Home > Pressrelease > Procurement As a Service Market size to surpass $15 Bn by 2032
Procurement As a Service Market size to surpass $15 Bn by 2032
- Published Date: April 12, 2023
Procurement As a Service (PaaS) Market size is projected to exceed USD 15 billion by 2032, according to a new research report by Global Market Insights Inc.
The rising number of small- and medium-sized enterprises (SMEs) worldwide is anticipated to drive the demand for PaaS solutions. SMEs extensively deploy advanced cloud solutions to improve productivity, operational efficiency, and cost-cutting. PaaS solutions have emerged as a promising tool for helping small businesses reduce expenditures by providing access to specialized procurement resources, reducing administrative overheads, offering negotiable packages, improving compliance, and boosting spending visibility. Additionally, industry players are integrating advanced technologies to enhance customer experience and improve procurement processes such as invoice processing, supplier management, and purchase order generation whilst cutting costs.
Integration of robotics to spur the development of PaaS solutions for transaction management
Procurement as a service market from transaction management is poised to cross USD 4 billion by 2032. Organizations are seeking specialized expertise and scalable solutions to enhance data accuracy and visibility, thus fueling the adoption of PaaS solutions for transaction management. Ongoing digitization and automation of transaction management processes are providing lucrative scope for PaaS providers to introduce novel solutions. Recent advancements in artificial intelligence (AI), and robotic process automation (RPA) are allowing providers to automate transaction management. As a result, PaaS solutions are expected to gain substantial traction among customers seeking faster and more cost-efficient processes.
Browse key industry insights spread across 230 pages with 233 market data tables and 31 figures & charts from the report, “Procurement As a Service (PaaS) Market Size By Component (Strategic Sourcing Category Management, Transactions Management, Process Management, Spend Management, Contract Management), Organization Size, By End-use & Forecast, 2023 – 2032” in detail along with the table of contents:
Increasing digitization of the BFSI sector to foster demand for PaaS solutions
In terms of revenue share, the PaaS market from BFSI applications reached over USD 1 billion in 2022. The digitization of banking and finance services including rapid penetration of digital banking, mobile wallet, and telebanking is driving the demand for PaaS solutions. Several BFSI partnerships are enabling enterprises to strengthen operations across the corporate sector with automated workflows.
For instance, in August 2022, Yes Bank collaborated with IBSFINtech to offer digital services designed for the corporate sector. Businesses are increasingly investing in robust decision-making tools and automated interventions supported by seamless bank connectivity. PaaS is also helping BSFI organizations with automation, procurement operations, compliance, supplier management, cost savings, scalability, and risk management, further driving product consumption.
Growing internet usage to fuel PaaS industry growth in APAC
Asia Pacific procurement as a service market will expand at over 10% CAGR between 2023 and 2032. APAC is estimated to emerge as a hotspot for the PaaS market owing to the surging demand for digital solutions capable of streamlining and managing supply chain operations. Increasing internet usage in highly populated countries such as India and China will proliferate the use of advanced digital technologies. Moreover, several government are initiating efforts to accelerate the digitization of the transportation, food & beverage, and manufacturing sectors. For instance, in August 2022 the Government of Assam, India unveiled a State Public Procurement Portal (SPPP), offering Assam Government Departments access to all tender-related data.
New mergers & acquisitions to boost PaaS industry demand
The key PaaS market include Accenture plc, Capgemini, Corbus, LLC., Genpact, GEP, HCL Technologies Ltd, IBM Corporation, Infosys Limited, Proxima Group, Tata Consultancy Services Limited, Wipro Limited, WNS (Holdings) Ltd., Simfoni Limited, Pcura Consulting Pvt. Ltd., Sastrify & Vizient Inc. These firms are focusing on strategic partnerships, mergers, and acquisitions as key strategies to consolidate their competitive lead. For instance, in May 2022, Bain & Company acquired a UK-based supply chain and procurement consultancy firm, Proxima, to provide cost-effective, and differentiated solutions catering to end-to-end procurement needs right from strategy to implementation.