• December 2023: Corcentric and International Motorcoach Group, a motorcoach operator network in North America, announced that Corcentric’s Fleet Procurement Services through IMG’s procurement spending has risen to levels after the COVID-19 pandemic.

• November 2023: Ivalua announced a partnership with Sourcing Champions, a procurement consulting firm, by integrating Ivalua’s comprehensive S2P platform with the aim of enabling organizations in the Netherlands to increase procurement effectiveness through procurement digitalization.

In this report, the Procurement Analytics Market has been segmented by Type, Deployment Type, Application, End-User, and Geography.

Procurement Analytics Market, Segmentation by Type

The Procurement Analytics Market has been segmented by Type into Software and Services.

Software

The Software segment currently leads the Procurement Analytics Market, representing approximately 65% of the total market share. This category encompasses platforms designed to automate procurement workflows, offer real-time data insights, and enhance strategic sourcing decisions. With the increasing adoption of AI-driven analytics and the need for real-time dashboards, software solutions are becoming indispensable for enterprises aiming to gain a competitive edge in procurement efficiency.

Services

Comprising nearly 35% of the Procurement Analytics Market, the Services segment plays a crucial role in supporting the effective deployment of analytics tools. This includes consulting, integration, training, and technical support services that help organizations maximize their return on analytics investments. The growing reliance on external expertise and managed services is driving consistent demand in this category.

Procurement Analytics Market, Segmentation by Deployment Type

The Procurement Analytics Market has been segmented by Deployment Type into On-Premise and Cloud.

On-Premise

The On-Premise deployment model holds close to 40% of the Procurement Analytics Market and is favored by organizations requiring high levels of data control and system customization. These solutions are particularly popular in industries with strict regulatory requirements, where data sovereignty and internal hosting are essential. While cloud options are growing rapidly, on-premise analytics platforms remain critical for enterprises managing sensitive procurement data within secure, internal networks.

Cloud

With an estimated 60% market share, the Cloud segment leads the Procurement Analytics Market in deployment preference. Its growth is fueled by advantages such as cost-efficiency, ease of integration, and flexibility across diverse procurement operations. Cloud-based platforms support real-time analytics, allowing organizations to make data-driven decisions from anywhere. As digital transformation accelerates, cloud deployment continues to gain traction as the go-to model for scalable and responsive procurement analytics.

Procurement Analytics Market, Segmentation by Application

The Procurement Analytics Market has been segmented by Application into Supply Chain Management, Risk Analytics, Spend Analytics, Vendor Management, and Contract Management.

Supply Chain Management

The Supply Chain Management application dominates the Procurement Analytics Market, representing about 30% of the segment. Analytics tools in this area enable businesses to optimize inventory planning, improve demand forecasting, and assess supplier performance in real time. As companies seek more agile and cost-effective supply chains, procurement analytics is playing a pivotal role in enhancing overall supply chain efficiency.

Risk Analytics

Accounting for nearly 20% of the application segment, Risk Analytics is critical for identifying and mitigating procurement vulnerabilities. Organizations utilize these tools to monitor supplier risks, enforce regulatory compliance, and forecast potential disruptions. The increasing need for supply chain resilience amid global uncertainties is driving demand in this space.

Spend Analytics

With approximately 25% market share, Spend Analytics empowers companies to analyze spending behavior, uncover cost reduction opportunities, and ensure budget alignment. As organizations aim to improve ROI and eliminate inefficiencies, this application continues to be central to strategic procurement decisions.

Vendor Management

Capturing about 15% of the market, Vendor Management involves using analytics to evaluate supplier reliability, track performance metrics, and manage multi-vendor relationships efficiently. Businesses with complex supplier ecosystems rely on these tools to enhance collaboration and maintain compliance across their vendor network.

Contract Management

Representing around 10% of the market, Contract Management analytics are instrumental in automating contract workflows, identifying risk exposures, and ensuring regulatory compliance. This application is gaining traction as organizations strive for greater transparency and efficiency in procurement contract handling.

Procurement Analytics Market, Segmentation by End-User

The Procurement Analytics Market has been segmented by End-User into Manufacturing, Retail and Consumer Goods, BFSI, and Transportation and Logistics.

Manufacturing

Leading the end-user segmentation with nearly 35% market share, the Manufacturing sector is a major adopter of procurement analytics. Manufacturers utilize these tools to enhance supplier collaboration, control material sourcing costs, and streamline supply chain workflows. With rising pressure for operational efficiency and cost reduction, analytics is integral to modern manufacturing strategies.

Retail and Consumer Goods

Representing roughly 25% of the Procurement Analytics Market, the Retail and Consumer Goods industry benefits from analytics-driven insights into demand forecasting, supplier lead times, and inventory turnover. With consumer preferences constantly shifting, companies in this sector use procurement analytics to stay agile and competitive.

BFSI

Contributing approximately 20%, the BFSI industry relies on procurement analytics to drive cost transparency, manage third-party risk, and maintain regulatory compliance. As data security and governance become top priorities, banks and insurance providers are adopting advanced analytics to streamline procurement and contract operations.

Transportation and Logistics

Also comprising nearly 20% of the market, Transportation and Logistics firms deploy procurement analytics to optimize carrier selection, monitor supplier SLAs, and anticipate transportation costs. The demand for real-time visibility across the logistics value chain makes analytics essential for sustained performance and reliability.

Procurement Analytics Market, Segmentation by Geography

In this report, the Procurement Analytics Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Procurement Analytics Market Share (%), by Geographical Region

North America

Holding a dominant 35% share, North America leads the global Procurement Analytics Market. The region benefits from widespread adoption of advanced analytics platforms, a strong culture of technology innovation, and a mature base of enterprises focused on data-driven procurement strategies. Continuous investment in AI, cloud solutions, and supply chain automation further strengthens its leadership.

