GVR Report cover Procurement As A Service Market Size, Share & Trends Report

Procurement As A Service Market Size, Share & Trends Analysis Report By Vertical (BFSI, Retail), By Component (Strategic Sourcing, Transaction Management), By Organization (Large, SMEs), And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-121-4
  • Number of Pages: 105
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global procurement as a service market size was valued at USD 5.94 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 10.4% from 2022 to 2030. Procurement as a service encapsulates the gamut of procurement services delivered via ‘as a service’ model. As the world slowly recovers from the COVID-19 pandemic, there is a greater demand for digital, agile, collaborative, and plug-and-play services, to lessen supply hazards and eventually streamline capital and cash flows. The COVID-19-induced uncertain times are estimated to digitally transform procurement services, which will drive market growth over the forecast period.

U.S. procurement as a service market size, by organization, 2020 - 2030 (USD Million)

Although the pandemic impacted the demand throughout 2020, with businesses shutting down manufacturing activities amid lockdown restrictions and enterprises cutting down costs, the recovery has been decent in 2021. As business activities resume throughout the world, the market is estimated to reach pre-COVID-19 levels by 2022. Procurement as a service represents an outsourced procurement services model with proficiency in procurement process management in businesses and enterprises. In 2021, procurement as a service gained prominence around the world as organizations rely profoundly on digitalization to execute their sourcing & procurement functions while tracking businesses’ payments and purchases.

The advent of high-scale digitalization in automating critical business processes, such as procurement and souring, is gaining traction post-COVID-19 pandemic, and this is estimated to favor market growth over the forecast period. The integration of technology into procurement functions enables strategic sourcing and supplier management to become increasingly proactive and efficient; this is estimated to enable cost reduction and improve the profitability of businesses. As a procurement service provider, the key is to ensure the latest technologies are utilized in enabling enterprises to predict better in terms of sourcing & procurement.

This is estimated to upkeep the market demand over the forecast period. Supply chains around the world are focusing on modernizing & streamlining processes to drive productivity & efficiency of business operations. This is estimated to increase the demand for digital procurement services. There is a growing need to improve procurement functions in organizations with the aid of new technologies on the horizon, and this will play a pivotal role in boosting market growth over the long term. Traditional procurement models failed to scale and are no longer feasible in the wake of the current pandemic, and this has served as a wake-up call for service providers.

In light of this new status quo, the significance of global procurement service providers has shifted from running negotiation contracts to exclusive business partnerships and strategic agreements to ensure short- and long-term business continuity. Similarly, on the demand side, the awareness regarding procurement processes & services among enterprises has increased manifold over the last couple of years. Custom services offerings have become a unique selling point for service providers, favoring the market growth. For instance, vendors like Tradeshift and SAP aim to build an individual supplier network, e-procurement, and procure-to-pay solutions for their customers. Therefore, the growing customer awareness about advances in procurement functions will bode well for future growth.

Component Insights

On the basis of components, the global market has been segmented into category management, strategic sourcing, contract management, spend management, transaction management, and process management. The strategic sourcing segment accounted for the largest market share of over 33% in 2021. The growing number of challenges, such as an outbreak of COVID-19 pandemic, natural disasters, and international political unrest that make a long-lasting impact on businesses, enable organizations to opt for better sourcing strategies. Also, with a deep-level analysis of supplier performance, internal processes, and supply markets, strategic sourcing helps companies meet efficiency and performance goals. Thus, strategic sourcing supports the effective execution of organizations’ sourcing strategies, thereby saving money.

The transaction management segment is expected to register considerable growth over the forecast period. Effective transaction management is a critical component that helps end-users increase business profitability while engaging suppliers in ethical and long-term business relationships. The growing focus of organizations on optimizing price & terms, purchase order, delivery, and invoicing applications in the overall transaction process is anticipated to drive the segment growth in coming years. Moreover, increasing automation and the rising need for market vendors to help understand enterprises’ complex dynamics of a commercial transaction environment are further anticipated to provide numerous growth opportunities to the market.

Organization Insights

On the basis of organizations, the global market has been further categorized into large enterprises and Small- & Medium-scale Enterprises (SMEs). The large enterprises segment accounted for the largest market share of more than 75.00% in 2021. Large enterprises with a plan to manage complex procurement contracts and bag deals will continue to invest in these services, subsequently remaining the largest segment. Furthermore, minimizing operational costs while eliminating business complexities makes these services a popular choice among large enterprises.

