Sourcing Software Market Size, Share, Industry Trends and Forecast to 2030

Sourcing Software Market Size & CAGR in 2021

The global sourcing software market is anticipated to reach a market size of USD 5.6 billion by the end of 2021, with a Compound Annual Growth Rate (CAGR) of 8.2%.

COVID-19 Impact on the Sourcing Software Market

The sourcing software market witnessed a significant impact due to the COVID-19 pandemic. The sudden shift towards remote work and digital transformation initiatives led to an increased demand for sourcing software solutions. Companies began to focus more on streamlining their procurement processes and ensuring supply chain resilience, which further boosted the adoption of sourcing software.

On the flip side, the initial phase of the pandemic resulted in supply chain disruptions, leading to delays in sourcing activities and hindering market growth. However, as businesses adapted to the new normal, the sourcing software market bounced back and is expected to continue its upward trajectory in the coming years.

Sourcing Software Dynamics

The sourcing software market is driven by factors such as the increasing focus on cost optimization, the need for efficient procurement processes, and the rising adoption of cloud-based sourcing solutions. Organizations across various industries are leveraging sourcing software to enhance their sourcing strategies, improve supplier relationships, and achieve better operational efficiency.

Moreover, technological advancements like artificial intelligence, machine learning, and big data analytics are transforming the sourcing software landscape, enabling companies to make data-driven decisions and gain a competitive edge in the market.

Segments and Related Analysis

The sourcing software market can be segmented based on deployment mode, organization size, end-user industry, and region. The market segments include on-premises sourcing software and cloud-based sourcing software, catering to small, medium, and large enterprises across industries such as manufacturing, healthcare, retail, and IT.

Each segment offers unique benefits and features, allowing organizations to choose the sourcing software solution that best fits their requirements and budget.

By Region Analysis

In terms of regional analysis, North America currently holds the largest market share in the sourcing software market, driven by the presence of key market players, technological advancements, and the early adoption of sourcing software solutions.

On the other hand, Asia Pacific is expected to witness the highest CAGR during the forecast period, owing to the increasing digitalization, rising investments in procurement technologies, and the growing awareness of the benefits of sourcing software among organizations in the region.

Key Market Players and Competitive Landscape

Some of the key players in the global sourcing software market include SAP Ariba, Coupa Software, Oracle, IBM, GEP, Jaggaer, Zycus, Ivalua, SynerTrade, and SCM Solutions. These companies are focusing on product innovation, strategic partnerships, and mergers and acquisitions to strengthen their market position and expand their customer base.

The competitive landscape of the sourcing software market is characterized by intense competition, with vendors vying for market share through differentiation, pricing strategies, and the introduction of advanced features and functionalities in their solutions.

Recent Happenings in the Sourcing Software Market

In recent years, the sourcing software market has witnessed several key developments, including:

- Strategic partnerships between leading software providers to enhance sourcing capabilities and deliver integrated solutions to customers.

- Introduction of AI-powered sourcing tools that enable organizations to automate sourcing processes, analyze supplier data, and optimize supplier selection.

- Increased focus on sustainability and ethical sourcing practices, with software vendors incorporating features to track supplier compliance, reduce carbon footprint, and promote responsible sourcing.

Overall, the sourcing software market continues to evolve rapidly, driven by technological advancements, changing business needs, and the increasing demand for digital procurement solutions.