Procurement as a service market worth $14.62 Billion by 2030

Projections from SkyQuest suggest the procurement As A Service Market to Surpass $14.62bn by 2030

The continued rapid growth of the market is being attributed to the increasing digitisation of business operations and organisations recognising the potential of advanced technologies such as big data analytics, artificial intelligence (AI), and machine learning.

The projections come from SkyQuest Technology, a Massachusetts based growth consulting firm.  

The appeal for using procurement as a service technology is it allows for companies to leverage an efficient and unified solution for managing all procurement technology.  If properly implemented it allows companies to find significant cost savings by leveraging an outsourced procurement provider's expertise, technology, and resources.

The outook for the forecast period of 2023- 2030 suggests a compound annual growth rate of 11.1%.

Growth in Asia Pacific region

The SkyQuest report also identifies the region with the highest CAGR in the procurement as a service market.  The market in the Asia Pacific is projected to exhibit the highest CAGR, which can be attributed to the increasing demand for digital solutions to manage and streamline regional supply chain operations effectively. 

With rapid expansion of businesses and the complexity of global supply chains, organisations in the Asia Pacific are recognising  the need for efficient procurement processes and turn to procurement as a service to meet their requirements.

Transaction management sector growth 

The transaction management sector is also expected to grow the market due to increasing emphasis on optimising aspects of transactions.  

This can include price and terms negotiation, invoicing applications, delivery processes, and purchase order management. This focus on transaction management comes from recognising that streamlined transactional processes can improve operational efficiency, cost savings, and customer satisfaction.

Regional markets in Europe dominate the procurement as a service market, accounting for a significant share of the overall revenue. Europe is witnessing steady growth in the procurement sector and one of the primary drivers of this growth is the focus of procurement service providers on delivering customised service plans to their customers.

Procurement outsourcing services market

It comes as recent data from market research company SNS Insider suggested strong growth in the the procurement outsourcing services market.

The research from SNS Insider suggests the market reached a value of USD 6.73 billion in 2022. It is projected to expand at a CAGR of 9.8% during the forecast period 2023-2030, with an estimated worth of USD 14.21 billion by 2030.

Some of the main drivers behind the reported growth of procurement outsourcing services is the increasing complexity nature of global supply chains. The networks and tiers of supply have become more intricate, involving multiple suppliers, locations  and differing regulatory requirements.

It can prove difficult for procurement operations to manage these complexities in-house and can be both challenging and resource-intensive. By outsourcing procurement, organisations can use the expertise and networks of specialised service providers to streamline their operations.


*************************************************

For more insights into Procurement & Supply Chain - check out the latest edition of Procurement Magazine and be sure to follow us on LinkedIn & Twitter

Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine

Please also check out our upcoming event - Procurement & Supply Chain LIVE in London at the BDC on Sept 26/27th 2023

*********************************************

BizClik is a global provider of B2B digital media platforms that cover 'Executive Communities' for CEOs, CFOs, CMOs, Sustainability Leaders, Procurement & Supply Chain Leaders, Technology & AI Leaders, Cyber Leaders, FinTech & InsurTech Leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare + Food & Drink.

BizClik, based in London, Dubai & New York offers services such as Content Creation, Advertising & Sponsorship Solutions, Webinars & Events.


Share

Featured Articles

How Ivalua and Visa Will Unlock Capital within Supply Chains

Ivalua and Visa join forces to create new efficiency in spend management offering secure and efficient payment solutions via the cloud

AWS Marketplace: Streamlining Software Solutions

AWS Marketplace simplifies procurement for public sector organisations, offers compliance support & prevents vendor lock-in, revolutionising cloud services

Keith Hartley, LevaData CEO, on Philosophy and Procurement

Keith Hartley, CEO at LevaData, discusses how the first principles philosophy and design thinking can revolutionise procurement processes

Mars Snacking's Amanda Davies joins P&SC LIVE New York

Sustainability

Coupa Software’s Mike Schanker joins P&SC LIVE New York

Procurement Strategy

ServiceNow’s Kirsten Loegering joins P&SC LIVE New York

Supply Chain Management