The integration of artificial intelligence (AI), generative AI, big data analytics, the Internet of Things (IoT), cloud computing, robotic process automation (RPA), image recognition, and other technologies is expected to enhance the capabilities of spend analytic solutions in the coming years. The technological advancements associated with spend analytics are driven by artificial intelligence (AI) integration. AI enables machines and software applications to reason, learn, and act like human cognition. This capability allows AI systems to analyze complicated data sets, recognize patterns, and make informed decisions based on the available information. The rise of AI technology has also led to an increased demand for powerful and efficient semiconductor chips. AI systems require high-performance computing capabilities to process and analyze large volumes of data in real time. This demand has driven the development of specialized AI chips optimized for AI workloads. Thus, the growing implementation of AI-based spend analytics is anticipated to create ample opportunities for the spend analytics for electronics and semiconductor market growth in the coming years.
The global spend analytics for electronics and semiconductor market trends indicate the potential for achieving substantial growth and is estimated to continue expanding in the coming years. Advancements in data integration and complex data analysis are expected to have a significant impact on the spend analytics for electronics and semiconductor market growth. The ecosystem of the market involves a variety of stakeholders, including software developers, consulting & advisory firms, and end users. Software developers are vital in creating and maintaining spend analytics software based on common or specific demands of enterprises in the electronics & semiconductors industry. Consulting & advisory firms play a vital role in the deployment of spend analytics software in electronics and semiconductor companies. Their expertise bridges the gap between technological abilities and business needs, ensuring the successful adoption of analytics solutions. End users of spend analytics for electronics and semiconductors include electronic manufacturing service providers, original equipment manufacturers, and others.
The global spend analytics for electronics and semiconductor market forecast is based on analysis of various factors, including the impact of fluctuations in raw material prices. Chip sales and demand variations can impact the overall revenue and profitability of companies operating in the electronics & semiconductor industry. Notably, Taiwan, the home of the largest contract chipmaker—TSMC, held a significant role as a prominent producer of semiconductors, which are widely utilized across various domains, including household appliances, mobile devices, data centers, and military aircraft. The uncertainty of raw material prices in the market can disrupt the supply chain, affecting the availability and pricing of electronic components and semiconductors. Also, the semiconductor shortage can be attributed to various factors, including market volatility, such as raw material prices and disruptions caused by the COVID-19 pandemic. As electronics and semiconductor companies strive to provide cost-effective products while maintaining competitiveness, they face the challenge of making strategic decisions during market volatility and uncertainty in raw material prices. This, in turn, benefits the progression of spend analytics for electronics and semiconductor market forecast, by increasing the probability of their adoption. Furthermore, fluctuations in raw material prices necessitate strategic decision-making to navigate challenging times. Hence, spend analytics is incorporated to facilitate the identification of inefficiencies, the optimization of procurement processes, and help make informed decisions necessary for effective cost management. By providing valuable insights into spending patterns, supplier performance, and market trends, spend analytics empowers companies to make data-driven outcomes and adapt their strategies accordingly. Companies operating in the electronics and semiconductor market can understand their spending patterns comprehensively, identify opportunities for cost reduction, mitigate risks, and enhance their overall financial performance in the face of market volatility and uncertainty by leveraging spend analytics. Thus, fluctuations in raw materials prices contribute to the growth of the spend analytics for electronics and semiconductor market forecast values.
The global spend analytics for electronics and semiconductor market is segmented on the basis of component, type, deployment, and application. Based on component, the market is bifurcated into software and services. Based on type, the market is segmented into predictive analytics, prescriptive analytics, and descriptive analytics. Based on deployment, the market is bifurcated into on-premise and cloud. Based on application, the market is segmented into financial management, risk management, supplier sourcing and performance management, governance and compliance management, demand and supply forecasting, and others. By geography, the spend analytics for electronics and semiconductor market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).
Spend analytics software includes enterprise-wide spending information in all formats across multiple sources and disparate systems—procurement cards, accounts payable, purchase orders, and every other buying channel. The software converts and presents spending data in terms of opportunities by deducing meaning from the mass of information. It transforms procurement activity through visibility and enables better control of enterprise-wide spend. An upsurge in the manufacturing of electronics and semiconductor products has resulted in the rapid generation of vast volumes of data. This creates the need for improved quality of data, which can be achieved using spend analysis software. Several players have launched advanced solutions to imrpove their spend analytics for electronics and semiconductor market share. For example, in February 2022, Coupa Software, a provider of Business Spend Management (BSM) solutions, announced the launch of Community.ai, a next-generation spend management solution suite. Coupa transforms B2B communities by improving interactions between buyers and sellers by combining the power of data-driven artificial intelligence with person-to-person relationships.
The APAC spend analytics for electronics and semiconductor market size was valued at US$ 332.16 million in 2022 and is projected to reach US$ 1,151.18 million by 2030; it is expected to register a CAGR of 16.8% from 2022 to 2030. The spend analytics for electronics and semiconductor market size in Asia Pacific is projected to experience rapid growth in the coming years and the region is anticipated to hold the largest spend analytics for electronics and semiconductor market share throughout the forecast period. Market progress in this region can be attributed to the increasing acceptance of analytics tools among consumers and businesses. The Asia Pacific region is witnessing a growing demand for spend analytics software, driven by the increased adoption of analytics tools; the growth of the big data and analytics sectors; and the specific needs of industries such as telecommunications, banking, central government, discrete manufacturing, and professional services. China, Japan, and India are at the forefront of spend analytics adoption in the region, driven by data explosion, urbanization, machine learning development, and many MSMEs. Key electronics & semiconductor manufacturers in Asia Pacific include Powerchip Semiconductor Manufacturing (PSMC), Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC), and Vanguard International Semiconductor (VIS), who are utilizing or are potential customers of the solutions developed by the key players considered in the spend analytics for electronics and semiconductor market analysis.
The growing utilization of spend analytics enables organizations in the electronics and semiconductor sector to optimize purchase processes and make well-informed spending decisions. By analyzing spending patterns, organizations can identify opportunities to reduce costs, effectively manage suppliers, and mitigate risks arising from disruptions in the supply chain. By closely monitoring and analyzing spending data, organizations can identify alternative suppliers, effectively manage costs, and ensure a stable supply of electronic components and semiconductors. Such factors propel the growth of APAC’s spend analytics for electronics and semiconductor market share.
Coupa Software Inc, IBM Corporation, Ivalua Inc, Lytica Inc, NB Ventures Inc (GEP), SAP SE, Scanmarket AS, Synertrade Inc, Vortal Connecting Business SA, and Zycus Inc are among the key players covered in the spend analytics for electronics and semiconductor market analysis. Several other major companies have been analyzed during this research study to get a holistic view of the spend analytics for electronics and semiconductor market ecosystem.
The regional trends and factors influencing the Spend Analytics for Electronics and Semiconductor Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Spend Analytics for Electronics and Semiconductor Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 537.56 Million |
| Market Size by 2030 | US$ 1,769.15 Million |
| Global CAGR (2022 - 2030) | 16.1% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Spend Analytics for Electronics and Semiconductor Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Spend Analytics for Electronics and Semiconductor Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The spend analytics for electronics and semiconductor market players highly adopt inorganic and organic strategies. A few major developments of the spend analytics for electronics and semiconductor market report are listed below:
The List of Companies - Spend Analytics for Electronics and Semiconductor Market
The software segment led the spend analytics for electronics and semiconductor market with a significant share in 2022 and services segment is expected to grow with the highest CAGR.
APAC is anticipated to grow with the highest CAGR over the forecast period.
The spend analytics for electronics and semiconductor market was estimated to be valued at US$ 537.56 million in 2022 and is expected to grow at a CAGR of 16.1% during the forecast period.
Fluctuations in raw materials prices and rise in demand for consumer electronics are driving factors of spend analytics for electronics and semiconductor market.
The growing implementation of AI-based spend analytics is expected to drive the growth of the spend analytics for electronics and semiconductor market in the coming years.
The spend analytics for electronics and semiconductor market are expected to reach US$ 1769.15 million by 2030.
The key players holding majority shares in the spend analytics for electronics and semiconductor market include Coupa, GEP/NB Ventures, IBM, Lytica, and SAP