Spend Analytics Market Size (2024 - 2029)

The spend analytics market is experiencing significant growth, driven by the increasing demand for supplier and market intelligence and the adoption of advanced technologies such as AI and cloud computing. This expansion is facilitated by the rising importance of big data and the need for business intelligence, which are crucial for digital transformation. However, the market faces challenges, including data privacy concerns, difficulties in migrating from legacy systems, and stringent regulatory requirements. Despite these obstacles, the market's size is expected to grow as companies adapt to changing customer needs and seek greater efficiency.

Market Size of Spend Analytics Industry

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Spend Analytics Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 17.90 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Spend Analytics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Spend Analytics Market Analysis

The spend analytics market is expected to reach a CAGR of 17.9% over the forecast period 2022-2027. A new generation of solutions is quietly gaining significant traction with AI approaches. With the increasing need for supplier and market intelligence, technology giants such as IBM, Coupa, and TAMR are up to some very innovative developments which are expected to gain traction in the future.

  • Spend analytics is the process of gathering, cleaning, classifying, and analyzing spend data using either specialist software or one-time spend cubes. Spend analysis evaluates spending data to reduce expenses, improve efficiency, or strengthen supplier relationships.
  • The market studied is expected to have more opportunities to expand in the next years due to the increasing popularity of mobile applications and the increased demand for cloud computing technologies. Big data's expanding importance and cloud computing technologies are two key factors that impact a company's requirement for business intelligence. Data generation increased tremendously due to digitization, which also altered the use of data. A key accelerator for digital transformation is clouded. It offers flexibility by eclipsing conventional data processing and accessing possibilities by delivering real-time synchronization across the cloud or on-premise. The market studied appears to be expanding overall.
  • Advanced analytics, quick insights, and cloud strategies transformed the digital landscape around personalized customer experiences, omnichannel networks, and agile supply chains. IBM and Oxford Economics study indicated trends in retail, with a shift to cloud hosting environments expected to gain traction for the retail sector. The study showed that, on average, only 22% of applications were in the cloud in 2018, going up to 40% in 2020, and estimated to reach 57% by 2022. About 61% of respondents stated investing in the cloud became the most crucial thing in 2021, signifying a quick transition to seeing huge benefits. Such a rise in the adoption of the cloud by retailers is expected to increase the demand for the deployment of cloud-based spend analytics.
  • However, the market studied for spend analytics faces several difficulties, including maintaining uniformity in business semantics and interpretations, fears about data privacy and security, and issues with a positive return on investment (ROI). Additionally, the market growth may be constrained by the difficulty of migrating from legacy systems. The future expansion of the spend analytics business may also be hampered by the lack of a defined process, the abundance of data sources, and the difficulty in transitioning from legacy systems. The market studied for expenditure analytics may also be severely hampered by the increasingly strict regulatory regulations on data security and breaches.
  • For instance, in March 2022, Xeeva, the AI-driven Spend Management and Procurement software firm serving hundreds of locations and enterprises globally, were thrilled to announce the release of Spend Analytics with Intelligent Opportunities and a new appearance. This new release allows Xeeva clients to analyze and act on application-generated savings and sourcing opportunities with an updated user interface.
  • The COVID-19 outbreak enabled companies to incorporate new features in their existing products to cater to a wide range of customers' needs during the COVID-19 pandemic. For example, SpendHQ is assisting clients in analyzing and comprehending the impact of the COVID-19 crisis on their supply chain and procurement requirements. The company created pre-built interactive dashboards using its SaaS spend analysis technology to enable clients to make crucial operational decisions as they navigate the crisis. Examples of such use cases include healthcare organizations managing their inventory of essential personal protective equipment (PPE) throughout their network of providers by using data on daily infection rates by county.
  • Since the pandemic, the market's growth has been rising gradually as companies focus on becoming more efficient, changing customer habits need companies to adjust to their needs, and companies of all sizes look to the future.

