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Procurement Analytics Market Size

Report ID: GMI7293
Published Date: Nov 2023
Report Format: PDF

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Procurement Analytics Market Size

Procurement Analytics Market was valued at USD 3.8 billion in 2022 and is estimated to register a CAGR of over 23% between 2023 and 2032. The increasing emphasis on strengthening supplier relationships and enhancing purchasing processes has become a driving force behind the market growth

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Organizations recognize the pivotal role of robust supplier connections in ensuring a stable supply chain. For instance, in July 2023, EY and cloud data expert, Snowflake collaborated to introduce EY Spend Insights (SPI), a solution that offers insights into procurement spending and harmonizes supply chain networks across diverse sectors. This solution equips business owners, managers, and executives with tools to enhance strategic decision-making, strengthen supplier relationships, and optimize purchasing processes

The procurement analytics market is being propelled by the imperative to optimize procurement processes and enhance overall efficiency in organizations. By leveraging advanced analytics tools, businesses can gain deep insights into supplier performance, cost structures, and demand patterns. This data-driven approach enables strategic decision-making, supplier collaboration, and streamlined procurement workflows. As companies increasingly recognize the potential for cost savings and improved productivity, the demand for procurement analytics solutions continues to rise, driving innovation & market development.

Procurement Analytics Market Report Attributes
Report Attribute	Details
Base Year:	2022
Procurement Analytics Market Size in 2022:	USD 3.8 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	23%
2032 Value Projection:	USD 29.3 Billion
Historical Data for:	2018 - 2022
No. of Pages:	220
Tables, Charts & Figures:	414
Segments covered:	Component, Enterprise Size, Application, End User
Growth Drivers:	Demand for optimized procurement processes and enhanced efficiency Emphasis on data-driven insights to optimize procurement strategies The proliferation of AI systems supply chain management Enhanced supplier performance evaluation and risk management
Pitfalls & Challenges:	Poor data quality and integration issues Data security concerns

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Ensuring the accuracy and reliability of data is a fundamental challenge in procurement analytics. Incomplete or inconsistent data from various sources can lead to unreliable insights. Integrating data from disparate systems within an organization including ERP systems and legacy databases poses technical challenges. Moreover, harmonizing data from external sources such as suppliers further complicates the integration process. Addressing these issues requires robust data governance policies, advanced integration tools, and data cleansing techniques to derive meaningful & actionable analytics results.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The procurement analytics industry was valued at USD 3.8 billion in 2022 and is estimated to register a CAGR of over 23% between 2023 and 2032, owing to the increasing emphasis on strengthening supplier relationships and enhancing purchasing processes.

In 2022, supply chain management segment held over 30% market share and is projected to grow through 2032, backed by the demand for end-to-end visibility in supply chain, from raw material sourcing to product delivery.

North America led the global procurement analytics market with a major share of over 32% in 2022 and will grow attributed to the emphasis on cost optimization among businesses who continually seek ways to streamline operations and reduce expenditures.

SAP SE, Cisco Systems, Inc., Coupa Software, Genpact Itd., IBM Corporation, Microsoft Corporation, Oracle Corporation, SAS Institute, and Zycus Inc.