Spend Management Platform Market Analysis Report & Growth Outlook 2030

The spend management platform market size is expected to grow from US$ 18.24 billion in 2022 to US$ 42.26 billion by 2030; it is estimated to grow at a CAGR of 11.1% from 2022 to 2030.

Analyst Perspective:

The growing technological advancements in the financial sector are one of the major factors for the growth of the spend management platform market. Also, the rising internet penetration globally and the increasing need to achieve efficiency in a competitive business environment are boosting the demand for spend management platforms across various industries engaged. In addition, the demand for the spend management platform is increasing tremendously as it helps eliminate inaccuracy and provides advanced analytics for a greater understanding of the firm's financial condition. Furthermore, the growing adoption of advanced technologies like AI and ML is further expected to fuel the growth of the spend management platform market in the forecasted period. Moreover, the increasing adoption of cloud technology will propel the growth of the spend management platform market in the forecasted period.

Market Overview:

Spend management platforms (SPM) are in high demand across all companies involved in a variety of sectors due to factors like the need for efficiency in a competitive corporate environment, the need to attain efficiency in a fast-paced technological innovation, and the increasing penetration of the internet. The spending management platform has seen a sharp increase in demand in recent years since it reduces errors and offers sophisticated analytics to provide a deeper comprehension of the company's financial situation. Furthermore, spend management software provides various benefits, such as it help in saving money and improving cash flow, reducing borrowing needs, providing insight, and maintaining compliance.

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Spend Management Platform Market: Strategic Insights

Spend Management Platform Market

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  CAGR (2023 - 2031)

  11.10%
• Market Size 2023
  US$ 20.26 Billion
• Market Size 2031
  US$ 47.04 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Key Players

• Coupa Software Inc.
• GEP
• IBM Corporation
• Procurify
• SAP SE
• Sievo
• SutiSoft, Inc.
• Touchstone Group Ltd
• Expensify Inc.
• Sage Group PLC

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Deployment

• Cloud
• On-Premise

Enterprise Size

• SMEs
• Large Enterprises

and Industry Vertical

• BFSI
• IT and Telecom
• Retail
• Healthcare
• Manufacturing
• Others

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Spend Management Platform Market Driver:

The Emergence of 5G is Driving the Growth of the Spend Management Platform Market

The 5G network is around 100 times faster than the 4G network, making real-time data acquisition easier. As the 5G network provides strong connectivity and high-speed data transfer, its demand is increasing across the world. According to the Groupe Speciale Mobile Association (GSMA), 5G penetration across the world is expected to reach 54% by 2030 from 17% in 2022. North America has the highest 5G penetration, with 39% in 2022; it is expected to reach 91% by 2030. 5G penetration in Asia Pacific (except China) and Europe is expected to increase from 4% and 11% in 2022 to 41% and 87% by 2030, respectively. As 5G is the critical new-generation network technology that can enable innovation and support digital transformation, its demand is increasing across the world. Therefore, the governments of various countries are investing in 5G infrastructure. In July 2021, the government of France announced its plan to invest about US$ 2.06 billion (EUR 1.7 billion) in its 5G market by 2025 via public and private investments. Through this, the government aims to accelerate the development of 5G in the country. Similarly, in January 2021, the government of South Korea announced that they would increase the coverage of the next-generation mobile networks, particularly 5G, to 85 cities this year from the current seven major cities. It invested around US$ 115.89 million (127.9 billion won) in 2021 to encourage the use of private 5G networks. Growing investments in 5G will help improve connectivity and acquire real-time data, including real-time location tracking, which can be used for various applications, from navigation to emergency services. Therefore, the emergence of a 5G network is fueling the growth of the spend management platform market.

Segmental Analysis:

Based on deployment, the spend management platform market is segmented into on-premise and cloud. The on-premise segment held the largest Spend Management Platform Market share in 2022, whereas the cloud segment is anticipated to register the highest CAGR during 2022-2030. The on-premise deployment of the spend management software leads to heavy expenditure by the enterprise, because of which usually large-scale enterprises opt for it, as it helps to cut down wasteful expenditures and increase operational efficiency. At the same time, cloud-based deployment can help small and medium enterprises avail different benefits of spend management software as it does not require a high initial investment for installing software. Using cloud-based software provides freedom to use it from any device with internet access. Additionally, it requires low maintenance and investment, further fueling the spend management platform market growth.

Regional Analysis:

North America is expected to witness significant growth in the spend management platform market in the forecasted period. In the region, the US will hold the largest spend management platform market share in 2022 and will register the highest CAGR during the forecasted period. North American countries like the US and Canada have been pioneers in the adoption of new technology and automation across their businesses over the years. The high penetration of the internet across the region, coupled with government initiatives to promote the adoption of digital technologies for business operation for smooth and seamless operation and minimizing human error, are further catalyzing the adoption of spend management platforms across North America.

North America has a high presence of IT and telecom companies. These companies offer their products and services across the globe, thereby generating revenue from several countries. Additionally, the traffic of telecommunication services is very competitive, thereby raising the need for these companies to efficiently analyze every aspect of their service provided and competitive pricing. These factors are increasing the demand for spend management platforms across the IT and telecom sectors of the region. Additionally, the region also has a robust presence in the retail and e-commerce sectors. More than 60% of the US population is engaged in online shopping for both necessities and luxury commodities required in their daily life. The adoption of a spend management platform across the retail & e-commerce industry provides various benefits such as real-time spend visibility, efficient operations, more accurate bill invoicing, and contract management. These factors are contributing to the increase in demand for spend management platforms across the retail and e-commerce industry of the region. Thus, all the above factors are fueling the spend management platform market growth in North America.

Key Player Analysis:

Coupa Software Inc., GEP, IBM Corporation, Procurify, SAP SE, Sievo, SutiSoft, Inc., Touchstone Group Ltd, Expensify Inc., and Sage Group PLC are among the key spend management platform market players. These spend management platform market players are focused on continuous product development and innovation.

Recent Developments: 

Inorganic and organic strategies such as product launches, partnerships, collaboration, and mergers and acquisitions are highly adopted by companies in the spend management platform market. A few recent key market developments by these companies are listed below: 

• In November 2023, Mastercard and Norwegian fintech company EedenBull announced the launch of a cards and spend management platform designed specifically to help small and medium-sized enterprises (SMEs) process their spending and payments more efficiently. As an extension of the two firms’ existing partnership, Mastercard will refer EedenBull’s Q Business platform to its extensive network of customers issuing cards to SMEs in the region. The service will be available to issuers immediately, initially in Australia, New Zealand, Singapore, the Philippines, and Malaysia, before expanding region-wide.
• In November 2023, Payhawk, the global spend management platform, announced the launch of its new Purchase Orders system. The solution streamlines procurement operations by integrating purchase requests, approvals, Purchase Order creation, three-way matching, and the ability to pay in local or cross-border transfers in one seamless platform. This cohesive solution eliminates the time spent on manual data entry and approvals and reduces errors, duplicate payments, and unnecessary costs while providing an overview of committed spending, reinforcing Payhawk's commitment to optimizing business spend management.
• In July 2023, the spend management platform EnKash launched its Olympus solution to automate payables and receivables for mid-market enterprises (MMEs). Olympus is a technology stack that automates accounting and auditing processes. This includes the digitalization of transaction entries, bank reconciliation, expense tracking and payment, collection, and invoice management.
• In September 2022, Rippling launched spend management products that integrate with its existing payroll solution, enabling finance leaders and controllers to view and manage spend across their company on a single platform. The new Rippling Spend Management products include corporate cards and an expense management system, and they will soon add bill pay software.
• In April 2022, Fyle announced the launch of real-time spend management for small business and corporate cards, starting with Visa. With this integration, Fyle will be the first spend management platform to support direct and real-time credit card transaction feeds for Visa.
• In August 2021, Coupa Software, a leader in Business Spend Management (BSM), launched the Coupa App Marketplace, giving customers an easier and smarter way to extend the power of the leading BSM platform. The Coupa App Marketplace connects businesses with certified, pre-built solutions that create a seamless way to tap into a trusted global community of BSM partners.

Spend Management Platform Market Report Scope