The global VMS market is projected to nearly double from USD 10.42 billion in 2025 to USD 20.69 billion by 2032, driven by AI integration, cloud platforms, and regional growth in North America, Europe, and Asia-Pacific.
The global Vendor Management Systems (VMS) market is poised for substantial growth over the coming decade, driven by increasing demand for streamlined vendor oversight, risk management, and supplier collaboration across diverse industries. Recent compreh...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
ensive market research reports outline a robust expansion trajectory, highlighting key players, technological advancements, and regional trends shaping the sector through to 2032 and beyond.
According to an in-depth study by Coherent Market Insights, the VMS market is expected to experience significant growth from 2025 onwards. This report projects the industry’s expansion to be underpinned by rising adoption of analytics and reporting modules along with vendor onboarding and information management solutions. The market research emphasises qualitative and quantitative analyses covering market segments such as product types and applications, alongside regional breakdowns including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Notable players profiled in this landscape include Coupa Software, SAP Ariba, GEP SMART, Jaggaer, Oracle, IBM, and Freshworks among others, reflecting a competitive but collaborative ecosystem where strategic partnerships and new product launches continually drive evolution.
Market size estimates vary slightly across analyses but reflect a consistent upward trend. Another report values the global VMS market at approximately USD 10.42 billion in 2025, forecasting nearly doubling to USD 20.69 billion by 2032 at a compound annual growth rate (CAGR) of 10.3%. This growth outpaces some earlier projections that anticipated a CAGR of around 7.8% from 2024 to 2035, underscoring accelerating adoption rates as organisations increasingly prioritise vendor risk mitigation, efficiency, and compliance in procurement and supply chain operations. These growth dynamics also align with broader technology adoption trends seen in related software markets such as procurement management and sourcing software, which are also expanding rapidly due to digitisation efforts and increasing complexity in supplier ecosystems.
Technological innovation is a notable catalyst within the VMS market. Leading providers are integrating artificial intelligence and cloud-based platforms to enhance vendor risk management capabilities, data analytics, and supplier collaboration. For instance, SAP Ariba has introduced AI-driven supplier risk management tools, while Coupa Software has enhanced its cloud-based systems to foster improved vendor interaction and transparency. Moreover, initiatives promoting supplier diversity, inclusion dashboards, and real-time analytics tools are emerging as differentiators for VMS providers seeking to meet evolving customer expectations and regulatory requirements.
Regionally, North America continues to dominate market share due to well-established IT infrastructure and high technology adoption rates. Europe and Asia-Pacific are also forecast to witness robust growth, driven by expanding manufacturing sectors, regulatory compliance demands, and increased investment in digital procurement technologies. Emerging markets in South America and the Middle East & Africa are anticipated to grow from a smaller base, supported by economic development and increasing focus on supply chain optimisation.
Strategically, companies competing in this space are engaging in collaborations, joint ventures, and product launches to maintain competitive advantage. The market’s competitive landscape is dynamic and includes both established enterprise software giants and innovative newcomers, indicating healthy diversity in solution offerings and scalability options for enterprises of varying sizes.
In summary, the Vendor Management Systems market is on a significant growth path, reflecting increasing recognition of the importance of vendor governance in modern business ecosystems. With advancing technologies, expanding global reach, and a broadening vendor portfolio, the market is set for continued innovation and investment. Businesses aiming to optimise procurement processes and reduce supplier-related risks will likely find enhanced value in adopting advanced VMS solutions as the sector matures through to 2032 and beyond.
Source: Noah Wire Services
