Procurement market: current state and prospects

The procurement market is an integral part of the world economy, providing an efficient allocation of resources between enterprises, government agencies and consumers. In recent years, procurement has undergone significant changes due to digitalization, globalization and new economic challenges. In this article, we will look at key trends, statistics on the largest countries and forecasts for the development of the global procurement market.

Global trends in the procurement market

The modern procurement market is undergoing a transformation due to the following factors:

1. Digitalization and automation

Electronic platforms and artificial intelligence (AI) technologies have greatly simplified procurement processes, making them more transparent and efficient. In 2023, the volume of the global e-procurement market amounted to more than $10 trillion, which is 15% more than in 2022.

2. Sustainable development and green procurement

Companies and government organizations are increasingly incorporating environmentally friendly and socially responsible practices into their purchasing strategies. In the EU, for example, around 30% of public procurement is for low-carbon goods and services.

3. Globalization and diversification of supply chains

Due to geopolitical changes and trade wars, many companies are overhauling their supply chains to reduce dependence on one country. 70% of global companies plan to diversify their purchases by 2025.

4. Growth of the procurement outsourcing market

Companies increasingly outsource procurement processes to specialized agencies. The volume of the global procurement outsourcing market is projected to increase from $5.08 billion in 2024 to $7.5 billion by 2031.

Statistics by major countries

Consider the key indicators of procurement activity in the leading economies of the world.

1. United States of America (USA)

• Total purchases: $9.7 trillion (2023)
• Public procurement: approximately $1.8 trillion
• Share of GDP attributable to procurement: approximately 40%
• Main areas: defense, health, construction

2. China

• Total purchases: $7.2 trillion (2023)
• Share of public procurement in GDP: about 20%
• Important industries: production, infrastructure projects, technologies
• In 2022, China implemented more than 5,400 subsidies to support its manufacturers.

3. European Union (EU)

• Total purchases: 7.5 trillion euros (2023)
• Public procurement: around 14% of EU GDP
• 70% of purchases in large associations are carried out outside the EU regime
• Main areas: Sustainable development, digital technologies, medicine

4. Japan

• Total purchases: $1.8 trillion (2023)
• Share of purchases in GDP: about 30%
• Important industries: automotive, electronics, innovative technologies

5. India

• Total purchases: $1.2 trillion (2023)
• Share of public procurement in GDP: about 18%
• Active development of state electronic trading platforms (GeM) has increased the transparency of procurement

Development of electronic procurement

Digital technologies continue to influence the procurement market. In 2024, the global e-commerce market is estimated at $30 billion and is expected to grow to $50 billion by 2030.

Key platforms and technologies:

• SAP Ariba (Global)
• Alibaba B2B Marketplace (China)
• GeM (India)
• TenderBoard (Singapore)
• ProZorro (Ukraine)

Advantages of digital procurement:

• Reduce transaction costs by 25-30%
• Increasing transparency and fighting corruption
• Automation of reconciliation and reporting processes

Prospects for the development of the procurement market

Taking into account global changes, several key forecasts for the procurement market can be identified:

• Growth in procurement: an average of 5-7% annually due to an increase in the need for resources and technologies.
• Increasing the share of “green” purchases: By 2030, more than 50% of public procurement in developed countries will be focused on sustainable goods and services.
• Integration of artificial intelligence (AI): By 2028, more than 80% of purchasing decisions will be made using AI and machine learning.
• The growth of the electronic tender market: By 2035, more than 90% of global purchases will be made through digital platforms.

The procurement market is undergoing major changes due to digitalization, globalization and the increasing role of sustainable development. The world’s largest economies are actively modernizing procurement processes, introducing innovative technologies and new supply chain management strategies.

In the coming years, digital procurement, environmental standards and automation are projected to drive the industry. It is important for companies and government organizations to adapt to new realities in order to increase efficiency and competitiveness in the procurement market.Council: Procurement organizations should actively adopt digital tools, follow global trends, and adapt supply chain management strategies to meet current challenges.