Procurement-as-a-Service-Market Forecast (2024 to 2031)
The Procurement as-a-Service Market size is projected to reach US$ 6.43 billion by 2031 from US$ 3.70 billion in 2023. The market is expected to register a CAGR of 7.2% in 2023–2031. The rising adoption of next-generation technology among businesses for supply chain management is likely to remain a key procurement as-a-service market trend.
Procurement as-a-Service Market Analysis
The procurement as-a-service market is growing at a rapid pace due to the growing need for supply chain optimization and the increasing number of importing & exporting activities across the globe. The market is expanding steadily, driven by government initiatives to promote digitalization for automating the workflow. Moreover, the growing collaboration and partnership agreement between players is providing lucrative opportunities for market growth.
Procurement as-a-Service Market Overview
Procurement as a service (PaaS) is a model for outsourcing procurement that combines resources (people, tools, and knowledge) to meet an organization's procurement requirements. Many organizations today utilize computers to manage their whole purchase process, from initial inquiry to final invoice. In addition, disruptive technologies are used in digital procurement to facilitate transactional automation. Furthermore, it enables predictive and proactive operations such as strategic sourcing and supplier management, which lowers the operational expenses of an organization. Increasing business need to streamline procurement operations with handle compliance regulations and contracts is driving the market.
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Procurement as-a-Service Market: Strategic Insights
Market Size Value in US$ 3,065.0 million in 2020 Market Size Value by US$ 4,741.1 million by 2027 Growth rate CAGR of 6.4% from 2020 to 2027 Forecast Period 2020-2027 Base Year 2020
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Procurement as-a-Service Market: Strategic Insights
| Market Size Value in | US$ 3,065.0 million in 2020 |
| Market Size Value by | US$ 4,741.1 million by 2027 |
| Growth rate | CAGR of 6.4% from 2020 to 2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Procurement as-a-Service Market Drivers and Opportunities
Growing Need for Supply Chain Optimization
Supply chain managers highly adopt procurement management services to monitor the overall operations of the supply chain. These services allow supply chain managers to significantly anticipate potential problems in the supply chain and reallocate resources accordingly. Furthermore, procurement as-a-service is capable of generating reliable data-driven solutions that are used to improve the efficiency of business processes. Procurement management software offers exception-based process management systems that help users to manage steady-state operations and increase cross-functional visibility. As a result, consumers are increasingly investing in procurement management software for maintaining transparency in the supply chain, disclosure of orders, and shipment data.
Growing Collaboration and Partnership Agreement Between Players – An Opportunity in the Procurement as-a-Service Market
Technological advancement and rising demand for cloud computing, AI, data analytics, and ML technology among market players to enhance their service offerings are creating opportunities in the market. Moreover, the growing demand for technologically advanced services among consumers encourages market players to develop innovative solutions or add features to their existing portfolios. For instance, in November 2022, Corbus, LLC signed a supply chain procurement partnership agreement with GIS to develop unique solutions. This partnership supports GIS to deliver infrastructure and resources to customers across Europe, Latin America, North America, Asia, and the Middle East and Africa.
Procurement as-a-Service Market Report Segmentation Analysis
Key segments that contributed to the derivation of the procurement as-a-service market analysis are component, enterprise size, and end user.
- Based on component, the market is segmented into strategic sourcing, spend management, category management, process management, contract management, and transaction management. The spend management segment held a larger market share in 2023.
- In terms of enterprise size, the market is divided into SMEs and large enterprises. The large enterprises segment held a larger market share in 2023.
- On the basis of end user, the market is segmented into IT and telecom, consumer goods and retail, manufacturing, energy and utility, healthcare, hospitality and tourism, and others. The manufacturing segment held the largest share of the market in 2023.
Procurement as-a-Service Market Share Analysis by Geography
The geographic scope of the procurement as-a-service market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, North America accounted for the largest procurement as-a-service market share, due to technological advancement and integration of AI, blockchain, and other technologies for enhancing the supply chain. Significant government investment to promote the digitization of businesses is fueling the market in the region. Growing digitalization encourages market players to adopt digital technologies to streamline their procurement processes is fueling the market in North America.
Procurement as-a-Service Market Report Scope
Procurement as-a-Service Market News and Recent Developments
The procurement as-a-service market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for procurement as-a-service and strategies:
- In February 2024, Vodafone Group Plc and International Machine Business Corp are working together on an industry level, leading the GSMA Post-Quantum Telco Network Taskforce, which will support their partners and customers on their quantum-safe journey, particularly as post-quantum cryptography is adopted across the global telecommunications supply chain. (Source: Vodafone Group Plc, Press Release, 2024)
Procurement as-a-Service Market Report Coverage and Deliverables
The “Procurement as-a-Service Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component; Enterprise Size; End-User Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The incremental growth expected to be recorded for the global procurement as-a-service market during the forecast period is US$ 2.74 billion.
The global procurement as-a-service market is expected to reach US$ 6.43 billion by 2031.
The key players holding majority shares in the global procurement as-a-service market are Accenture, CAPGEMINI SE, Corbus, LLC, Genpact Ltd., and GEP.
The rising adoption of next-generation technology among businesses for supply chain management is anticipated to play a significant role in the global procurement as-a-service market in the coming years.
The growing need for supply chain optimization and the increasing number of importing & exporting activities across the globe are the major factors that propel the global procurement as-a-service market.
The global procurement as-a-service market was estimated to be US$ 3.70 billion in 2023 and is expected to grow at a CAGR of 7.2% during the forecast period 2023 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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