Market Size of Spend Analytics Software Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 18.20 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Spend Analytics Software Market Analysis
Over the forecast period, the Spend Analytics Software Market registered an 18.2% CAGR. Organizations are finding it difficult to manage data flow due to changing data structures and increased data flow.Digitization has exponentially increased data generation and changed data utilization methods. The cloud is also acting as a vital catalyst for digital transformation. Spend Analytics helps organizations provide flexibility by providing real-time synchronization across the cloud or on-premises, bypassing traditional data processing, and accessing options. It continually calculates statistical analytics while moving within the stream of data.
- Spend analytics has evolved how humans and machines interact with and use spend data by broadening the data analysis processes and increasing the accessibility of the data. Its various applications in supply chain and logistics, BFSI, manufacturing, and retail are changing market dynamics. It helps companies to have a competitive advantage and give them better utilization and consumption of spending data.
- The benefits of spend analytics include providing more in-depth insight through data visualization, helping deploy cost-saving processes, making large files easy to access, and having data updated and located in real-time, increasing the system's scalability. It reduces the organization's investment by improving utilization and consumption.
- For instance, in March last year, Xeeva, the AI-powered spend management and procurement software company that serves hundreds of locations and organizations globally, announced the introduction of Spend Analytics with Intelligent Opportunities and a new look. With an enhanced user interface, this new edition enables Xeeva clients to examine and act on application-generated savings and sourcing opportunities.
- Furthermore, market expansion may be hindered by the complexity of migrating from legacy systems. The lack of a defined process, the number of data sources, and the difficulties in transferring from legacy systems can all hamper the future growth of the spend analytics business. Increasingly stringent regulatory rules can also hinder the market for spending on analytics pertaining to data security and breaches.
- With the outbreak of COVID-19, the data science teams were called into action to crunch the massive data available and build the best business spending models on trusted data for decision-makers to prepare contingency plans quickly. This is where enterprises used AI, ML, and natural language processing to mine massive data and build predictive or prescriptive models.
Many organizations were experiencing various unexpected and unplanned supply chain disruptions during the COVID-19 pandemic. With spend analytics, companies were better able to identify areas where they could retain more cash. Based on digital solutions, intelligent and structured spend analysis, sourcing, and eProcurement strategies could proactively provide insight to activate and deploy emergency plans to face a range of difficult circumstances.
Spend Analytics Software Industry Segmentation
Spend Analytics Software converts raw procurement spend data into business analytics, a spend visibility tool with simple dashboards and analysis in the form of text, charts, graphs, and tables.
The Spend Analytics Software market is segmented by type of deployment, end-user industry, and geography. By nature of implementation, the market studied is segmented into on-premise and on-cloud. The market considered by the end-user is segmented into healthcare & life sciences, energy & utilities, retail & e-commerce, banking, financial services, & insurance, manufacturing, IT & telecommunications, and others. Also, the scope of the report covers detailed information about significant factors influencing the spend analytics software market, such as drivers and restraints. The study of the market also focuses on various market trends, such as the increasing need for financial management and its effects on the market.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Deployment | |
On-premise | |
On-cloud |
By End-User | |
Healthcare & Life Sciences | |
Energy & Utilities | |
Retail & E-commerce | |
Banking, Financial Services & Insurance | |
Manufacturing | |
IT & Telecommunications | |
Other End-Users |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East & Africa |
Spend Analytics Software Market Size Summary
The Spend Analytics Software Market is experiencing significant growth, driven by the increasing complexity of data management and the need for real-time data utilization. As organizations grapple with evolving data structures and heightened data flow, spend analytics software offers a solution by providing flexibility and real-time synchronization, whether on the cloud or on-premises. This technology is transforming how businesses interact with spend data, enhancing data analysis processes and accessibility. Its applications across various sectors, including supply chain and logistics, BFSI, manufacturing, and retail, are reshaping market dynamics. The software provides companies with a competitive edge by offering in-depth insights through data visualization, facilitating cost-saving processes, and ensuring real-time data updates, which improve scalability and reduce investment costs.
The market is moderately competitive, with a few key players dominating due to their technological expertise in data analytics. These companies are focusing on expanding their global presence through product innovation and strategic collaborations. The Asia-Pacific region is anticipated to be the fastest-growing market, fueled by increased adoption of analytics tools and digital deployment across industries. The region's growth is supported by government initiatives and the rising awareness of spend analytics among small and medium enterprises. Despite the promising growth prospects, challenges such as the complexity of migrating from legacy systems and stringent regulatory requirements may hinder market expansion. Nonetheless, advancements in IoT technologies and the integration of AI and ML in spend analytics are expected to drive further adoption and market growth.
Spend Analytics Software Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Assessment on the Impact of COVID-19 on the Market
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Deployment
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2.1.1 On-premise
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2.1.2 On-cloud
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2.2 By End-User
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2.2.1 Healthcare & Life Sciences
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2.2.2 Energy & Utilities
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2.2.3 Retail & E-commerce
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2.2.4 Banking, Financial Services & Insurance
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2.2.5 Manufacturing
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2.2.6 IT & Telecommunications
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2.2.7 Other End-Users
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2.3 Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 Latin America
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2.3.5 Middle East & Africa
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Spend Analytics Software Market Size FAQs
What is the current Spend Analytics Software Market size?
The Spend Analytics Software Market is projected to register a CAGR of 18.20% during the forecast period (2024-2029)
Who are the key players in Spend Analytics Software Market?
Capgemini SE, IBM Corporation, SAP SE, Genpact Ltd. and Jaggaer Inc. are the major companies operating in the Spend Analytics Software Market.