Global Business Spend Software Market Size, Share, Growth Analysis, By Deployment type(On-premise, Cloud-based), By Solution type(Procure to Pay, Travel), By End-user(BFSI, IT) - Industry Forecast 2022-2028

The Global Business Spend Software Market was valued at USD 14125.77 million in 2021, and it is expected to reach market size of USD 28415.03 million by 2028, at a CAGR of 10.50% over the forecast period (2022-2028).

Rising business software market growth is predicted to be influenced by the expansion of digitalization and a preference for the utility of modern software systems. Global IT spending by businesses is predicted to increase by 4% in 2022, reaching approximately USD 4.4 trillion. These software help in managing expenditures and expenses and procurement utilising analytics and algorithm-based systems because they are essential for the overall growth and accomplishments of the firm.

BSMs are becoming more user-friendly and provide a variety of functionalities, such as end-to-end payment options, internal spend management, corporate cards, approval workflows, automated bill payments, visibility to all types of transactions, and accounting reconciliation, thanks to the development of cloud-based systems and automation. Businesses are focusing on using all-inclusive SaaS solutions for spend management, collaborative finance management, and sales acceleration management that are integrated on a single platform. These features are in demand by numerous enterprises and are anticipated to drive the growth of the business spend management market.

Top-down and bottom-up approaches were used to estimate and validate the size of Asia Pacific Business Spend Software Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Segments covered in this region

The global business spend management market is segmented by deployment type, solution type, end-user and region. By deployment type, the market is segmented into on-premise and cloud-based. Based on solution type the market is segmented into Procure to Pay, Travel and Expense Management, Spend Analysis, Contract Management and Others. Based on end-user the market is segmented into BFSI, IT and Telecom, Energy, Healthcare, Manufacturing and Others. Based on region the global business spend management software market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Driver

Due to the abundance of data, cloud-based BSM software is becoming more popular in businesses. The ability of remote cloud servers to access, manage, store, and process data is in high demand; in 2021, cloud services are expected to generate revenue of over USD 400 billion.

The manual methods of handling company transactions and spending are giving way to AI and ML-powered systems for categorising spending across ERP and CRM. To aggregate and match data across commodities and create future expenditure strategies based on data classification insights, data from suppliers and procurement can be added to the information system.

Restraints

The growth of the business software market could be hampered by growing data security concerns. These programmes help manage and process organisational spending and transactions by using information from various organisational domains. A survey conducted in 2020-2021 revealed that other industries and the financial sector are most vulnerable to cyberthreats. Such systems must be protected against data breaches and have enhanced data security.

Market Trend

Many businesses in a variety of sectors are implementing SaaS-based business spend management software because it reduces the risk associated with cash flow oversight, boosts productivity and efficiency, and offers better reporting and analytic capabilities. The market for software as a service (SaaS) is anticipated to reach USD 152 billion by 2023. In order to offer a wide range of its software catalogue as Software-as-a-Service (SaaS) on AWS, IBM and Amazon Web Services, Inc. (AWS) have announced a Strategic Collaboration Agreement (SCA).

For the purpose of lowering supply chain risk, top businesses invest in business spend management software. Meeting customer demands and assisting them in coping with supply chain disruptions and shortages requires managing an agile and cooperative supply chain. Business spend management software aids in managing complexity for organizations.