Press Release

The global procurement software market revenue surpassed US$ 7.96 billion in 2024 and is predicted to attain around US$ 17.87 billion by 2033, growing at a CAGR of 9.4% during the forecast period from 2025 to 2033.

The procurement software market is experiencing significant growth, primarily driven by the increasing adoption of automation and cloud sourcing within business operations. Companies are progressively shifting towards cloud-based procurement contracts and procure-to-pay (P2P) suites, which are designed to streamline procurement processes and enhance the transparency of information flow. This transition not only simplifies the procurement cycle but also allows organizations to manage their purchasing activities more effectively, ensuring compliance and improving overall operational efficiency.

A major factor propelling the growth of the procurement software market is the digitization of procurement processes. This transformation enables companies to leverage real-time data for informed decision-making. By digitizing procurement workflows, organizations can access critical information quickly, facilitating better supplier management and more strategic sourcing decisions. The ability to analyze data in real time allows businesses to respond swiftly to market changes, optimize their procurement strategies, and ultimately drive cost savings.

Procurement Software Market Key Takeaways

• The procurement software market is poised for significant growth, with expectations of a substantial increase in revenue amounting to US$ 17.87 billion by 2033. This growth is projected to occur at a compound annual growth rate (CAGR) of 9.4% over the forecast period from 2025 to 2033.
• In terms of deployment, cloud-based solutions dominate the procurement software market, holding a notable 61% market share. This prevalence underscores the unmatched flexibility, cost efficiency, and reduced implementation timelines that cloud-based systems offer.
• When examining the software segment, e-procurement software commands a significant 60% market share within the procurement software landscape.
• The Banking, Financial Services, and Insurance (BFSI) sector emerges as a key player in the procurement software market, holding a 24.9% share. This industry is not only a significant consumer of procurement solutions but also a driving force behind product evolution and vendor innovation.

North America to Hold Robust Revenue Share of 40% in the Procurement Software Market 

North America’s procurement software market stands out with a remarkable 40.9% share of the global market, a position that is significantly bolstered by substantial investments in robust digital infrastructure and a corporate culture that is inherently inclined towards technological innovation. 

The region's commitment to advancing digital tools and systems has created an environment where businesses can thrive and adapt quickly to changing market demands. This favorable landscape encourages organizations to embrace modern procurement solutions that enhance their operational efficiencies.

In the United States alone, industry reports highlight that over 2,500 sizable enterprises have transitioned from outdated legacy systems to contemporary procurement suites. These advanced systems are capable of managing as many as 25,000 purchase transactions each day, showcasing the scale and efficiency that modern procurement software can deliver. 

Such a transformation not only improves transaction processing times but also enhances data accuracy and supplier collaboration. The shift towards these current-generation tools underscores the significance of technology in facilitating seamless procurement operations.

Moreover, North America is home to a diverse ecosystem of over 40 specialized vendors that offer a range of procurement solutions. This vibrant market environment fosters continuous innovation and refinement of software capabilities, as vendors compete to meet the evolving needs of their clients. The collaborative nature of this ecosystem enables organizations to choose from a variety of options tailored to their specific procurement challenges, ensuring that they can find the right fit for their operational requirements.

Market Overview

Procurement software plays a crucial role in modern organizations by automating and optimizing the sourcing, purchasing, and payment processes. This type of software encompasses a wide range of features that streamline procurement activities and enhance operational efficiency.

Key functionalities include supplier management, which involves tracking supplier performance and maintaining relationships; requisition management, which simplifies the process of requesting goods and services; and purchase order creation and approval, which ensures that orders are processed accurately and efficiently.

As the demand for more efficient procurement processes grows, software companies are increasingly focusing on in-demand technologies and exploring innovative solutions to better serve their clients. The procurement software industry is being driven by the need for organizations to adapt to changing market conditions and enhance their procurement strategies. This involves leveraging advanced technologies that can provide a competitive edge.

Market Growth Factors

Driver

Sustainability Goals Pushing ESG: As organizations increasingly recognize the importance of sustainability, there is a growing emphasis on aligning procurement practices with Environmental, Social, and Governance (ESG) goals. This shift reflects a commitment to responsible sourcing, ethical business practices, and long-term environmental stewardship.

Digital Transformation: The ongoing digital transformation in procurement is revolutionizing the way organizations manage their purchasing processes. With the integration of advanced technologies, businesses can achieve real-time procurement efficiency, leading to improved decision-making and operational performance.

Restraint

Rising Cybersecurity Threats: As procurement platforms increasingly rely on digital technologies and cloud-based solutions, they have become more vulnerable to cybersecurity threats. These threats pose significant risks, not only to the integrity of procurement processes but also to the entire organization’s data security and reputation.

Integration Complexities with Legacy ERP Systems: Many organizations face significant challenges when integrating modern procurement platforms with legacy Enterprise Resource Planning (ERP) systems. These complexities can hinder operational efficiency and limit the full potential of procurement automation.

Top Trends

Blockchain Integration Enhancing Supply Chain Transparency: Blockchain technology is transforming supply chain management by providing a decentralized and immutable ledger that enhances transparency across the entire supply chain. Each transaction, from raw material sourcing to final delivery, is recorded on the blockchain, allowing all stakeholders to access a single source of truth.

Hyper-Automation Streamlining Repetitive Procurement Tasks: Hyper-automation refers to the use of advanced technologies, such as artificial intelligence (AI), robotic process automation (RPA), and machine learning, to automate complex business processes and functions. In the procurement sector, hyper-automation is particularly effective in streamlining repetitive tasks, leading to significant efficiency gains.

Recent Developments

• In February 2025, Stampli, a provider of financial AI and accounts payable automation, launched Stampli Procure-to-Pay. This procurement software integrates all procurement processes, documents, and discussions into a single, unified workflow.
• In January 2025, Honeywell partnered with Verizon to enhance technology experiences for retail and logistics companies through a transformative bundled offering. This collaboration combines Honeywell's advanced hardware, software, and services with Verizon's high-speed 5G connectivity, enabling businesses to streamline the retail lifecycle by simplifying procurement, contracting, and future device and data plan expansions.
• In December 2024, Dun & Bradstreet and IBM teamed up to develop a generative artificial intelligence (Gen AI) assistant for procurement teams. This innovative tool is designed to assist users in making faster, data-driven decisions, mitigating risks, and driving efficiencies within their supplier networks.

Top Companies in the Procurement Software Market

• SAP SE
• Proactis Holdings PLC
• Coupa Software Inc.
• Microsoft Corporation
• Oracle Corporation
• Epicor Software Corporation
• Ginesys
• Zycus, Inc.
• Ivalua Inc.
• Infor Inc.
• Jaggaer
• Tangoe, Inc.
• Other Prominent Players

Market Segmentation Overview

By Deployment:

• Cloud-based
• On-premise

By Software:

• Spend Analysis
• E-Sourcing
• E-Procurement

By Industry:

• Retail
• Manufacturing
• Transportation & Logistics
• Healthcare
• BFSI
• Others

By Geography

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa (MEA)