Harnessing Data to Optimize Procurement with Procurement Analytics

The procurement function is being transformed by the power of analytics. Procurement analytics leverages data, statistical modeling, quantitative analysis, and fact-based insights to enhance and automate decision-making across the procure-to-pay process. According to research firm Ardent Partners, nearly 74% of enterprises agree that data analytics is essential to procurement's future success. The Procurement Analytics Market size Analysis shows a growth of 26.20% in the forecast period 2022-2030.

Key Segments of the Procurement Analytics Market

The procurement analytics market can be segmented based on components, deployment modes, organization sizes, applications, industry verticals, and regions.

Based on components, the market is bifurcated into software and services. Software comprises business intelligence tools, advanced analytics, data management, and other technologies that help derive actionable insights from procurement data. Services include integration, consulting, maintenance, and training.

On the basis of deployment mode, procurement analytics solutions are deployed on-premises or hosted on the cloud. The cloud-based segment accounts for a larger share of the market currently.

Based on organization size, the market is segmented into analytics solutions for SMEs and large enterprises. Large enterprises dominate the present market share.

The various application areas of procurement analytics include supply chain analytics, risk analytics, spend analytics, demand forecasting, contract management, and vendor management. Spend analysis is the largest application segment, allowing enterprises to reduce maverick spending, optimize costs, and enhance compliance.

Key industry verticals for procurement analytics include manufacturing, retail and eCommerce, healthcare, government, BFSI, telecom, and others. The retail segment is projected as one of the fastest-growing verticals during the forecast period.

Regional Insights

North America accounted for the largest market share in 2019 due to early adoption of digital technologies by enterprises in the region. Asia Pacific is expected to witness the highest CAGR over the forecast period owing to the conducive smart city landscape and strengthening data analytics environment in emerging economies like China and India.

Leading Companies in the Procurement Analytics Market

Key vendors operating in the procurement analytics market include SAP Ariba, SAS, Oracle, Coupa, Zycus, IBM, SAP, Rosslyn Data Technologies, BirchStreet, Tamr, Sievo, Jaggaer, Genpact, and WNS Global Services. These players are actively developing integrated analytics capabilities to improve spend visibility, contract management, and supply chain resilience for enterprises across sectors.

For instance, in September 2022, Coupa launched its new suite, Coupa Analytics, to unify transactional, operational, and embedded analytics on a single platform for smarter business spend management.

The competitive landscape is witnessing various strategic developments like partnerships, mergers and acquisitions, and product developments as companies aim to expand their market shares and clientele.

Browse In-depth Market Research Report (100 Pages, Charts, Tables, Figures) on Procurement Analytics Market

Key Growth Drivers

The key factors propelling the growth of the procurement analytics market are:

• The need to extract value from vast amounts of spends data being generated across enterprise systems
• Rising adoption of digital procurement and eProcurement tools driving data abundance
• Growing focus on supply chain resilience, risk management, and cost optimization
• Analytics assisting in informed, data-backed negotiations with suppliers and contracts
• Extensive procurement data helping uncover customer demand forecasts and market insights
• Automating menial reporting tasks and prioritizing strategic decision-making
• Integration of emerging technologies like AI, ML, and NLP to allow self-service analytics
• Cloud-based deployment enabling scalable and affordable analytics access

The procurement analytics market outlook remains positive, aided by analytics capabilities to navigate dynamic economic environments, manage disruptions, and create sustainable value. The convergence of procurement digitalization and data utilization is enabling analytics-driven source-to-pay processes for competitive differentiation. This is catalyzing the rapid growth of this market worldwide.