by The Business Spend Management Software Market is estimated to be valued at US$ 18.43 Bn or Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Business spend management (BSM) software helps organizations streamline and control spending for goods and services. It automates procurement processes to reduce costs and boost efficiency. BSM software offers spend analytics, expense management, contract management, supplier management and sourcing features. It is widely adopted by enterprises to gain real-time visibility into spending patterns and optimize procurement. The software finds applications across industries for managing expenditure on travel, facilities, services, supplies and other operational costs.
Market Dynamics:
Rising demand for spend visibility and control: BSM software provides comprehensive spend visibility and control capabilities which help organizations analyze spending patterns, identify overspending, budget variances and potential savings opportunities. This drives greater adoption of such solutions for real-time monitoring and optimization of procurement spend. Furthermore, features like spend classification, reporting and analytics enable efficient budget management and compliance with internal policies.
Improving efficiency of procurement processes: BSM solutions automate tedious and time-consuming manual procurement tasks like raising purchase requisitions, generating purchase orders, invoice processing and payment approval workflows. This streamlines processes, reduces paperwork and allows procurement teams to focus more on strategic sourcing. Automation with BSM software improves operational efficiency, saves costs of manual labor and expedites procurement cycle times.
Segment Analysis
The global Business Spend Management Software market is dominated by Procurement, Travel and Expense management (T&E) segment. Procurement segment holds around 35% share of the total market as business spend management software helps enterprises manage vendor relationships, process invoices and promote compliance. T&E segment holds 30% share as it allows companies to streamline reimbursements and audits for travel and other expenses.
PEST Analysis
Political: Regulations around spend controls and compliance are increasing in many countries which is driving adoption of business spend management solutions.
Economic: Volatile economic conditions are prompting companies to optimize spend and cut costs, enhancing the demand for spend management platforms.
Social: Digital native younger workforce prefers centralized digital tools for all business processes including expense reporting and invoice management.
Technological: Adoption of AI, predictive analytics and mobile solutions in spend management software is improving visibility into spend patterns and automating routine tasks.
Key Takeaways
The Global Business Spend Management Software Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing need to enhance procurement efficiency and control costs. The market size for 2023 is estimated to be US$ 18.43 Bn.
North America dominates currently with around 35% share led by developed economies like the US and Canada adopting spend optimization solutions faster. Asia Pacific is expected to exhibit fastest growth due to digitization drives in major countries and growth of multi-national companies.
Key players operating in the Business Spend Management Software are Advanced, Ariba, Inc. (SAP SE), Coupa Software Inc, GEP, Procurify, Sage Intacct, Inc. (The Sage Group PLC), Sievo, SutiSoft, Inc., TOUCHSTONE GROUP PLC, VA Tech Ventures Pvt Limited (Happay), and others. Advanced and Ariba captured major share due to breadth of spend solution offerings while regional players like GEP and Procurify are growing rapidly.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
