Vendor Management Software Market Forecast 2021-2031
The vendor management software market size is projected to reach US$ 19.94 billion by 2031 from US$ 7.39 billion in 2023. The market is expected to register a CAGR of 13.2% in 2023–2031. Expanding retail and e-commerce industries are likely to remain a key vendor management software market trend.
Vendor Management Software Market Analysis
The vendor management software market is growing at a rapid pace due to the growing demand for improving operational and supply chain efficiencies and significant government initiatives to promote SME development with cloud adoption. The market is expanding steadily, driven by the rising demand for technologically advanced and cost-effective software among vendors. Moreover, rising demand for cloud-based software among vendors across the globe and increasing complexities in managing relationships with many vendors are providing lucrative opportunities for market growth.
Vendor Management Software Market Overview
Vendor management consists of developing and nurturing relationships with suppliers of goods and services required for day-to-day operations. Vendor management software is a software application used by vendors for appropriately managing their supply chain or distribution networks. The growing need to reduce risks and make faster decisions by businesses is creating growth opportunities for the vendor management software market.
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Vendor Management Software Market: Strategic Insights
Market Size Value in US$ 4,389.2 Million in 2018 Market Size Value by US$ 12,295.8 Million by 2027 Growth rate CAGR of 12.4% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Vendor Management Software Market: Strategic Insights
| Market Size Value in | US$ 4,389.2 Million in 2018 |
| Market Size Value by | US$ 12,295.8 Million by 2027 |
| Growth rate | CAGR of 12.4% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Vendor Management Software Market Drivers and Opportunities
Growing Demand for Improving Operational and Supply Chain Efficiencies is Driving the Market
The increased adoption of high-tech software across various companies to optimize business processes is driving the installation of vendor management systems. Organizations are increasingly focusing on automating their business processes in order to achieve higher efficiencies at lower costs, which increases the demand for vendor management software for optimizing business processes. Vendor management software is used for managing vendor-related information and organizational operations in order to achieve long-term growth effectively. The deployment of vendor management software allows organizations to take appropriate measures to reduce potential vendor risks, regulate costs, get value from vendors, and ensure outstanding service delivery in the long run, which is expected to drive the market during the forecast period.
Rising Demand for Cloud-based Software Among Vendors Across the Globe – An Opportunity in the Vendor Management Software Market
Rising demand for cloud-based vendor management software among vendors across the globe is creating opportunities in the market. Cloud-based vendor management software offers significant benefits to the user, such as scalability, affordability, and accessibility, providing vendors with more flexibility in integration with current systems, managing geographically distributed vendors, and rapidly scaling resources to meet fluctuating demand. Moreover, favorable government investment to promote the adoption of cloud-based software is creating opportunities in the market. For instance, the US Department of Defense invested around US$ 38.6 billion in unclassified IT in fiscal year 2022. Office of Management and Budget (OMB) mandated agencies to modernize, phase out, or merge their software program portfolios in order to promote cloud usage. This increases the demand for cloud-based solutions among customers. Thus, creating opportunities in the market during the forecast period.
Vendor Management Software Market Report Segmentation Analysis
Key segments that contributed to the derivation of the vendor management software market analysis are deployment mode, enterprise size, and industry vertical.
- Based on deployment mode, the vendor management software market is divided into cloud and on- premise. The cloud segment held a larger market share in 2023.
- On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. The large enterprise segment held a larger market share in 2023.
- In terms of industry vertical, the vendor management software market is categorized as retail, manufacturing, BFSI, IT and telecom, and others. The retail segment held a larger market share in 2023.
Vendor Management Software Market Share Analysis by Geography
The geographic scope of the vendor management software 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, the North America market accounted for the largest vendor management software market share, due to the growing need for effective and efficient management of the entire distribution channel. Significant government initiatives and investments for developing SMEs are driving the market during the forecast period. For instance, in August 2022, the U.S. Department of Treasury permitted an additional batch of four state bids by investing US$ 750 million through the State Small Business Credit Initiative. The Treasury announced funding approvals totaling more than US$ 2.25 billion to boost small business growth. However, government initiatives for promoting SMEs towards the adoption of advanced software and solutions for improving their distribution network are boosting the market.
Vendor Management Software Market Report Scope
Vendor Management Software Market News and Recent Developments
The vendor management software 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 vendor management software and strategies:
- In November 2022, Cloud5 Communications, Inc launched a new Project Management solution to manage the full lifecycle of project relationships – from contract negotiations and day-to-day management to issue escalation and resolution. Cloud5’s PMO serves as a single resource for all vendor interactions – building strong relationships with vendors that can lead to better rates, cost savings, and a dramatic reduction of the burden on hotel staff. (Source: Cloud5 Communications, Inc, Press Release, 2022)
Vendor Management Software Market Report Coverage and Deliverables
The “Vendor Management Software 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
Deployment Mode ; Enterprise Size ; Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
The incremental growth expected to be recorded for the global vendor management software market during the forecast period is US$ 12.55 billion.
The global vendor management software market is expected to reach US$ 19.94 billion by 2031.
The key players holding majority shares in the global vendor management software market are Coupa Software Inc., HICX Solutions Ltd., IBM Corporation, Intelex Technologies Inc., and LogicManager, Inc.
Expanding retail and e-commerce industries to play a significant role in the global vendor management software market in the coming years.
The growing demand for improving operational and supply chain efficiencies and significant government initiatives to promote SME development with cloud adoption are the major factors that propel the global vendor management software market.
The global vendor management software market was estimated to be US$ 7.39 billion in 2023 and is expected to grow at a CAGR of 13.2% 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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