Spend Analytics Industry Segmentation

Spend analytics is identifying, gathering, cleaning, grouping, categorizing, and analyzing an organization's spending data. Boosting visibility and transparency aims to lower procurement costs and increase efficiency. Organizations may acquire the information needed to cut costs and improve efficiency by using real-time data and analytics.

The scope of the study focuses on analyzing the global spend analytics solutions market (hereafter referred to as the market studied) and services worldwide. Market sizing encompasses the revenue generated through spend analytics globally sold by various market players. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of the COVID-19 pandemic on the ecosystem. The report's scope encompasses market sizing and forecast for segmentation by type, analysis, deployment, end-user industry, and geography.

By Type
Software
Service
Professional Service
Managed Service
By Analysis
Descriptive
Prescriptive
Predictive
By Deployment
On-Premise
Cloud
By End-user Industry
Manufacturing
Supply Chain & Logistic
Retail
BFSI
IT & Telecommunication
Education
Healthcare
Other End-user Industries
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Spend Analytics Market Size Summary

The spend analytics market is experiencing significant growth, driven by the increasing need for supplier and market intelligence. This growth is fueled by advancements in AI and cloud computing technologies, which are transforming how businesses analyze and manage their spending data. Companies like IBM, Coupa, and TAMR are at the forefront of these innovations, developing solutions that enhance efficiency, reduce costs, and strengthen supplier relationships. The market is expanding as digitalization and the demand for real-time data insights become more prevalent, particularly in sectors like retail and automotive. However, challenges such as data privacy concerns, the complexity of migrating from legacy systems, and regulatory compliance issues pose obstacles to market growth.

The retail industry, in particular, is leveraging spend analytics to optimize customer targeting and enhance operational efficiency through real-time data analysis. Key players in the market are focusing on strategic acquisitions and partnerships to enhance their spend management solutions and maintain a competitive edge. The fragmented nature of the market, with no single vendor dominating, encourages intense competition and innovation. Recent developments, such as SAP's acquisition of Askdata and JAGGAER's purchase of DocSkiff, highlight the ongoing efforts to integrate advanced analytics and AI-driven insights into spend management platforms. As businesses continue to adapt to changing consumer behaviors and economic conditions, the demand for sophisticated spend analytics solutions is expected to grow, offering substantial opportunities for market participants.

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Spend Analytics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Introduction to Market Drivers and Restraints

    3. 1.3 Market Drivers

      1. 1.3.1 Rising Adoption in Procurement Process in Industries

      2. 1.3.2 Rising Adoption of Cloud Services and Increasing Penetration of IoT Applications

    4. 1.4 Market Restraints

      1. 1.4.1 Growing Data Breaches Cases

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Software

      2. 2.1.2 Service

        1. 2.1.2.1 Professional Service

        2. 2.1.2.2 Managed Service

    2. 2.2 By Analysis

      1. 2.2.1 Descriptive

      2. 2.2.2 Prescriptive

      3. 2.2.3 Predictive

    3. 2.3 By Deployment

      1. 2.3.1 On-Premise

      2. 2.3.2 Cloud

    4. 2.4 By End-user Industry

      1. 2.4.1 Manufacturing

      2. 2.4.2 Supply Chain & Logistic

      3. 2.4.3 Retail

      4. 2.4.4 BFSI

      5. 2.4.5 IT & Telecommunication

      6. 2.4.6 Education

      7. 2.4.7 Healthcare

      8. 2.4.8 Other End-user Industries

    5. 2.5 By Geography

      1. 2.5.1 North America

      2. 2.5.2 Europe

      3. 2.5.3 Asia-Pacific

      4. 2.5.4 Latin America

      5. 2.5.5 Middle East & Africa

Spend Analytics Market Size FAQs

The Spend Analytics Market is projected to register a CAGR of 17.90% during the forecast period (2024-2029)

IBM Corporation, SAS Institute, Inc., JAGGAER Incorporation, SAP SE and Coupa Software are the major companies operating in the Spend Analytics Market.

Spend Analytics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)