Spend Analytics, Risk Analytics, Supply Chain Management, Vendor Analytics, Contract Management, Others), By End User, Forecast 2023 - 2032

  • Report ID: GMI7293
  • Published Date: Nov 2023
  • Report Format: PDF

Procurement Analytics Market Size

Procurement Analytics Market was valued at USD 3.8 billion in 2022 and is estimated to register a CAGR of over 23% between 2023 and 2032. The increasing emphasis on strengthening supplier relationships and enhancing purchasing processes has become a driving force behind the market growth.

Procurement Analytics Market

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Organizations recognize the pivotal role of robust supplier connections in ensuring a stable supply chain. For instance, in July 2023, EY and cloud data expert, Snowflake collaborated to introduce EY Spend Insights (SPI), a solution that offers insights into procurement spending and harmonizes supply chain networks across diverse sectors. This solution equips business owners, managers, and executives with tools to enhance strategic decision-making, strengthen supplier relationships, and optimize purchasing processes.

The procurement analytics market is being propelled by the imperative to optimize procurement processes and enhance overall efficiency in organizations. By leveraging advanced analytics tools, businesses can gain deep insights into supplier performance, cost structures, and demand patterns. This data-driven approach enables strategic decision-making, supplier collaboration, and streamlined procurement workflows. As companies increasingly recognize the potential for cost savings and improved productivity, the demand for procurement analytics solutions continues to rise, driving innovation & market development.

Ensuring the accuracy and reliability of data is a fundamental challenge in procurement analytics. Incomplete or inconsistent data from various sources can lead to unreliable insights. Integrating data from disparate systems within an organization including ERP systems and legacy databases poses technical challenges. Moreover, harmonizing data from external sources such as suppliers further complicates the integration process. Addressing these issues requires robust data governance policies, advanced integration tools, and data cleansing techniques to derive meaningful & actionable analytics results.

COVID-19 Impact

The COVID-19 pandemic negatively impacted the procurement analytics market in various ways. Economic uncertainties led to budget constraints, causing many businesses to delay or scale back their procurement analytics investments. Supply chain disruptions and fluctuating demand patterns made it challenging to accurately analyze & forecast procurement data. Additionally, widespread remote work introduced complexities in data access and collaboration. These factors combined to slow down market growth with organizations prioritizing immediate cost-cutting measures over long-term analytics investments.

Procurement Analytics Market Trends

The market is being driven by AI-driven solutions that enhance business performance and reduce liability. By leveraging advanced technologies, such as artificial intelligence, these solutions enable organizations to identify deviations from standard contract terms, thus minimizing risks. For instance, in May 2023, SAP and contract intelligence innovator, Icertis collaborated on a new integration that links AI-driven contract intelligence with SAP S/4HANA. The Icertis platform, infused with artificial intelligence, identifies deviations from standard terms, minimizing risks. Predefined rules and templates facilitate contract self-generation, empowering procurement teams to take a strategic role in enhancing business performance while reducing liability.

The market is gaining momentum due to its ability to measure purchase order cycles and optimize payment terms. By analyzing historical data, organizations can identify inefficiencies in procurement processes, leading to streamlined purchase order cycles. Additionally, optimizing payment terms with suppliers enhance cash flow management and reduce costs. As businesses increasingly recognize the value of these insights, the demand for procurement analytics solutions rises, propelling the market forward.

Procurement Analytics Market Analysis

Procurement Analytics Market Size, By Component, 2021 – 2032, (USD Billion)

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Based on component, the market is divided into solution and services. In 2022, the market revenue of the solution segment was over USD 2.5 billion. The market is witnessing growth in the solution segment due to advancements in sourcing, purchasing, and door-to-door order management solutions. These innovations streamline procurement processes, ensuring efficient supplier sourcing, optimized purchasing strategies & seamless order management from initial to end phase. For instance, in November 2022, Procure Analytics, a prominent data-enabled group purchasing organization, introduced Amicus Spend Management, a tail spends sourcing and purchasing service. This new offering allows procure analytics members to lower the overall procurement costs without the need for additional internal labor, management fees, or commercial obligations.

