ASTUTE ANALYTICA
How Procurement Software is Transforming the Global Market
Procurement software provides a centralized platform for all transactional information, such as suppliers, costs, quality, and lead times. Organizations can better analyze their procurement processes, spot areas for development, and make more educated decisions due to this complete data.
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A wide range of capabilities in procurement software may streamline processes and keep track of inventories for companies. It is crucial for businesses that need to buy big quantities of items to use procurement software solutions to carry out the finest purchasing and pricing activities for their tender suppliers. Thus, these types of software create a positive influence on the global Procurement Software Market. According to a research report by Astute Analytica, the global procurement software market value was US$ 6,658 million in 2022 and is expected to reach US$ 15,140.1 million by 2031, growing at a compound annual growth rate (CAGR) of 9.4% over the projection period from 2023 to 2031.
Factors affect market growth:
Growing Attention to Digital Transformation
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The need for procurement software is rising as more organizations give priority to projects related to digital transformation. Organizations may streamline manual tasks, automate procurement procedures, and enhance supply chain management with the help of procurement software. Additionally, it gives organizations real-time visibility into spending, allowing them to find areas where money may be saved. Due to the widespread adoption of procurement software as part of digital transformation initiatives by enterprises, the market is expanding.
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Increasing Demand for Cost-Effective Procurement Solutions
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Organizations can streamline manual tasks, automate procurement procedures, and find cost-saving opportunities by using procurement software. Due to their limited resources to invest in procurement, small and medium-sized companies are seeing an increase in demand for procurement software. Vendors are responding to these needs by providing affordable solutions, which is propelling the market's expansion.
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North America is expected to maintain its dominance during the forecast period and retain the largest market share in the global procurement software market. This is due to the presence of major companies with a solid market position in the area, like Microsoft, Oracle, and others.
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The Asia Pacific region is experiencing a quick expansion of the e-commerce industry. The need for products that may simplify procurement procedures and enhance supply chain management is rising as more businesses in the area go online. The market is also expanding due to the region's rising mobile device usage. Due to their increased user accessibility and flexibility, mobile-based procurement solutions are growing in popularity.