by Business spend management (BSM) software helps organizations in managing their spending by providing comprehensive visibility into finance operations and allowing to centralize spend approval workflows. BSM solutions allow organizations to automate procurement processes, reduce maverick spending, minimize financial risks and negotiate better contracts with suppliers. By gaining real-time insights into spending data across different business units, departments and geographies, organizations can identify overspending and spending leaks, cut non-compliant spending and optimize budgets. BSM software also provides reporting tools to monitor KPIs related to savings, compliance and ROI on negotiations. The growing need amongst organizations to curtail non-essential spending while improving operational efficiency and compliance is fueling the demand for business spend management solutions globally.
The global Business Spend Management Software Market is estimated to be valued at US$ 18.43 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the business spend management software market is the increasing prevalence of cardio-pulmonary diseases. As per estimates, cardio-vascular diseases cause over 17 million deaths annually across the globe. This has compelled healthcare providers to explore measures to optimize costs related to treatments whilst improving quality of care. BSM solutions help healthcare players gain real-time visibility into spend distributed across hospitals, clinics and diagnostic centers. This allows providers to identify and eliminate non-value adding costs, redirect savings towards expanding access to critical services and invest in innovative treatments. Furthermore, it also enables compliance with steadily evolving regulations related to pricing, reimbursements and patient charges.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. Established players have strong brand recognition and customer loyalty which acts as a barrier. However, entry barriers are relatively low as new players can offer innovative solutions.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have several options to choose from due to presence of many vendors. They can negotiate on price and demand additional services and customized solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Majority of the components used in business spend management software can be easily sourced from different suppliers. However, suppliers differentiate through innovation and technological expertise.
Threat of new substitutes: The threat of new substitutes is low. There are few substitutes that can provide similar functionalities as business spend management software.
Competitive rivalry: The competitive rivalry is high. The market is dominated by global as well as regional players. Players compete based on product offerings, pricing, customer service, and technological innovations.
Key Takeaways
The Global Business Spend Management Software Market Size is expected to witness high growth. The market size for 2023 is estimated to be US$ 18.43 Bn.
North America is expected to dominate the market during the forecast period. Presence of major players and early adoption of advanced technologies will drive the regional market.
Europe is also anticipated to showcase substantial growth owing to growing expenditure on business operations across industries.
Key players operating in the business spend management software market are SAP SE, Coupa Software Inc, Advanced, Procurify, IBM Corporation, Oracle, Tradogram, Fraxion. These players are focusing on new product launches and partnerships to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
