Procurement As a Service Market Synopsis:
Procurement As a Service Market Size Was Valued at USD 8.24 Billion in 2024, and is Projected to Reach USD 17.54 Billion by 2032, Growing at a CAGR of 9.9% From 2025-2032.
Procurement as a Service (PaaS) describes a model where there are third-party actors who offer organizations various procurement solutions to assist with the organization’s procurement processes and supply chain management. It touches many functions, supplier management, category management, transaction management, and analytics to help many businesses achieve cost savings, increased efficiency, and better decisions. Through PaaS, organizational managers can obtain the professional services and leading-edge acquisition solutions without the need for accruing specialized knowledge, which is especially beneficial to SMEs. This model derives advantage from accommodation, size, and speed, which provided solutions that fit the strategies of the organization and the operations of the organization.
The market for Procurement as a Service (PaaS) has been growing fast over the recent past because the outsourcing of procurement functions is becoming popular with organizations of all types. Companies have started realising the benefits in outsourcing operational activities to PaaS to streamline cost, gain industry specific knowledge and reap benefits of digital tools like AI, blockchain and data analytics for decision making. The market is also fuelled by increased complexity and risks now associated with supply chains globally, including the recent disruption by the COVID-19 virus. It has been found that the PaaS solutions are on demand to gain end to end supply chain robustness, better vendor management, and the compliance.
Furthermore, the technological enhancements have a tremendous impact on the PaaS market by providing the opportunities for vendor’s more broad and individual approaches. Initiation through cloud procurement platforms and the incorporation of automating tools has improved the processes of procurement. The escalating awareness of sustainable and ethical practices within procurement is also an emerging market trend, especially as companies attempt to integrate ESG practices into procurement markets. This expanding need for better and more environmentally friendly procurement plans is forecast to bolster the market’s growth in the course of the forecast period.
Procurement As a Service Market Trend Analysis:
Procurement As a Service Market Drivers- Digital Transformation in Procurement
- One of the most significant trends that drives the Procurement as a Service market is the digitalisation of procurement activities. Organizations have been implementing AI and analytics, machine learning, robotic process automation, and blockchain to improve efficiency in procurement, accuracy and security. These technologies facilitate improved demand forecasting, along with complex analysis to reduce the dependence on humans for such analyses, and real-time visibility of the supply chain. Further, blockchain technology means that transactions are secure and transparent, thus, fraud is minimized and customer and supplier trust is increased. Since companies aim to be as flexible and depended on the data as possible, the need for more innovative and digitally oriented PaaS solutions also increases rapidly.
Procurement As a Service Market Opportunity- SMEs as Emerging Growth Drivers
- The growth opportunity that the Procurement as a Service market holds is the steady expansion of the market for SMEs that are expanding the use of Procurement as a Service into their business models. In the past, SMEs have described issues like; low available capital, little experience in procurement and poor supplier links. PaaS offers solutions that are affordable and elastic for SMEs and help them to seize valuable technologies and industry experience while investing a limited amount of capital. It means that SMEs can benefit from cost advantages, acquire improved terms of contracts, and escalate competition with large organizations. By analysing the trends in the SMEs’ digital activities ad their procurement outsourcing, it is possible to identify the key factors that can affect the market growth.
Procurement As a Service Market Segment Analysis:
Procurement As a Service Market Segmented on the basis of Component, Enterprise Size, end user and region.
By Component, Strategic Sourcing segment is expected to dominate the market during the forecast period
- Outsourced procurement is projected to dominate the Procurement as a Service market throughout the forecast period due to strategic sourcing services. This segment increases the procurement’s performance of an organization within selecting a reliable supplier, bargaining over an agreement and managing its associated value. Companies are placing more emphasis on strategic sourcing because of many benefits linked to the process such as cost savings, improved supplier bonding and conformity with organisational goals. In addition, the use of analytics as well as Artificial Intelligence in strategic sourcing procedures has also reduced decision-making discrepancies thus fostering enhancement identified in sourcing procedures.
- Manufacturing, retail, and healthcare industries especially need strategic sourcing services and cost and supplier management. Because it is able to provide solutions that are tailored to industry needs, it is a segment that is strongly favored by providers. With the current issues in supply chain, procurement professionals have had to look for cheaper outlets to make their supplies hence strategic sourcing is expected to continue to be an important ingredient of PaaS solutions.
By Enterprise Size, SMEs segment expected to held the largest share
- Increasingly, businesses such as the small of the medium scale enterprises (SMEs) shall make up the larger chunk of Procurement as a Service. Challenges which include; restricted procurement capabilities, high supplier risks, and restricted budgets increase make PaaS fitting for SMEs. These services allow SMEs to gain leverage of outside expertise with a focused procurement strategy while at the same time avoiding expensive investment in developing internal expertise and/or technology infrastructure.
