Responsible Sourcing Software Market - Forecast(2024 - 2030)

The Responsible sourcing software market size is forecast to reach $289 million by 2026, growing at a CAGR of 7.9% from 2021 to 2026. The growth of Responsible sourcing software market is attributed to factors such as growing digitization, and growing demand from organisations for planning, budgeting, improving efficiency and others. Moreover, technological advancements such as incorporation of Machine learning, predictive analysis and others give the best possible scenarios based on intelligent algorithms and machine-to-machine analysis of big data sets. This kind of capability could optimize the delivery of goods while balancing supply and demand, and would not require human analysis, but rather action to set the parameters of success. Furthermore, increase in concern for enhancing supply chain management and sustainability, corporate social responsibility (CSR), sustainable development and supply chain ethics further drive forward the Responsible sourcing software industry in the long run.

The report: “Responsible sourcing software Industry – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Responsible sourcing software market.

By Deployment Type: On-Premise, Cloud

By Organization Size: Small Enterprises, Medium-Sized Enterprises, Large Enterprise

By Payment Model: Subscription, Perpetual

By Application: Procurement & Sourcing, Supply Chain Planning, Manufacturing Execution System, Transportation Management System, Warehouse Management System, others

By End User: Manufacturing, Retail, IT & Telecom, Food and Beverage, Healthcare and Others

By Geography: North America (U.S, Canada, Mexico),  Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, South Korea, Australia and Others), South America(Brazil, Argentina and others), and ROW (Middle East and Africa)

The Cloud deployment model is anticipated to witness significant market growth with CAGR 16% during the forecast period 2021-2026. The market growth is owing to its greater simplicity, improved mobility, and high scalability in comparison to on-premises. Furthermore, cloud model also reduces implementation effort and cost as well as rapid transition to new technologies and business processes.  New cloud computing systems are facilitating advanced sustainable developments in Supply Chain Management (SCM) applications. The flow of products can now be handled with digital technologies that incorporate high quantities of data from various channels, link resources (machines and humans) in real-time, and accept social media to function through organisational borders. Cloud networking offers unparalleled insight and real-time touch/impact capabilities, resulting in an intelligent supply network and emerging operating models. Using this benefit, businesses can effectively communicate with their retailers, suppliers and consumers. Cloud connectivity also offers infrastructure benefits such as dynamic provisioning, multi-tenancy, increased use of the server and data centre efficiency. Thus, all these benefits enhances the responsible sourcing software market growth in the years ahead.

Healthcare segment is anticipated to witness significant market growth with a CAGR of 8% during the forecast period 2021-2026. With the expiry of patents, introduction of generic products, demands on R&D and marketing investments, and immense pressure from governments and health insurance providers to lower end-market costs, there is a considerable potential to maximise the deployment of responsible sourcing software for the development of sustainable development of the organisations. In the healthcare sector, responsible sourcing software can proactively accelerate value generation by finding and collecting supplier creativity all the way to healthcare delivery from the early stages of research and growth. Additionally, the software assists in supply chain management by building strategic, high-performance collaborations with contract testing agencies and other high-end technological and science service providers from third parties. In January 2020, Hiretual announced the release of its AI Procurement Tools for Healthcare and IT/Tech which are now available on the Hiretual network. These are the first AI technologies ever developed specifically to address healthcare and technology management obstacles. Such developments positively impact the market growth of Responsible sourcing software.

North America region held the highest market share in 2020 with market share of around 32.4%. Market growth is due to developments in emerging technology that help to quantify the risks of the supply chain and improve the management of the supply chain. The United States is rigorously working to improve its industrial sector by growing its competitiveness. The existence of major companies such as Oracle, Microsoft, Coupa Software and others in this region engaged in providing to the rising demand from production industries of responsible sourcing software, which further boosts the market growth in the region along with their latest technologies, strategic alliances and others.   In November 2019, IBM had implemented a responsible blockchain network to improve human rights and environmental security in the resource supply chain. The launch of innovative tech tools is poised to expand the company's market share of responsible sourcing software. In June 2019, Jaggaer and ConnXus had partnered with ConnXus to develop solutions for ethical and efficient supply chain sourcing practises that fuel demand for responsible sourcing software.

Modern supply chains are extremely diverse and global in reach. A single commodity may be sourced from thousands of inputs originating from hundreds of countries on a supermarket shelf. A multi-tiered supply chain is a huge challenge to negotiate for enterprises dedicated to delivering goods that are responsibly sourced and humanely generated through sustainable development. These commitments require comprehensive technical solutions that allow supplier discovery, supplier relationship management as well as data collection, across several data categories at multiple levels. Blockchain technology has the capacity to implement new standards of transparency and reliability to global supply chain management. The possession of a particular asset or procedure is checked by the network and is accessible to everyone. Contracts are configured for purchases and are thus unchangeable and automatically executed. Thus, Blockchain technology enhances capabilities of supply shift in delivering full supply chain visibility and sustainability thereby driving the market growth.

One of the main sourcing software industry dynamics that will drive the growth potential of the global responsible sourcing software market is the upsurge of cloud-based sourcing software. The cloud-based sourcing program requires minimal upfront investments and provides IT-related resources such as processing capacity, storage, network bandwidth, encryption, portals, and SaaS with a pay-per-use billing model.

The responsible sourcing software presents an approach that is more data-driven and fact-based for supplier relationship management. The deployment of responsible sourcing software involves strategic experience through several stakeholders in individual sectors in organisations opting for this. This is one of the significant obstacles that will hamper the development of the market during the forecast period 2021-2026.

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Responsible sourcing software market. As of 2020, the market for Responsible sourcing software market is consolidated with the top players including Coupa Software, IBM, sciQuest, Zycus Inc, Capgemini SE, Ariba Inc, eBid Systems, SAP, Oracle Corporation, Microsoft Corporation and among others.