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

Procurement Trend Statistics – 33 Key Figures

Key take-aways
  • Vital insights into the market direction for informed procurement decisions.
  • Reflects technology adoption, regulatory shifts, and economic influences.
  • Essential for staying competitive and maximizing value in purchasing strategies.

We know trends as something popular at a certain point in time. In the context of procurement, trends inform the procurement market. It depends on many external factors but ultimately points to where the market is headed. 

Procurement trends help you understand the movement of the market and equip you for its future. With this said, let us now dive into the statistics of procurement trends.

33 Key Figures for Procurement Trend

Here are 33 key figures about procurement trends that you may want to know! Keep these in mind as you greet the ever-changing landscape of procurement in the year 2024!

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

Future Management Insights reports that the procurement software market is projected to be valued at US$ 8.51 billion in 2024. This comes as no surprise since procurement has been moving towards technology and has been finding innovative ways to keep the supply chain as efficient as possible.

2. Procurement software market to reach $19.50 billion US dollars by 2034

Considering the already large projected value of the procurement software market for 2024, it’s no surprise that this will more than double by 2034, according to Future Management Insight.

Procurement software will only continue to grow in relevance within the procurement market and the numbers clearly show it.

3. The procurement software market is expected to exhibit a CAGR of 8.6% over the forecast period of 2024-2034

According to Future Management Insight, the procurement software market is expected to exhibit a CAGR of 8.6% over the forecast period of 2024-2034.

This shows a good leap of growth which can be due to things like the growing complexity of procurement processes, heavy reliance on procurement software, and the increasing adoption of digital technologies to name a few.

4. MEA Enterprise Software Market CAGR to increase by 5.5%

The MEA enterprise software market consists of various types of software and solutions that assist businesses in carrying out different functions. Future Management Insight says that by the year 2034, the MEA Enterprise Software Market CAGR is to increase by 5.5%.

5. Staffing Software Market CAGR to increase by 16.3%

Staffing software is a computerized application that aids the software process. It also provides an operational platform used by employers and job applicants. According to Future Management Insight, the Staffing Software Market CAGR will increase by 16.3% by 2033.

6. The supplier management segment dominates the market and is anticipated to hold a share of 18.90% in 2024

The market is categorized into various types depending on the software. Some of these categories are pend-analysis, 3-sourcing, supplier management, e-procurement, and more.

However, according to Future Management Insight, the supplier management segment dominates the market and is anticipated to hold a share of 18.90% in 2024.

7. The expected growth of the procurement software market by country starts with Australia at 12.20% and ends with the United States at 5.50%

According to Future Management Insight, these are the CAGRs of 5 countries, in the context of the expected growth of the procurement software market within each country. These countries are Japan, China, the United States, Germany, and Australia. 

Countries
Australia
Japan
China
Germany
The United States
CAGR through 2034
12.20%
9.90%
9.20%
8.10%
5.50%

8. The Australian procurement software market is projected to have an annual growth rate of 12.20% till 2034

Future Management Insight reports that the Australian procurement software market will maintain its dominance through 2034. It is progressing at an annual growth rate of 12.20% till 2034.

The surge in digital transformation initiatives across industries in Australia has only grown through the years. And with this comes the continued adoption of advanced procurement software in the country.

9. The Japanese procurement software market is anticipated to retain its dominance by progressing at an annual growth rate of 9.90% till 2034

Japan is the leading figure in the procurement software market in Asia. This doesn’t seem to change anytime soon as Future Management Insight’s data shows that the Japanese procurement software market is progressing at an annual growth rate of 9.90% till 2034.

10. The Chinese procurement software market is anticipated to exhibit an annual growth rate of 9.20% till 2034

Another leading figure in the procurement software market of Asia is China. According to Future Management Insight, the Chinese procurement software market is anticipated to exhibit an annual growth rate of 9.20% till 2034.

Because of the rapid growth of eCommerce and digital economy activities in China, there is also an increase in demand for procurement software. And due to the Chinese government’s business modernization and digital transformation initiatives procurement software adoption continues to increase.

11. Germany is anticipated to register a CAGR of 8.10% through 2034

Now that we’ve talked about the leading figures in Asia, let’s look to Europe and see their leading figures in the procurement software market. According to  Future Management Insight, Germany is anticipated to register a CAGR of 8.10% through 2034.

