Procurement-as-a-Service (PaaS) Market Analysis and Global Forecast 2024-2034

[vc_row content_placement=”top”][vc_column css=”.vc_custom_1532433256788{margin-right: 15px !important;}” offset=”vc_col-md-8″][woodmart_responsive_text_block size=”custom” align=”left” woodmart_css_id=”67d6e8d418e77″ content_width=”100″ inline=”no” text_font_size=”eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zaXplIiwiY3NzX2FyZ3MiOnsiZm9udC1zaXplIjpbIiAud29vZG1hcnQtdGV4dC1ibG9jayJdfSwic2VsZWN0b3JfaWQiOiI2N2Q2ZThkNDE4ZTc3IiwiZGF0YSI6eyJkZXNrdG9wIjoiMTRweCJ9fQ==” responsive_spacing=”eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2N2Q2ZThkNDE4ZTc3Iiwic2hvcnRjb2RlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV90ZXh0X2Jsb2NrIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=”]

Procurement-as-a-Service (PaaS) Market Overview

The Procurement-as-a-Service (PaaS) Market size accounted for USD 6.87 Billion in 2023 and is estimated to account for 7.14 Billion in 2024. The Market is expected to reach USD 22.36 Billion by 2034 growing at a compound annual growth rate (CAGR) of 12.56% from 2024 to 2034. Procurement-as-a-Service (PaaS) refers to the outsourcing of procurement functions to specialized service providers who offer expertise, technology, and operational support. PaaS providers typically handle sourcing, category management, supplier management, procurement analytics, and transactional procurement. This model helps businesses streamline their procurement processes, reduce costs, and improve efficiency.

The Procurement-as-a-Service (PaaS) market is expanding rapidly as businesses seek flexible, cost-effective, and technologically advanced procurement solutions.

Global Procurement-as-a-Service (PaaS) Market Synopsis

Procurement-as-a-Service (PaaS) Market Dynamics

The major factors that have impacted the growth of Procurement-as-a-Service (PaaS) Market are as follows:

Drivers:

Ø  Growing Adoption of Digital Procurement Technologies

AI, machine learning, and blockchain enhance supplier risk assessment and fraud detection. Cloud-based procurement platforms improve collaboration and real-time decision-making and Robotic Process Automation (RPA) streamlines repetitive procurement tasks, boosting efficiency. Businesses require procurement solutions that scale with their needs. PaaS allows organizations to outsource specific procurement functions without overhauling their internal processes and Small and medium enterprises (SMEs) benefit from on-demand procurement services.

Restraint:

• Data Security and Privacy Concerns

Sensitive procurement data (pricing, contracts, supplier details) is vulnerable to cybersecurity threats. Cloud-based PaaS solutions raise concerns about data breaches and unauthorized access. A company may hesitate to migrate procurement data to third-party cloud providers due to cybersecurity risks. Advanced procurement services with AI, blockchain, and analytics require significant investment and SMEs and cost-sensitive businesses may struggle to afford PaaS adoption.

Opportunity:

⮚     Rising Adoption of Cloud-Based Procurement Solutions

Cloud-based PaaS offers greater flexibility, scalability, and remote access. More businesses are moving away from on-premise procurement software and cloud solutions enable real-time data access and supplier collaboration. Companies are prioritizing green procurement and sustainable supplier sourcing. PaaS solutions can provide real-time ESG compliance monitoring and carbon footprint tracking and Businesses can meet regulatory and corporate social responsibility (CSR) requirements through PaaS.

Procurement-as-a-Service (PaaS) Market Segment Overview

By Component

Based on Component, the market is segmented based on By Transaction Management, Strategic Sourcing, Process Management, Spend Management, Category Management, Contract Management. The strategic sourcing segment dominated the market. The projected period will fuel the market through the expanding need for businesses to use technologies to enhance procurement activities.

By Organization Size

Based on Deployment Type, the market segment has been divided into By Large Scale Enterprise & Small-Medium Enterprise. The large enterprise segment dominant the market. Large enterprises will use these services to handle intricate contract arrangements and beg agreements, absorbing a sizable portion of the overall income share. Large enterprises choose these services because they cut operational costs while simplifying operations.

