The Procurement as a service market is set to grow from its current market value of more than $5 billion to over $15 billion by 2032; as reported in the latest study by Global Market Insights, Inc.

Procurement as a service (PaaS) market is slated to witness lucrative gains through 2032, owing to the surging inclination of businesses towards outsourcing. Outsourcing procurement services brings operational expenses down while streamlining business operations. Many organizations across the globe are investing in outsourcing their non-core functions, such as procurement, to specialized service providers to focus on their core business functions, which is positively affecting the industry landscape.

On the basis of components, the PaaS market from the transaction management segment is slated to grow at a considerable CAGR from 2023 to 2032. PaaS providers invest considerable amounts into security technology and developing custom software to mitigate the risk of online fraud during transactions. Surging cases of cyberattacks attributed to rising automation in transaction management processes have escalated the need for dependable solutions, further bolstering the demand for reliable PaaS solutions.

On the basis of organization size, the PaaS market from the large enterprise segment accounted for a valuation of over USD 5 billion in 2022, owing to the rising adoption of IoT and AI applications. PaaS providers offer scalable procurement solutions to large organizations which help effectively deploy AI and IoT technology. Additionally, by offering enhanced onboarding, monitoring, and performance management services, PaaS providers can help these enterprises streamline their supplier management procedures.

Regarding the end-user, procurement as a service market from the BFSI sector is poised to accrue notable gains through 2032. The rising number of cyberattacks and data breaches in the BFSI sector has propelled the demand for reliable procurement as a service technology for risk mitigation. Moreover, the surging deployment of cloud-based technologies in the BFSI sector has further propelled the need for an effective and dependable procurement as a service platform. In fact, in October 2022, Banco Santander, S.A., a Spanish multinational financial services firm, inked a deal with Google Cloud to help its clients transform from mainframe systems to the cloud.

On the regional front, Europe procurement as a service market is anticipated to register lucrative gains through 2032, owing to the strong presence of market leaders such as Capgemini, Sastrify, and others, indulged in product innovations. In fact, the governments in the region are investing significant amounts in the digitalization of businesses, which is also expected to create a strong impetus for regional expansion.