Procurement As A Service Market Growth & Trends

The global procurement as a service market size is expected to reach USD 10.29 billion by 2028 and is anticipated to expand at a CAGR of 8.2% from 2021 to 2028, according to a new report by Grand View Research, Inc. The proliferation of digital technology and the need to address supply chain risks have contributed to market growth. Although the COIVD-19 pandemic posed a minor hiccup to the otherwise positive market outlook, the industry may reach pre-covid levels by 2022. On average, over 60 percent of the organization’s spending is captured by sourcing and procurement-related functions. Therefore the demand for providers that help reduce this cost will drive market growth over the forecast period.

Digital transformation has resulted in a shift towards a cloud environment, where procurement service providers update their solutions to web-based applications. Cloud offers flexibility and ease, subsequently helping service providers to lower storage data costs. This further helps in improving business operations and making custom solutions available to the end markets. In addition to the cloud, AI is also making its way into the procurement service business with a unique selling point of offering data analytics while enhancing operations. All these features and benefits clubbed together create lucrative opportunities for industry incumbents to increase their customer base and bode well for market growth.

Owing to the need to manage complex procurement contracts, the demand for procurement services is gaining traction among small and medium-sized businesses. Deals involving contracts require expertise and time to deliver, and hence procurement as a service is a popular choice among SMEs. These services help companies focus on core competencies while outsourcing time-consuming and intricate tasks.

Procurement As A Service Market Report Highlights

  • The global market, although witnessed a minor setback in 2020, the market is estimated to reach pre-covid levels by the end of 2022. From 2021 to 2028, the overall market will register an estimated CAGR exceeding 8%
  • Large enterprises have been the major revenue contributors and will continue to dominate overall demand by 2028, reaching over USD 5,000 million
  • The manufacturing sector would continue dominating the overall demand through 2028. The sectoral demand for procurement as a service solution will surpass USD 1,000 million in 2021 and will register a CAGR exceeding 7% over the next seven years
  • North America trailed Europe in 2020 and is expected to emerge as a dominant regional market by 2028, registering a CAGR of around 8% from 2021 to 2028. Increased demand for outsourcing supply chain operations to deal with unpredictable industry dynamics will contribute heavily towards regional growth over the future
  • Accenture, Aegis, HCL Technologies Ltd., IBM, GEP, Genpact, Infosys, Wipro, WNS (Holdings) Ltd., and Tata Consultancy Services Limited, are a few players leading industry dominance. M&A will continue to be a fundamental strategy outlook for several players in this business