In terms of revenue, the Global Tail Spend Management Solutions Market is expected to reach USD 9.1 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 35.1% from 2022 to 2028.
Tail send management programs to offer organization in controlling payment, tracking, and monitoring the performance of the activity. In the financial society, tracking and monitoring are pretty difficult and require a highly skilled workforce and time. This is where the tail spend management system comes into play. Tail spend management activity helps consolidate 85% of suppliers who account for 20% of procurement spend and thus positively impacts the firm’s financial performance due to its impact on operating margin. Thus, the significant increase in productivity and efficiency drives the market demand.
Key Highlights from Report:
- The Spend Analytics sub-segment of the Solutions segment is anticipated to dominate the Tail Spend Management Solutions Market. The rise in investment returns gained by investors by using spend analytics has driven this segment in recent years.
- The BFSI sub-segment from the End User segment accounted for the largest market share in 2021 for the Tail Spend Management Solutions Market. High reliability in tail spends analytics to save unnecessary transactions is expected to contribute to the segmental growth of the market.
- Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) during the forecast period. This surge is attributed to the rising demand for tail-spend management solutions in developing economies such as India, China, and Indonesia. The growing demand for spend analytics and saving bank transaction costs is also expected to drive this region in the Tail Spend Management Solutions market.
Tail Spend Management Solutions control and monitor transactions of major financial firms and nowadays are helping SMEs too. As per the World Economic Forum, from 2016 to 2025, digitalization in logistics could unlock USD 1.5 trillion of value for logistics players and a further USD 2.4 trillion worth of societal benefits. The data-driven information services possibly will offer an estimated USD 810-billion upside to the industry. The importance of tail spends management solutions offers efficiency in procurement and sourcing technology to run smoothly in organizations. Top players such as Corlido, SDI International, and Candex, provide controlled catalogs that can cover a wider spectrum of procurement spend analytics.
North America held the largest shares in 2021 and is likely to continue the same trend during the forecast period. An increase and presence of key players and high investment made by rich populations in countries such as the U.S. & Canada are likely to augment the regional growth of the market over the forecast period.