Global Service Procurement Market Size study & Forecast, by Component (Strategic Sourcing, Spend Management, Process Management), Enterprise Size, Vertical and Regional Forecasts 2025-2035

The Global Service Procurement Market is valued approximately at USD 6.89 billion in 2024 and is anticipated to grow at a remarkable CAGR of 14.4% over the forecast period 2025-2035. Service procurement refers to the practice of sourcing, managing, and optimizing an organization’s external services. Unlike conventional procurement focused primarily on goods, service procurement involves overseeing complex engagements such as contingent labor, consulting, IT services, and facilities management. As enterprises continue to navigate a landscape defined by globalization, digital transformation, and heightened regulatory oversight, procurement leaders are under pressure to align service acquisition strategies with organizational goals, manage risks more effectively, and deliver measurable value. This rapid evolution of service procurement is further propelled by the surge in demand for transparency in supplier relationships and the growing reliance on technology platforms that streamline sourcing workflows.

Organizations across industries are rethinking how they manage service-based engagements, particularly in the wake of expanding global operations and the rising importance of flexible, project-based labor. The growing complexity of services, coupled with the need to optimize costs, has compelled enterprises to adopt digital procurement solutions. According to various industry reports, businesses are shifting from manual service requisitions to centralized procurement platforms that leverage artificial intelligence, automation, and analytics for smarter decision-making. Furthermore, the rise of gig economy models and vendor ecosystems has accelerated the need for procurement frameworks that balance agility with governance. Although the market outlook remains bright, challenges such as compliance risks, integration complexities, and data security concerns are expected to temper growth prospects during the forecast period.

The detailed segments and sub-segments included in the report are:

By Component:
• Strategic Sourcing
• Spend Management
• Process Management

By Enterprise Size:
• Small & Medium Enterprises (SMEs)
• Large Enterprises

By Vertical:
• BFSI
• Telecom & IT
• Manufacturing
• Healthcare
• Retail & Consumer Goods
• Energy & Utilities
• Government & Public Sector
• Others

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Strategic Sourcing is Expected to Dominate the Market

Within the component landscape, strategic sourcing is anticipated to hold the lion’s share of the market during the forecast period. Companies are increasingly seeking structured approaches to supplier selection, contract management, and performance evaluation to drive cost savings and mitigate risks. This dominance can be attributed to the rising emphasis on aligning procurement strategies with long-term business objectives, ensuring that services are not only cost-effective but also deliver consistent value. While strategic sourcing maintains a commanding position, process management is gaining momentum as businesses push for real-time visibility and operational agility in service procurement.

Large Enterprises Lead in Revenue Contribution

When analyzed by enterprise size, large enterprises continue to generate the majority of the revenue within the service procurement market. Their vast budgets, complex supply chains, and reliance on multiple third-party service providers necessitate advanced procurement systems capable of managing large-scale operations. These organizations are at the forefront of adopting AI-enabled platforms, automated workflows, and data-driven supplier collaboration models. Conversely, SMEs, while currently contributing a smaller share, are emerging as a high-growth segment as cloud-based procurement solutions become more affordable and scalable, enabling them to compete more effectively.

The key regions considered for the Global Service Procurement Market study include Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa. North America dominated the market in 2025, underpinned by the presence of mature enterprises, widespread adoption of procurement technologies, and strong regulatory frameworks that demand compliance. The region’s emphasis on digital transformation has accelerated investments in service procurement solutions, particularly in the BFSI and healthcare verticals. Asia Pacific, on the other hand, is projected to register the fastest growth through 2035. The region’s rapid industrialization, burgeoning SME sector, and increased focus on vendor risk management are fostering demand for procurement platforms. Europe is also demonstrating steady traction, propelled by stringent sustainability regulations and the need for transparent supplier engagement across industries.

Major market players included in this report are:
• SAP SE
• IBM Corporation
• Oracle Corporation
• Coupa Software Inc.
• Workday, Inc.
• Zycus Inc.
• GEP Worldwide
• Beeline International, Inc.
• PRO Unlimited, Inc.
• PeopleFluent, Inc.
• Epicor Software Corporation
• Basware Corporation
• Ivalua Inc.
• Infor Inc.
• JAGGAER

Global Service Procurement Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period - 2025-2035
• Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa



The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market.

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