One thing Germany is known for is its manufacturing excellence. And their manufacturing companies are investing in procurement software big time. They want to keep their services and goods top of the line and they know that investing in optimization of their intricate supply chains is the way to do that.

12. The United States procurement software market is projected to rise at a 5.50% CAGR.

In the North American region, the United States leads the procurement software market. The next ten years, according to Future Management Insight, are projected to see a rise in demand for procurement software by 5.50% CAGR.

Various industries in the U.S. continually emphasize cost containment and optimization. Procurement software is an important cog in the machine of achieving efficiency in the supply chain by way of streamlining processes, negotiating favorable terms, and enhancing overall procurement efficiency.

13. The retail sourcing and retail procurement market size will grow to $5.71 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%

The retail sourcing and procurement market has grown rapidly in recent years. According to The Business Research Company, the market will grow from $5 billion in 2023 to $5.71 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%

The increase in digitalization in the retail sector, rising automation in procurement, and increased funding and investments for retail sourcing and procurement platforms are the reasons for the growth in the historic period.

14. The retail sourcing and procurement market size is expected to grow to $9.57 billion in 2028 at a compound annual growth rate (CAGR) of 13.8%

Rapid growth is expected from the retail sourcing and procurement market, especially within the next few years. A growth of  $9.57 billion in 2028 at a compound annual growth rate (CAGR) of 13.8% is expected.

This growth can be attributed to the increasing use of cloud-based platforms, increasing adoption of blockchain in procurement and sourcing, and growth in digital technologies such as automation, analytics, and AI (artificial intelligence).

15. Global revenues from the AI software market are expected to reach $126 billion by 2025

Continuing on the technological train of probabilities, looking to the future and not finding AI waiting in the wings for you is impossible. As such, ProcureCon reports that global revenues from the AI software market are expected to reach $126 billion by 2025. 

16. The global Indirect Procurement BPO market size is expected to expand at a CAGR of 7.25%

Between 2024 and 2031 The global Indirect Procurement BPO market is expected to rise rapidly over the projected horizon. It started at a steady growth rate in 2022, and with the rising adoption of strategies by key players, the market continues to climb higher.

According to Business Report Research, the global Indirect Procurement BPO market size is expected to expand at a CAGR of 7.25% during the forecast period of 2024-2031. It is expected to reach USD 6183.29 million by 2027.

17. 88% of global supply chain leaders had created or were working on creating a clear sustainability statement

Due to the deteriorating state of our planet, it has been more important than ever for businesses to prioritize sustainability. So, it comes as no surprise that according to a study by Oxford Economics on global supply chain leaders, they discovered that 88% had created or were working on creating a clear sustainability statement.

Unfortunately, only 52% put their plans into action. But a win is a win and 52% is a good start for the environment.

18. Only 21% of global supply chain leaders had achieved full visibility into their supplier’s sustainable sources

The same study by Oxford Economics on global supply chain leaders also stated that more than 50% of the respondents did not have significant visibility into their supplier’s sustainable sources.

Only 21% had achieved full visibility, which means the rest cannot be sure if their suppliers are sustainable or not.

19. 98% of procurement leader respondents say they have plans on investing in analytics and insights tools, automation, and AI for procurement operations

By 2032 the global procurement analytics market is predicted to reach $32.3 billion. Procurement leaders are preparing to make larger investments in technology, especially in things like AI, automation, and data analytics.

The Amazon Business report on procurement data shows that 98% of respondents say they have plans on investing in analytics and insights tools, automation, and AI for procurement operations in the next few years for their procurement operations.

20. More than 50% of all respondents agree that the leading benefit of applying AI to existing process automation initiatives was a better use of employee time

According to Pipefy, more than 50% of all business and IT leaders survey respondents agree that the leading benefit of applying AI to existing process automation initiatives was better use of employee time.

The larger investments have proven to be necessary for more reliable access to data and more efficient decision-making. Pipefy

21. 91% of business and IT leaders  say that their purchasing processes restrict non-procurement staff and create additional manual and repetitive work for procurement teams

According to Pipefy’s survey data, business and IT leaders reported increased productivity and innovation, greater scalability, and labor/skills shortages as factors in their decision to adopt no-code tools.

91% of business and IT leaders respondents say that their purchasing processes restrict non-procurement staff and create additional manual and repetitive work for procurement teams, creating unnecessary manual and repetitive work.

