Good Opportunities for Vendors in Spend Analytics Market as the Demand is likely to Increase in the Coming Years

Spend analytics has become a vital and a powerful asset for procurement departments that helps in strategic planning and evaluating total expenditure on products, services, and other commodities, thereby improving the overall business scenario by decreasing the procurement costs and enhancing efficiency. Spend analysis tools are increasingly becoming available in the market, thus easing and speeding up the process. Looking at these benefits, the enterprises are now rapidly adopting spend analytics software and services, which in turn is triggering the growth of the global market for spend analytics.

Market overview

The global spend analytics market which is estimated to be worth USD 1.33 Billion in 2017 is predicted to reach a value of USD 3.01 Billion by 2022, growing at a CAGR of 17.7% during the forecast period from 2017 to 2022.

Based on application, financial management is expected to continue dominating the market over the forecast period, owing to the rising adoption of spend analytics software and services among organizations.

Among verticals, the retail & eCommerce vertical is expected to lead the market in terms of market share during the projected period, owing to the rising need for generating insights from spend data by organizations in working capital performance, supplier performance management, standardization of parts, and sourcing strategy development.

Based on deployment model, the cloud deployment model is expected to witness the highest growth between 2017 and 2022, mainly due to its cost-effectiveness, scalability, and ease of deployment.

Which region is expected to be leading the market?

Geographically, the North American market for spend analytics is expected to dominate the global market with the highest market share, mainly because of the early adoption of new and emerging technologies and the presence of many major vendors for spend analytics in this region, which are further helping in securing revenues in the market. However, the market in Asia-Pacific is projected to grow at the highest CAGR over the forecast period, owing to the increased adoption of cost-effective spend analytics software and services among SMEs and rising technology expenditures in emerging economies such as China and India.

What are the factors impacting the growth of this market?

The growth of the worldwide market for spend analytics is being primarily influenced by the following factors:

  • Growing need for supplier and market intelligence
  • Predictive analytics for businesses
  • Need for the better management of internal compliance policies and external contracts
  • Rising demand for cloud computing technology

Moreover, rising mobile applications are expected to open an array of opportunities for the growth of this market.

On the flip side, difficulty in migrating from legacy systems is likely to act as a major deterrent for the growth of this market. Furthermore, lack of standardized process, large number of data sources, issues regarding achieving consistency in business semantics and interpretations, data privacy and security concerns, and concerns related to positive Return on Investment (RoI) are the major challenges being faced by the leading players involved in this market.

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Leading companies and strategies adopted

SAP SE (Germany), SAS Institute, Inc. (US), IBM Corporation (US), Oracle Corporation (US), Coupa Software Inc. (US), Zycus Inc. (US), Proactis (UK), Empronc Solutions Pvt. Ltd. (India), JAGGAER (US), Rosslyn Analytics, Ltd. (UK), Ivalua Inc. (US), and BravoSolution SPA (US) are the key vendors that offer spend analytics solutions.  These are adopting various types of organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers & acquisitions in order to expand their offerings in the market as well as to achieve sustained growth in the coming years.

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