The Sourcing Software Market to reach $16.7 billion by 2030; the increasing demand for digital transformation, enhanced risk management, cost optimization, and sustainability in procurement practices, driving organizations to adopt advanced technolog

The Sourcing Software Market size is estimated to reach $16.7 billion by 2030, growing at a CAGR of 11.1% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Sourcing Software Market – By Deployment Model ( On-premise and Cloud- Based), By Enterprise Size ( Large Enterprise and Small and Medium Enterprises), By Industry Vertical  ( Manufacturing, Retail, IT and Telecom, Healthcare, Construction and Others)  and  By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

The increasing complexity of supply chains is driving the sourcing software market as organizations seek advanced solutions to manage multi-tiered supplier networks effectively. Additionally, the need for cost optimization compels businesses to adopt sourcing software that enhances procurement efficiency and identifies savings opportunities, fueling the growth of the Sourcing Software industry during the forecast period.

In 2023, North America captured the largest share of the sourcing software market at 11.1%, largely due to its strong manufacturing sector and the widespread adoption of AI and digitalization. The region's manufacturing industry, recognized for its innovation and technological progress, heavily relies on efficient sourcing processes to navigate complex supply chains and remain competitively priced. Leading manufacturers in North America are leveraging advanced sourcing software to automate supplier selection, monitor compliance, and track costs, resulting in substantial cost savings. The integration of AI in sourcing software is fundamentally changing manufacturing operations. AI-driven analytics deliver real-time insights into supplier performance, inventory levels, and market trends, enabling manufacturers to make swift, informed decisions. For instance, a press release from investors.xometry.com in October 2023 highlighted that nearly 70% of manufacturing CEOs who invested in AI technologies within the past year reported significant returns on investment in critical areas such as supply chain management, quality control, and procurement, according to the latest quarterly survey by Forbes, Xometry, and veteran polling firm John Zogby Strategies.

The increasing complexity of supply chains is driving growth in the sourcing software market as organizations seek to manage intricate networks of suppliers, logistics, and compliance requirements. As businesses expand globally and adapt to fluctuating market demands, they face challenges such as diverse supplier bases, varying regulations, and the need for real-time data visibility. Sourcing software provides the tools necessary to navigate these complexities, enabling companies to optimize procurement processes, enhance supplier collaboration, and improve overall supply chain efficiency. For example in oct 2024, Shippeo, a leader in real-time transportation visibility, has received the prestigious Supply Chain Innovation Award from the Council of Supply Chain Management Professionals (CSCMP) at the 2024 EDGE Conference. Shippeo’s Transportation Process Automation™ (TPA) innovation provides global customers with a robust framework to reduce disruptions and optimize actions in this complex landscape.

In a fiercely competitive business landscape, companies face ongoing pressure to lower operational costs while maintaining high quality and service standards. Sourcing software empowers organizations to streamline procurement processes, enhance supplier negotiations, and manage inventory more efficiently, resulting in substantial cost savings. For instance, in February 2024, LTIMindtree Limited introduced Navisource.AI, designed to optimize pricing, negotiation, and workflow management with the goal of reducing procurement costs by 10-15% while boosting operational efficiency from requisition to risk mitigation. Additionally, advanced analytics in sourcing solutions enable businesses to pinpoint cost-saving opportunities, optimize spending, and improve decision-making. By delivering insights into purchasing behaviors and supplier performance, sourcing software aids organizations in making informed choices that reduce waste and maximize value. Another example is Coupa Software's launch of its new AI-powered procurement platform in February 2024, aimed at enhancing procurement efficiency through automation, ultimately helping retailers lower costs and refine their decision-making processes.

• In September 2024, ServiceTitan, a software platform designed to empower the trades, announced the successful launch of its strategic partnership with Ferguson, a prominent distributor of commercial and residential supplies with around 1,500 locations across the United States. Through this collaboration, Ferguson's contractor network can take advantage of ServiceTitan’s robust platform, which supports residential, commercial, HVAC, and construction services, allowing them to secure more business, boost profitability, and enhance the lifetime value of their downstream customers.

• In April 2024, AVEVA Group Limited and Databricks, Inc. announced a strategic partnership aimed at advancing industrial software. This initiative centers on enhancing the integration between AVEVA Connect and the Databricks Data Intelligence Platform, equipping users with the tools needed to maximize their data and AI investments. The collaboration enables seamless and secure data exchange, empowering clients across various industries to uncover new value sources and gain greater flexibility in their industrial operations, all while adhering to stringent security and governance standards.

• In November 2023, Accenture plc, a prominent information technology company based in the U.S., finalized the acquisition of the Shelby Group for an undisclosed amount. This strategic acquisition enhances Accenture's capabilities in sourcing and procurement technology transformation, allowing it to better address client demands for digital procurement solutions.

Key companies profiled in the Sourcing Software Market are SAP SE, Workday Inc., Coupa Software Inc., GEP Corporation, ESM Solutions, Jaggaer Inc., Market Dojo, Xeeva, Zycus Inc., Ivalua Inc and others.

Enterprise Software Market - The Enterprise Software Market is estimated to reach $421.6 billion by 2030 and is estimated to grow at a CAGR of 7.1% during the forecast period 2024-2030. The growth of the market can be attributed to increased adoption of cloud-based services in small and medium-sized organizations.

 

Big Data In Supply Chain Market - The Market for Big Data In Supply Chain is forecast to reach $3.9billion by 2026, growing at a CAGR of 26.1% from 2021 to 2026 due to rapid increase in consumer and machine data developments. The market will be driven by new channel programs such as E-commerce and social media programs.

Industrial Digitalization Market - The Industrial Digitalization Market size is estimated to reach $2,718.0 billion by 2030, growing at a CAGR of 16.2% during the forecast period 2024-2030. The adoption of advanced technologies such as Internet of Things (IoT), artificial intelligence (AI), cloud computing, big data analytics, and automation systems in manufacturing, supply chain management, and other industrial processes fuelled the growth of the market.

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets.  

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format that assists an intelligent and informed decision-making process.

Mr. Venkat Reddy

IndustryARC

Email: [email protected]

USA: (+1) 518-282-4727

Web: https://www.industryarc.com

Follow us on LinkedIn | Facebook | Twitter