Vendor Management System Market Report 2025 (Global Edition)

Global Vendor Management System Market Report 2025 Market Size Split by Deployment (On-premise, Cloud), by End-user (Industry, Retail, BFSI, Manufacturing, IT & Telecommunications, Other End-user Indu...

Vendor Management System Market Report Description

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Competitive Landscape of the Vendor Management System Market

Key players deploy strategic initiatives such as product innovations, partnerships, and mergers. Companies prioritize R&D to introduce cutting-edge solutions, ensuring a competitive edge. Robust distribution networks and adherence to quality standards amplify market presence, fostering an environment where agility and innovation define industry leaders.

Vendor Management System Industry News 

In October 2021, Origami Risk declared that it had created an online tool to assist companies in improving efficiency and streamlining their vendor risk management procedures.

(Source: https://www.origamirisk.com/resources/press-release/origami-risk-launches-online-solution-global-vendor-risk-management)

In May 2021, Converting static vendor profiles into dynamic vendor risk intelligence, Prevalent, Inc.'s Vendor Intelligence Network, and Third-Party Risk Management Platform will give businesses real-time visibility into vendor risks.

(Source: https://www.prevalent.net/)

Top Companies Market Share in Vendor Management System Industry: (In no particular order of Rank)

• MasterControl Inc.
• Intelex Technologies Inc
• IBM Corporation
• SAP SE
• HICX Solutions.
• Coupa Software Inc.
• SalesWarp
• Ncontracts LLC
• LogicManager Inc.
• Gatekeeper
• MetricStream Inc.
• Quantivate LLC. 
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of Vendor Management System

Which Region will dominate the Vendor Management System Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue. The significant portion of this market is mainly attributable to three factors: the existence of global market leaders providing several solutions at competitive prices, the growing reliance of businesses on vendor risk management solutions to efficiently manage risks related to vendors, and the rising spending power of local businesses on risk management solutions.

Which is Expanding at the Fastest CAGR?

The Asia Pacific region is witnessing an increase in sales. The market is expected to be driven by the quick increase in consumer disposable income and the expansion of SMEs in China, India, South Korea, and Japan. Additionally, the market is anticipated to be driven during the forecast period by the growing requirement for digital transformation among several distant businesses in the region and the growing awareness among businesses of the advantages of vendor risk management.

The current report Scope analyzes Vendor Management System Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Vendor Management System Market Analysis

According to Cognitive Market Research, the global vendor management system market size was estimated at USD xx Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD xx million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.4% from 2024 to 2031. North American businesses are early adopters of new technologies, and VMS solutions offer a range of benefits that can improve efficiency and effectiveness. The region is home to several large and established companies that are increasingly recognizing the value of VMS solutions. VMS solutions can help businesses to streamline compliance processes and manage risk more effectively. The Vendor Management System (VMS) market in North America, particularly within the manufacturing sector, is experiencing significant growth and is expected to continue in the coming years.

Country Analysis

• According to Cognitive Market Research, the US had a major share in the vendor management systems market, with a market size of USD xx million in 2024, and it is projected to grow at a CAGR of 13.2% during the forecast period. The VMS market in the United States is poised for continued growth in the coming years. As businesses adopt new technologies and focus on compliance and cost savings, VMS will play an increasingly important role in their operations.
• The Canada vendor management systems market had a market share of USD xx million in 2024 and is projected to grow at a CAGR of 14.2% during the forecast period. Companies in Canada are subject to various regulations, and VMS can help them ensure that their vendors comply with these regulations.
• The Mexico vendor management systems market is projected to grow at a CAGR of 13.9% during the forecast period, with a market size of USD xx million in 2024.

Europe Vendor Management System Market Analysis

Cognitive Market Research shows a market value of USD xx million in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 13.7% from 2024 to 2031. Europe accounted for over 30% of the global market size of USD xx million. Regulations like the General Data Protection Regulation (GDPR) and the Know Your Vendor (KYV) requirements are prompting companies to improve their vendor management practices. VMS solutions help organizations track and manage vendor risks, ensuring compliance with these regulations. Companies are increasingly looking for ways to improve visibility in their supply chains. VMS solutions provide a centralized platform for managing all aspects of the vendor lifecycle, from onboarding to performance monitoring. The European VMS market for manufacturing is expected to be driven by the growth of the automotive, aerospace & defense, and healthcare sectors. These highly regulated sectors have complex supply chains, making them ideal candidates for VMS adoption.

• The United Kingdom vendor management systems market had a market share of USD xx million in 2024 and is projected to grow at a CAGR of 14.5% during the forecast period. The VMS market in the UK is expected to be driven by the increasing adoption of cloud-based solutions.
• The French vendor management systems market is projected to grow at a CAGR of 12.9% during the forecast period, with a market size of USD xx million in 2024.
• According to Cognitive Market Research, the German vendor management systems market size was valued at USD xx million in 2024 and is projected to grow at a CAGR of 13.9% during the forecast period. Germany is home to a large and well-established manufacturing sector, which relies heavily on a complex network of vendors and suppliers. VMS helps these companies manage their vendor relationships more effectively and efficiently.
• The Italian vendor management systems market is projected to grow at a CAGR of 13.1% during the forecast period, with a market size of USD xx million in 2024.
• The Russian vendor management systems market is projected to grow at a CAGR of 12.7% during the forecast period, with a market size of USD xx million in 2024.
• The Spanish vendor management systems market is projected to grow at a CAGR of 12.8% during the forecast period, with a market size of USD xx million in 2024.
• The Luxembourg vendor management systems market is projected to grow at a CAGR of 13.8% during the forecast period, with a market size of USD xx million in 2024.
• The Portuguese vendor management systems market is projected to grow at a CAGR of 13.5% during the forecast period, with a market size of USD xx million in 2024.
• The Greece vendor management systems market is projected to grow at a CAGR of 14.0% during the forecast period, with a market size of USD xx million in 2024.
• The rest of Europe's vendor management systems market is projected to grow at a CAGR of 14.0% during the forecast period, with a market size of USD xx million in 2024.

Asia Pacific Vendor Management System Market Analysis

According to Cognitive Market Research, the global vendor management system market size was estimated at USD xx Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD xx million in 2024 and will grow at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2031. The Asia Pacific region is experiencing rapid economic growth, leading to increased investment in businesses and infrastructure. This, in turn, is driving the demand for vendor management solutions. As businesses in the Asia Pacific region become more globalized, their supply chains become more complex. This complexity drives the need for VMS solutions to help organizations manage their vendors more effectively. Governments in the Asia Pacific region are increasingly implementing regulations that require businesses to comply with stricter standards for vendor management. VMS solutions can help organizations meet these compliance requirements. The VMS market in Asia Pacific is still fragmented, with many small and medium-sized vendors.

• According to Cognitive Market Research, the market size of China's vendor management systems was valued at USD xx million in 2024 and is projected to grow at a CAGR of 16.7% during the forecast period. Chinese businesses are actively outsourcing various operations, which fuels the need for efficient vendor management to ensure quality and compliance.
• The Japan vendor management systems market is projected to grow at a CAGR of 15.7% during the forecast period, with a market size of USD xx million in 2024.
• The India vendor management systems market had a market share of USD xx million in 2024 and is projected to grow at a CAGR of 19.0% during the forecast period. VMS systems provide transparency and help mitigate risks in increasingly complex Indian supply chains.
• The South Korean vendor management systems market is projected to grow at a CAGR of 16.3% during the forecast period, with a market size of USD xx million in 2024.
• The Australian vendor management systems market is projected to grow at a CAGR of 16.9% during the forecast period, with a market size of USD xx million in 2024.
• The Southeast Asia vendor management systems market is projected to grow at a CAGR of 18.2% during the forecast period, with a market size of USD xx million in 2024.
• The Rest of the Asia Pacific vendor management systems market is projected to grow at a CAGR of 17.0% during the forecast period, with a market size of USD xx million in 2024.

South America Vendor Management System Market Analysis

According to Cognitive Market Research, the global vendor management systems market size was estimated at USD xx Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD xx million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2031. Latin America is seeing a surge in freelance and contingent workforces, increasing the need for businesses to manage these vendors effectively. VMS solutions offer companies cost savings by automating vendor processes and streamlining negotiations. In a region with complex labor regulations, VMS solutions ensure compliance and mitigate risks associated with managing external workforces. Latin American manufacturers increasingly outsource non-core activities to focus on their primary competencies. This leads to a complex network of vendors and the need for VMS solutions to manage them.

• According to Cognitive Market Research, the Brazil vendor management systems market size was valued at USD xx million in 2024 and is projected to grow at a CAGR of 15.2% during the forecast period. Cloud-based VMS solutions are becoming increasingly popular in Brazil due to their lower upfront costs, scalability, and ease of use.
• The Argentina vendor management systems market had a market share of USD xx million in 2024 and is projected to grow at a CAGR of 15.5% during the forecast period. Argentinian businesses increasingly adopt digital solutions to streamline their operations and improve efficiency.
• The Colombia vendor management systems market is projected to grow at a CAGR of 14.4% during the forecast period, with a market size of USD xx million in 2024.
• The Peru vendor management systems market is projected to grow at a CAGR of 14.8% during the forecast period, with a market size of USD xx million in 2024.
• The Chile vendor management systems market is projected to grow at a CAGR of 14.9% during the forecast period, with a market size of USD xx million in 2024.
• The Rest of the Latin America vendor management systems market is projected to grow at a CAGR of 13.7% during the forecast period, with a market size of USD xx million in 2024.