- Furthermore, existing PaaS solutions specialized for SMEs are scalable and flexible in addressing the demand’s evolution so that businesses can develop their procurement more extensively. Higher B2Bconnectivity levels and the generally higher technology adoption levels in the industry contribute to the high usage of PaaS among SMEs, as do competitive pressures and government initiatives for greater digitalisation. Consequently, the SME segment is estimated to be the largest growth-driving segment in the market during the forecast period.
Procurement As a Service Market Regional Insights:
North America is Expected to Dominate the Market Over the Forecast period
- North America holds the largest market in terms of procurement for the Procurement as a Service market in 2023 due to the increasing adoption of effective procurement technologies and established PaaS suppliers. The largest market is the USA, which is expected to reach 35-40% in 2023 due to both higher industry digitalization and the focus on cost reduction. This is a mature procurement region where procurement practices have been central to industry and effective procurement implementation joined by the early adoption of AI and analytics solutions. Further, the geographical area that has been a significant driver to the adoption of PaaS solution is showing enhanced focus towards sustainable procurement practices by North American businesses.
Active Key Players in the Procurement As a Service Market:
- Accenture (Ireland)
- Capgemini (France)
- Corbus (United States)
- Denali (United States)
- Genpact (United States)
- GEP (United States)
- IBM (United States)
- Infosys (India)
- Jaggaer (United States)
- Proxima (United Kingdom)
- SAP SE (Germany)
- Tata Consultancy Services (India)
- Wipro (India)
- Xchanging (United Kingdom)
- Zycus (India)
- Other Active Players
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Procurement As A Service Market |
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Base Year: |
2024 |
Forecast Period: |
2025-2032 |
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Historical Data: |
2018 to 2023 |
Market Size in 2024: |
USD 8.24 Billion |
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Forecast Period 2024-32 CAGR: |
9.9% |
Market Size in 2032: |
USD 17.54 Billion |
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Segments Covered: |
By Component |
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By Enterprise Size |
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By End User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics
3.1.1 Drivers
3.1.2 Restraints
3.1.3 Opportunities
3.1.4 Challenges
3.2 Market Trend Analysis
3.3 PESTLE Analysis
3.4 Porter's Five Forces Analysis
3.5 Industry Value Chain Analysis
3.6 Ecosystem
3.7 Regulatory Landscape
3.8 Price Trend Analysis
3.9 Patent Analysis
3.10 Technology Evolution
3.11 Investment Pockets
3.12 Import-Export Analysis
Chapter 4: Procurement as a Service (PaaS) Market by Component (2018-2032)
4.1 Procurement as a Service (PaaS) Market Snapshot and Growth Engine
4.2 Market Overview
4.3 Strategic Sourcing
4.3.1 Introduction and Market Overview
4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units
4.3.3 Key Market Trends, Growth Factors, and Opportunities
4.3.4 Geographic Segmentation Analysis
4.4 Spend Management
4.5 Process Management
4.6 Category Management
4.7 Contract Management
4.8 Transactions Management
Chapter 5: Procurement as a Service (PaaS) Market by Enterprise Size (2018-2032)
5.1 Procurement as a Service (PaaS) Market Snapshot and Growth Engine
5.2 Market Overview
5.3 SMEs
5.3.1 Introduction and Market Overview
5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units
5.3.3 Key Market Trends, Growth Factors, and Opportunities
5.3.4 Geographic Segmentation Analysis
5.4 Large Enterprises
Chapter 6: Procurement as a Service (PaaS) Market by End User (2018-2032)
6.1 Procurement as a Service (PaaS) Market Snapshot and Growth Engine
6.2 Market Overview
6.3 BFSI
6.3.1 Introduction and Market Overview
6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units
6.3.3 Key Market Trends, Growth Factors, and Opportunities
6.3.4 Geographic Segmentation Analysis
6.4 Manufacturing
6.5 Retail
6.6 IT & Telecom
6.7 Healthcare
6.8 Others
Chapter 7: Company Profiles and Competitive Analysis
7.1 Competitive Landscape
7.1.1 Competitive Benchmarking
7.1.2 Procurement as a Service (PaaS) Market Share by Manufacturer (2024)
7.1.3 Industry BCG Matrix
7.1.4 Heat Map Analysis
7.1.5 Mergers and Acquisitions
7.2 AKAMAI TECHNOLOGIES (UNITED STATES)
7.2.1 Company Overview
7.2.2 Key Executives
7.2.3 Company Snapshot
7.2.4 Role of the Company in the Market
7.2.5 Sustainability and Social Responsibility
7.2.6 Operating Business Segments
7.2.7 Product Portfolio
7.2.8 Business Performance
7.2.9 Key Strategic Moves and Recent Developments
7.2.10 SWOT Analysis
7.3 AT&T CYBERSECURITY (UNITED STATES)
7.4 BLACKBERRY CYLANCE (CANADA)
7.5 CHECK POINT SOFTWARE TECHNOLOGIES (ISRAEL)
7.6 CISCO SYSTEMS (UNITED STATES)
7.7 CROWDSTRIKE (UNITED STATES)
7.8 DARKTRACE (UNITED KINGDOM)
7.9 FIREEYE (NOW PART OF TRELLIX) (UNITED STATES)
7.10 FORTINET (UNITED STATES)
7.11 F-SECURE (FINLAND)
7.12 IBM SECURITY (UNITED STATES)
7.13 KASPERSKY LAB (RUSSIA)
7.14 MCAFEE (UNITED STATES)
7.15 PALO ALTO NETWORKS (UNITED STATES)
7.16 PROOFPOINT (UNITED STATES)
7.17 RAPID7 (UNITED STATES)
7.18 SECUREWORKS (UNITED STATES)
7.19 SOPHOS (UNITED KINGDOM)
7.20 SYMANTEC (NOW PART OF BROADCOM) (UNITED STATES)
7.21 TREND MICRO (JAPAN)
7.22 AND OTHER KEY PLAYERS
Chapter 8: Global Procurement as a Service (PaaS) Market By Region
8.1 Overview
8.2. North America Procurement as a Service (PaaS) Market
8.2.1 Key Market Trends, Growth Factors and Opportunities
8.2.2 Top Key Companies
8.2.3 Historic and Forecasted Market Size by Segments
8.2.4 Historic and Forecasted Market Size by Component
8.2.4.1 Strategic Sourcing
8.2.4.2 Spend Management
8.2.4.3 Process Management
8.2.4.4 Category Management
8.2.4.5 Contract Management
8.2.4.6 Transactions Management
8.2.5 Historic and Forecasted Market Size by Enterprise Size
8.2.5.1 SMEs
8.2.5.2 Large Enterprises
8.2.6 Historic and Forecasted Market Size by End User
8.2.6.1 BFSI
8.2.6.2 Manufacturing
8.2.6.3 Retail
8.2.6.4 IT & Telecom
8.2.6.5 Healthcare
8.2.6.6 Others
8.2.7 Historic and Forecast Market Size by Country
8.2.7.1 US
8.2.7.2 Canada
8.2.7.3 Mexico
8.3. Eastern Europe Procurement as a Service (PaaS) Market
8.3.1 Key Market Trends, Growth Factors and Opportunities
8.3.2 Top Key Companies
8.3.3 Historic and Forecasted Market Size by Segments
8.3.4 Historic and Forecasted Market Size by Component
8.3.4.1 Strategic Sourcing
8.3.4.2 Spend Management
8.3.4.3 Process Management
8.3.4.4 Category Management
8.3.4.5 Contract Management
8.3.4.6 Transactions Management
8.3.5 Historic and Forecasted Market Size by Enterprise Size
8.3.5.1 SMEs
8.3.5.2 Large Enterprises
8.3.6 Historic and Forecasted Market Size by End User
8.3.6.1 BFSI
8.3.6.2 Manufacturing
8.3.6.3 Retail
8.3.6.4 IT & Telecom
8.3.6.5 Healthcare
8.3.6.6 Others
8.3.7 Historic and Forecast Market Size by Country
8.3.7.1 Russia
8.3.7.2 Bulgaria
8.3.7.3 The Czech Republic
8.3.7.4 Hungary
8.3.7.5 Poland
8.3.7.6 Romania
8.3.7.7 Rest of Eastern Europe
8.4. Western Europe Procurement as a Service (PaaS) Market
8.4.1 Key Market Trends, Growth Factors and Opportunities
8.4.2 Top Key Companies
8.4.3 Historic and Forecasted Market Size by Segments
8.4.4 Historic and Forecasted Market Size by Component
8.4.4.1 Strategic Sourcing
8.4.4.2 Spend Management
8.4.4.3 Process Management
8.4.4.4 Category Management
8.4.4.5 Contract Management
