The global procurement software market is expected to register a CAGR of 10.2% over the forecast period 2020 to 2025. The growth of the market is attributed to the increasing demand for centralized procurement processes and the consolidation of supply chain management (SCM). Moreover, the market also seeks opportunities owing to the growth in mobile procurement applications.
- The centralizing of procurement processes that ensure efficiency are also increasingly motivating the procurement software market. The need to curtail losses due to inventory control is another important factor bolstering the procurement software market considerably.
- Owing to the growing need to automate the procurement processes, the materialization of the e-procurement technology will open up new opportunities for market growth in the coming years. Moreover, the requirement to avert the duplication of records is anticipated to boost the development of the procurement software market in the coming years.
- The influence of governmental policies is motivating further development in the market. The rise in the flow of international transactions between nations is further inspiring the progress of the market. The synergies being created between supply and demand forces in the market are expected to induce further growth of the market.
- The rising need for the automation of procurement processes, the emergence of eProcurement technology, will drive the growth prospects for the global procurement software market in the coming years.
- The integration of Artificial Intelligence (AI) with the software is likely to unleash immense developmental opportunities into the procurement software market in the years to come. Technological advancements are poised to accelerate revenue creation for market participants. On the contrary, lack of skilled personnel remains an impediment to market growth.
- Software companies are currently increasing their focus on in-demand technologies and re-exploring innovative ways to serve their clients as the COVID-19 crisis is creating challenges across multiple industries and is leading to a reduction in technology spending.
- Industries are still adjusting to the COVID-19 economy, from new internal logistics like WFH or building out infrastructure to cope up with new demand. Moreover, many of the heaviest spending reductions are being felt in the industries which were hardest hit by the effect of COVID-19.
Key Market Trends
Retail Industry to Witness Highest Growth
- The retail segment is presumed to hold the maximum market share over the next few years. The intensified need for efficient inventory management in the retail sector is likely to aid demand generation across the forecast period.
- Procurement software helps retailers to integrate business processes and improve the overall value of businesses. It facilitates transparency in financial supply chains and contract details for generating invoices to complete payments.
- Procurement software tools enable retail companies to automate procurement tasks and procure best rates from vendors for their tender, making it essential for retail companies that need to procure a large volume of goods. With the implementation of procurement software solutions, companies can collaborate with suppliers, track events and get alerts, and analyze business intelligence data to gain insights into the procurement process for forecasting and planning purposes.
- Moreover, this technology simplifies the decision-making process that concerns demand and sales forecast by consolidating supply chain and facilitating inventory management. Also, it offers advantages such as minimum operational cost, higher operational efficiency, etc. which are presumed to increase the growth pace of the market in the retail industry in upcoming years.
- For instance, Companies like Ginesy offer POS software which is user-friendly and it supports fast billing features. It also provides a quick and easy approach to billing with continuous data synchronization and is being used by the top retail companies in India making it the best POS software in India.
North America Accounts for Highest Market Share
- North America dominates in the global marketplace owing to the rising demand for centralized procurement processes. Also, the consolidation of companies incorporated in the region is expected to provide an impetus to market growth in the years to come.
- Moreover, the presence of the market players that are involved in providing services of procurement software such as Oracle and Microsoft are located in North America which further boosts the market growth in the region.
- The growth of new business insights is contributing to the expansion of the market studied in the United States, as various data sources increases. Many companies are leveraging big data to improve customer experience, enhance marketing, identify fraud and waste, and achieve other results that directly strengthen business performance.
- According to Auburn University’s Harbert College of Business, the US retailer’s growth is expected to foster its investment in supply chain management and are rigorously trying to enhance the customer experience which is likely to boost the market growth.
The global procurement software market is moderately concentrated owing to the presence of many large and small players in the market operating in the domestic as well as in the international market. Players in the market are adopting key strategies such as product innovation, strategic partnerships and mergers, and acquisitions. Some of the key developments in the market are:
- In April 2020 - Epicor Software Corporation announced the launch of Epicor Commerce Connect Express (ECC Express), a new portal to its existing Epicor Commerce Connect solution. The e-commerce product is designed for businesses that need an immediate way to improve productivity, offer quality online experiences, and stay connected to their valued customers and suppliers.
- In February 2020 - Proactis announced a new partnership with global change-ready technology and implementation specialist Agilyx Group to provide a range of spend management solutions and services to Agilyx customers. This partnership means that Agilyx can identify where a customer has an unmet need or has decided to make a change, that can be fulfilled by Proactis technology, and enable that customer to leverage additional value from their current ERP solution.
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