Enjoy complimentary customisation on priority with our Enterprise License!
The tail spend management solutions market is estimated to grow by USD 418.3 million at a CAGR of 4.25% between 2023 and 2028. The market’s growth is driven by several key factors. A primary factor is the heightened focus on cost reduction, as businesses seek to optimize their operations and improve profitability. This drive for efficiency impacts various sectors, leading to increased demand for solutions that streamline processes and cut expenses. Additionally, the growing complexity of supply chain management is a significant driver. As supply chains become more intricate, organizations require advanced tools and strategies to manage logistics, inventory, and supplier relationships effectively. This complexity fuels the demand for innovative solutions that can provide greater visibility and control. Moreover, the adoption of cloud-based solutions plays a crucial role in market expansion. Cloud technologies offer scalable, flexible, and cost-effective options for managing data and operations, which helps organizations address the challenges of modern supply chains and achieve their cost-reduction goals. Together, these factors create a robust environment for market growth and technological advancement.
To learn more about this report, View Report Sample
The Tail Spend Management Solutions market is gaining traction as companies seek to improve their procure-to-pay solution processes. These solutions are crucial for enhanced customer experience, particularly in managing large contracts and optimizing procurement strategies. The integration of e-procurement systems allows businesses to streamline purchasing activities, reducing the complexity of handling smaller, less strategic purchases often associated with tail spend. For industries like the chemical company sector, effective tail spend management ensures better allocation of resources and cost savings. Companies are increasingly leveraging Series A investment round funding to innovate in this space, focusing on enhancing user experience and integrating advanced procurement team tools. By addressing tail spend with sophisticated management solutions, organizations can optimize their procurement strategies, improve efficiency, and achieve greater control over their spending patterns.
The increasing focus on cost reduction is notably driving market growth. Many companies are trying to reduce costs while maintaining quality. Tail spend management enables significant cost savings. These solutions help companies gain better visibility and control over their tail spend, which allows them to identify cost-saving opportunities, consolidate suppliers, negotiate better pricing, and reduce maverick spend. Companies can free up resources and reduce the administrative burden associated with tail spend management by automating and streamlining the procurement process.
Further, the COVID-19 pandemic has highlighted the importance of cost reduction for companies during the economic downturn. As a result, many organizations are planning to optimize their procurement processes and reduce costs. Tail spend management solutions help achieve these goals by enabling companies to save costs and operate efficiently. Thus, the increasing focus on cost reduction by end-user industries such as retail and manufacturing will drive the demand, which, in turn, will boost the growth of the market during the forecast period.
The increased adoption of AI and ML is one of the major market trends. AI and ML algorithms help automate procurement processes, identify cost-saving opportunities, and provide data-driven insights. They can be used to automate routine tasks, such as purchase order processing and invoice management. AI and ML algorithms can analyze historical spending data to identify patterns and predict future spending trends, which can help companies identify cost-saving opportunities and optimize their supplier relationships.
Moreover, AI and ML algorithms can help companies identify new suppliers that meet their needs based on factors such as pricing, quality, and delivery times. Natural language processing (NLP) technology can be used to analyze unstructured data, which can help companies identify potential issues, such as non-compliance with contract terms, and take necessary action. In addition, AI and ML algorithms can analyze spending data to detect fraudulent activity, such as duplicate invoices or unauthorized purchases. These factors will drive the growth of the market during the forecast period.
Data quality issues may challenge market growth. Tail spend management solutions rely on accurate and up-to-date data to provide insights into spending patterns, identify cost-saving opportunities, and optimize relationships. However, many companies face data quality issues, including incomplete or inaccurate data. Various factors contribute to data quality issues in tail spend management. Tail spend involves a large number of suppliers, each with its own data formats and systems. This can lead to inconsistencies in data quality and make it difficult to compare and analyze spending across suppliers.
Moreover, manual data entry is prone to errors and can lead to incomplete or inaccurate data. As data may be stored in different systems or departments, accessing and consolidating it for analysis may be difficult. Moreover, data may become outdated over time, especially in fast-moving industries where supplier relationships and pricing can change quickly. These factors are expected to hinder the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market share growth by the spend analytics segment will be significant during the forecast period. The growth of this segment is attributed to factors such as the increasing need for companies to gain visibility into their spending patterns and identify opportunities for cost savings and process improvements.
Get a glance at the market contribution of various segments View the PDF Sample
The spend analytics segment was valued at USD 876.70 million in 2018. The increasing adoption of cloud-based spend analytics solutions is driving the growth of this segment. Cloud-based solutions offer several advantages over traditional on-premise solutions, such as scalability, flexibility, and cost-effectiveness. These solutions allow companies to access spend analytics capabilities on a subscription basis. The increasing use of advanced analytics technologies, such as ML and AI, is also driving the growth of this segment. These technologies enable companies to analyze large amounts of data in less time and with more accuracy. Such factors will increase the demand for spend analytics during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the market in North America is attributed to factors such as highly developed procurement processes and the increasing demand for cost optimization and process efficiency. The increasing adoption of digital technologies and automation is also driving the regional market's growth. Many companies are investing in digital transformation initiatives to improve their operational efficiency and reduce costs. Tail spend management solutions can help these companies automate their procurement processes for low-value items. The highly competitive business environment is also driving the growth of the regional market. Tail spend management solutions can help businesses consolidate their procurement processes, reduce the number of Companies, and improve visibility and control over their spending. Thus, the growth of the market in North America will be driven by digital transformation initiatives, competitive pressures, and regulatory requirements during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
Tail spend management solutions have become increasingly important for procurement teams in managing the purchases of machine parts, office supply items, and chemical material supply from a multitude of small and medium-sized suppliers. These solutions offer efficiency gains by automating and streamlining the procurement process, enhancing the customer experience. Artificial intelligence and machine learning technologies are at the forefront of these solutions, enabling the summation of data from multiple sources for continuous improvements. Chemical companies and venture capital firms are investing in tail spend management solutions to optimize their procurement processes and reduce costs. Fairmarkit, a leading player in this market, leverages AI and ML to automate the sourcing process and improve supplier relationships. Insight Partners, a global venture capital and private equity firm, recently invested in Fairmarkit, recognizing its core competencies and potential for product portfolio diversification.
Further, social media and brand building activities are also essential for companies in the tail spend management solutions market. Long-term societal considerations, such as sustainability and ethical sourcing, are increasingly important to both buyers and investors. As the market continues to evolve, we can expect more innovation and collaboration between suppliers, buyers, and investors to drive growth. Vantage Market Research, through interviews and market analysis, provides insights into the latest trends and developments in this dynamic market.
Industry Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.25% |
Market growth 2024-2028 |
USD 418.3 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.08 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, China, UK, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASM Technologies Ltd., Basware Corp., Capita Plc, Corcentric Inc., Fairmarkit Inc., Ivalua Inc., JAGGAER LLC, Logistic Solution Inc., NB Ventures Inc., Proactis Holdings plc, SAP SE, Simfoni Ltd., Technology Concepts Group International, UNA, V LINE Europe GmbH, and Zycus Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.