Government Procurement Software Statistics 2024

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In an era where digital transformation is sweeping across industries, the adoption, and evolution of government procurement software are more critical than ever. Understanding the latest statistics on government procurement software for 2024 offers valuable insights into the dynamics that shape public sector efficiency, accountability, and expenditure. These statistics are pivotal for grasping how technology optimizes procurement processes, reduces costs, and ensures transparency in governmental operations.

Key stakeholders, including government agencies, technology providers, policy-makers, and financial analysts, will find these data particularly valuable. For government entities, it highlights areas for potential improvement and innovation in procurement practices. Technology vendors can draw on these insights to tailor their solutions to meet emerging needs, while policy-makers can leverage the data to craft regulations that foster more efficient and ethical procurement practices. Financial analysts will gain a clearer picture of resource allocation and market opportunities.

As we delve into the specifics, these statistics will illuminate current trends, potential roadblocks, and growth opportunities within the industry. This data is not just informative but also strategic, equipping stakeholders with the knowledge needed to navigate an evolving landscape, make informed decisions, and ultimately drive progress in government procurement processes.

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Top Government Procurement Software Statistics 2024

☰ Use “CTRL+F” to quickly find Government Procurement Software facts. There are total 75 Government Procurement Software Statistics on this page πŸ™‚

Digital Transformation In Procurement

  • In June 2022, a ProcureTech survey of 170 global procurement leaders revealed 90 percent believed the digital transformation of their procurement processes would be the top priority within the next three years. [?]
  • 87% prioritize building data teams to gain predictive insights and deploy new technologies. [1]
  • 81% believe more internal support is needed from within their businesses to fully realize digital transformation. [1]
  • 50% aim to move to a business procurement-centric organization, acting as advisory consultants and business partners rather than executing routine processes. [1]
  • In 2021, over $750 million was invested in procurement technology, compared to just $8 million in the previous eight years. [2]
  • According to ProcureCon’s 2018 report, 66 percent of surveyed companies are already automating spend analysis using technology that compiles, classifies, and cleans supplier spend information. [3]
  • Companies can save as much as $6 million a year in supplier spend by leveraging supplier data. [3]
  • With Visichain as a partner, companies can leverage over 1 million hours of supply chain transformation experience from some of the largest companies in the world. [3]

Public Sector And Government Procurement

  • In 2019, public procurement accounted for approximately 12% of GDP in OECD countries. [4]
  • In 2021, the World Bank Group estimated that public procurement made up about 15% of global GDP. [4]
  • Government procurement accounts for a substantial part of the global economy. [4]
  • Public procurement can cultivate innovation and economic growth. [4]
  • Public procurement involves competition over approximately one trillion USD annually worldwide. [4]
  • The GPA and EU procurement law allow for exceptions where public tendering would violate a country’s essential security interests. [4]
  • Government procurement is linked to economic growth, competition enhancement, policy achievement, and innovation promotion. [4]
  • Novel procurement approaches such as eProcurement or Public-Private Partnerships may innovate public procurement processes and entities. [4]
  • Government procurement in the European Union accounts for more than EUR 2.2 trillion, or 14% of the EU GDP. [4]
  • The EU Directive 2014/24 foresees two award criteria: the lowest price criterion or the economically most advantageous offer criterion. [4]

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Innovations And Efficiency In Procurement

  • According to a report by McKinsey, companies embracing digitalization within their supply chain procurement can expect a growth of annual earnings before interest and taxes by 3.2% and a 2.3% yearly revenue increase. [6]
  • Companies utilizing advanced analytics in procurement report cost reductions of 8% and an efficiency improvement of 10%. [6]
  • Organizations with advanced procurement strategies witness a 15% higher profit margin than their competitors. [6]
  • Digital procurement can accelerate transaction processing by up to 30%. [6]
  • Digital procurement solutions can achieve cost savings of up to 40%. [6]
  • Companies collaborating digitally with suppliers can reduce lead times by 50% and achieve a 30% increase in supplier performance. [6]
  • Digital adoption can free up as much as 25% of procurement professionals’ time for strategic activities. [6]
  • Organizations using digital procurement tools can achieve a 30% higher policy compliance rate. [6]
  • Automated procurement processes can reduce lead times by an average of 40%. [6]
  • Enhanced visibility can lead to a 30% reduction in supply chain costs. [6]
  • Businesses incorporating automation in their procurement processes can expect cost reductions of up to 60% in certain operations. [6]
  • Leveraging digital platforms for supplier relationship management can result in a 35% faster supplier response time and a 20% increase in supplier collaboration. [6]

Global Procurement Trends And Impact

  • Government procurement typically comprises 10 percent to 15 percent of a country’s GDP. [5]
  • The first major government procurement agreement was the 1979 Government Procurement Agreement (GPA), which entered into force in 1981. [5]
  • Digital procurement can accelerate transaction processing by up to 30%. [6]
  • In OECD countries, public procurement constitutes approximately 12-13% of the GDP. [11]

Regional And Sector-specific Procurement Insights

  • In the European Union, public procurement law has been regulated and harmonized by community law since the 1970s to guarantee transparency and non-discrimination of EU companies in government procurement in all member states. [4]
  • Germany’s federal decree on contracts for workshops for the disabled requires German federal contracting authorities to set aside part of their budgets for contracts which can be awarded to workshops for workers with disabilities. [4]
  • Government procurement in the European Union accounts for more than EUR 2.2 trillion, or 14% of the EU GDP. [4]
  • Procurement in the defence and security sector is covered by the Law of 26 December 2012. [4]