Procurement Analytics Market Share (%), By Application, 2022

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Based on application, the procurement analytics market is categorized into spend analytics, risk analytics, supply chain management, vendor analytics, contract management, and others. In 2022, supply chain management segment hold over 30% business share and is projected to grow by 2032. The demand for end-to-end visibility in supply chains is a pivotal factor propelling the growth of supply chain management applications. Businesses now require comprehensive insights into their supply chains, from raw material sourcing to product delivery. Procurement analytics provides real-time monitoring of supplier performance, enabling companies to uphold quality, compliance, and delivery standards. This heightened visibility not only mitigates risks and ensures regulatory compliance but also fosters efficient supplier relationships, leading to enhanced overall supply chain efficiency and effectiveness.

U.S. Procurement Analytics Market Size, 2021 -2032, (USD Million)

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North America led the procurement analytics market with a major share of over 32% in 2022. The emphasis on cost optimization is a pivotal factor driving the market expansion. Businesses continually seek ways to streamline operations and reduce expenditures. Procurement analytics plays a vital role by providing detailed insights into spending patterns, supplier performance, and negotiation opportunities. For instance, in March 2023, Resilinc Corporation introduced its Spend Analytics solution, a spend-management tool that links an organization's expenditure to specific suppliers, categories, or parts. This data, accessible beside other supplier risk insights on the Resilinc platform, offers companies comprehensive visibility into both direct and indirect supplier spend across the entire organization.

Procurement Analytics Market Share

Major players operating in the procurement analytics industry are:

  • SAP SE
  • Cisco Systems, Inc.
  • Coupa Software
  • Genpact Itd
  • IBM Corporation
  • Microsoft Corporation
  • Oracle Corporation
  • SAS Institute
  • Zycus Inc.

The competitive landscape of the market is dominated by major players such as SAP SE and Oracle Corporation. These industry leaders offer comprehensive solutions, robust analytics tools & innovative technologies, creating a competitive environment marked by continuous innovation an a focus on meeting diverse customer needs.

Procurement Analytics Industry News

  • In October 2023, Procurify secured USD 50 million in funding during its Series C funding round. The funding will empower Procurify to expand its global presence, introduce new payment features, and offer customers an enhanced procure-to-pay experience with the integration of artificial intelligence.

 The procurement analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032, for the following segments:

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By Component, 2018 – 2032

  • Solution
  • Services

By Deployment, 2018 – 2032

  • On-premises
  • Cloud

By Enterprise Size, 2018 – 2032

  • SMEs
  • Large Enterprise

By Application, 2018 – 2032

  • Spend Analytics
  • Risk Analytics
  • Supply Chain Management
  • Vendor Analytics
  • Contract Management
  • Others

By End User, 2018 – 2032

  • BFSI
  • Retail & e-commerce
  • Telecom & IT
  • Manufacturing
  • Healthcare & Life Sciences
  • Energy & Utilities
  • Government & Defense
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Southeast Asia
    • ANZ 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The procurement analytics industry was valued at USD 3.8 billion in 2022 and is estimated to register a CAGR of over 23% between 2023 and 2032, owing to the increasing emphasis on strengthening supplier relationships and enhancing purchasing processes.

In 2022, supply chain management segment held over 30% market share and is projected to grow through 2032, backed by the demand for end-to-end visibility in supply chain, from raw material sourcing to product delivery.

North America led the global procurement analytics market with a major share of over 32% in 2022 and will grow attributed to the emphasis on cost optimization among businesses who continually seek ways to streamline operations and reduce expenditures.

SAP SE, Cisco Systems, Inc., Coupa Software, Genpact Itd., IBM Corporation, Microsoft Corporation, Oracle Corporation, SAS Institute, and Zycus Inc.

Procurement Analytics Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 2
  • Tables & Figures: 414
  • Countries covered: 21
  • Pages: 220
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