Global Business Spend Management (BSM) Software Market Size Forecast 2024 - 2033
19 Dec, 2024
How Is The Global Business Spend Management (BSM) Software Market Defined?
Business spend management (BSM) software refers to a suite of digital tools and solutions designed to help organizations for efficiently managing and optimizing their spending across various areas such as procurement, expenses, invoices, and supplier relationships. BSM software helps businesses enhance efficiency, reduce costs, and make data-driven decisions regarding their expenditures.
Business Spend Management (BSM) Software Global Market Report 2024 provides data on the global business spend management (bsm) software market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Business Spend Management (BSM) Software market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Business Spend Management (BSM) Software Market Size Expected To Change, And What Are The Growth Rate Projections?
The business spend management (BSM) software market size has grown rapidly in recent years. It will grow from $21.62 billion in 2023 to $24.66 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period can be attributed to the increased complexity of procurement processes, growth in regulatory compliance requirements, increased focus on cost optimization, growth in digital transformation initiatives, and increased focus on sustainability. The business spend management (BSM) software market size is expected to see rapid growth in the next few years. It will grow to $41.98 billion in 2028 at a compound annual growth rate (CAGR) of 14.2%. The growth in the forecast period can be attributed to the rise of AI-powered automation, expansion of mobile capabilities, growing importance of supplier diversity, rising concerns over cybersecurity, and increasing preference for subscription-based software models. Major trends in the forecast period include the adoption of artificial intelligence, cloud-based solutions, machine learning, and integration data analytics.
Which Drivers Are Accelerating Growth In The Business Spend Management (BSM) Software Market?
The rising e-commerce industry is expected to propel the growth of the business spend management software market going forward. E-commerce or electronic commerce refers to the buying and selling goods and services over the internet. The demand for e-commerce stems from its convenience, accessibility, and ability to provide a wide range of products and services to consumers from the comfort of their homes, anytime and anywhere. E-commerce businesses often have numerous expenses related to inventory, shipping, marketing, and more. Spend management software helps track and categorize these expenses, providing visibility into where money is being spent and enabling better budgeting and forecasting. For instance, according to the 2023 data released by the United States Census Bureau, a US-based government agency, e-commerce sales increased by 7.6% between the third quarter of 2022 and the third quarter of 2023 in the USA. Therefore, the increased demand for e-commerce industry is driving the growth of the business spend management software market.
Get Your Free Sample of the Global Business Spend Management (BSM) Software Market ReportWhat Are The Core Segments Of The Global Business Spend Management (BSM) Software Market?
The business spend management (BSM) software market covered in this report is segmented –
1) By Type: Indirect Spending, Direct Spending, Maintenance, Repair, And Operations (MRO) Spending
2) By Solution: Procure-to-Pay Solutions, Supplier And Risk Management, Travel And Expense Management, Contract And E-Tender Management, Spend Management, Others Solutions
3) By Deployment: Cloud, On-premise
4) By Enterprise Type: Small And Medium-Sized Enterprises, Large Enterprises
5) By End-user: Banking, Financial Services, And Insurance, Travel And Tourism, Hospitality, Healthcare, Information Technology (IT) And Telecommunication, Energy And Utility, Retail And E-commerce, Others End-users
Which Emerging Trends Are Reshaping The Business Spend Management (BSM) Software Market Size?
Companies in the business spend management (BSM) software market are concentrating on advanced spend management platforms to enhance operational efficiency. Spend management platforms are centralized systems that simplify, automate, and manage various spend processes. For example, in August 2021, Coupa Software Incorporated, a US-based software company, launched the Coupa App Marketplace. This platform offers access to certified, pre-built solutions that extend the capabilities of Coupa's BSM platform. It connects businesses with various BSM partners, offering solutions to enhance efficiency, automation, and value across processes like procurement, cost management, invoicing, and supplier management.
What Is The Largest Region In The Business Spend Management (BSM) Software Market?
North America was the largest region in the business spend management (BSM) software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the business spend management (BSM) software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.