Regional Analysis

Procurement As a Service Market Regional Insights

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North America has established itself as the dominant region in the global procurement as a service market with 37.8% share in 2024. The early adoption of cloud-based technologies along with the mature outsourcing industry in countries like the U.S. has driven the market growth. Many leading technology giants and consulting firms that provide procurement services have their headquarters in the region. This has created a conducive ecosystem for innovation and accessibility of procurement solutions in the region.

Corporations in industries like retail, manufacturing, and automotive have complex global supply chains, which increases the need for procurement outsourcing and management of supply chain operations. This along with the willingness to focus on core business competencies rather than non-core procurement functions has boosted the demand for procurement services in North America. However, growth in the region is expected to be steady instead of exponential due to market maturity.

Asia Pacific region is poised to be the fastest growing market for procurement services globally over the next decade. Countries like China, India and other ASEAN nations are industrial powerhouses with developing outsourcing markets. There is a growing inclination among businesses to streamline procurement processes through digital transformation initiatives. Moreover, procurement expenditure of organizations comprises a significant portion of their operating costs. By outsourcing non-core procurement functions, firms are able to generate substantial savings. The combination of these factors is driving heightened demand for procurement as a service solutions across industries in Asia Pacific. Coupled with the accelerated growth of indigenous service providers, APAC offers immense untapped potential for global procurement firms to expand their footprint.