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Procurement As a Service Market Size
Procurement As a Service (PaaS) Market size valued at USD 5 billion in 2022 and is projected to exhibit over 10% CAGR from 2023 to 2032.
Increasing digitization of business operations is expected to have a positive impact on the market growth. Over the recent years, enterprises and organizations have been undertaking extensive initiatives to digitalize their workflow by integrating advanced technologies such as big data analytics, artificial intelligence (AI), and machine learning. Next-generation PaaS market are gaining substantial momentum owing to their ability to enhance the procurement process by streamlining different stages starting with sourcing, negotiation, and purchasing of goods. It provides the infrastructure and software tools needed to develop and deploy applications, thus enabling end-to-end workload management.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 5 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 10% |
| 2032 Value Projection: | USD 15 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 230 |
| Tables, Charts & Figures: | 264 |
| Segments covered: | Component, Organization Size, End-use and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Lack of technological awareness could hamper the industry growth
Lack of understanding, expertise, and know-how regarding PaaS technologies and tools could restrain the procurement as a service market revenue. Several organizations remain unaware of the benefits associated with outsourcing procurement applications to specialized service providers, hampering product penetration. Some of the limitations associated with outsourcing procurement functions include concerns regarding data security, regulatory compliance, and control, which may also negatively influence customer inclination. However, the growing adoption of next-generation technologies and digitization trends are set to help overcome existing restraints and aid in market demand.
Procurement As a Service Market Analysis
The procurement as a service market share from strategic sourcing component segment accounted for USD 2 billion in 2022. Strategic sourcing solutions are extensively used by organizations to improve supplier relations, optimize costs, and integrate advanced technologies facilitating automation and streamlining of sourcing processes. Recent developments in cloud-based solutions and the growing inclination toward cloud infrastructures are accelerating the development of innovative strategic sourcing solutions based on the cloud. Current automation and digitization trends will spur the adoption of these solutions across organizations seeking access to multiple services.
The procurement as a service market value from manufacturing applications is poised to reach USD 4 billion by 2032. The growing usage of PaaS solutions in the manufacturing sector can be attributed to the ability of the technology to mitigate supply chain risks. Rapid urbanization and the growing global population represent a significant need for massive manufacturing output, thus compelling facilities to deploy advanced supply chain analytics solutions.
Moreover, several companies are foraying into strategic collaborations to introduce novel solutions to help end-users anticipate and mitigate supply chain challenges. For instance, in November 2022, Corbus announced a supply chain procurement collaboration with GIS to provide access to infrastructure and resources for customers in Europe, Latin America, North America, Asia, and the Middle East & Africa.
North America procurement as a service market size will exceed USD 5 billion by 2032. The region is home to leading technology hubs such as the U.S. and Canada, fostering substantial scope for innovation and the adoption of cutting-edge technologies. With a solid footprint of small and large enterprises, the region is experiencing a notable surge in the adoption of procurement outsourcing. Moreover, governments are making hefty government investments in the digitization of businesses. For instance, in December 2022, the U.S. Department of Defense (DoD) announced a cloud contract worth USD 9 billion for Amazon, Oracle, Microsoft, and Google.
Procurement As a Service Market Share
Some of the leading companies in the procurement as a service market include:
- Accenture plc
- Capgemini
- Corbus LLC
- Genpact
- GEP
- HCL Technologies Ltd
- IBM Corporation
- Infosys Limited
- Proxima Group
- Tata Consultancy Services Limited
- Wipro Limited
- WNS (Holdings) Ltd
- Simfoni Limited
- Pcura Consulting Pvt Ltd
- Sastrify
- Vizient Inc
These companies are focusing on new product developments and innovation to improve customer experience and retention. For instance, in May 2022, ServiceNow unveiled its new Procurement Service Management (PSM) offering for reducing delivery period, streamlining & automating sourcing tasks, and improving procurement efficiency.
Impact of the COVID-19 pandemic
The COVID-19 pandemic positively influenced the PaaS industry outlook with an exponential rise in inclination toward cloud-based management of business operations. The pandemic resulted in notable challenges stemming from lockdown-driven labor shortages, and social distancing to curb the risk of virus transmissions. Since multiple businesses were forced to shut down operations, enterprises began to veer toward cloud-based solutions. The crisss significantly catalyzed digital transformation among businesses, accelerating the need for PaaS solutions. Due to a rise in e-commerce and the growing emphasis on smart working, the demand for PaaS further surged, as it facilitated sophisticated logistics solutions for adaptability and resilience to uncertainties.
The procurement as a service (PaaS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Component
- Strategic Sourcing
- Category Management
- Transactions Management
- Process Management
- Spend Management
- Contract Management
Market, By Organization size
- Large enterprise
- SME
Market, By End-use
- BFSI
- IT & Telecome
- Healthcare
- Retail
- Manufacturing
- Energy & utilities
- Travel & Hospitality
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Asia Pacific
- China
- Japan
- India
- South Korea
- ANZ
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
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