The Small & Medium Enterprises (SMEs) segment is expected to register a significant growth rate over the forecast period. Small- & medium-scale enterprises are observed shifting their focus from overall operations management to specific business process management to make quick decisions. As a result, growth in demand for procurement as a service model by the SME sector is observed across the global market. Moreover, the increasing need to improve the internal procurement process in an organization for streamlining and standardizing the entire procurement operation is also poised to propel the segment growth over the forecast period.

Vertical Insights

On the basis of verticals, the global market has been divided into BFSI, manufacturing, retail, it & telecom, healthcare, and others. The manufacturing vertical segment dominated the global market in 2021 and accounted for the largest share of more than 24.5% of the global revenue. Managing supply chains with shorter lead times contributed largely to the growth of this segment. Manufacturing will continue to be the highest demand driver for the market till 2030. The services in the manufacturing sector are focused on improving supply chain dynamics concerning direct inputs and raw materials.

Global procurement as a service market share, by vertical, 2021 (%)

The retail sector accounted for a decent share in 2021 and is anticipated to register a considerable growth rate over the forecast period. The retail sector is customer-oriented, characterized by dynamic industry trends stemming from evolving customer requirements and spending patterns. In the retail environment, these services help align several operations while maximizing returns on investment. Furthermore, with the integration of newer technologies, such as AI and machine learning, the procurement service offerings will provide many additional service features, including analytics, to the end-user, subsequently creating avenues for future growth. In addition to new technologies, growth in the e-commerce sector due to the pandemic will also favor growth in the long run.

Regional Insights

Europe led the global market in 2021 accounting for the maximum share of over 45.00% of the global revenue. The European market has reached maturity with expected modest growth. The increasing focus of procurement service providers in offering customized service plans to their customers and rising demand from European manufacturing enterprises for enhancing the procurement process are key factors driving the regional market growth. In addition, the growing demand for modernized solutions that could help organizations make data-driven decisions for managing procurement operations is also observed as a trending factor contributing to the market growth.

The Asia Pacific region is expected to grow at the fastest CAGR from 2022 to 2030 owing to a considerable rise in demand for digital solutions to manage and streamline supply chain operations. Also, the growing internet usage for direct and indirect procurement services is facilitating the adoption of procurement as a service in this region. In addition, in countries, such as China and India, where supply markets are strict, the demand for new sources of supply has emerged rapidly. To manage the new sources, the demand for procurement as a service solution is expected to grow considerably over the forecast period.

Key Companies & Market Share Insights

Providing custom and industry-specific solutions will be a long-term strategy for most vendors in the industry. Mergers and acquisitions will continue to be a key growth strategy to capture regional expertise and know-how while gaining market share. M&A strategies are focused on strengthening the company’s competency in offering supply chain transformation to businesses. The companies also continue collaborating with suppliers and address cross-functional business decisions, to simplify compliance requirements. Some of the prominent players operating in the global procurement as a service market include:

  • Accenture plc

  • Aegis Company

  • Genpact

  • GEP

  • HCL Technologies Ltd.

  • Infosys Ltd.

  • International Business Machines Corp.

  • Tata Consultancy Services Ltd.

  • Wipro Ltd.

  • WNS (Holdings) Ltd. 

Procurement As A Service Market Report Scope

Report Attribute


Market size value in 2022

USD 6.15 billion

Revenue forecast in 2030

USD 13.58 billion

Growth rate

CAGR of 10.4% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, organization, vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Accenture plc; HCL Technologies Ltd.; Aegis Company; GEP; International Business Machines Corp.; Infosys Ltd.; Genpact; Wipro Ltd.; WNS (Holdings) Ltd.; Tata Consultancy Services Ltd.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global procurement as a service market report on the basis of component, organization, vertical, and region:

  • Component Outlook (Revenue, USD Million, 2017 - 2030)

    • Strategic Sourcing

    • Spend Management

    • Process Management

    • Category Management

    • Contract Management

    • Transaction Management

  • Organization Outlook (Revenue, USD Million, 2017 - 2030)

    • SMEs

    • Large Enterprises

  • Vertical Outlook (Revenue, USD Million, 2017 - 2030)

    • BFSI

    • Manufacturing

    • Retail

    • IT & Telecom

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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