Construction Procurement Software Market Size - By Component (Software, Services), By Application (Supplier Management, Purchase Order Management, Bid Management, Contract Management, Document Management, Compliance Management), By End-user, By Deployment Model & Forecast, 2024 – 2032

Construction Procurement Software Market Size

Construction Procurement Software Market was valued at USD 851.3 million in 2023 and is anticipated to grow at a CAGR of over 8.5% between 2024 and 2032, due to the rapid digital transformation in the construction industry. Digital procurement solutions automate tasks such as supplier management, purchase orders, and contract management, providing real-time visibility into procurement activities and improving decision-making. To meet growing market demand market players are focusing on strategic initiatives.
 

The surge in construction activities and the growing complexity of projects are anticipated to drive market growth. Construction procurement software helps streamline all processes by automating tasks, improving coordination among teams, and ensuring accurate and timely procurement of materials and services. The increase in construction activities, driven by urbanization, infrastructure development, and renovation projects propels the market demand.
 

Integrating new procurement software with existing systems can restrain the market. Several construction firms use a variety of systems for different operations, such as financial accounting and supply chain management. Integrating procurement software with these established systems can be complex. Additionally, the integration process often requires customization, which can further increase costs and extend implementation timelines. Ensuring that procurement software can seamlessly integrate with existing systems is crucial for maximizing its benefits and avoiding potential pitfalls associated with integration challenges.
 

Construction Procurement Software Market Trends

The growing emphasis on cost control and budget management in the construction industry is significantly driving the market growth. With increasing pressure to complete projects within budget and on time, construction firms are turning to advanced procurement software to optimize their spending and enhance financial oversight. These tools enable efficient tracking of procurement costs, provide insights into spending patterns, and help manage budgets more effectively. By automating procurement processes and providing real-time data on expenditures, construction procurement software helps firms identify cost-saving opportunities, avoid budget overruns, and make informed financial decisions. Additionally, features such as expense tracking, vendor performance analysis, and contract management contribute to improved cost control.
 

Construction Procurement Software Market Analysis

Based on components, the software segment held over 70% of the market share in 2023, driven by the increasing demand for comprehensive procurement software. Integration of construction procurement software centralizes data, streamlines workflows, and enhances collaboration across teams. It provides real-time visibility into procurement activities, enabling better decision-making and more efficient management of resources. As construction aims to enhance efficiency and transparency, the demand for procurement software that offers end-to-end management capabilities continues to rise.
 

Based on organization size, the large organization segment is expected to reach USD 990 million by 2032. Large organizations often handle complex procurement processes across multiple projects, locations, and departments. Organizations require advanced software that can streamline these processes, reduce administrative overhead, and ensure consistent procurement practices. Advanced procurement software offers automation features such as electronic purchase orders, automated approval workflows, and integrated supplier management, which improve efficiency and accuracy. The ability to integrate procurement software with other enterprise systems further enhances operational efficiency.
 

North America region dominated around 30% share of the construction procurement software market in 2023. As construction regulations become more stringent and complex in North America, firms are focusing on adherence to legal standards and industry guidelines. Advanced features such as automated compliance checks, risk assessment modules, and audit trails are essential for mitigating risks and avoiding costly penalties. Additionally, the need for effective risk management drives the adoption of procurement software that can identify potential risks, manage supplier performance, and streamline contract management. As North American construction firms prioritize compliance and risk mitigation, the demand for efficient procurement software continues to rise.
 

European construction firms are increasingly adopting digital solutions to enhance efficiency, reduce manual errors, and improve project management. Procurement software plays a pivotal role in this transformation by offering capabilities such as real-time data integration, automated workflows, and advanced analytics. These features enable construction companies to integrate procurement functions with other business systems. As organizations across Europe adopt digital innovation to stay competitive and optimize their operations, the demand for advanced procurement software is growing.
 

Rapid urbanization and infrastructure development across the Asia-Pacific region propelling the construction procurement software market. As cities expand and new infrastructure projects are launched, construction companies face increased complexity in managing procurement processes. The demand for procurement software rises as firms need to efficiently handle large volumes of materials, manage multiple suppliers, and ensure timely delivery to meet project deadlines.
 

Construction Procurement Software Market Share

Autodesk and Bentley Systems dominate the market with over 12% of the market share. Autodesk focuses on integrating procurement functionalities within its broader construction management ecosystem. By enhancing its Autodesk Construction Cloud with advanced procurement tools, the company aims to provide a seamless solution for construction project management. This integration facilitates real-time data sharing, streamlined workflows, and improved collaboration among stakeholders, positioning Autodesk as a comprehensive solution provider.
 

Bentley Systems leverages its expertise in infrastructure design and management. The company is integrating procurement capabilities into its ProjectWise and Synchro platforms, enhancing them with features such automated supplier management and advanced analytics. Bentley’s strategy emphasizes integrating procurement software with its engineering and project management tools, offering a cohesive solution for managing complex construction projects
 

Construction Procurement Software Market Companies

Eminent players operating in the construction procurement software industry include:

• Autodesk
• Bentley Systems
• Bluebeam, Inc.
• Buildertrend
• CoConstruct
• Oracle
• Procore
• Sage
• SAP SE
• Trimble
   

Construction Procurement Software Industry News

• In July 2024, construction industry procurement platform ProcurePro has raised USD 6.15 million to expansion business in UK. ProcurePro enables construction firms to take control of their supply chain by consolidating 15-plus procurement processes traditionally managed.
   
• In January 2024, Sage announced the acquisition of Bridgetown Software. The acquisition aligns with Sage’s strategy to transform Sage Estimating into a cloud-native solution. It also assists Sage to enhance its construction sector portfolio.
   

This construction procurement software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

• Software
• Services
  • Professional
  • Managed

Market, By Deployment Model

• On-premises
• Cloud  

Market, By Organization Size

• SME
• Large organization

Market, By Application

• Supplier management
• Purchase order management
• Bid management
• Contract management
• Document management
• Compliance management
• Others

Market, By End-user

• General contractors
• Subcontractors
• Project owners
• Architects and engineers
• Government agencies

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of LATAM 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA