Procure To Pay Software Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 9.72 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Procure To Pay Software Market Analysis
The Procure To Pay Software Market is expected to register a CAGR of 9.72% during the forecast period.
- Companies across all sectors prioritize digital transformation in today's dynamic business landscape. Enterprises are transitioning from traditional, paper-based systems and manual processes to integrated, automated solutions that enhance control and efficiency. P2P software is pivotal in this shift, digitizing procurement and payment processes and minimizing reliance on paper invoices and manual interventions. By seamlessly integrating with other enterprise software systems like Enterprise Resource Planning (ERP) and Financial Management Systems, P2P software ensures automated workflows.
- Constantly pressured to optimize costs and boost profitability, companies recognize the importance of effective spend management. P2P software empowers organizations to oversee and regulate spending throughout the procurement cycle. Businesses can sidestep overpayments, duplicate invoices, and unauthorized purchases by automating approvals, purchase orders, and invoice processing. Furthermore, many P2P systems come equipped with analytics tools, enabling companies to discern spending patterns, monitor budgets, and refine purchasing strategies, ultimately enhancing cost efficiency.
- In September 2024, Jaggaer, a company that offers enterprise procurement and supplier collaboration, unveiled a partnership with Bottomline. This collaboration integrates Bottomline's Paymode payment network, its Premium ACH offering, virtual cards, and other payment modalities into Jaggaer's B2B payment solution, Jaggar Pay. Through this alliance, Jaggaer aims to strengthen its procure-to-pay offerings.
- Additionally, as businesses venture into new regions and markets, the intricacies of managing a global supply chain become evident. Global operations, with their unique challenges like currency differences, tax variations, regulatory nuances, and diverse payment systems, heighten the demand for P2P solutions. P2P software addresses these challenges with a unified platform, adept at managing multi-currency transactions, ensuring tax compliance across jurisdictions, and integrating with global payment systems. This capability allows businesses to expand their operations seamlessly, maintaining procurement efficiency and payment precision.
Procure To Pay Software Market Trends
Growing demand of Procure to Pay Software in SMEs
- In today's dynamic business landscape, Small and Medium Enterprises (SMEs) are turning to Procure-to-Pay (P2P) software to enhance their procurement and payment processes. Historically, SMEs have depended on manual or semi-automated methods for procurement management. However, with intensifying competition and an increasingly intricate business environment, these enterprises are acknowledging the advantages of contemporary software solutions. These solutions boost efficiency, minimize errors, and lower operational costs.
- Also, procure-to-pay (P2P) software automates the entire procurement journey, from the requisition of goods or services to the final payment to suppliers. The P2P cycle encompasses multiple stages: requisitioning, generating purchase orders, receiving orders, matching invoices, and processing payments. Previously, SMEs managed these stages manually, often resorting to spreadsheets, emails, and paper invoices. With this digital solution, SMEs can exercise better control, cut down on administrative costs, gain clearer insights into spending, and foster stronger supplier relationships.
- Moreover, there has been a growig number of SMEs around the world. As per the report published by World Bank and Eurostat, there were estimated to be approximately 358 million small and medium-sized enterprises (SMEs) worldwide in 2023 which was 305.9 million in 2016. This growing number of SMEs are driving the demand of procure to pay software
- Overall, with advantages like time savings, better decision-making, and heightened compliance, P2P software is swiftly emerging as an essential asset for SMEs. These enterprises aim to streamline operations, lessen administrative burdens, and pursue sustainable growth. As technological advancements continue, the appetite for P2P solutions among SMEs is poised to surge, reshaping the procurement landscape for businesses, regardless of size.
Growing Demand of Procure To Pay Software in North America
- North America has experienced a notable increase in adopting procure-to-pay (P2P) software. This integrated solution connects procurement and payment processes and reshapes the operational landscape for regional businesses. Factors such as the pursuit of operational efficiency, stringent regulatory compliance, and a growing reliance on technology-driven solutions are driving this demand. Businesses in North America, recognized for their penchant for early innovation adoption, are turning to P2P software to sharpen their competitive edge and adapt to the ever-evolving market landscape.
- Given the fierce competition in North America's business environment, there's a pressing need for streamlined operations. Traditional procurement and payment methods, often laden with manual tasks, are susceptible to errors and delays. Procure-to-pay software automates these workflows, delivering end-to-end solutions that enhance speed and accuracy.
- Automating and streamlining processes is revolutionary for sectors like retail, manufacturing, and healthcare, where procurement sees a flurry of transactions. By consolidating requisitioning, supplier selection, invoice matching, and payment approval onto a unified platform, P2P software alleviates bottlenecks and fosters smooth inter-departmental coordination.
- Further, the growing developments such as partnerships, acquisitions are set to bolster the market growth rate in the region. For instance, in August 2024, Vista, a global investment firm specializing in enterprise software, data, and technology-driven businesses, has acquired JAGGAER from Cinven. JAGGAER, a global leader in enterprise procurement and supplier collaboration software, offers a unified platform for both direct and indirect procurement processes. Their AI-driven solutions enhance and automate various functions, including sourcing, spend management, contracting, eProcurement, invoicing, and supply chain visibility, serving a diverse clientele of over 1,400 global customers.
- Overall, as businesses navigate the competitive waters and adapt to changing market dynamics, P2P solutions emerge as a robust and scalable framework for achieving operational excellence. With ongoing innovations and a trend towards widespread adoption, procure-to-pay software is poised to remain a pivotal element of business transformation in North America for the foreseeable future.
Procure To Pay Software Industry Overview
The procure to pay software market is semi-fragmented due to the significant presence of players such SAP SE, Zycus Inc, Infosys Limited, Oracle Corporation, Bertelsmann SE & Co, and others. These vendors focus on research and development activities, strategic partnerships, and other organic and inorganic growth strategies to earn a competitive edge throughout the forecast period.
Procure To Pay Software Market Leaders
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SAP SE
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Zycus Inc
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Infosys Limited
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Oracle Corporation
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Bertelsmann SE & Co
*Disclaimer: Major Players sorted in no particular order
Procure To Pay Software Market News
- April 2024: PairSoft has acquired APRO Software Solutions. This merger establishes a global platform for P2P, Order-to-Cash, and bank integrations, serving over 1,700 organizations across various ERP systems. By leveraging APRO's banking integrations in more than 180 countries, PairSoft enhances its global reach and accelerates its financial automation AI.
- September 2024: Penn State announced that it has modernized its procurement processes by implementing PSUbuy, a new procure-to-pay system set to replace Shop OnLion. Shop OnLion operates on SAP’s Supplier Relationship Management (SRM), which has announced an end-of-life date.
Procure To Pay Software Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Digital Transformaton in Procurement Services
5.1.2 Globalization and complex Supply Chain
5.2 Market Restraints
5.2.1 Limited Awarenss Among small Businesses
5.3 Key use cases and case studies
6. MARKET SEGMENTATION
6.1 By Deployment
6.1.1 Cloud
6.1.2 On-Premises
6.2 By Enterprise
6.2.1 SME
6.2.2 Large Enterprise
6.3 By End-User Industry
6.3.1 BFSI
6.3.2 Healthcare
6.3.3 Public & Institutions
6.3.4 Retail
6.3.5 Transportation
6.3.6 Manufacturing
6.3.7 Other End-User Verticals
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 SAP SE
7.1.2 Zycus Inc
7.1.3 Infosys Limited
7.1.4 Oracle Corporation
7.1.5 Bertelsmann SE & Co
7.1.6 Wax Digital
7.1.7 Coupa Software Inc.
7.1.8 Varis LLC
7.1.9 Tradeshift
7.1.10 Epicor Software Corp.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Procure To Pay Software Industry Segmentation
The Procure-to-Pay (P2P) process integrates all procurement and payment activities within an organization. It encompasses the complete lifecycle of acquiring goods or services, beginning with requisition and purchase order creation, moving through supplier selection and invoice processing, and culminating in the final payment to suppliers.
Procure to pay software report is segmented by deployment (cloud, on-premises), by enterprise (SME, large enterprise), by end-user industry (BFSI, healthcare, public & institutions, retail, transportation, manufacturing, and other end-user verticals) and by geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | |
| Cloud | |
| On-Premises |
| By Enterprise | |
| SME | |
| Large Enterprise |
| By End-User Industry | |
| BFSI | |
| Healthcare | |
| Public & Institutions | |
| Retail | |
| Transportation | |
| Manufacturing | |
| Other End-User Verticals |
| By Geography | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Procure To Pay Software Market Research FAQs
What is the current Procure To Pay Software Market size?
The Procure To Pay Software Market is projected to register a CAGR of 9.72% during the forecast period (2024-2029)
Who are the key players in Procure To Pay Software Market?
SAP SE, Zycus Inc, Infosys Limited, Oracle Corporation and Bertelsmann SE & Co are the major companies operating in the Procure To Pay Software Market.
Which is the fastest growing region in Procure To Pay Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Procure To Pay Software Market?
In 2024, the North America accounts for the largest market share in Procure To Pay Software Market.
What years does this Procure To Pay Software Market cover?
The report covers the Procure To Pay Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Procure To Pay Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Procure To Pay Software Industry Report
Statistics for the 2024 Procure To Pay Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Procure To Pay Software analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
