Spend Analytics Market Forecasts to 2028 – Global Analysis By Component (Software, Services), Analytics Type (Prescriptive, Descriptive), Application, and By Geography

Spend Analytics Market Forecasts to 2028 – Global Analysis By Component (Software, Services), Analytics Type (Prescriptive, Descriptive), Application, and By Geography

According to Stratistics MRC, the Global Spend Analytics Market is accounted for $2.56 billion in 2021 and is expected to reach $9.00 billion by 2028 growing at a CAGR of 19.7% during the forecast period. Spend analytics is the method of gathering, identifying, cleansing, categorizing, and analyzing the organization's expenditures to reduce procurement costs and further develop efficiency. Spend analysis is implemented by organizations to acquire profitability by recognizing flagging contracts and the wasteful expenditure that can be renegotiated.

High demand for cloud-based procurement solutions, growth in adoption of procurement analytics for better decision making, and proliferation of customer channels are likely to propel the adoption of procurement analytics technologies and services. The procurement analytics market is likely to reach $10.02 billion by 2027. More than 50% of a company’s value chain is dependent on third parties, procurement has a unique role to play in navigating this complex set of drivers, and has the potential to do so by harnessing the power of analytics. According to the Right Scale's annual State of the Cloud Report 2019, public cloud adoption is 91% and private cloud adoption is 72% and also 69% of respondents use at least one public and one private cloud.

Market Dynamics:

Driver:

Rising adoption in procurement process in industries

Increasing adoption among procurement teams in organizations is propelling the market for growing to spend analytics. Spend analytics is empowering procurement leaders to be far better at their work through upgrading planning purchase timing and inventories to fulfill manufacturing and consumer demand schedules, identifying cost reserves, and predicting future risks. In step with cost-saving, with procurement typically spending budget, more and more organizations are empowering their finance and procurement teams to work closely together. Thus further fueling the market for spend analytics. The cost-saving benefit of spending analytics has helped organizations in increasing their technology expenditure. Hence, spend analytics are additionally encouraging business innovation and it is becoming essential that organizations can react to spending data they are collecting and processing as part of their business functions.

Restraint:

Concerns regarding data security

The sensitive issue of data privacy and security are faced by many organizations. With the implementation of GDPR, consumer and enterprise data privacy issues have been put to the forefront. Security concerns are cropping up as organizations feed more consumer and vendor information into advanced, AI-fuelled algorithms to create new bits of sensitive data, unbeknownst to affected consumers and employees. This is prevalent in the few sectors, where enterprise data could lead to trade secrets being revealed. These data privacy concerns will restrain the spend analytics market growth.

Opportunity:

Technological advancements

Increasing adoption of cloud services and expanding perforation of IoT applications is augmenting the market as digitization has exponentially expanded the data generation and has changed the data utilization methods. Clouds act as a vital catalyst in digital transformation. Spend analytics provide flexibility by providing real-time synchronization across the cloud or on-premises, overpassing the conventional data processing and accessing options. It constantly calculates statistical analytics while moving within the stream of data.

Threat:

Lack of analytical expertise

The platforms are normally handled by employees in deriving insights from the information. Rapidly developing big data across industry verticals should be properly displayed, integrated, wrangled, and then analyzed to acquire specific insights. From data ingestion to data reporting, the data scientist groups need specific skills to understand and uncover the patterns that assist marketers to make informed decisions. However, the lack of expertise in understanding the importance of procurement analytics is one of the major challenges faced by various industries. SMEs have experienced more losses because of budget constraints and a lack of awareness of the benefits of procurement analytics solutions.

The software segment is expected to be the largest during the forecast period

The software segment is estimated to have a lucrative growth as organizations are looking for solutions to obey strict governance and compliance policies related to their accounts and spend data, increasing adoption of market intelligence by suppliers, and the necessity to keep the company’s expenditure to the minimum without affecting its operations.

The risk management segment is expected to have the highest CAGR during the forecast period

The risk management segment is anticipated to witness the fastest CAGR growth during the forecast period due to the growing incidents of crucial data breaches, and information loss. Cyber hacks have compelled organizations to rethink their technological implementations and protect sensitive data. Organizations around the world face various risks related to security, finance, and operations. These risks rely on the sector that the business operates in and may pose short-term or long-term threats. They create vagaries in operational processes, paving the way for financial, workforce, and asset losses.

Region with highest share:

North America is projected to hold the largest market share during the forecast period due to the early adoption of new and emerging technologies and the presence of major industry players. High penetration of cloud technology, the internet of things, artificial intelligence, and big data, among others, is propelling the market in North America. In addition, the region is a hub for significant market vendors who are increasingly launching new products in the market.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period owing to the growing adoption of cost-effective spend analytics software and services among SMEs and increased take-up of analytics tools among consumers as well as businesses. Asia-pacific is also a hub for manufacturing. Moreover, the exponentially growing availability of accessible, cheap data centers delivered by cloud vendors has brought down the costs of upfront investment for small and medium businesses, thereby encouraging the adoption of spend analytics solutions into their enterprises.

Key players in the market

Some of the key players profiled in the Spend Analytics Market include Zycus Inc., Sievo Oy, Genpact, Proactis Inc., JAGGAER Incorporation, IBM Corporation, SAP SE, Empronc Solutions Pvt. Ltd, Coupa Software and SAS Institute, Inc.

Key Developments:

In May 2019, Coupa Software acquired Exari, to cement its position in Business Spend Management (BSM) and deliver measurable business value. Coupa’s acquisition strategy is focused on adding key, advanced power applications around our unified, organic transactional engine. And so, this acquisition further delivers on our vision of Business Spend Management by extending and enhancing our Contract Management “Power User” application solution.

In Oct 2018, Oracle acquired DataFox, an AI-based data management provider, and unveiled a new CX Unity product designed to provide a comprehensive view into customer engagement and interactions across channels and applications.

Types Covered:
• Tail-Spend
• Indirect Spend
• Direct Spend

Components Covered:
• Software
• Services

Analytics Types Covered:
• Prescriptive
• Diagnostic
• Predictive
• Descriptive

Deployment Models Covered:
• Cloud
• On-Premises

Business Functions Covered:
• Procurement
• Marketing
• Information Technology (IT)
• Finance

Applications Covered:
• Supplier Sourcing and Performance Management
• Risk Management
• Governance and Compliance Management
• Financial Management
• Demand and Supply Forecasting
• Other Applications

Organization Sizes Covered:
• Small and Medium Enterprises (SMEs)
• Large Enterprises

End Users Covered:
• Telecommunications and IT
• Supply Chain & Logistic
• Retail and eCommerce
• Manufacturing
• Healthcare and Life Sciences
• Government and Defense
• Energy and Utilities
• Banking, Financial Services, and Insurance (BFSI)
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances