Procurement Analytics Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-based and On-premise), By Downstream Industry (BFSI,Healthcare and Life Sciences, IT & Telecom, Retail & E-Commerce, Energy And Utilities, and Others), and Regional Forecast to 2032

PROCUREMENT ANALYTICS MARKET OVERVIEW

The global procurement analytics market size was USD 3.90 billion in 2023 and is projected to touch USD 18.91 billion by 2032, exhibiting a CAGR of 17.1% during the forecast period. 

It is the scientific process of purchasing processes by applying different data analysis techniques so that different businesses can be able to reduce operating costs, have efficient management of suppliers, and make effective purchasing decisions. As problem-solving involves prospecting for means of enhancing the effectiveness and efficiency of procurement plans, it therefore requires analysis of past performance, developments among the suppliers, and other components. This analytical approach helps to identify cost savings, control risks, and predict demand as well as make better purchase decisions that have an impact on a business environment. To ensure that there is strict compliance with the internal policies and other outside rules, procurement analytics is also involved in compliance checking.

The procurement analytics market has been rapidly growing globally because organizations have become more eager to enhance the effectiveness of their operations and the efficiency of their supply chains. In response to a complex purchasing process in a competitive and increasingly unpredictable market, segments, including BFSI, healthcare, retail, IT, and energy are increasingly investing in procurement analysis solutions. There are also cloud solutions whose adaptability and real-time analyses are fueling the market in its growth. As organizations shift to digital procurement, a call for advanced procurement analytics is expected to drive the market for both on-premise and cloud procurement analytics tool suppliers.

GLOBAL CRISES IMPACTING PROCUREMENT ANALYTICS MARKETRUSSIA-UKRAINE IMPACT

Market Had a Positive Effect Due To Increased Geopolitical Uncertainty

The Russia-Ukraine has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Due to the multiplied need for supply chain visibility and actual-time risk assessment, the Russia-Ukraine crisis has similarly complicated the procurement analytics marketplace. Procurement analytics have become vital for companies to quickly regulate to the sanctions and change regulations that have disrupted important delivery chains, specifically in uncooked sources like metals and electricity. To discover other providers, reduce dangers, and handle erratic marketplace situations, organizations have turned to advanced analytics. The importance of procurement analytics in coping with geopolitical uncertainty has been underlined using warfare.

LATEST TREND

"Growing Adoption of AI and ML Market Growth"

To offer greater predictive and prescriptive analytics and assist corporations in making proactive procurement choices, the most recent trend in procurement analytics is on the combination of synthetic intelligence (AI) and system mastering (ML). Cloud-based systems are being utilized by companies increasingly for actual-time statistics evaluation due to the fact they enable greater flexible and scalable solutions. The consciousness of sustainability analytics is another tremendous trend, as corporations use procurement analytics to assess the social and environmental outcomes of their supply chains. To enhance the performance of procurement procedures, there is also rising hobby in applying natural language processing (NLP) to the evaluation of unstructured facts from emails, contracts, and different resources.

PROCUREMENT ANALYTICS MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Cloud-based and On-premise

• Cloud-based: Businesses looking for flexibility and cost-effectiveness favor cloud-based procurement analytics solutions since they are hosted remotely, provide scalability, real-time data access, and have cheaper infrastructure expenses.
• On-premise: On-premise procurement analytics systems are set up directly within a business's infrastructure, offering greater security and control but necessitating a large initial hardware investment and continuous upkeep.​

BY Downstream Industry

Based on downstream industry, the global market can be categorized into BFSI,Healthcare and Life Sciences, IT & Telecom, Retail & E-Commerce, Energy And Utilities, and Others

• BFSI: In the BFSI industry, procurement analytics optimizes vendor relationships, expedites purchasing decisions, and guarantees adherence to financial requirements.
• Healthcare and Life Sciences: Procurement analytics is used in this sector to manage healthcare expenses, increase supply chain efficiency, and guarantee prompt access to medical equipment and supplies.
• IT & Telecom: In the quickly changing IT and telecom industry, procurement analytics is used to analyze supplier performance, manage large-scale technology purchases, and cut costs.
• Retail & E-Commerce: To adapt to changing customer expectations, this industry uses procurement analytics to improve inventory control, maximize supplier negotiations, and expedite the procurement process.
• Energy and Utilities: In the energy and utilities sector, procurement analytics helps manage intricate supplier chains, lower operating expenses, and guarantee adherence to legal and environmental requirements.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                  

DRIVING FACTORS

"Increasing Need for Cost Efficiency and Transparency in Supply Chain Management Boosts the Market"

The increasing need for supply chain management’s efficiency and optimization is the key driver behind the procurement analytics market growth. Given that operating expenses have a direct bearing on the organizational budget, organizations are always in search of ways that will enable their enhancement of procurement processes. Through procurement analytics, companies can know more about the performance of their suppliers, expenses, as well as how efficient the procurement function is in the company. By using this strategy, organizations have the chance to identify areas, where they can cut costs, negotiate more favourable contracts, and decide better on their suppliers. The demand for procurement analytics solutions is only rising because companies are under rising pressure to manage costs and margins.

"Rising Adoption of Advanced Technologies Expands the Market"

Another factor that has been driving the adoption of innovative technologies such as big data analysis tools, machine learning, as well as Artificial Intelligence (AI), is also notable. These technologies imply decision-making and better projection since procurement teams can analyze large data from multiple sources. Strategic sourcing and supplier relationship management can be enhanced with insights provided by AI and ML regarding trends, and market forecast. The market should go a notch higher as more realize the advantage that comes with having efficient procurement analytics to enable more procurement strategies to be driven by actual data desired. 

RESTRAINING FACTOR

"High Cost and Complexity Impedes Market Growth"

The excessive fee and trouble of integrating sophisticated analytics solutions into current procurement systems is one of the primary challenges keeping lower back the procurement analytics marketplace. Adopting those answers creates monetary and technological obstacles for plenty of corporations, in particular small and medium-sized firms (SMEs). Because many corporations can be reluctant to make such big advance commitments, the requirement for a massive investment in software programs, infrastructure, and a qualified team of workers to shop and analyze statistics might obstruct marketplace expansion. Further impeding the marketplace's boom is the absence of facts uniformity inside supply chains, which makes adoption extra tough.

OPPORTUNITY

"Adoption of Artificial Intelligence and Machine Learning Create Opportunity for the Product in the Market"

The market for procurement analytics is poised to advantage significantly from the growing use of device learning (ML) and synthetic intelligence (AI) in procurement strategies. By providing actual-time insights into supplier performance, call for forecasting and price-saving capability, these tools assist firms automate and optimize procurement methods. Procurement analytics answers that use AI and ML may be extraordinarily helpful in enhancing selection-making strategies as corporations region a more emphasis on reducing fees, managing supplier threat, and growing operational performance. The demand for sophisticated procurement analytics solutions is in addition accelerated using the increase of digital transformation programs across industries, which are prompted by the want for improved delivery chain agility and transparency.

CHALLENGE

"Ensuring Data Quality and Accuracy Could Be a Potential Challenge "

Ensuring the integrity and accuracy of statistics is the main problem within the procurement analytics enterprise. Clean, accurate, and timely information is important for procurement analytics to supply insights that may be placed to apply. However, procurement information frequently originates from numerous systems and resources, resulting in gaps and inconsistencies that can jeopardize the efficacy of analytics solutions. Organizations face many problems in managing unstructured information, addressing statistics silos, and guaranteeing ongoing enhancements in information great. Strong information governance techniques also are required to maintain the accuracy of procurement facts and offer honest insights, which may be difficult for many organizations.

PROCUREMENT ANALYTICS REGIONAL INSIGHTS

• NORTH AMERICA 

Due to significant investments in data-pushed answers and technical breakthroughs, North America leads the procurement analytics market share. Because of the wide variety of multinational firms and the short uptake of sophisticated analytics generation in numerous industries, the United States procurement analytics market has a sizeable part of North America. Procurement analytics equipment has been widely used inside the U.S. Marketplace in industries like manufacturing, retail, and IT services to streamline supply chain control and cut prices.

• EUROPE

Leading the adoption of those answers are international locations like Germany, the UK, and France, making Europe every other vast player within the procurement analytics market. The use of analytics in procurement tactics is endorsed via the vicinity's emphasis on sustainability, regulatory compliance, and powerful resource control. The market is increasing as a result of European groups' developing use of virtual transformation and integration of procurement analytics to control dangers and provide insights into provider overall performance.

• ASIA

The developing economies of China, India, and Japan are propelling the procurement analytics marketplace's explosive growth inside the Asia Pacific location. The want for procurement optimization is growing as a result of the boom in the production, commercial, and e-commerce sectors. Businesses in this location are spending cash on analytics to make records-pushed procurement choices and optimize their supply networks. Additionally, the marketplace is increasing at some point in the area due to the developing call for cloud-based totally solutions.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Companies that offer current software solutions that help organizations streamline their purchasing tactics through data-driven insights are predominant gamers inside the procurement analytics enterprise. These agencies are main the way to combine cloud-based total structures, system getting to know, and artificial intelligence (AI) to offer prescriptive and predictive analytics. They concentrate on presenting devices that beautify risk mitigation, price discounts, and supplier performance management. These providers offer scalable solutions that meet the unique necessities of various industries, such as banking, healthcare, retail, and energy. Their ideas additionally extend to sustainability analytics, which aids organizations in making purchase selections that might be environmentally aware.

LIST OF TOP PROCUREMENT ANALYTICS COMPANIES

• IBM (U.S.)
• SAP (Germany)
• Oracle (U.S.)
• Tamr(U.S.)
• Zycus(U.S.)
• SAS Institute(U.S.)
• Accenture (Ireland)
• GEP(U.S.)
• Genpact(U.S.)
• Sievo (Finland)
• Dataction
• Tungsten Corporation (U.K.)
• Rosslyn Data Technologies (U.K.)
• BirchStreet (U.S.)

KEY INDUSTRY DEVELOPMENT

September 2024: Buyers Edge Platform, the leading software and analytics firm delivering data-driven insights and technology to the foodservice industry, has announced the purchase of My Purchasing Partner in the UK.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The market is poised for a continued boom pushed by increasing health recognition, the growing popularity of plant-based diets, and innovation in product services. Despite challenges, which include confined uncooked fabric availability and better costs, the demand for gluten-unfastened and nutrient-dense alternatives supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of buckwheat flour. As customer choices shift towards healthier and numerous meal options, the buckwheat flour market is expected to thrive, with persistent innovation and a broader reputation fueling its destiny prospects.