In 2018, the global market for vendor management software was valued at approximately US$ 4,389.2 million and is projected to experience a compound annual growth rate (CAGR) of 12.4% from 2019 to 2027, reaching an estimated US$ 12,295.8 million by 2027.
The anticipated growth during the period from 2019 to 2027 is largely attributed to the ongoing advancements in information technology, which are expected to propel the demand for vendor management software on a global scale. Nevertheless, concerns regarding data privacy associated with these solutions may pose challenges to the market's expansion in the future. Despite these potential hurdles, the increasing adoption of vendor management software among small and medium-sized enterprises (SMEs) is likely to create significant growth opportunities for companies operating within this sector throughout the forecast period. Key players in the vendor management software market are actively pursuing strategic initiatives aimed at enhancing their production capabilities and broadening their geographical reach. Additionally, these companies are implementing various strategies to strengthen their position in the vendor management software market, thereby contributing to its overall growth.
The vendor management software market is categorized based on deployment mode, enterprise size, industry vertical, and geographical region. In terms of deployment mode, the market is divided into cloud-based and on-premise solutions. The cloud segment has consistently held the largest share of the market and is anticipated to be the fastest-growing segment throughout the forecast period. When examining industry verticals, the market is segmented into Retail, Manufacturing, Banking, Financial Services and Insurance (BFSI), Information Technology and Telecommunications (IT and Telecom), and Others. In 2018, the retail sector accounted for a significant portion of the global vendor management software market.
Geographically, the vendor management software market is divided into North America, Europe, Asia Pacific, the Middle East and Africa, and South America. North America dominated the vendor management software market in 2018, contributing over 36% of the total revenue. This region is expected to maintain its leading position throughout the forecast period from 2019 to 2027. The Asia Pacific region and Europe ranked second and third in the global vendor management software market in 2018, with market shares of 26% and 24%, respectively. The Asia Pacific market is projected to exhibit the highest growth rate from 2019 to 2027. Additionally, emerging regions such as the Middle East and Africa, as well as South America, are expected to present substantial growth opportunities for vendors in the management software market during the forecast period.
The overall size of the vendor management software market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the vendor management software market. This research also includes an overview and forecast of the global vendor management software market based on the various segments across five key regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Furthermore, primary interviews were conducted with industry stakeholders and experts to validate the data and analysis. Participants in this process typically include industry professionals such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the vendor management software sector. Notable companies operating in the vendor management software market include Coupa Software Inc., Gatekeeper (Cinergy Technology Limited), HICX Solutions Ltd., IBM Corporation, Intelex Technologies Inc., LogicManager, Inc., MasterControl Inc., Ncontracts, SalesWarp, and SAP SE, among others.