Procurement Software And Technology

  • The first company to launch an eProcurement system was IBM in the year 2000. [12]
  • The global procurement software market size was valued at USD 7.30 billion in 2023, projected to grow from USD 8.03 billion in 2024 to USD 18.28 billion by 2032, exhibiting a CAGR of 10.8% during the forecast period. [14]
  • According to McKinsey, companies that embrace strategic procurement achieve cost savings of up to 15% and often experience a 20% increase in supplier performance. [16]
  • Dynamics 365 by Microsoft includes procurement management capabilities that allow businesses to streamline their purchasing processes, manage suppliers, and track inventory. [16]

Future Of Procurement

  • In 2024, selecting powerful purchasing software is essential to optimize the procurement process in your company. [17]
  • A study found that digital procurement solutions can achieve cost savings of up to 40%. [6]
  • The growth in digital procurement technology will continue to accelerate throughout 2024, with a special focus on iterations in AI, Procure-to-Pay software, blockchain, and robotics. [19]
  • Data must be relevant, clean, and governed with an emphasis on transparency and granularity on transactional data to target Scope 3 emissions. [19]

Strategic And Sustainable Procurement

  • The global market is in a phase of recovery from the impacts of COVID-19, with an expected growth aligned with an increase in GDP. [11]
  • Considering a projected world GDP of $135 trillion in the next five years, the procurement market is anticipated to expand to approximately $16-19 trillion. [11]
  • Sustainability will be one of the top supply chain trends in 2024. [8]
  • In 2024, procurement teams will need to be aware of these key trends and adapt to stay ahead of the curve. [13]

Government Procurement Policies And Regulations

  • The Biden-Harris administration increased the Federal contract spend goal for small disadvantaged businesses (SDBs) to 15 percent by 2025, a substantial increase from the previous statutory goal of five percent. [9]
  • The Biden-Harris Administration exceeded its small business contracting goal of 23% in fiscal year (FY) 2022, awarding an all-time high 26.5% of federal contract dollars to small businesses. [15]
  • Service-disabled veteran-owned small business spending has exceeded its 3% goal, reaching 4.6%. [15]
  • Historically Underutilized Business Zone (HUBZone) small businesses were granted a record-breaking $16.3 billion in federal contract awards. [15]
  • Women-owned Small Businesses (WOSB) received more than $26 billion for the fourth straight year in FY 2022. [15]

Key Statistics And Economic Impact

  • The global market size of public procurement reached an estimated value of $12-13 trillion in 2022. [11]
  • Health expenditure represents the largest share of public procurement spending, accounting for an average of 29.3% across OECD countries in 2019. [11]
  • Construction work accounted for €184.7 billion in procurement costs across 282,431 tenders in 2022. [11]
  • The global Artificial Intelligence market was valued at $177 billion USD in 2023, and it is estimated to reach $2.75 trillion USD by 2032. [18]
  • In 2021, public procurement accounted for approximately 12% of GDP in OECD countries. [4]

Challenges And Opportunities In Procurement

  • The survey also found that accelerating procurement digital transformation is the top priority for 45% of procurement leaders in 2023. [6]
  • A report by Deloitte found that digital adoption can free up as much as 25% of procurement professionals’ time for strategic activities. [6]
  • Quantifying the ROI: Research indicates that businesses incorporating automation in their procurement processes can expect cost reductions of up to 60% in certain operations. [6]
  • Quantifying the ROI: A survey highlighted that organizations leveraging digital platforms for supplier relationship management experienced up to a 35% faster supplier response time, leading to a more agile and responsive supply chain. [6]

Procurement In Different Regions

  • Procurement in the European Union accounts for more than EUR 2.2 trillion, or 14% of the EU GDP. [4]
  • Government procurement in Ireland is governed by the European Communities (Award of Public Authorities’ Contracts) Regulations 2006 and the European Communities (Public Authorities’ Contracts) (Review Procedures) Regulations 2010. [4]
  • Government procurement in Austria is regulated by the Federal Procurement Act 2017. [4]
  • Government procurement in Latvia is regulated by the Public Procurement Law, effective 1 March 2017, and the Law on the Procurement of Public Service Providers, which came into effect on 1 April 2017. [4]

Case Studies And Examples

  • An example is a kickback, whereby a dishonest agent of the supplier pays a dishonest agent of the purchaser to select the supplier’s bid, often at an inflated price. [4]
  • The European Commission challenged Austria’s practice as not compliant with the public procurement directives and issued a reasoned opinion to Austria in 2014. [4]

Industry-specific Procurement Insights

  • In the automotive sector alone, software and electronics expenditures are expected to almost double in ten years, from $238 billion in 2020 to $469 billion by 2030. [10]
  • The commercial benefit of superior software-procurement skills is clear from the strong relationship between higher levels of software-procurement excellence and lower per-unit cost of bespoke software. [10]

Future Trends And Predictions

  • The digital transformation of procurement processes has been underway for several years, but 2024 will see a significant acceleration in the adoption of e-procurement platforms and digital solutions. [7]
  • The global procurement software market size was valued at $7.30 billion in 2023 & is projected to grow from $8.03 billion in 2024 to $18.28 billion by 2032. [14]
  • By leveraging the digital landscape in 2024, and preparing and committing to strategies, procurement can chart a course towards a future where its role extends beyond value creation to actively contributing to global sustainability. [19]

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