The Latest Procurement Software Industry Statistics Explained
The global procurement software market size was valued at USD 7.3 billion in 2020.
The statistic indicates that the total market value for procurement software worldwide was estimated to be USD 7.3 billion in the year 2020. This figure represents the total revenue generated by the sale of procurement software solutions to businesses across industries on a global scale throughout the year. The market size serves as a significant indicator of the demand and adoption of procurement software within organizations for streamlining purchasing processes, managing suppliers, and enhancing overall efficiency and cost-effectiveness in procurement operations. This statistic suggests a substantial market opportunity and growth potential for software vendors and service providers catering to the procurement management sector.
The procurement software market is anticipated to grow at a CAGR of 9.1% over the forecast period 2021-2026.
This statistic states that the procurement software market is expected to experience a Compound Annual Growth Rate (CAGR) of 9.1% between the years 2021 and 2026. This growth rate represents the consistent yearly increase in market size over the forecast period. A 9.1% CAGR suggests that the demand for procurement software is projected to rise steadily, indicating sustained interest and adoption of such technology by businesses. This growth could be driven by factors such as the need for efficiency, cost savings, and streamlining of procurement processes, leading to increased market penetration and expansion of the industry.
Over 50% of companies have automated their procurement processes.
The statistic “Over 50% of companies have automated their procurement processes” indicates that a majority of companies have adopted automated systems to streamline their procurement activities. This implies that more than half of businesses have implemented technology-driven solutions to manage and optimize their procurement processes, such as sourcing, purchasing, and vendor management. Automation in procurement can lead to increased efficiency, cost savings, improved accuracy, and better decision-making. The high adoption rate of automation in procurement highlights the growing trend towards digital transformation in the business world, as companies seek innovative ways to enhance their operations and stay competitive in the market.
The procurement software adoption rate has doubled over the last five years.
The statement ‘The procurement software adoption rate has doubled over the last five years’ indicates that the proportion of organizations using procurement software has increased significantly. Specifically, the adoption rate has increased twofold, meaning that there are now twice as many organizations utilizing procurement software compared to five years ago. This statistic suggests a growing trend towards digitization and automation in procurement processes, potentially driven by the benefits such software provides in terms of efficiency, cost savings, and streamlined operations. The doubling of the adoption rate underscores the increasing recognition and utilization of procurement software among organizations seeking to enhance their procurement capabilities and processes.
About 60% of small businesses have not yet adopted procurement software.
The statistic “About 60% of small businesses have not yet adopted procurement software” indicates that a significant portion of small businesses have not incorporated procurement software into their operations. Procurement software is used to automate and streamline the process of purchasing goods and services, helping businesses better manage costs, improve efficiency, and enhance supplier relationships. The fact that 60% of small businesses have not adopted such software suggests a potential opportunity for these businesses to modernize their procurement practices and leverage technology to drive growth and competitiveness. It also highlights a potential gap in knowledge or resources that may be hindering these businesses from taking advantage of the benefits that procurement software can offer.
The energy and utilities industry is projected to hold the largest market share in the procurement software market.
This statistic indicates that the energy and utilities industry is expected to have the highest percentage of market presence in the procurement software market in relation to other industries. This projection suggests that the energy and utilities sector is anticipated to invest significantly in procurement software solutions compared to other industries such as manufacturing, healthcare, or retail. The increased adoption of procurement software in the energy and utilities industry could be driven by the need for efficient supply chain management, cost savings, process automation, risk mitigation, and overall operational excellence. This trend underscores the industry-specific demand and potential benefits that procurement software can offer to organizations within the energy and utilities sector.
Just 33% of procurement leaders are driving digital transformation in their companies.
This statistic indicates that only a third of procurement leaders within companies are actively involved in leading digital transformation initiatives. This suggests that there may be a significant portion of procurement departments that have yet to fully embrace digital technologies and processes to enhance their operations. Companies led by these procurement leaders may be missing out on the potential benefits that digital transformation can bring, such as improved efficiency, cost savings, access to real-time data, and better collaboration with suppliers. It highlights the need for more procurement leaders to recognize the importance of driving digital transformation in order to stay competitive and meet the evolving demands of modern business environments.
Approximately 35% of companies use artificial intelligence (AI) in their procurement processes.
The statistic that approximately 35% of companies use artificial intelligence (AI) in their procurement processes indicates the prevalence of AI adoption within procurement operations. This suggests that a sizable portion of businesses have incorporated AI technologies such as machine learning, natural language processing, and predictive analytics to enhance their procurement efficiency, accuracy, and decision-making. By leveraging AI in procurement, organizations can automate routine tasks, optimize supplier selection, forecast future demand, and improve overall cost savings. The statistic also highlights the growing trend of digital transformation in the procurement industry, as companies continue to embrace innovative technologies to stay competitive in the modern business landscape.
