Procurement as a Service Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032
Growth Factors of Procurement as a Service Market
The global procurement as a service market size was valued at USD 6.40 billion in 2023. The market is projected to grow from USD 6.91 billion in 2024 to USD 14.52 billion by 2032, exhibiting a CAGR of 9.9% during the forecast period.
Procurement as a Service (PaaS) is a cloud-based outsourcing model where companies leverage external providers to handle strategic purchasing tasks. This approach combines Business Process Outsourcing (BPO) with cloud technology, offering immediate access to procurement expertise, software, and services, optimizing procurement efficiency, cost-effectiveness, and agility for businesses. The integration of AI, machine learning, and SaaS solutions enhances flexibility, cost efficiency, and scalability, enabling companies to streamline procurement processes and focus on core competencies, driving market growth. Moreover, the need for simplified procurement processes and IT solutions aligned with consumer trends is boosting market expansion, particularly as businesses seek efficient management of compliance policies and agreements.
The COVID-19 pandemic accelerated demand for cloud-based PaaS, driven by the shift to remote work and automation. PaaS solutions offer real-time risk monitoring and data insights, ensuring business continuity, which has significantly reshaped spending strategies and supply chain processes across industries.
Generative AI streamlines routine procurement tasks, including contract drafting and vendor performance analysis. This automation minimizes manual work, accelerates processes, and improves decision making for vendor selection and contract management, contributing to greater efficiency and cost reduction.
Comprehensive Analysis of Procurement as a Service Market
As per component, the market is classified into spend management, category management, contract management, strategic management, transactions management, and process management. The strategic management segment dominated the market in 2023 and poised to grow with significant CAGR during the study period. Increased demand for PaaS across diverse enterprises drives the utilization of supply chain management and sourcing solutions, contributing to cost reduction throughout the forecast period. In terms of enterprise type, the market is bifurcated into Small and Medium enterprises (SMEs) and large enterprises. The Small and Medium enterprises (SMEs) segment is set to grow at the highest CAGR, as many smaller businesses seek affordable, subscription-based procurement as a service solutions to save time and money. This approach enhances scalability, profitability, and streamlines procurement workflows by reducing paperwork. By industry, the market is classified into IT & telecom, manufacturing, healthcare, retail & e-commerce, energy & utility, oil & gas, travel & hospitality, BFSI, and others. The retail sector is projected to experience the highest growth rate during the forecast period, driven by its customer-centric nature and dynamic market trends influenced by changing consumer behaviors.
North America secured the highest procurement as a service market share in 2023. MHI Annual Industry Report 2023 indicates that 74% of supply chain leaders have boosted their investments to enhance resiliency, transparency, and sustainability, thereby promoting the expansion of PaaS solutions among large enterprises in North America.
In a development phase, South America is experiencing market growth fueled by the rising demand for procurement solutions focused on monitoring raw materials and inventory for manufacturing firms. This trend is poised to drive significant procurement as a service market growth in the region over the forecast period.
The top players in the market are GEP (U.S), Infosys Limited (India), Dragon Sourcing (U.K.), SAP SE (Germany), Genpact (U.S.), Kissflow Inc. (India), Accenture plc. (Ireland), HCL Technologies Ltd. (India), WNS (Holdings) Ltd (U.K.), Tata Consultancy Services Limited (India), Total IT Global. (U.K.), Allegis Global Solutions (U.S.), Wipro, Inc. (India), IBM Corporation (U.S.), CA Technologies (U.S.), Aegis Components Inc. (U.S.), Corbus LLC (U.S.), Bain & Company (U.S.), Hewlett Packard Enterprise Development LP (U.S.), Synise Technologies Ltd. (India), and Capgemini SE (France). The market is led by companies such as GEP, Infosys Limited, Dragon Sourcing, SAP SE, Genpact, Kissflow Inc., and Accenture plc, which are dedicated to innovating Procurement as a Service. To strengthen their global operations, these firms are employing strategies such as partnerships, product launches, investments, acquisitions, and mergers.
In July 2023, JAGGER Technology teamed up with Open-es, a digital platform provider, to improve procurement function performance. This partnership enhances the analysis of supply chain sustainability and supports the development of companies, driving efficiency in their procurement processes.
Table of Segmentation
Global Procurement as a Service Market Scope
Study Period 2019-2032
Base Year 2023
Forecast Period 2024-2032
Historical Period 2019-2022
Growth Rate CAGR of 9.9% from 2024 to 2032
Unit Value (USD Billion)
Segmentation By Component, Enterprise Type, Industry, and Region
By Component
Process Management
Spend Management
Category Management
Contract Management
Strategic Management
Transactions Management
By Enterprise Type
Small and Medium Enterprises (SMEs)
Large Enterprises
By Industry
BFSI
IT & Telecom
Manufacturing
Healthcare
Retail & E-commerce
Energy & Utility
Oil & Gas
Travel & Hospitality
Others (Real Estate, etc.)
By Region
North America (By Component, Enterprise Type, Industry, and Country)
U.S.
Canada
Mexico
Europe (By Component, Enterprise Type, Industry, and Country)
U.K.
Germany
France
Italy
Spain
Russia
Benelux
Nordics
Rest of Europe
Asia Pacific (By Component, Enterprise Type, Industry, and Country)
China
Japan
India
South Korea
ASEAN
Oceania
Rest of Asia Pacific
Middle East & Africa (By Component, Enterprise Type, Industry, and Country)
Turkey
Israel
GCC
North Africa
South Africa
Rest of the Middle East & Africa
South America (By Component, Enterprise Type, Industry, and Country)
Brazil
Argentina
Rest of South America
Companies Profiled in the Report
Accenture plc. (Ireland)
HCL Technologies Ltd. (India)
GEP (U.S.)
Infosys Limited (India)
SAP SE (Germany)
Dragon Sourcing (U.K.)
WNS (Holding) Ltd. (U.K.)
Genpact (U.S.)
Kissflow Inc. (India)
Wipro Inc. (India)
- 1. Introduction
- 1.1. Definition, By Segment
- 1.2. Research Methodology/Approach
- 1.3. Data Sources
- 2. Executive Summary
- 3. Market Dynamics
- 3.1. Macro and Micro Economic Indicators
- 3.2. Drivers, Restraints, Opportunities and Trends
- 3.3. Impact of Generative AI
- 4. Competition Landscape
- 4.1. Business Strategies Adopted by Key Players
- 4.2. Consolidated SWOT Analysis of Key Players
- 4.3. Global Procurement as a Service Key Players (Top 3 – 5) Market Share/Ranking, 2023
- 5. Global Procurement as a Service Market Size Estimates and Forecasts, By Segments, 2019-2032
- 5.1. Key Findings
- 5.2. By Component (USD)
- 5.2.1. Process Management
- 5.2.2. Spend Management
- 5.2.3. Category Management
- 5.2.4. Contract Management
- 5.2.5. Strategic Management
- 5.2.6. Transactions Management
- 5.3. By Enterprise Type (USD)
- 5.3.1. Small and Medium Enterprises (SMEs)
- 5.3.2. Large Enterprises
- 5.4. By Industry (USD)
- 5.4.1. BFSI
- 5.4.2. IT & Telecom
- 5.4.3. Manufacturing
- 5.4.4. Healthcare
- 5.4.5. Retail & E-commerce
- 5.4.6. Energy & Utility
- 5.4.7. Oil & Gas
- 5.4.8. Travel & Hospitality
- 5.4.9. Others (Real Estate, etc.)
- 5.5. By Region (USD)
- 5.5.1. North America
- 5.5.2. Europe
- 5.5.3. Asia Pacific
- 5.5.4. Middle East & Africa
- 5.5.5. South America
- 6. North America Procurement as a Service Market Size Estimates and Forecasts, By Segments, 2019-2032
- 6.1. Key Findings
- 6.2. By Component (USD)
- 6.2.1. Process Management
- 6.2.2. Spend Management
- 6.2.3. Category Management
- 6.2.4. Contract Management
- 6.2.5. Strategic Management
- 6.2.6. Transactions Management
- 6.3. By Enterprise Type (USD)
- 6.3.1. Small and Medium Enterprises (SMEs)
- 6.3.2. Large Enterprises
- 6.4. By Industry (USD)
- 6.4.1. BFSI
- 6.4.2. IT & Telecom
- 6.4.3. Manufacturing
- 6.4.4. Healthcare
- 6.4.5. Retail & E-commerce
- 6.4.6. Energy & Utility
- 6.4.7. Oil & Gas
- 6.4.8. Travel & Hospitality
- 6.4.9. Others (Real Estate, etc.)
