April 18, 2024
Business Spend Management Software Market

Business Spend Management Software Market Is Driven By Increased Enterprise Focus On Spend Optimization And Enhanced Governance

Business spend management software helps organizations to manage, control and automate various areas of non-payroll spending, providing enhanced visibility into expenditures, optimize procurement activities, enforce spending policies and reduce maverick spending. These solutions help streamline complex purchases, expense claims and invoices by maintaining vendor catalogs and agreements. The software can control purchasing policies, analyze existing and historical spending patterns, negotiate prices through appropriate channels and reduce unnecessary spending. This aids enterprises to direct budgets more strategically and realize meaningful cost savings.

The global Business Spend Management Software Market is estimated to be valued at US$ 18.43 billion in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends driving the growth of the business spend management software market is the rising adoption of cloud based spend management solutions. Cloud based spend management software offers various advantages compared to on-premise models including easy accessibility, scalability, lower upfront costs and minimal IT infrastructure requirements. Cloud deployment is gaining traction among small and medium enterprises owing to advantages such as pay-per-use pricing model and no maintenance costs. According to data published by CMI, over 70% of new spend management software deployments globally in 2022 adopted a cloud based model. This growing shift towards cloud based solutions is expected to continue supporting market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry in terms of technology but established players dominate the market.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives but switching costs and benefits of business spend management software increases bargaining power of suppliers.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternatives and presence of many players.

Threat of new substitutes: Threat from new substitutes is low as business spend management offers benefits over document-centric and ERP systems.

Competitive rivalry: High due to increasing focus on cloud-based offerings, advanced analytics capabilities and partnerships with payment processors by major vendors.

Key Takeaways

The Global Business Spend Management Software Market Demand is expected to witness high growth. The global Business Spend Management Software Market is estimated to be valued at US$ 18.43 billion in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

The market is currently dominated by North America and is expected to maintain its leading position throughout the forecast period as well. Growth in this region is driven by the presence of many established players and early adoption of advanced technologies. Asia Pacific region is expected to witness fastest growth during the forecast period owing to increasing digitalization and adoption of cloud-based technologies across industries in countries like China, India. Key players operating in the Business Spend Management Software market are SAP SE, Oracle, Sage, Coupa Software Inc., Advanced, Fraxion. Altus, Basware, IBM Corporation, Procurify, Orderhive.

Key players such as SAP SE, Oracle are focusing on partnerships and cloud-based solutions to enhance their product capabilities and geographic footprint. For instance, in 2022 Oracle partnered with Anthropic to integrate conversational AI into its business spend management platform. Fraxion launched new AI and analytics capabilities in its cloud-based business spend management software in 2023.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it