Middle East Vendor Management System Market Analysis

According to Cognitive Market Research, the global vendor management system market size was estimated at USD xx Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD xx million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.9% from 2024 to 2031. Governments in the MEA region are investing heavily in infrastructure projects, such as transportation, energy, and healthcare. This is leading to a rise in the demand for vendors who can supply the necessary materials and services. VMS can help organizations manage these vendors effectively, ensuring compliance with regulations and optimizing costs. Cloud-based VMS solutions are becoming increasingly popular in the MEA region, as they offer several benefits, such as scalability, accessibility, and lower total cost of ownership (TCO). Manufacturing companies in the MEA region increasingly focus on optimizing their supply chains and mitigating vendor performance, quality, and compliance risks.

• According to Cognitive Market Research, the GCC Countries' vendor management systems market size was valued at USD xx million in 2024 and is projected to grow at a CAGR of 15.7% during the forecast period. VaaS solutions are gaining traction in the GCC due to their lower upfront costs and easier deployment.
• The Egypt vendor management systems market is projected to grow at a CAGR of 15.2% during the forecast period, with a market size of USD xx million in 2024.
• The South African vendor management systems market is projected to grow at a CAGR of 15.9% during the forecast period, with a market size of USD xx million in 2024. The increasing adoption of cloud-based solutions is driving this growth, the growing need for compliance and risk management
• The Turkish vendor management systems market is projected to witness growth at a CAGR of 14.4% during the forecast period, with a market size of USD xx million in 2024.
• The Nigeria vendor management systems market is projected to grow at a CAGR of 14.0% during the forecast period, with a market size of USD xx million in 2024.The Rest of the MEA vendor management systems market is projected to grow at a CAGR of 13.9% during the forecast period, with a market size of USD xx million in 2024.

Vendor Management System Market Analysis

Vendor Management System Deployment Segment Analysis 

According to Cognitive Market Research, cloud-based deployment held the major market share over the forecast period. This segment's expanding benefits to businesses regarding scalability, self-solution, low maintenance, and flexibility at reasonable pricing are primarily responsible for its substantial market share. Furthermore, throughout the projection period, the market is anticipated to grow significantly due to the growing adoption of hybrid cloud solutions that assist businesses in improving cost efficiency, resource utilization, user experience, and application modernization. Throughout the forecast period, the market is expected to be driven by companies' growing interest in updating their IT infrastructure by installing cloud-based technologies.

On-premise is the fastest-growing category over the forecast period. The growing worries about data security enable businesses to use on-premise solutions. Moreover, organizations implement on-premise solutions due to budgetary constraints and a lack of knowledge about the advantages of cloud-based deployment. Many emerging-market companies don't have enough technical know-how in their workforce to use cloud-based systems. This factor has also boosted the segment's rise.

• On-premise
• Cloud

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Vendor Management System Industry. Request a Free Sample PDF!

Vendor Management System End-user Segment Analysis

According to Cognitive Market Research, manufacturing holds a prominent market share. The primary reason for this segment's sizeable share is the rising demand for vendor risk management solutions designed to effectively manage the elevated risks related to suppliers' financial, regulatory, and quality aspects. Furthermore, the growing digital transformation allows businesses to implement cutting-edge solutions, including vendor risk management, to simplify operations and lower risks. Furthermore, manufacturing companies work with various suppliers for a wide range of goods and services compared to other industries. As a result, there is a strong need for vendor risk management solutions in this industry, which drives the segment's growth, to manage risk associated with multiple vendors efficiently.

Retail is the fastest-growing category over the forecast period. Because there is a greater requirement to reduce supply chain interruptions, more suppliers are offering a wider range of goods and services from farther away. Furthermore, it is projected that the category will rise at a significant adoption rate during the projection period due to retailers' increased interest in providing an optimum customer experience by implementing contemporary methods and cutting-edge solutions. Additionally, retailers are increasingly emphasizing data-driven decisions to streamline their business processes and improve the consumer experience. Therefore, controlling vendor risks also calls for a clever software solution that works well and can assist merchants in making the right choices. Thus, the retail industry is anticipated to increase significantly during the projection period.

• Industry
• Retail
• BFSI
• Manufacturing
• IT & Telecommunications
• Other End-user Industries

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Vendor Management System Vendor Management System Segment Analysis

• SMEs
• Large Enterprises

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion