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Procurement Software Market Size, Share & Industry Analysis, By Deployment (Cloud, On-premise), By Enterprise Type (Small and Medium Enterprises (SMEs), Large Enterprises), By End-user (Retail & e-Commerce, Healthcare and Pharmaceutical, Manufacturing & Automotive, BFSI, IT & Telecom, Oil & Gas, Energy & Utilities, Others), and Regional Forecast, 2024 – 2032

Last Updated: June 24, 2024 | Format: PDF | Report ID: FBI107099



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The global procurement software market size was valued at USD 7.30 billion in 2023. The market is projected to grow from USD 8.03 billion in 2024 to USD 18.28 billion by 2032, exhibiting a CAGR of 10.8% during the forecast period.

Procurement software is designed to automate and optimize the sourcing, purchasing, and payment processes within organizations. It includes features, such as supplier management, requisition management, purchase order creation and approval, contract management, inventory management, invoice processing, and spend analysis. The software enables organizations to streamline their procurement workflows, improve purchasing efficiency, enforce compliance with procurement policies and regulations, enhance supplier relationships, and gain insights into spending patterns for better decision-making. It also leverages technologies such as artificial intelligence, machine learning, and data analytics to drive process automation, cost savings, and operational efficiency in the procurement function.

Moreover, the pandemic increased the adoption of services, including scheduling, checklists, development of standard protocols, report development, and implementation of recommendations, among others, positively impacting the market growth.

Procurement Software Market Trends

Surging Adoption of Cloud Technology to Fuel Market Growth

The surge in adoption of cloud technology is poised to significantly boost the procurement software market by offering numerous advantages, such as scalability, flexibility, and cost-effectiveness. Cloud-based procurement software solutions leverage remote servers hosted on the internet to store and manage data, eliminating the need for on-premises hardware and infrastructure. This enables organizations to access procurement software applications and data from any location with internet connectivity, facilitating remote work and collaboration among procurement teams.

Furthermore, cloud-based procurement software offers seamless integration with other enterprise systems and applications, enabling organizations to streamline procurement processes and achieve greater visibility and control over their supply chains. Additionally, cloud-based solutions typically feature regular updates and enhancements, ensuring that organizations always have access to the latest features and functionalities without the need for manual software upgrades. Thus, the adoption of cloud-based procurement software is expected to drive efficiency, agility, and innovation in procurement operations, driving market growth.

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Procurement Software Market Growth Factors

Integration of Emerging Technologies such as Artificial Intelligence (AI) to Fuel Market Growth

The rise in the adoption of AI allows procurement organizations to solve complex problems more effectively or efficiently using computer algorithms. For instance,

As per the Deloitte Chief Procurement Officers (CPOs) survey, it is reported that high-performing agility masters are ahead in adopting next-gen digital technologies in procurement. The key benefits of next-generation technologies in procurement reported by the CPOs were process efficiency (65%), process effectiveness (50%), and increased agility (50%).

Similarly, supply chains around the world are focusing on modernizing & streamlining processes to drive productivity & efficiency of business operations. This is estimated to increase the demand for digital procurement services. For instance,

  • November 2022- Strategy and management consultancy Kearney acquired a Germany-based software firm, Optano, to optimize its supply chain planning. Optano’s AI-driven software will enable businesses to optimize their supply chain processes, from production through planning and transport, and increase demand for optimization services and supply chain re-design.


Lack of Skilled Professionals to Hinder Market Growth

With innovations flooding the market, having employees skilled in maintaining and programming advanced technologies is essential. When addressing the skills shortage, understanding the importance of procurement value proposition, managing organizational expenditures, reducing cost, optimizing supply chains, and imposing proper procurement policies are always a continuous concern for the procurement team.

According to Ivalua, a global spend management cloud solutions provider, the majority of U.K. organizations (86%) encountered considerable obstacles in building digital procurement skills. From this research, it is revealed that lack of training for technical and soft skills (28%), shortage of digitally experienced talent (31%), and lack of understanding of the skills required (13%) are some of the main challenges limiting the U.K. businesses from developing the digital skills they required. Moreover, over half (55%) of the businesses in the U.K. believe that digital skills in procurement are less innovative than in other departments. Therefore, the lack of skilled professionals restricts the procurement software market growth.

Procurement Software Market Segmentation Analysis

By Deployment Analysis

Cloud Deployment to Gain Traction Owing to Increased Efforts by Organizations to Shift Operations to Cloud

In terms of deployment, the market is classified into cloud and on-premise.

The cloud segment held the largest share in 2021 and is anticipated to grow with a remarkable CAGR during the forecast period. Cloud-based software offers greater transparency, better pricing, less time for transactions, and wider geographical reach; hence, it propels technology as an essential safeguard and advancement with the growing technology. Additionally, continuous investment and product enhancements surge the demand for procurement solutions among enterprises.

  • January 2022- Microsoft survey stated that 86% of the US-based respondents stated that they are planning to increase their investment in multi-cloud and hybrid cloud.

  • As per an IDC study conducted in September 2020, 35% of Canada-based organizations moved their applications to the cloud, and 28% invested in cloud data management.

By Enterprise Type Analysis

N SMEs to Grow with Maximum CAGR Owing to Rising Funding and Adoption of Cloud-based Solutions

Based on enterprise type, the market is divided into large enterprises and small & medium-sized enterprises. The large enterprise segment is expected to hold a major procurement software market share during the forecast period owing to the increasing demand for smart procurement management solutions to manage complex supply chains by reducing complexity and providing transparent information for business growth.

Also, small and medium-sized enterprises are expected to grow with remarkable CAGR owing to growing investment and funding and adoption of cost-effective cloud solutions led by leading organizations. For instance,

  • September 2022- India-based procurement solutions and services company Procol raised USD 627.0 million in funding. The company aims to utilize funding to enhance solutions to resolve procurement challenges through Procol’s procurement software.

By End-user Analysis

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Increased Demand for Sourcing and Procurement Solutions to Witness Significant Market Growth in Healthcare & Pharmaceutical

Based on end-user, the market is divided into retail & e-commerce, healthcare and pharmaceutical, manufacturing & automotive, BFSI, IT & telecom, oil & gas, energy & utilities, and others. Among these, the healthcare and pharmaceutical segment held a significant market share during the COVID-19 pandemic as it accelerated the demand for medical equipment, vaccines, medicines, and other pharmaceutical products, which increased the demand for fully compliant and transparent procurement processes across hospitals.

  • January 2021 - Intalere, a healthcare supply chain, partnered with Ivalua, Inc. to deploy Ivalua’s solution suite. The solution will assist in transforming and digitizing the procurement, contract lifecycle management, and sourcing processes. 

Furthermore, the surge in the adoption of digital technology, cloud, and smart solutions to manage the global supply chain and government regulations across retail & e-commerce, manufacturing, and automotive industries drives the market growth.


Geographically, the market is divided into five major regions such as North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America Procurement Software Market Size, 2023 (USD Billion)

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The North American market is studied across the U.S., Canada, and Mexico. The U.S. holds the major market share owing to the presence of key players in the region and the rising adoption of disruptive technologies across organizations.

Further, the Canadian market is anticipated to increase significantly CAGR owing to a surge in investment by procurement software vendors. For instance, in April 2021, GEP partnered with ENMAX Corporation, a Canada-based electrical services provider, to implement GEP SMART, a cloud-based procurement software.

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Europe is expected to hold a significant market share during the forecast period due to prominent companies in the market emphasizing business expansion by offering modified services to customers across countries.

Supply chain disruptions and nationwide lockdowns had an extensive impact on the sales of software and services for a short period. The demand for procurement solutions increased post-COVID-19 period in European countries. The enterprises invested in technology to manage the procurement and international import and export activities. For instance,

  • July 2021- SAP SE stated that enterprises in Europe are focusing on transforming their spend management, procurement, and supply chain management with digital technology.

These factors are anticipated to propel market growth across the region.

Asia Pacific is estimated to display dynamic growth during the projection period. The surging investment by emerging economies for digital transformation, such as India, Singapore, Japan, South Korea, South East Asia, and others, is contributing to market growth.

According to the IDC Report, the Asia Pacific’s ICT spending reached USD 924 billion in 2021 and is projected to reach USD 1 trillion by 2024. Thus, the increase in ICT spending will increase the demand for solutions and services across various industries. Further, in January 2022, IDC stated that professional services increased by 13.5% from 2021 to 2022, which is expected to fuel the growth of services.

The Middle East & Africa region is projected to showcase moderate growth in the coming years. Some of the major government-funded initiatives would create unprecedented opportunities for procurement and supply chain solutions in the near future.

February 2022 - As per the IDC, IT investments in the Middle East, Turkey, and Africa are projected to reach USD 229 billion in 2022, a rise of 2.7% as compared to 2021. The increased investment across the region is expected to fuel the demand for software across the region.

South America is projected to show steady growth during the forecast period. However, the COVID-19 pandemic has provoked decision-makers across Latin American countries to boost their IT spending in 2021.

Around 39% of organizations in the region are planning to invest in cloud computing. The acceleration of cloud adoption in Brazil, Chile, and Argentina is drawing the attention of big companies and hyper-scale cloud providers to invest in procurement software. These factors are expected to drive the adoption of cloud-based software and services.

List of Key Companies in Procurement Software Market

Key Players Launch New Products to Strengthen Market Positioning

Important players functioning in the global market focus on expanding their global presence and market share through acquisition and merger tactics. These companies aim to purchase small and local firms to broaden their business presence.

List of Key Companies Profiled:


  • October 2023: Atamis announced that it would supply advanced procurement software to optimize Maximus UK's sourcing processes, boosting efficiency and cost-effectiveness. Maximus UK aims to enhance procurement operations by implementing Atamis software, ushering in a new era of streamlined processes and improved efficiency.

  • October 2023: Olive Technologies, specializing in AI-driven solutions, collaborated with Procurify, a cloud-based procure-to-pay software provider. Their partnership aims to streamline and improve vendor sourcing, selection, and procurement processes for organizations worldwide.

  • October 2023: GEP unveiled GEP Quantum, an Al-driven, low-code platform for procurement and supply chain management. The platform leverages generative Al and advanced data management tech, offering a no/low-code development framework for non-technical users. Quantum now supports GEP's suite of work process apps, including GEP Smart for procurement, GE Nexxe for supply chain visibility, and GEP Green for sustainability.

  • September 2023: Coupa Software launched Supply Chain Collaboration to enhance supply assurance and business continuity, fostering better communication and decision-making between buyers and suppliers for timely delivery of products and materials, mitigating risks.

  • August 2023: Ivalua released version 178 of its platform, emphasizing R&D investments with new features for contract digitization, analytics, purchasing visibility, global e-invoicing compliance, virtual card payments, and digital adoption, enabling greater efficiency and value across procurement activities.

  • February 2022: Coupa Software launched a collection of next-gen spend management solutions under the coupa’s Community.ai. Community.ai combines data-driven artificial intelligence to improve person-to-person connections and transform B2B communities.

  • January 2022: SAP SE partnered with Icertis for better contract management to help companies minimize risk, increase efficiency, and realize the full intent of their agreements. This partnership would help customers change their source-to-pay processes through the combination of Icertis Contract Intelligence with SAP Customer Experience and SAP Ariba solutions.


An Infographic Representation of Procurement Software Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading Business Functions of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 10.8% from 2024 to 2032


Value (USD Billion)
















By Deployment

  • Cloud

  • On-premise

By Enterprise Type

  • Small and Medium Enterprises (SMEs)

  • Large Enterprises

By End-user

  • Retail & e-Commerce

  • Healthcare and Pharmaceutical

  • Manufacturing & Automotive

  • BFSI

  • IT & Telecom

  • Oil & Gas, Energy & Utilities

  • Others (Real Estate, etc.)

By Region

  • North America (Deployment, Enterprise Type, End-user, Country)

    • U.S. (By End-user)

    • Canada (By End-user)

    • Mexico (By End-user)

  • Europe (Deployment, Enterprise Type, End-user, Country)

    • U.K. (By End-user)

    • Germany (By End-user)

    • Italy (By End-user)

    • France (By End-user)

    • Russia (By End-user)

    • Spain (By End-user)

    • Benelux (By End-user)

    • Nordics (By End-user)

    • Rest of Europe

  • Asia Pacific (Deployment, Enterprise Type, End-user, Country)

    • China (By End-user)

    • Japan (By End-user)

    • India (By End-user)

    • South Korea (By End-user)

    • ASEAN (By End-user)

    • Oceania (By End-user)

    • Rest of Asia Pacific

  • Middle East & Africa (Deployment, Enterprise Type, End-user, Country)

    • Turkey (By End-user)

    • GCC (By End-user)

    • Israel (By End-user)

    • North Africa (By End-user)

    • South Africa (By End-user)

    • Rest of Middle East & Africa

  • South America (Deployment, Enterprise Type, End-user, Country)

    • Brazil (By End-user)

    • Argentina (By End-user)

    • Rest of South America

Frequently Asked Questions

The market is projected to reach USD 18.28 billion by 2032.

In 2023, the market was valued at USD 7.30 billion.

The market is projected to grow at a CAGR of 10.8% during the forecast period.

The retail & e-commerce industry is expected to lead the market.

The integration of emerging technologies such as AI drives market growth.

Basware, SAP SE, Coupa Software Inc., Oracle, and Ivalua Inc. are the top players in the market.

The North America market is expected to hold the highest market share.

Asia Pacific is expected to exhibit the highest growth rate during the forecast period.

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