Public cloud procurement platforms are projected to grow at a CAGR of 20% until 2023.
This statistic indicates that the adoption and usage of public cloud procurement platforms are expected to experience consistent and significant growth over the specified period. The Compound Annual Growth Rate (CAGR) of 20% expresses the average annual growth rate of these platforms’ market size from the present time until 2023. This projection suggests a strong and steady expansion of public cloud procurement platforms within the business landscape, implying increased interest and investment in these digital solutions by organizations seeking to streamline and optimize their procurement activities through cloud-based technologies.
E-procurement software segment accounted for over 30% share of the market in 2020.
This statistic indicates that the E-procurement software segment held a dominant position in the market in 2020 by capturing more than 30% of the total market share. E-procurement software refers to the technology solutions used by businesses to streamline and automate the purchasing process, enabling more efficient procurement operations. The significant market share of over 30% suggests that E-procurement software was in high demand among organizations looking to enhance their procurement processes, improve cost savings, and increase operational efficiency. This statistic highlights the strong presence and adoption of E-procurement software in the market during the specified time period, underlining its importance and popularity among businesses seeking digital solutions for procurement management.
By 2028, the Asia-Pacific region is projected to register the highest CAGR of 10.4% in the procurement software industry.
This statistic indicates that the Asia-Pacific region is forecasted to experience the highest Compound Annual Growth Rate (CAGR) of 10.4% in the procurement software industry by the year 2028. This suggests that the market for procurement software in the Asia-Pacific region is expected to expand rapidly over the next few years at a significant rate compared to other regions. Factors contributing to this growth could include increasing adoption of technology, digital transformation initiatives, rising demand for efficient procurement processes, and the overall economic growth and development in the region. This projection highlights the potential opportunities for businesses operating in the procurement software industry to target and expand their presence within the Asia-Pacific market.
Nearly 80% of procurement leaders plan to invest in advanced data analytics in the next two years.
The statistic indicates that a significant majority of procurement leaders, approximately 80%, are currently considering or intending to allocate resources towards implementing advanced data analytics within their organizations over the next two years. This suggests a growing recognition among procurement professionals of the benefits and opportunities presented by leveraging data-driven insights in their operations. Investing in advanced data analytics can help procurement leaders make more informed decisions, optimize processes, improve efficiency, and ultimately drive better overall performance and outcomes in their procurement activities.
The highest growth in procurement software market size is expected in the healthcare sector.
The statistic indicates that the procurement software market is anticipated to experience the strongest growth within the healthcare sector in the near future. This forecast suggests that healthcare organizations are increasingly recognizing the value and benefits of implementing procurement software to enhance their supply chain and vendor management processes. The expected growth in the healthcare sector likely stems from the industry’s unique needs for efficient procurement solutions to ensure timely access to essential medical supplies, equipment, and services while maintaining regulatory compliance and cost-effectiveness. As a result, software providers may focus on tailoring their offerings to better meet the specific requirements of healthcare procurement, driving growth in this market segment.
The supply chain management segment is forecasted to grow at a CAGR of 9.4% from 2021 to 2028.
The statement indicates that the supply chain management segment is expected to experience a compound annual growth rate (CAGR) of 9.4% from 2021 to 2028. This implies that the industry is projected to expand consistently over the specified period, showcasing significant growth potential. A CAGR of 9.4% suggests a steady upward trajectory in terms of market size and revenue generation within the supply chain management sector. This projection signals a positive outlook for the industry, reflecting potential opportunities for businesses operating in this segment to capitalize on the growing demand and market trends.
It is predicted that 10% of emergency purchasing activities will be automated by 2022.
This statistic suggests that by 2022, it is anticipated that automated processes will account for approximately 10% of emergency purchasing activities. This prediction indicates a potential shift towards the use of technology and automation in managing and executing emergency purchases, likely resulting in increased efficiency and accuracy in such transactions. The expected automation of a portion of emergency purchasing activities reflects a trend towards leveraging technological advancements to streamline processes and improve decision-making in procurement departments. Overall, this statistic highlights the increasing role of automation in supply chain and purchasing functions, signaling a digital transformation in emergency procurement practices.
Conclusion
There is no denying the significant impact that procurement software has had on the industry, with its ability to streamline processes, increase efficiency, and optimize spending. The statistics presented in this blog post highlight the growing use and importance of procurement software in today’s business world. As technology continues to evolve, we can expect even more innovative solutions to emerge in the procurement software industry. It is clear that implementing procurement software is not just a trend, but a necessity for companies looking to stay competitive and thrive in a fast-paced marketplace.
References
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