Europe

Capturing around 25% of the market, Europe is a strong player driven by demand for regulatory compliance, cost transparency, and strategic sourcing. Industries across Germany, the UK, and France are integrating analytics into their procurement processes to gain better insights and enhance operational control.

Asia Pacific

Representing approximately 20%, the Asia Pacific region is emerging as a high-growth zone in the procurement analytics space. Rising adoption of digital procurement, especially in fast-growing economies like India, China, and Southeast Asia, is fueling regional expansion. Organizations here are increasingly turning to analytics to navigate complex, high-volume supply chains.

Middle East and Africa

With a market share of around 10%, Middle East and Africa are gradually adopting procurement analytics to support cost-effective sourcing and improve supply chain resilience. The region’s focus on infrastructure, oil & gas, and government digitization initiatives is opening new avenues for analytics tools.

Latin America

Accounting for roughly 10% of global revenue, Latin America is showing steady progress in procurement analytics adoption. Companies in Brazil, Mexico, and Chile are embracing analytics to address challenges such as vendor management, budget constraints, and compliance oversight across diverse sectors.

This report provides an in depth analysis of various factors that impact the dynamics of Procurement Analytics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Growing Demand for Cost Reduction and Operational Efficiency
• Rising Focus on Supplier Relationship Management (SRM)
• Expansion of E-Commerce and Digital Transformation

• Emphasis on Real-Time Decision-Making and Predictive Insights - The increasing need for real-time decision-making and predictive insights is a major driver in the procurement analytics market. Modern procurement teams require tools that offer instant visibility into supply chain performance and help mitigate risks before they materialize. Advanced analytics solutions allow organizations to make data-driven purchasing decisions with speed and precision.

  With growing pressure to optimize costs, companies are leveraging predictive models and real-time dashboards to anticipate demand fluctuations, supplier issues, and pricing changes. These capabilities help streamline sourcing strategies and improve contract negotiation outcomes. Access to live procurement metrics also enhances agility during economic shifts or supply disruptions.

  Incorporating AI and machine learning into analytics platforms further enhances decision-making by identifying patterns and forecasting outcomes based on historical data. This not only reduces manual workload but also enables proactive intervention rather than reactive measures. Procurement teams can better plan inventory, manage budgets, and align procurement goals with organizational strategy.

  The demand for instant insight, faster response times, and operational efficiency is driving adoption across industries. Companies now recognize that procurement is not just a back-office function, but a strategic value center empowered through real-time analytics and intelligent data processing.

Restraints

• Concerns Regarding Data Security and Privacy
• Complexity in Implementing Analytics Solutions
• Lack of Skilled Workforce and Analytical Talent

• Resistance to Change Among Traditional Procurement Practices - One of the key restraints in the procurement analytics market is the resistance to change among traditional procurement teams. Many organizations still rely on legacy systems, manual spreadsheets, and intuition-based decision-making, making it difficult to transition to data-driven processes. This mindset limits the adoption of advanced analytics tools across procurement functions.

  Change resistance often stems from concerns over job displacement, skill gaps, and disruption to established workflows. Procurement professionals may lack technical expertise or feel uncomfortable interpreting complex data outputs. This slows digital transformation and causes underutilization of powerful analytics platforms already deployed by the organization.

  The absence of top-down leadership support and cross-functional alignment hampers successful adoption. Without clear guidance and ongoing training, analytics initiatives can face internal pushback or fail to achieve desired outcomes. This results in inconsistent use, data silos, and a lack of trust in data-generated insights.

  This challenge, organizations must foster a culture of innovation by investing in change management, stakeholder buy-in, and procurement-specific analytics training. Addressing cultural and operational inertia is essential to realizing the full potential of procurement analytics solutions.

Opportunities

• Integration of Blockchain Technology in Procurement Processes
• Growth in Cloud-Based Analytics Solutions
• Expansion into Emerging Markets and Industry Verticals

• Development of Predictive and Prescriptive Analytics Capabilities - The ongoing development of predictive and prescriptive analytics capabilities presents a major opportunity in the procurement analytics market. These advanced technologies move beyond basic reporting to offer actionable insights, risk forecasts, and optimized sourcing strategies. Procurement teams can now leverage analytics not only to understand what happened, but also to know what will happen and what to do about it.

  Predictive analytics uses historical data to identify emerging trends, supplier performance issues, and potential cost fluctuations. This helps organizations plan better, avoid disruptions, and negotiate more effectively. Prescriptive analytics takes it a step further by recommending optimal decisions and automated actions based on a defined set of objectives and constraints.

  Industries such as retail, manufacturing, and healthcare are actively deploying these tools to enhance procurement precision and maximize return on investment. Real-time integration with ERP systems, market intelligence feeds, and supplier scorecards enables fully informed, strategic sourcing decisions. These systems contribute to cost reduction, supplier diversity, and sustainability goals.

  As AI and advanced analytics mature, the capabilities of predictive and prescriptive tools will become more sophisticated and accessible. Vendors focusing on intuitive dashboards, scenario modeling, and intelligent automation are well-positioned to capitalize on this shift. The future of procurement lies in intelligence-led, prescriptive decision-making that transforms data into competitive advantage.

Key players in Procurement Analytics Market include :

• Sap Se
• Oracle Corporation
• Sas Institute Inc
• Ibm Corporation
• Zycus Inc
• Bridgei2I Analytics Solutions Pvt. Ltd
• Jaggaer Inc.
• Genpact Limited

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis