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Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

Procurement Software Statistics – 20 Key Figures

Key take-aways
  • The global procurement software market is projected to reach $13.80 billion by 2029, showing a significant CAGR of 10.9%, indicating a rising demand for procurement software.
  • Implementing automation in procurement processes leads to faster recovery from disruptions.
  • North America is a significant contributor to the growth of the global procurement software market, emphasizing the region’s significant role in shaping the market.

As procurement progresses side by side with technology there are inevitable advances in the way that day-to-day procurement works. If you haven’t already caught wind of procurement software then this article is for you!

We’ll be delving into procurement software and how it has become more than a trend in procurement. It has made itself so useful that it has now become an integral part of how modern procurement works.

20 Key Figures for Procurement Software Statistics

Here are some statistics you may want to know about with regard to procurement software. Keep these in mind as it is an integral part of procurement evolution.

1. The global procurement software market is projected to grow to $13.80 billion with a CAGR of 10.9% by 2029

The biggest indicator that procurement software is rising in value is to look at the actual projected value of the market. According to Fortune Business Insights, the global procurement software market will grow to $13.80 billion with a CAGR of 10.9% by 2029.

This is a pretty substantial growth rate and further confirms the demand for procurement software.

2. The procurement software market is projected to be valued at US$ 8.51 billion in 2024

2029 is a bit far into the future, so let’s take a look at the current projection of the procurement software market in 2024! For 2024, Future Management Insights tells us that the procurement software market is projected to be valued at US$ 8.51 billion!

3. The on-premise procurement software segment dominates the market with a share of 60.40%

The procurement software market seems to be split into two types of software. One is on-premise procurement software and the other is on-cloud procurement software.

The difference between the two is that the former is installed and runs on a company’s own hardware infrastructure while the latter is stored and managed on the provider’s servers which can be accessed through a web browser or other interface.

According to Future Market Insights, the on-premise procurement software segment dominates the market with a share of 60.40%. This is due to how it’s been available longer than on-cloud procurement software.

However on-cloud procurement software is also gaining in popularity and may eventually become as well relied on as on-premise procurement software.

4.  55% of businesses experience faster recovery after implementing automation in their processes

According to FinancesOnline report that 75% of companies report that their organizations are still recovering from supply chain disruptions from the COVID-19 pandemic.

This brings automation in as a reliable and efficient solution as 55% of businesses experience faster recovery after implementing automation in their processes.

5. North America is estimated to contribute 37% to the growth of the global procurement software market

According to Technavio, North America is a key region of the global procurement software market with an estimated contribution of  37% to its growth. 

North America is also a key region when it comes to the procurement software market share since it has a strong presence of key players and a large consumer base.

6.  SAP Ariba led the global procurement software market with a market share of roughly 49% for 2023

According to Statista, SAP Ariba led the global procurement software market with a market share of roughly 49% for 2023. The procurement software market is continually on the rise and SAP Ariba has hit the jackpot with its majority market share. 

7. As of 2023 Wax Digital web3 Purchase to Pay jumped from less than 3% of the market share to nearly 10% in a year

Procurement software is a reliable tool for things such as vendor selection, payment term establishments, overall negotiation contracts, and purchasing of goods and services.

It’s a very technology-based business and according to Statista, Wax Digital web3 Purchase to Pay was the underdog story of the year, starting off with less than 3% of the market share and jumping to nearly 10% by the end of the year!

8. ProcureCo reveals that its latest AI-powered platform can reduce  20% of procurement cycle times

ProcureCo is a procurement-focused company created by BT Group, a multinational telecommunications holding company in England. ProcureCo has been talked about since 2020 but has yet to be seen at its full fruition. 

According to Medium, ProcureCo has promised that its latest AI-powered platform can reduce 20% of procurement cycle times. 

9. 50-80% of current procurement work can be optimized by current technology

According to KPMG’s “Unleashing the power of generative AI in procurement,” 50-80% of current procurement work can be optimized by either automating it, eliminating it, or shifting it to self-service models.

They’ve estimated that generative AI will greatly improve the procurement scene in terms of efficiency and transform procurement in ways that reduce cost as well. 

10. 96% of executives have successfully progressed in implementing generative AI

Generative AI is easily one of the most sought-after technologies in procurement today. According to a survey done by KPMG of 400 C-suite and SVP/VP executives in sourcing and procurement, 96% of them have already successfully progressed in implementing generative AI.

11. Generative AI in pilot programs can lead to 80% time savings in some procurement cases

To give a glimpse of the power of generative AI through KGPM internal simulations they were able to conclude that generative AI in pilot programs can lead to 80% time savings in some procurement cases. 

Being able to save as much as 80% of the time in procurement doesn’t just mean faster procurement processes but also more efficiency in these processes.

If generative AI can be implemented with these same results results then procurement professionals will have more time to focus on the strategy and efficiency of procurement processes than ever before.

12. Greatest supplier risk management gaps in third-party risk of 87%

According to KGPM, they identified the greatest supplier risk management gaps in third-party risk at 87%, with vendor screening at 75%, and performance management capabilities at 75% as well. 

This can be a job for generative AI, as generative AI agents can assist in the gathering of risk data in various ways. It can also recommend strategies for resolution. And all this with little to no marginal cost.

13. 79% of professionals report that their procurement teams do not have dedicated management software for tracking and managing performance

According to Supply Chain Management Review, 79% of professionals report that their procurement teams do not have dedicated management software for tracking and managing performance. Additionally 74% still still use spreadsheets.

14. 75% of procurement professionals said they doubted the accuracy of the procurement data they present

Supply Chain Management Review reports that 75% of procurement professionals said they doubted the accuracy of the procurement data they present. This big data problem in procurement can be alleviated with proper investment in procurement software.

So much data can hardly be consumed by human beings, and this data still needs analysis. The only real way to tackle it is with software that can sift through data better than the average human.

15. Implementation of procurement automation resulted in cost savings of 15% to 40% for organizations

According to Utilities One, the implementation of procurement automation resulted in cost savings of 15% to 40% for organizations. With this number of cost savings for what’s only the beginning of automation, it can only get better from here.

16. Energy-efficient upgrades can save businesses up to 30% in energy costs

Anything that saves energy is a win and when it comes to the procurement software of today energy-efficiency can be one of many perks. Utilities One reports that energy-efficient upgrades can save businesses up to 30% in energy costs.

17. 69% of companies who switched to the cloud saved money

When it comes to cloud software specifically, Utilities One has reported that  69% of companies who switched to the cloud saved money. Additionally, 75% reported an increase in productivity.

69% is a majority percentage. This proves that cost-efficiency comes with cloud procurement software.

18. 93% of organizations using Robotic Process Automation in procurement have experienced improved compliance, reduced errors, and enhanced operational efficiency

According to Utilities One, 93% of organizations using Robotic Process Automation or RPA in procurement have experienced improved compliance, reduced errors, and enhanced operational efficiency.

RPA automates repetitive and rule-based tasks like purchase order processing, invoice matching, and vendor registration. Due to RPA time and energy can be spent on other things outside of these tasks.

19. 70% of procurement organizations will invest in advanced analytics in 2024

Data analytics is another procurement software that has become a significant factor in shaping modern procurement. According to Utilities One, 70% of procurement organizations will invest in advanced analytics in 2024 to improve operational and strategic decision-making.

20. Companies who leverage data-driven insights for procurement achieve an average of 5-20% cost savings

Here’s yet another statistic that proves the usefulness of data-driven insights in procurement. Data-driven insights save a lot of time, money, and energy which is why Utilities One reports that companies that leverage data-driven insights for procurement achieve an average of 5-20% cost savings.

What is Procurement Software?

Any kind of program that helps an organization to execute, and ideally automate, procurement processes is considered procurement software.

These procurement processes may include purchasing, order management, inventory management, supplier management, contract lifecycle management, invoice management, and more!

Procurement software is used to automate entire source-to-pay cycles. From analyzing and managing spending to managing contracts and making invoice payments, procurement software has your back and keeps your organization in control of every single procurement operation while doing so.

Why is Procurement Software Important?

There are no downsides to procurement software if done right. It increases efficiency, increases spend visibility, increases cost savings, streamlines procurement processes, and minimizes errors along the way.

Procurement software is important because it keeps the procurement process on track without you having to go through all the drudgery of repetitive and time-consuming work.

Think of it like this! If you’re the writer then the procurement software is the editor. It straightens out the masterpiece you’ve already made and makes sure to keep everything in order.

Conclusion

Significant advancements have been occurring in the world of procurement and one of the biggest factors for this is the integration of technology into procurement processes. Procurement software is becoming a pivotal component in the efficiency of modern procurement processes.

The global procurement software market is projected to grow significantly in the coming years with procurement professionals investing more and more into it. Automation is particularly focused on by procurement as a game changer in enhancing efficiency and recovering from disruptions.

Data-driven insights and technologies like generative AI and RPA are also highlighted as they improve operational efficiency and cost savings. Procurement software’s role in modern procurement is cemented every day, emphasizing the need for organizations to embrace these technological advancements for better efficiency and cost-effectiveness.

Frequentlyasked questions

What is Procurement Software?

Procurement software helps organizations automate procurement processes, including purchasing, order and inventory management, supplier management, and more, streamlining the source-to-pay cycles.

Why is Procurement Software Important?

Procurement software increases efficiency, spend visibility, cost savings, and streamlines processes, minimizing errors and ensuring the procurement process remains on track.

How Does Automation Benefit Procurement?

Automation in procurement processes leads to faster recovery from disruptions, as seen in 55% of businesses, indicating its efficiency and resilience.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics