The Procurement Data Connectivity market was worth USD 2.6 billion in 2022 and is set to reach USD 8.4 billion in 2030. The market is projected to grow at a CAGR of 25.3% over the forecast period of 2023 – 2030. The growth of procurement data connectivity technologies and services market is anticipated to be driven by several factors, including increased spending on marketing and advertising by businesses, an evolving landscape of consumer insights, and the expansion of customer channels to drive the market growth.
INDUSTRY OVERVIEW
The practice of employing quantitative methodologies to obtain meaningful insights and outcomes from data is known as procurement analytics. It entails gathering and analysing data to enable fact-based decision-making. Procurement data connection is a strategy for extracting meaningful information and conclusions from data, allowing a firm to make better decisions and grow its business. It usually analyses and forecasts future trends using data from the previous year. These strategies assist businesses in lowering their operating costs, saving money, and lowering risk concerns.
The increased emphasis on improving procurement channels' operational efficiency has had a direct impact on the procurement data connectivity market's growth over the projected timeline. The growing need for procurement analytics is fueled by the growing need to manage compliance policies and contracts, as well as businesses' quest to preserve their position in a competitive marketplace. Rapid technical advancements, such as the internet of things (IoT) and cognitive computing, are also boosting the market's growth. Moreover, the growing need for extremely effective procurement solutions to boost operating efficiency is propelling the procurement data connectivity market forward. Furthermore, the increased need for cloud-based procurement solutions and the growing demand for data-driven solutions are fueling the procurement data connectivity market's rise. Similarly, the inclusion of machine learning and artificial intelligence into the procurement process, as well as the rising demand for cloud-based analytical solutions, would provide numerous new chances for the procurement analytics market to develop throughout the projected period. However, increasing concerns about data protection among organisations, as well as numerous challenges in process optimization and concerns about data privacy, may hamper the procurement data connectivity market growth over the forecast period.
COVID-19 IMPACT ON PROCUREMENT DATA CONNECTIVITY MARKET
The outbreak of the COVID -19 pandemic had a positive impact on the development of the procurement data connectivity market growth. Due to the advent of the corona, several end-user sectors, including small and medium-sized firms (SMEs) and major organisations, have had to largely halt operations. This compelled end-users to employ innovative technologies like e-procurement to conduct business without interruption even during the epidemic. During the projected period, such factors are anticipated to propel market expansion.
MARKET DRIVERS:
One of the key factors driving growth in the procurement data connectivity market is the growth in e-commerce and the organized retail industry
One of the most significant parts of the retail market is the acquisition of goods and resources. By combining data, contract management, and supplier management, procurement data connectivity helps companies mitigate the risks connected with their supply base. As a result, demand for procurement analytics is expected to rise. Customers prefer purchasing online versus going to a physical store. The proliferation of technology such as smartphones and multichannel commerce has fueled the rise of the worldwide e-commerce business. Procurement analytics and data connectivity are used by e-commerce businesses to get merchandise from vendors. Supplier management will be aided by procurement analytics. As a result, the demand for procurement data connectivity will rise as the e-commerce sector expands.
The growing demand for e-procurement is another factor supporting the procurement data connectivity market share growth
E-procurement (electronic procurement) is the practice of selling and purchasing services or items through digital networks, primarily the Web. It's a replacement for the conventional procurement procedure. E-procurement systems are preferred by businesses because they decrease unwanted expenditures such as intermediary fees and anomalies in the procurement process. End-users can utilise e-procurement websites to register as suppliers or buyers, submit all required and necessary papers online, and participate in the bid process. As a result, a significant amount of data is generated. Predictive analytics makes forecasts based on data, allowing businesses to make the best business decisions possible. During the projection period, demand for procurement data connectivity services will be fueled by an increase in the usage of e-procurement.
MARKET RESTRAINTS:
The need to improve data inconsistency will be a major challenge for the procurement data connectivity market during the forecast period
Procurement companies create a lot of data on suppliers and raw materials, and that data is frequently scattered across several systems, processes, and geographies. Data saved in various systems might be in a variety of formats, making it difficult to access. It might be difficult to combine data from diverse sources, which can affect the procurement analysis. As a result, data inconsistency might influence procurement analysis quality. As procurement analysis is dependent on the source and quality of data, inconsistencies in the data might have a negative influence on business choices and productivity. Furthermore, businesses may have several copies of the same data, affecting storage and processing. If overlooked, it can potentially lead to distorted conclusions. As a result, concerns with data integrity and consistency may stymie market expansion.
Security and Privacy Issues related to the use of connected devices are a reason hampering the market growth
The increase in usage of digital features poses security and privacy issues. The high risk of hackers accessing the system data and unauthorized access to the vehicle can be exploited for carrying out malicious or criminal activities, including robberies and planned crimes. The business has confidential data with them and alarming growth in several cyber-attacks, data leakage, and false data injection in various industry verticals are hampering the adoption. However, significant investments in cyber security are set to offset this challenge and promote healthy growth during the later stages of the forecast period 2023 - 2030.
PROCUREMENT DATA CONNECTIVITY MARKET REPORT COVERAGE:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 - 2030 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2030 |
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CAGR |
25.3% |
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Segments Covered |
By Organisation, Deployment Type, By Application, By End - User, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Key Companies Profiled |
Accenture Plc, BirchStreet Systems LLC, Coupa Software Inc., Genpact Ltd., International Business Machines Corp., JAGGAER LLC, Oracle Corp., Proactis Holdings Plc, Rosslyn Data Technologies Plc, SAS Institute Inc. |
This research report on the Procurement data connectivity market has been segmented and sub-segmented based on Type, Deployment Type, By Application, By End - User, and By Region.
SMEs
Large Enterprises
Based on organization size, the procurement data connectivity market is segmented into SMEs and large enterprises. In 2021, the large enterprise sector held the highest market share, with more than 75.00 per cent. Large businesses that intend to handle complicated procurement contracts and grab agreements will continue to invest in these services, making them the most popular. Furthermore, because these services reduce operating expenses while removing business complications, they are a popular choice among large businesses.
Over the projection period, the Small & Medium Enterprises (SMEs) category is predicted to develop at a substantial rate. To make quick and informed judgments, small and medium-sized businesses have been noticed moving their attention from overall operations management to particular business process management. As a result, the worldwide industry is seeing an increase in demand for procurement data connectivity as a service model from SMEs. Furthermore, the growing demand for an organization's internal procurement process to be improved to streamline and standardise the overall procurement operation is expected to drive market expansion throughout the projection period.
On Cloud
On-Premises
Based on Deployment Type, the procurement data connectivity market is segmented into On Cloud and On-Premise. During the projected period, the CAGR for cloud deployment is expected to be the highest. The cloud-deployed network connection is used to deliver cloud-based services. For businesses with limited security expenditures, cloud-based technologies are a good option. Cloud-based procurement analytics systems are simple to maintain and upgrade, hence the cloud deployment option is becoming more popular. Cloud computing is becoming more widely used, and the cloud's constant connectivity makes files more accessible and easier to share. According to the State of the Cloud Report from Right Scale, in 2019, 91 per cent of enterprises use the public cloud and 72 per cent use the private cloud. The hybrid cloud solution is used by the majority of businesses, with 69 per cent choosing it. As a result, the market's growth is being aided by the introduction of cloud technology.
Supply Chain Analytics
Risk Analytics
Spend Analytics
Contract Management
Demand Forecasting
Others
Based on Deployment Type, the procurement data connectivity solution finds its application in numerous verticals such as Supply Chain Analytics, Risk Analytics, Spend Analytics, Contract Management and Demand Forecasting among others. Among these, the procurement data connectivity solutions were widely used for supply chain analytics. The use of various analytics methods to boost supply chain productivity and competitiveness with data-driven insight is known as supply chain analytics. Supply chain analytics solutions are intended to assist multiple business verticals, such as manufacturing, retail and consumer products, energy and utilities, and healthcare, making intelligent choices about sourcing, supplier management, stock management, demand scheduling, and supply chain management. Because of the underlying benefits of the analytical tools, the businesses are adopting the procurement data connectivity solutions which are propelling the market growth.
