Procurement As A Service Market Size, Share & Trends Analysis growing at a CAGR of 14.4% from 2025 to 2033
The global procurement as a service market size was estimated at USD 6.89 billion in 2024 and is projected to reach USD 22.10 billion by 2033, growing at a CAGR of 14.4% from 2025 to 2033 due to increasing demand for cost optimization, operational efficiency, and strategic sourcing among businesses across industries. Organizations increasingly recognize the need to outsource procurement functions to expert third-party providers to reduce procurement costs, streamline operations, and gain access to advanced procurement technologies.
Key Market Trends & Insights
- North America procurement as a service dominated the global market with the largest revenue share of 44.6% in 2024.
- The procurement as a service market in the U.S. led North America and held the largest revenue share in 2024.
- By component, strategic sourcing led the market and held the largest revenue share of 31.9% in 2024.
- By deployment, the SMEs segment held the dominant position in the market and accounted for the largest revenue share in 2024.
- By end use, the IT & telecom segment is expected to grow at the fastest CAGR from 2025 to 2033.
Market Size & Forecast
- 2024 Market Size: USD 6.89 Billion
- 2033 Projected Market Size: USD 22.10 Billion
- CAGR (2025-2033): 14.4%
- North America: Largest market in 2024
- Asia Pacific: Expected to grow at the fastest CAGR
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The ability of procurement as a service (PaaS) providers to offer modular and scalable services, such as spend analysis, supplier management, and category management, enables companies to adapt procurement solutions based on specific business needs and growth stages. This flexibility and a growing focus on core competencies drive adoption among small and medium-sized enterprises (SMEs) and large corporations.
Moreover, the accelerating digital transformation across supply chains also contributes to the procurement growth as a service industry. Integrating cloud computing, AI, machine learning, and analytics into procurement processes enhances transparency, improves spend visibility, and supports data-driven decision-making. Enterprises increasingly leverage these tools to mitigate supply chain risks, ensure compliance, and drive sustainability initiatives, making digitally-enabled PaaS offerings more attractive. For instance, in May 2024, GEP introduced the industry’s first AI-powered Total Orchestration Solution, designed to enhance enterprise procurement and supply chain operations. The new platform integrates a built-in AI co-pilot, streamlining complex workflows while delivering a more intuitive user experience.