8.4.4.6 Transactions Management
8.4.5 Historic and Forecasted Market Size by Enterprise Size
8.4.5.1 SMEs
8.4.5.2 Large Enterprises
8.4.6 Historic and Forecasted Market Size by End User
8.4.6.1 BFSI
8.4.6.2 Manufacturing
8.4.6.3 Retail
8.4.6.4 IT & Telecom
8.4.6.5 Healthcare
8.4.6.6 Others
8.4.7 Historic and Forecast Market Size by Country
8.4.7.1 Germany
8.4.7.2 UK
8.4.7.3 France
8.4.7.4 The Netherlands
8.4.7.5 Italy
8.4.7.6 Spain
8.4.7.7 Rest of Western Europe
8.5. Asia Pacific Procurement as a Service (PaaS) Market
8.5.1 Key Market Trends, Growth Factors and Opportunities
8.5.2 Top Key Companies
8.5.3 Historic and Forecasted Market Size by Segments
8.5.4 Historic and Forecasted Market Size by Component
8.5.4.1 Strategic Sourcing
8.5.4.2 Spend Management
8.5.4.3 Process Management
8.5.4.4 Category Management
8.5.4.5 Contract Management
8.5.4.6 Transactions Management
8.5.5 Historic and Forecasted Market Size by Enterprise Size
8.5.5.1 SMEs
8.5.5.2 Large Enterprises
8.5.6 Historic and Forecasted Market Size by End User
8.5.6.1 BFSI
8.5.6.2 Manufacturing
8.5.6.3 Retail
8.5.6.4 IT & Telecom
8.5.6.5 Healthcare
8.5.6.6 Others
8.5.7 Historic and Forecast Market Size by Country
8.5.7.1 China
8.5.7.2 India
8.5.7.3 Japan
8.5.7.4 South Korea
8.5.7.5 Malaysia
8.5.7.6 Thailand
8.5.7.7 Vietnam
8.5.7.8 The Philippines
8.5.7.9 Australia
8.5.7.10 New Zealand
8.5.7.11 Rest of APAC
8.6. Middle East & Africa Procurement as a Service (PaaS) Market
8.6.1 Key Market Trends, Growth Factors and Opportunities
8.6.2 Top Key Companies
8.6.3 Historic and Forecasted Market Size by Segments
8.6.4 Historic and Forecasted Market Size by Component
8.6.4.1 Strategic Sourcing
8.6.4.2 Spend Management
8.6.4.3 Process Management
8.6.4.4 Category Management
8.6.4.5 Contract Management
8.6.4.6 Transactions Management
8.6.5 Historic and Forecasted Market Size by Enterprise Size
8.6.5.1 SMEs
8.6.5.2 Large Enterprises
8.6.6 Historic and Forecasted Market Size by End User
8.6.6.1 BFSI
8.6.6.2 Manufacturing
8.6.6.3 Retail
8.6.6.4 IT & Telecom
8.6.6.5 Healthcare
8.6.6.6 Others
8.6.7 Historic and Forecast Market Size by Country
8.6.7.1 Turkiye
8.6.7.2 Bahrain
8.6.7.3 Kuwait
8.6.7.4 Saudi Arabia
8.6.7.5 Qatar
8.6.7.6 UAE
8.6.7.7 Israel
8.6.7.8 South Africa
8.7. South America Procurement as a Service (PaaS) Market
8.7.1 Key Market Trends, Growth Factors and Opportunities
8.7.2 Top Key Companies
8.7.3 Historic and Forecasted Market Size by Segments
8.7.4 Historic and Forecasted Market Size by Component
8.7.4.1 Strategic Sourcing
8.7.4.2 Spend Management
8.7.4.3 Process Management
8.7.4.4 Category Management
8.7.4.5 Contract Management
8.7.4.6 Transactions Management
8.7.5 Historic and Forecasted Market Size by Enterprise Size
8.7.5.1 SMEs
8.7.5.2 Large Enterprises
8.7.6 Historic and Forecasted Market Size by End User
8.7.6.1 BFSI
8.7.6.2 Manufacturing
8.7.6.3 Retail
8.7.6.4 IT & Telecom
8.7.6.5 Healthcare
8.7.6.6 Others
8.7.7 Historic and Forecast Market Size by Country
8.7.7.1 Brazil
8.7.7.2 Argentina
8.7.7.3 Rest of SA
Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies
Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research
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Procurement As A Service Market |
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Base Year: |
2024 |
Forecast Period: |
2025-2032 |
|
Historical Data: |
2018 to 2023 |
Market Size in 2024: |
USD 8.24 Billion |
|
Forecast Period 2024-32 CAGR: |
9.9% |
Market Size in 2032: |
USD 17.54 Billion |
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Segments Covered: |
By Component |
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By Enterprise Size |
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By End User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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