- 6.5. By Country (USD)
- 6.5.1. United States
- 6.5.2. Canada
- 6.5.3. Mexico
- 7. Europe Procurement as a Service Market Size Estimates and Forecasts, By Segments, 2019-2032
- 7.1. Key Findings
- 7.2. By Component (USD)
- 7.2.1. Process Management
- 7.2.2. Spend Management
- 7.2.3. Category Management
- 7.2.4. Contract Management
- 7.2.5. Strategic Management
- 7.2.6. Transactions Management
- 7.3. By Enterprise Type (USD)
- 7.3.1. Small and Medium Enterprises (SMEs)
- 7.3.2. Large Enterprises
- 7.4. By Industry (USD)
- 7.4.1. BFSI
- 7.4.2. IT & Telecom
- 7.4.3. Manufacturing
- 7.4.4. Healthcare
- 7.4.5. Retail & E-commerce
- 7.4.6. Energy & Utility
- 7.4.7. Oil & Gas
- 7.4.8. Travel & Hospitality
- 7.4.9. Others (Real Estate, etc.)
- 7.5. By Country (USD)
- 7.5.1. United Kingdom
- 7.5.2. Germany
- 7.5.3. France
- 7.5.4. Italy
- 7.5.5. Spain
- 7.5.6. Russia
- 7.5.7. Benelux
- 7.5.8. Nordics
- 7.5.9. Rest of Europe
- 8. Asia Pacific Procurement as a Service Market Size Estimates and Forecasts, By Segments, 2019-2032
- 8.1. Key Findings
- 8.2. By Component (USD)
- 8.2.1. Process Management
- 8.2.2. Spend Management
- 8.2.3. Category Management
- 8.2.4. Contract Management
- 8.2.5. Strategic Management
- 8.2.6. Transactions Management
- 8.3. By Enterprise Type (USD)
- 8.3.1. Small and Medium Enterprises (SMEs)
- 8.3.2. Large Enterprises
- 8.4. By Industry (USD)
- 8.4.1. BFSI
- 8.4.2. IT & Telecom
- 8.4.3. Manufacturing
- 8.4.4. Healthcare
- 8.4.5. Retail & E-commerce
- 8.4.6. Energy & Utility
- 8.4.7. Oil & Gas
- 8.4.8. Travel & Hospitality
- 8.4.9. Others (Real Estate, etc.)
- 8.5. By Country (USD)
- 8.5.1. China
- 8.5.2. India
- 8.5.3. Japan
- 8.5.4. South Korea
- 8.5.5. ASEAN
- 8.5.6. Oceania
- 8.5.7. Rest of Asia Pacific
- 9. Middle East & Africa Procurement as a Service Market Size Estimates and Forecasts, By Segments, 2019-2032
- 9.1. Key Findings
- 9.2. By Component (USD)
- 9.2.1. Process Management
- 9.2.2. Spend Management
- 9.2.3. Category Management
- 9.2.4. Contract Management
- 9.2.5. Strategic Management
- 9.2.6. Transactions Management
- 9.3. By Enterprise Type (USD)
- 9.3.1. Small and Medium Enterprises (SMEs)
- 9.3.2. Large Enterprises
- 9.4. By Industry (USD)
- 9.4.1. BFSI
- 9.4.2. IT & Telecom
- 9.4.3. Manufacturing
- 9.4.4. Healthcare
- 9.4.5. Retail & E-commerce
- 9.4.6. Energy & Utility
- 9.4.7. Oil & Gas
- 9.4.8. Travel & Hospitality
- 9.4.9. Others (Real Estate, etc.)
- 9.5. By Country (USD)
- 9.5.1. Turkey
- 9.5.2. Israel
- 9.5.3. GCC
- 9.5.4. North Africa
- 9.5.5. South Africa
- 9.5.6. Rest of MEA
- 10. South America Procurement as a Service Market Size Estimates and Forecasts, By Segments, 2019-2032
- 10.1. Key Findings
- 10.2. By Component (USD)
- 10.2.1. Process Management
- 10.2.2. Spend Management
- 10.2.3. Category Management
- 10.2.4. Contract Management
- 10.2.5. Strategic Management
- 10.2.6. Transactions Management
- 10.3. By Enterprise Type (USD)
- 10.3.1. Small and Medium Enterprises (SMEs)
- 10.3.2. Large Enterprises
- 10.4. By Industry (USD)
- 10.4.1. BFSI
- 10.4.2. IT & Telecom
- 10.4.3. Manufacturing
- 10.4.4. Healthcare
- 10.4.5. Retail & E-commerce
- 10.4.6. Energy & Utility
- 10.4.7. Oil & Gas
- 10.4.8. Travel & Hospitality
- 10.4.9. Others (Real Estate, etc.)
