Increased Emphasis on Improving Operational Efficiencies of Procurement Channels to Boost Procurement Analytics Market
Procurement analytics creates value for an organisation. As the effective use of procurement analytics can facilitate decision-making where vendor relationships and buying decisions can be handled more effectively, demand continues to be on an uptrend. Procurement is being increasingly touted as a cornerstone of the supply chain, being its first and basic stage. Optimisation of S2P (Source-to-pay) operations is the basis for increasing revenue and streamlining the entire supply chain cycle. This is expected to drive the growth of procurement analytics market. In business, shopping - or procurement – is not that much fun. For most companies, it’s more of a tangled mix of stress, risks, and unfulfilled hopes that nothing will go wrong.
As procurement involves a wide range of activities, including choosing suppliers, negotiating terms, ordering, receiving, and inspecting goods, and paying invoices, to name a few. And every stage holds an array of challenges and uncertainties, kind of like walking blindfolded on a tightrope. In procurement, there are several challenges that directly impact productivity and ultimately, the company’s bottom line. To streamline procurement and gain more visibility into this process, it is imperative to first get a hold of available data, analyse it, and extract value to make informed decisions. Increasing enterprise marketing and advertising spending, a changing landscape of customer intelligence to drive the market and expanding customer channels are all projected to increase the adoption of procurement analytics technology and services.
A significant shift toward digitisation is fuelling the expansion of procurement analytics market. An increase in the usage of procurement analytics among small and medium-sized businesses supports industry expansion. It also helps to reduce their capital and operating expenses, which increases investment. As a result, adoption is expected to lead to more attractive commercial prospects in the following years. The growing emphasis on improving procurement channels' operational efficiencies has had a direct impact on the growth of the procurement analytics market over the predicted period.
Mounting Organisational Spend on Business Intelligence Software to Foster Market Growth
The procurement analytics market is driven by the growing requirement to anticipate losses and risks, increase productivity, reduce operational costs, and achieve consistent corporate growth. With the increased use of analytics tools, procurement processes such as planning, design, production, delivery, and service have improved. In 2022, revenue in the business intelligence software segment is expected to reach USD 23.43 billion, with the average spend per employee in the business intelligence software market expected to be USD 6.78 USD. The increased spending of organisations on business intelligence software will increase the demand for procurement analytics technology.
Enterprises may make better decisions using features such as plan compliance analytics, expenditure analysis, inventory optimisation, vendor management, contract management, route and network optimisation strategies, and price optimisation. The capabilities assist businesses in identifying relevant patterns in customer purchasing behaviours, company spending habits, and inventory management, which may then be integrated with optimisation models to enable dynamic pricing over time. Consumer expenditure in the world is expected to reach USD 50,931,177.24 million in 2021. That value is expected to reach USD 64,327,136.04 million by 2025. Therefore with the growing consumer spending, the consumer purchase pattern will change. This element will drive the expansion of procurement analytics market.
With Improved Efficiency, Supply Chain Analytics Will Dominate Procurement Analytics Market
During the projected period, the supply chain analytics sector is expected to account for a more significant market share. The application of various analytics tools to improve the operational efficacy and efficiency of the supply chain with data-driven insight is known as supply chain analytics. Manufacturing, retail and consumer products, energy and utilities, and healthcare are projected to benefit from supply chain analytics solutions in making informed decisions about supply chain optimisation, demand planning and forecasting, inventory management, and supplier performance. The demand for increased visibility and transparency in supply chain data and processes and rapid expansion in retail and e-commerce are the primary factors driving the industry. Technological advancements are transforming the supply chain business, and integrating AI capabilities with SCM products will give attractive potential for SCM companies.
North America Houses the Maximum Opportunity for Procurement Analytics Market
North America is predicted to have the greatest market share in the procurement significant industry. Rising technological advancements in the area are important factors driving the growth of the North American procurement analytics market. The growing number of procurement analytics operators across geographies is expected to fuel additional industry expansion. With customer data extraction from consumer and retail technology, businesses in the region are shifting their focus from data gathering to engineering ways to extract insights from data. This data can give retailers a competitive advantage and differentiated capabilities to improve their consumers' purchase experiences. The expanding Internet of Things (IoT), cloud computing, and the need for supply chain and demand intelligence trends are significant drivers projected to fuel market expansion in North America. The Internet of Things (IoT) is reached 8.74 billion devices in 2020, which would be more than the whole human population. This will demonstrate how interwoven technology has become, thus driving the growth of procurement analytics market here.
The Asia Pacific procurement analytics industry is expected to develop the fastest. The increase can be ascribed to greater consumer and company adoption of analytics tools. Spending and revenues from the big data and analytics industries are increasing, propelling the area’s procurement analytics market. The region's analytics markets are primarily driven by widespread digital deployment across sectors, particularly in China, Japan, and India. The key drivers of analytics in China are the explosion of data due to expanding internet rates, mobile/smartphone penetration, growing urbanisation development in machine learning, rithm development, and the demand for the customer and behavioral analytics. According to the Indian Ministry of Micro, Small, and Medium Enterprises, India has 50 million MSMEs, ranking it among the world's largest. Given that the government and MSMEs rely on scalable IT systems and solutions, it is logical that they would move sensitive data to the cloud. Thus, the factor above will drive the growth of the regional market.
Global Procurement Analytics Market: Competitive Landscape
Participants in the market are releasing new products and developing alliances, collaborations, and partnership agreements. In May 2021, IBM introduced Watson AIOps, an AI-powered platform that automates how businesses detect, diagnose, and respond to IT anomalies in real-time. It is capable of operating in any hybrid cloud environment. In March 2020, SAP SE delivered next-generation spend management by integrating procurement and enterprise resource planning solutions. The integration of next-generation spend management processes can provide total visibility and control, assisting customers in achieving business results.
Few of the players in the procurement analytics market include Oracle(US), SAP(Germany), Coupa Software (US), SAS Institute (US), Rosslyn Data Technologies (UK), Genpact (US), IBM(US), Synertrade (Germany), Microsoft(US), GEP (US), Cisco (US), Zycus (US), Corcentric (US), Proactis (UK), BirchStreet Systems (US), Jaggaer (US), Simfoni (US), Tamr (US), Workday (US), Sievo (Finland), Kearney (US), ProcurePro (Australia), Market Dojo (UK), PRM360 (India), Ivalua (US).
Global Procurement Analytics Market is Segmented as below:
By Deployment Mode
By Organization Size
Key Elements Included In The Study: Global Procurement Analytics Market
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