Procurement outsourcing refers to the practice of outsourcing all or part of a company's procurement activities to professional procurement service providers while focusing on its core competitiveness. This outsourcing service assists enterprise managers in overall cost control and reduces the cost expenditure of procurement in enterprise operations through suppliers' more professional analysis and market information capture capabilities.
The content of procurement outsourcing is mainly non- productive, with little added value to the product, and belongs to non-core competitive products. It can be MRO procurement, personnel service procurement, or labor procurement outsourcing.
Overview of Market Development
In recent years, the global procurement outsourcing market has grown rapidly.According to our research data, the estimated size of the global procurement outsourcing market in 2024 is $5751 million, an increase of 11.84% compared to 2023.In the future, with the increasing demand of enterprises for cost control and business flexibility, as well as technological progress and the popularity of the Internet, the market is expected to continue to grow. In addition, the application of advanced technologies such as artificial intelligence and machine learning will further promote the development of the procurement outsourcing industry, improve service efficiency and quality.By 2029, the global procurement outsourcing market is expected to increase in size to $9880 million. The CAGR for 2024-2029 is estimated to be 11.43%.
Segmented Market Analysis
In terms of types, the global procurement outsourcing market can be divided intodirect procurement outsourcing market and indirect procurement outsourcing market.Among them,the direct procurement outsourcing market dominates, with an estimated market share of 57.16% in 2024.
From the perspective of downstream application patterns, the procurement outsourcing is widely used in fields such asmanufacturing, CPG, retail, and BSFI.Among them,the manufacturing industry is the largest downstream application market, with an estimated application share of 20.16% in 2024.
Global Procurement Outsourcing Market Size and Segment Market Share Forecast
Source: www.globalmarketmonitor.com
Market Analysis of Major Regions/Countries
From a regional perspective,the global procurement outsourcing market is dominated by three major regions: North America, Europe, and Asia Pacific.Among them,the Asia Pacific region is the largest revenue market, accounting for over 40% of the global market share.From a national perspective,China is the largest revenue generating country.Data shows that the procurement outsourcing market revenue of China's procurement business is expected to reach $1100 million in 2024, with an estimated market share of 19.13%.
Global Procurement Outsourcing Market Revenue and Market Share by Region/Country Forecast in 2024
|
Regions/Countries |
Market Revenue (Million USD) |
Market Share |
|
North America |
1713 |
29.79% |
|
Europe |
1191 |
20.71% |
|
China |
1100 |
19.13% |
|
Japan |
397 |
6.90% |
|
India |
693 |
12.05% |
|
South America |
140 |
2.43% |
|
Middle East & Africa |
94 |
1.63% |
Source: www.globalmarketmonitor.com
For more industry information, please refer to our latest released "2023 Global Procurement Outsourcing Market Analysis Report, Key Competitors, Market Effect Factors, Growth, And Forecast".
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