Procurement teams are not a fan of this as they can spend their time on higher-level activities instead.

22. Areas that gained importance over the last year are business acumen (69%) and technology and data skills (68%)

Certain competencies have grown in importance over more traditional procurement skills. A Gartner survey found that some of the areas that gained importance over the last year are business acumen (69%) and technology and data skills (68%).

Additionally, due to this, only 14% of procurement leaders feel confident in their team’s ability to meet their department’s future needs.

23. 33.1% of procurement leaders said better collaboration between business and IT teams was anticipated in the wake of adapting no-code tools

2024 will likely see an increased effort to improve connections between teams and processes. No-code tools work towards this goal as well with 33.1% of procurement leaders saying that better collaboration between business and IT teams was among the anticipated benefits, according to Pipefy’s Workflow Survey.

24. 32% of directors with a more active role in day-to-day work and process management are reported to have tech stack complexity as a leading limitation

According to Pipefy data, 32% of directors with a more active role in day-to-day work and process management are reported to have tech stack complexity as a leading limitation in automation technology.

Tech stacks are a set of technologies used in application development. A leader who understands tech stacks is a leader with more advantage in reaping the benefits of automation technology.

25. Procurement Analytics Market Set to go past $18.18 Billion by 2030

According to Dacoma, the Procurement Analytics Market is set to go past $18.18 Billion by 2030. Due to the latest technologies like the increased adoption of cloud-based procurement analytics solutions for scalability and flexibility, and many more, the market continues to steadily grow.

26. 70% of transformation efforts fail and it takes around 3 years for organizations to even begin competing in the digital market, even when they get it right

According to Deloitte, approximately 70% of transformation efforts attempts fail. Furthermore, organizations typically require about 3 years just to start effectively competing in the digital marketplace, even if they execute the process correctly. The primary cause of most failures lies not in the technology itself but in human error.

Some of these errors are a lack of urgency, a reluctance to adopt, a fear of change, and a lack of clarity about ‘where we’re headed and why’, etc. These factors are all rooted in the psychology of an individual or team, which are all factors that can be addressed by good leadership. 

It should be of utmost importance to remember that people remain at the heart of any business.

27. More than 75% of commercial supply chain management application providers will deliver embedded advanced analytics, artificial intelligence & data science

According to Gartner by 2026, more than 75% of commercial supply chain management application providers will deliver embedded advanced analytics, artificial intelligence & data science.

This enhances decision-making throughout the supply chain. Spreadsheets may end up being phased out and replaced with complex and data-rich analytics which provides a 360 view of the supply chain, including potential risks & any bottlenecks.

28. 70% of procurement practitioners consider cost reduction one of the most important ways to measure procurement success

Deloitte reports that the latest request management research shows that 70% of procurement practitioners consider cost reduction one of the most important ways to measure procurement success. 

Luckily there are new ways to save that can be uncovered by procurement analysis. An example of this is that effective analysis can reduce maverick spend, optimize category management, and support supplier-based rationalization.

29. 82% of CEOs in supply-chain-intensive industries plan to increase investments in digital capabilities across their enterprise

According to Curtis Fitch, 82% of CEOs in supply-chain-intensive industries plan to increase investments in digital capabilities across their enterprise. A top priority that has remained on top with the start of the new year is investing in supply chain technology.

This comes as no surprise as companies continue to strive for increased resilience and minimization of risk across their operations.

30. 66% of procurement teams marked ESG as their second-biggest pressure

In daily challenges, ESG usually takes a backseat but that doesn’t mean it isn’t a significant thing for procurement exports. Curtis Fitch reports that 66% of procurement teams marked ESG as their second-biggest pressure.

Stakeholders of today don’t accept the “We didn’t know,” excuse when it comes to violation of environmental and social regulations. Companies face pressure from multiple angles to focus on the environmental and social impact of their operations.

Furthermore, companies have the pressure of proactively collaborating with their suppliers to improve their shared mutual environmental and economic performance.

31. 49% of organizations disclosed a net zero target for Fiscal Year 2023

ESG supplier engagement is on the rise in 2024. According to VendorPanel, 49% of organizations disclosed a net zero target for Fiscal Year 2023 and it has continued to be a priority since. It’s predicted to be the number one priority for executives.

Environmental, social, and governance or ESG is used to assess an organization’s business practices and performance on different sustainability and ethical issues. This once again shows how procurement holds considerable sway in sustainability.

If sustainability is your cup of tea and you have the skill set required to be a procurement professional then you should consider it. Being a procurement professional means you can impact organizations to make changes for the better if this is one of your goals.

32. 70%of organizations expect to increase or maintain their level of procurement activity in the next year

Responsive reports that 70%of organizations expect to increase or maintain their level of procurement activity in the next year. The market is well on its way to advancement and the need for procurement will only keep increasing from this point on.

33. Global procurement is expected to register a growth of 11.1% from 2023 to 2030

To give you an idea of the value of procurement here are the numbers according to Arkesto. In 2022 the global procurement value was at $6.15 billion and from 2023 to 2030 it is expected to register a growth of 11.1%. As the years go on procurement keeps pricing its significance for the increasingly modern world.

What are Procurement Trends?

Procurement trends are defined as the direction in which the procurement of goods and services is likely to move in a given industry or sector. This means various analyses are conducted of current technologies, regulations, and economic trends that impact the procurement process.

The current market conditions and their potential influence on procurement are also taken into account.

Most Successful Procurement Trends So Far

Here are the most successful trends in procurement so far, based on the numbers we’ve just tackled.

1. AI

Artificial Intelligence has been established in academia since around the 1950s but it has only now found concrete applications in procurement. AI, at its best, is a technology that can learn and adapt behavior. Typically it is developed for solving complete tasks with more efficiency than human beings.

With this in mind, it’s easy to see how useful it could be for procurement. It helps organizations take on complex problems using smart computer algorithms to keep them efficient and effective. It’s also handy that AI can be embedded into various software applications from spend analysis to contract management, strategic sourcing, and many more!

2. Procurement Analytics

It’s no surprise to find analytics as a successful procurement trend. Now what is procurement analytics? Procurement analytics is the collection and analysis of procurement data for business insights and effective decision-making. 

Procurement analytics started as a way to get a consolidated view of procurement spend. It has since evolved from one-off projects like spend cubes to encompass various specialized solutions, dashboards, and types of automation software.

3. Automation

Automation came as a solution to the problem of time-consuming tasks. It is a strategic approach that optimizes procurement processes to gain maximum efficiency and save as much time as possible. 

Automation takes time-consuming and repetitive tasks off a worker’s hands and gives them more time to focus on more critical tasks like decision-making and strategic planning. In addition to this procurement automation software revolutionizes the procure-to-pay process and keeps the costs down in the process.

Some benefits of automation are streamlining operations, error reduction, and tighter control over costs. This then means an improved resource allocation and a stronger bottom line.

4. Digitalization

Digitalization has become such a strong tool in procurement that it has crossed over from a procurement trend to a new industry standard. Businesses of all kinds and sizes, in every industry are now using digital procurement for standardizing processes, unifying systems, and containing costs.

Companies that have not yet caught up with the new wave of digitization are at a competitive disadvantage. It’s not hard to understand why as manual procurement processes tend to be inefficient, fragmented, and error-prone.

Digital procurement is using technology to optimize and automate procurement processes and workflows. This involves using apps and systems to capture, consolidate, and manage all of the data and information related to procurement. 

Conclusion

The landscape of procurement is continuously evolving especially with the advent of technological advancements. Things such as changing market dynamics, and the growing emphasis on sustainability are some of the factors to this.

As we delve into the statistics of procurement trends for the year 2024, it becomes evident that the procurement software market is poised for significant growth beyond the year itself. We may be looking at substantial increases in value and adoption rates for the next decade.

Key areas such as supplier management, AI integration, procurement analytics, and digitalization are driving forces that shape the future of procurement practices.

By understanding and leveraging these trends, businesses can position themselves for success in a competitive marketplace. It’s all in the planning, after all. So, if you find yourself unsure of the future the best thing you can do is to find what’s trending and see where the market is headed!

Frequentlyasked questions

What are Procurement Trends?

Procurement trends refer to the direction in which the procurement of goods and services is likely to move within a specific industry or sector.

Why are Procurement Trends Important?

Procurement trends are important because they provide valuable insights into the changing dynamics of the market and keep companies informed about critical decisions.

What are the Most Successful Procurement Trends So Far?

The most successful procurement trends include AI integration, procurement analytics, automation, and digitalization.

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