Industry research
Scope
US
Companies
89
Table of contents
What does the e-procurement & expense management market landscape look like in the US?
Although the US is a frontrunner in overall e-procurement adoption, it lags considerably in specific technologies like e-invoicing, accounts payable automation and spend analytics, where Nordic countries and Germany lead the way (Houlihan Lokey, September 2024). The US e-procurement and expense management software markets are fragmented and face competition from large ERP firms such as Oracle (US), SAP Group (DE), Unit4 (NL), Workday (US), Intuit (US; QuickBooks) and Zoho (IN). Large identified players continue to expand their global market share through buy-and-build activity. For example, GEP Worldwide acquired OpusCapita, a Finnish e-invoicing and accounts payable software firm. On the other hand, the long tail focuses on niche offerings to compete with the larger players, with some holding leading positions within specific verticals or use cases. For example, Kojo focuses exclusively on e-procurement of construction materials for contractors, while Motus is a leader in vehicle reimbursement programs (e.g. FAVR and mileage tracking) for field employees.
What is the level of investor activity in the US's e-procurement & expense management industry?
Investor-led interest has been significant, with ~81% of identified assets backed by financial sponsors (as of October 2025). Herein, sponsor-led interest mainly stems from (i) the rise of AI-powered platforms that deliver significant efficiency gains through automation, (ii) strengthening US regulatory mandates that compel adoption, such as federal e-invoicing requirements, as well as (iii) growing procurement complexity from expanding supplier networks and cross-border transactions, which heighten the need for centralized digital platforms. On the other hand, deterring factors for investors include (i) the rise in cybersecurity and data privacy risks, (ii) integration challenges with legacy ERP and financial systems that increase implementation costs and delay ROI, as well as (iii) a continued shortage of skilled talent that restricts innovation and raises employment expenses.
What are the key ESG considerations in the US's e-procurement & expense management industry?
ESG topics primarily revolve around environmental and governance matters. Key environmental concerns include the energy consumption and carbon footprint of expanding cloud infrastructure. Herein, incumbents respond through energy-efficient cloud operations, renewable energy partnerships and carbon accounting frameworks. On the other hand, the digitization of procurement and expense management processes reduces reliance on paper-based documentation, creating a positive environmental impact by minimizing waste and supporting client sustainability goals. Governance priorities center on data security, privacy compliance and cyber resilience, which are addressed through adherence to global standards (e.g. GDPR), the adoption of robust cybersecurity frameworks and frequent regulatory audits.
The global procurement software market was valued at ~$8.0bn in 2024 and is expected to grow to ~$17.9bn in revenue by 2033 (+9.4% CAGR 2024-2033; Procurement Magazine, February 2025)
Technavio (June 2025) estimates that the global expense management software market generated ~$6.7bn in revenue in 2024 and forecasts it to reach ~$14.2bn by 2029 (+16.2% CAGR 2024-2029)
Growth upside from AI platforms replacing traditional workflows with self-optimizing systems, enabling the automation of contract management, invoice processing and RFP analysis. Herein, predictive analytics and generative AI enable market forecasts, supplier risk assessments and sourcing simulations, which deliver up to ~80% faster process execution, ~75% fewer errors and lower fraud risk, thereby resulting in significant efficiency gains, cost savings and improved cash flows across operations (SuperAGI, June 2025; Art of Procurement, May 2025; McKinsey & Company, June 2024)
Regulatory developments, including US federal mandates for electronic invoicing in government procurements, act as a key catalyst for the adoption of e-procurement and expense management platforms across businesses. Adoption is also driven by a US government mandate requiring electronic invoicing for federal procurements, as well as by a push for standardized frameworks (e.g. Digital Business Networks Alliance) and US-EU collaboration to ensure broad, cross-border compliance (OFX, August 2025; The Invoicing Hub, June 2024)
The rise in buyer–supplier engagement, driven by growing cross-border transactions and an expanding number of product SKUs, has made manual procurement and expense tracking increasingly complex. As a result, enterprises accelerate the adoption of e-procurement and expense management platforms to centralize data, automate approvals and gain real-time visibility across global supply chains (World Economic Forum, January 2025; Alaan, December 2024)
Cybersecurity threats and data privacy concerns act as a major restraint, as identified organizations rely more on cloud-based and digital platforms that store sensitive data such as vendor financial details, bids and payment records. These systems remain prime targets for cyberattacks and data breaches, with a report by Sovra showing that ~83% of hacking-related breaches in public administration involved stolen credentials, of which many were traced to third-party vendors (Sovra, July 2025; Independent, March 2025; Procurement Magazine, February 2025)
Integration with legacy ERP and financial systems remains a major barrier to the adoption of e-procurement and expense management software, as many US enterprises rely on fragmented, outdated infrastructure. The high cost, technical complexity and data compatibility challenges in connecting modern SaaS platforms with legacy environments often cause delays in implementation and limit ROI, which reduces overall adoption (NetSuite, February 2025; Zycus, January 2025; MDPI, January 2024)
The shortage of engineers and intensifying competition for skilled talent constrain innovation capacity, while the recent H-1B visa overhaul restricts the entry of engineers from across the world (primarily Asia) into the US workforce, further limiting the industry’s growth potential and elevating cost pressures (The Guardian, September 2025; McKinsey & Company, September 2023)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 89 private companies, incl. financials, ownership details and more.
A view on all 420 deals in the industry
ESG assessments with highlighted ESG outperformers
