Procurement as a Service Market Size & Growth Analysis to 2030

The global procurement as a service market size was estimated to generate a significant revenue of around USD 6 billion in 2021 and expected to register a significant CAGR of over 10% during the forecast period 2022 to 2028. The increasing consumer demand and the growing number of small and medium-sized enterprises are some of the major factors to drive the market growth. Furthermore, the increasing adoption of digitalization and the growing number of strategic market collaborations are further anticipated to fuel the market growth. Moreover, the rapid growth in urbanization, modernization, globalization, and the growing industrialization in developing economies are expected to propel the market growth over the forecast period.

Market Drivers:

Focus on Cost Optimization and Efficiency: Organizations are increasingly focusing on cost optimization and operational efficiency in their procurement processes. Outsourcing procurement functions to specialized service providers through PaaS enables businesses to access expertise, leverage economies of scale, and streamline procurement operations. PaaS offers cost-effective solutions by reducing overhead costs, improving procurement cycle times, and optimizing supplier relationships.

Growing Complexity in Supply Chains: The modern business landscape is characterized by complex global supply chains with multiple suppliers, diverse sourcing options, and regulatory requirements. Managing and coordinating these complex supply chains can be challenging for organizations. PaaS providers offer expertise and technology platforms that help streamline procurement activities, improve supplier management, and enhance visibility and control over the supply chain.

Technological Advancements: Technological advancements play a significant role in driving the PaaS market. The advent of cloud computing, big data analytics, artificial intelligence (AI), and machine learning (ML) has revolutionized procurement processes. PaaS providers leverage these technologies to automate manual tasks, enhance data analysis capabilities, optimize sourcing strategies, and improve decision-making. The integration of digital platforms and tools into procurement processes increases efficiency and drives the adoption of PaaS.

Focus on Strategic Procurement: Organizations are increasingly recognizing the strategic value of procurement beyond cost savings. Strategic procurement aims to align procurement activities with organizational goals, drive innovation, and build long-term supplier partnerships. PaaS providers offer strategic procurement expertise, market intelligence, and category management capabilities that enable organizations to optimize their procurement strategies and achieve broader business objectives.

Scalability and Flexibility: PaaS offers scalability and flexibility to meet the changing procurement needs of organizations. As businesses expand, enter new markets, or face fluctuations in demand, they require procurement solutions that can adapt quickly. PaaS providers offer scalable procurement resources, expertise, and technology platforms that can be customized to meet specific business requirements. The scalability and flexibility of PaaS solutions drive their adoption in dynamic business environments.

Focus on Core Competencies: Outsourcing non-core activities, such as procurement, allows organizations to focus on their core competencies and strategic initiatives. By partnering with PaaS providers, businesses can offload the operational aspects of procurement and free up internal resources to concentrate on value-added activities. This shift towards outsourcing non-core functions drives the demand for PaaS.

Risk Mitigation and Compliance: Procurement involves various risks, including supplier reliability, regulatory compliance, and supply chain disruptions. PaaS providers help organizations mitigate these risks by implementing robust risk management frameworks, conducting due diligence on suppliers, and ensuring compliance with regulations and industry standards. The ability of PaaS to address risk and compliance concerns enhances its appeal to organizations operating in regulated industries or volatile markets.

Globalization and Outsourcing Trends: The globalization of markets and the outsourcing of business functions have increased the complexity of procurement operations. Organizations with geographically dispersed operations or outsourced manufacturing processes require efficient procurement solutions to manage suppliers, optimize sourcing strategies, and ensure consistent quality. PaaS providers offer global procurement capabilities, supplier networks, and expertise that cater to the needs of multinational organizations.

Cost Predictability and Transparency: PaaS provides organizations with cost predictability and transparency in procurement operations. PaaS models typically involve transparent pricing structures, predefined service levels, and measurable performance metrics. This allows organizations to have better control over procurement costs, monitor service delivery, and ensure value for money. The cost predictability and transparency offered by PaaS solutions appeal to organizations seeking greater financial visibility in their procurement processes.

Market Snapshot:

Market Insights:

The global procurement as a service market is bifurcated into component, enterprise size, end-use industry, and geography. On the basis of component, the market is further segmented into strategic sourcing, spend management, process management, category management, and others. The strategic sourcing segment dominated the global market in 2021 and expected to hold the largest revenue share of over one-third market share by the end of the analysis period. The growing manufacturing industry and the increasing number of challenges in businesses is a major factor to drive the segment growth. The outbreak of the COVID-19 pandemic, natural disasters, and international political unrest are expected to drive demand for better sourcing strategies for organizations, which is expected to drive the growth of this segment.

On the basis of end-use industry, the market is segmented into BFSI, manufacturing, retail, it & telecom, healthcare, and others. The manufacturing segment dominated the global procurement as a service market in 2021 and accounted to hold the largest market share of over one-fourth of the market by the end of the analysis period. The growing manufacturing industry in various developing and developed economies is a primary factor to drive the segment growth. The increasing consumer demand, growing competition among manufacturers, and the growing focus of manufacturers to enhance the quality and reduce the cost are further anticipated to fuel the segment growth over the forecast period.

To know more about the report, request sample papers

The procurement as a service comprehensive study analyzes industry trends, market size, competitive analysis, and market forecast – 2022 to 2028. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

The procurement as a service market research report presents the analysis of each segment from 2019 to 2028 considering 2020 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2021 to 2027.

Historical & Forecast Period

• 2019-20 – Historical Year
• 2021 – Base Year
• 2022-2028 – Forecast Period

Market Segmentation:

By Component:

• Strategic Sourcing
• Spend Management
• Process Management
• Category Management
• Contract Management
• Transaction Management

By Enterprise Size:

• SMEs
• Large Enterprises

By End-Use Industry:

• BFSI
• Manufacturing
• Retail
• IT & Telecom
• Healthcare
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the procurement as a service market report comprises dedicated sections centering on the regional market revenue and trends. The procurement as a service market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, and Rest of the World (RoW). The RoW segment consists of Latin America and the Middle East & Africa. The procurement as a service market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Procurement as a service market estimates have also been provided for the historical years 2018 & 2019 along with forecasts for the period from 2022 – 2028.

Competitive Assessment:

Some of the major market players operating in the global procurement as a service market are Accenture plc, Genpact, Infosys Ltd., HCL Technologies Ltd., and GEP. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Accenture plc
• Genpact
• Infosys Ltd.
• HCL Technologies Ltd.
• GEP
• International Business Machines Corp.
• Aegis Company
• Wipro Ltd.
• Tata Consultancy Services Ltd.
• WNS (Holdings) Ltd.

Key Questions Answered by Procurement as a Service Market Report

• Global procurement as a service market forecasts from 2022-2028
• Regional market forecasts from 2022-2028 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2022-2028 covering 15 major countries from the regions as mentioned above
• Procurement as a service submarket forecasts from 2022-2028 covering the market by component, by enterprise size, by end-use industry, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level procurement as a service markets from 2022-2028
• Competitive Landscape and market positioning of top 10 players operating in the market