Procurement data connectivity solutions are also widely being used for spending analytics. Spend analytics provides greater in-depth understanding using Data Visualization, assists in the adoption of cost-saving operations makes enormous files accessible, and data is updated and accessed in real-time. It improves the system's adaptability and lowers the organization's investment by maximising usage and minimising waste. The inclusion of Bluetooth and Wi-Fi in every consumer electronic device and equipment has increased data production pace and volume while also improving data quality, which is expected to drive demand for spend analytics, particularly in the retail industry.
Transportation & Logistics
BFSI
Telecom & IT
Retail
Manufacturing
Others
Based on End User, the procurement data connectivity market is segmented into Transportation & Logistics, BFSI, Telecom & IT, Retail and Manufacturing among others. The Telecom and IT sector emerged to be the larger adopter of the procurement data connectivity solutions. The telecom and IT industry are fiercely competitive, and companies are always striving to improve their services to attract new clients and maintain existing ones. The demand for procurement analytics solutions has grown as the telecom business has become more complicated and the number of service providers has increased. The rapid adoption of smartphones and other interconnected portable devices has resulted in a rise in the amount of data flowing across telecom networks. The telecom operators use these data to analyze and devise useful information which assists them in making better business decisions. Procurement data connectivity solutions aid in maximizing profits by improving customer experience, network consumption and improving scalability.
North America
Europe
The Asia Pacific
Latin America
The Middle East
Africa
Based on region, the Energy and Power automation market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. During the projection period, the Asia Pacific region is predicted to develop at a healthy rate. The region will be flourishing since it is seeing a lot of new entrepreneur setups who are aiming to reach new clients and build customer confidence by using new digital models to obtain a competitive advantage over existing competitors. In this region, procurement analytics vendors focus on product line innovations. The expansion can be credited to a rise in consumers and companies widely adopting analytics technologies. The big data and analytics industries are propelling the procurement data connectivity market in the region since the companies are extensively investing in the development of new technologies and infrastructure. The region's analytics markets are largely driven by widespread digital penetration across sectors, particularly in China, Japan, and India. The explosion of data due to increased internet, mobile/smartphone usage, growing urbanisation, development in machine learning, algorithm development, and the demand for the customer and behavioural analytics are the main drivers of analytics in China.
PROCUREMENT DATA CONNECTIVITY MARKET- BY COMPANIES
The procurement data connectivity market is highly competitive. The major players are focusing on innovation, mergers and product launches to capture market share and increase their product portfolio. Some of the prominent players operating in the market include:
NOTABLE HAPPENING IN THE PROCUREMENT DATA CONNECTIVITY MARKET
PRODUCT LAUNCH- In March 2020, to provide next-generation spend management, SAP SE combined procurement and ERP software solutions. The next-generation expenditure management process integration may give clients comprehensive insight and control, allowing them to fulfil their goals.
PRODUCT LAUNCH- Coupa, a cloud-based spend management software provider, has added voice activation using Amazon Alexa to its business spend management (BSM) solution, allowing users to manage inventory, find goods, and reorder stock.
COLLABORATION- In October 2019, LevaData, a vendor of supply chain and procurement optimization solutions, partnered with IBM to strengthen its data analytics capabilities. The DirectSpend IQ solution, which combines IBM managed services with LevaData's cognitive sourcing platform, is being rolled out by both organisations. This gives supply chain and procurement experts access to data and insights that can help them find cost-cutting possibilities for indirect procurement.
COLLABORATION- Zycus, a leading provider of a comprehensive and end-to-end Source-to-Pay procurement suite, stated that an Australian government regulatory agency has chosen Zycus for its procurement reform. The customer wants to unify its procurement process to improve productivity in its e-Sourcing, Contract Management, and Supplier Information Management activities.
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
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