- 10.5. By Country (USD)
- 10.5.1. Brazil
- 10.5.2. Argentina
- 10.5.3. Rest of South America
- 11. Company Profiles for Top 10 Players (Based on data availability in public domain and/or on paid databases)
- 11.1. GEP
- 11.1.1. Overview
- 11.1.1.1. Key Management
- 11.1.1.2. Headquarters
- 11.1.1.3. Offerings/Business Segments
- 11.1.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.1.2.1. Employee Size
- 11.1.2.2. Past and Current Revenue
- 11.1.2.3. Geographical Share
- 11.1.2.4. Business Segment Share
- 11.1.2.5. Recent Developments
- 11.2. Infosys Limited
- 11.2.1. Overview
- 11.2.1.1. Key Management
- 11.2.1.2. Headquarters
- 11.2.1.3. Offerings/Business Segments
- 11.2.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.2.2.1. Employee Size
- 11.2.2.2. Past and Current Revenue
- 11.2.2.3. Geographical Share
- 11.2.2.4. Business Segment Share
- 11.2.2.5. Recent Developments
- 11.3. Genpact
- 11.3.1. Overview
- 11.3.1.1. Key Management
- 11.3.1.2. Headquarters
- 11.3.1.3. Offerings/Business Segments
- 11.3.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.3.2.1. Employee Size
- 11.3.2.2. Past and Current Revenue
- 11.3.2.3. Geographical Share
- 11.3.2.4. Business Segment Share
- 11.3.2.5. Recent Developments
- 11.4. Kissflow Inc.
- 11.4.1. Overview
- 11.4.1.1. Key Management
- 11.4.1.2. Headquarters
- 11.4.1.3. Offerings/Business Segments
- 11.4.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.4.2.1. Employee Size
- 11.4.2.2. Past and Current Revenue
- 11.4.2.3. Geographical Share
- 11.4.2.4. Business Segment Share
- 11.4.2.5. Recent Developments
- 11.5. Accenture plc.
- 11.5.1. Overview
- 11.5.1.1. Key Management
- 11.5.1.2. Headquarters
- 11.5.1.3. Offerings/Business Segments
- 11.5.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.5.2.1. Employee Size
- 11.5.2.2. Past and Current Revenue
- 11.5.2.3. Geographical Share
- 11.5.2.4. Business Segment Share
- 11.5.2.5. Recent Developments
- 11.6. HCL Technologies Ltd.
- 11.6.1. Overview
- 11.6.1.1. Key Management
- 11.6.1.2. Headquarters
- 11.6.1.3. Offerings/Business Segments
- 11.6.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.6.2.1. Employee Size
- 11.6.2.2. Past and Current Revenue
- 11.6.2.3. Geographical Share
- 11.6.2.4. Business Segment Share
- 11.6.2.5. Recent Developments
- 11.7. WNS (Holdings) Ltd
- 11.7.1. Overview
- 11.7.1.1. Key Management
- 11.7.1.2. Headquarters
- 11.7.1.3. Offerings/Business Segments
- 11.7.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.7.2.1. Employee Size
- 11.7.2.2. Past and Current Revenue
- 11.7.2.3. Geographical Share
- 11.7.2.4. Business Segment Share
- 11.7.2.5. Recent Developments
- 11.8. Tata Consultancy Services Limited
- 11.8.1. Overview
- 11.8.1.1. Key Management
- 11.8.1.2. Headquarters
- 11.8.1.3. Offerings/Business Segments
- 11.8.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.8.2.1. Employee Size
- 11.8.2.2. Past and Current Revenue
- 11.8.2.3. Geographical Share
- 11.8.2.4. Business Segment Share
- 11.8.2.5. Recent Developments
- 11.9. Total IT Global.
- 11.9.1. Overview
- 11.9.1.1. Key Management
- 11.9.1.2. Headquarters
- 11.9.1.3. Offerings/Business Segments
- 11.9.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.9.2.1. Employee Size
- 11.9.2.2. Past and Current Revenue
- 11.9.2.3. Geographical Share
- 11.9.2.4. Business Segment Share
- 11.9.2.5. Recent Developments
- 11.10. Allegis Global Solutions
- 11.10.1. Overview
- 11.10.1.1. Key Management
- 11.10.1.2. Headquarters
- 11.10.1.3. Offerings/Business Segments
- 11.10.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.10.2.1. Employee Size
- 11.10.2.2. Past and Current Revenue
- 11.10.2.3. Geographical Share
- 11.10.2.4. Business Segment Share
- 11.10.2.5. Recent Developments
- 12. Key Takeaways
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