By Vertical

Based on Application, the market segment has been divided into By Travel and Hospitality, Manufacturing, Healthcare, Retail, Consumer Goods Market, Energy & Utilities, Banking, Insurance and Financial Services & IT & Telecom. The manufacturing segment dominant the market. The category’s growth will be heavily influenced by how supply chains with shorter lead times are managed. Manufacturing will continue to be the main driver for the market for procurement as a service. The manufacturing sector’s services will concentrate on enhancing the supply chain dynamics regarding direct inputs and raw materials.

Global Procurement-as-a-Service (PaaS) Market Regional Analysis

Based on region, the global Procurement-as-a-Service (PaaS) Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Procurement-as-a-Service (PaaS) Market followed by the Asia-Pacific and Europe regions.

North America Global Procurement-as-a-Service Market

North America holds a dominant position in the Procurement-as-a-Service (PaaS) Market. North America has historically held a significant market share. This is largely due to the region’s advanced technological infrastructure, high adoption rates of cloud-based solutions, and a mature outsourcing industry and the presence of numerous leading technology and consulting firms further strengthens the region’s market position.

Asia-Pacific Global Procurement-as-a-Service Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Procurement-as-a-Service (PaaS) Market industry. Rapid industrialization, particularly in countries like China and India, is a major driver. Increasing adoption of digital transformation initiatives and a growing focus on streamlining procurement processes are also contributing factors and Rising number of SMEs and large enterprises seeking to optimize procurement and growing awareness of the benefits of PaaS.

Competitive Landscape

The global Procurement-as-a-Service (PaaS) Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• CA Technologies
• Accenture
• Corbus
• Infosys
• Aegis
• GAP
• Genpact
• TCS
• Proxima
• HCL Technologies.

Key Development

• In November 2022, IBM and Vodafone collaborated to study Quantum-Safe Cryptography and Quantum Computing.
• In January 2022, Proxima was obtained by Bain & Company, and the latter’s knowledge of the supply chain and procurement industries will enhance Bain & Company’s current range of procurement solutions. Proxima will run its own business within the service division of Bain & Company.

Scope of the Report

Global Procurement-as-a-Service (PaaS) Market, by Component

• Transaction Management
• Strategic Sourcing
• Process Management
• Spend Management
• Category Management
• Contract Management

Global Procurement-as-a-Service (PaaS) Market, by Organization Size

• Large Scale Enterprise
• Small-Medium Enterprise

Global Procurement-as-a-Service (PaaS) Market, by Vertical

• Travel and Hospitality
• Manufacturing
• Healthcare
• Retail
• Consumer Goods Market
• Energy & Utilities
• Banking
• Insurance & Financial Services
• IT & Telecom

Global Procurement-as-a-Service (PaaS) Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2034: USD 22.36 Billion
CAGR (2024-2034)	12.56%
Base year	2022
Forecast Period	2024-2034
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Component, Organization Size and Vertical
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	CA Technologies, Accenture, Corbus, Infosys, Aegis, GAP, Genpact, TCS, Proxima and HCL Technologies.
Key Market Opportunities	·       Rising Adoption of Cloud-Based Procurement Solutions ·       Growing Focus on Sustainable & ESG Procurement
Key Market Drivers	·       Growing Adoption of Digital Procurement Technologies ·       Scalability and Flexibility in Procurement Processes

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Procurement-as-a-Service (PaaS) Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Procurement-as-a-Service (PaaS) Market historical market size for the year 2021, and forecast from 2023 to 2033
• Procurement-as-a-Service (PaaS) Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Procurement-as-a-Service (PaaS) Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

[/woodmart_responsive_text_block][vc_column_text css=”” woodmart_inline=”no” text_larger=”no”]

[sp_easyaccordion id=”76766″][/vc_column_text][/vc_column][vc_column offset=”vc_col-md-4″][vc_column_text text_larger=”no” woodmart_inline=”no”]

[html_block id=”3961″][/vc_column_text][vc_wp_text]

Press Release

[rpwe limit=”10″ thumb=”true”][/vc_wp_text][/vc_column][/vc_row]