Expense Management Software (BSM, Business Spend Management)

History

2024: Global Enterprise Spending Management Software Market Growth to $23.36 Billion

At the end of 2024, the costs in the global market for enterprise expense management software (Business Spend Management, BSM) reached $23.36 billion. The largest expenses fell on North America - $9.22 billion, which corresponds to a share of 39.5%. Such data are reflected in a Fortune Business Insights study, the results of which were released on March 26, 2025.

BSM tools collect, correlate, classify, and evaluate cost data to minimize procurement costs, and to monitor and monitor workflows, regulatory compliance, and efficiency. This software helps organizations make more accurate and informed decisions that help them optimize their operations and reduce costs.

One of the main drivers of the market in question is the ongoing digital transformation of enterprises in various areas. BSM systems provide a real-time view of costs. This helps manage supply chains while minimizing potential risks. Comprehensive expense analytics provides a more complete picture of supply, contracting, and procurement operations. As a result, more control over various business processes is achieved, which ultimately contributes to improved financial performance and increased customer satisfaction.

Technological advances such as artificial intelligence, machine learning, robotic process automation (RPA) and the Internet of Things (IoT) play an important role in the development of the market. AI algorithms are able to analyze huge amounts of data with high efficiency, providing information that is critical for strategic planning and risk management. AI helps automate routine tasks, reduce errors and speed up problem solving. In addition, AI can identify hidden patterns and predict future trends: this makes analytics more accurate and informative.

The study authors call the lack of necessary technical skills a deterrent when implementing BSM tools. Purchasing departments in companies can be overwhelmed with everyday tasks, including interaction with suppliers, processing requests, etc. In such a situation, BSM deployment may be difficult.

According to the usage model, the market is divided into cloud and local systems. The first type of solution is gaining popularity due to its flexibility, scalability and cost-effectiveness. The introduction of cloud BSM tools can significantly reduce initial capital expenditures and provide a more predictable cost structure. By application, the industry is segmented into BFSI (banking, financial services and insurance), travel and tourism, hospitality, healthcare, IT and telecommunications, power and utilities, retail and e-commerce, etc. The first of these areas accounted for the largest share of costs in 2024 - 29.6%, or $6.91 billion. The following are named major players in the world market:

• Coupa Software;
• Proactis Holdings;
• GEP;
• SAP SE;
• Basware;
• Ivalua;
• SutiSoft;
• Zycus;
• Xeeva;
• Jaggaer.

In 2025, expenditures in the field of BSM worldwide are expected to amount to $25.98 billion. Fortune Business Insights analysts believe that in the future, the CAGR will be at 11.7%. As a result, by 2032, costs on a global scale could increase to $56.3 billion.^[1]

Notes