Procurement as a Service Market in India – Size, Forecast, and Competitive Landscape: Explore Arisinfra Solutions’ Potential in India

Market Outlook: Procurement as a Service Market in India 2025-2029

The procurement-as-a-service (PaaS) market in India is rapidly growing, driven by the increasing demand for cost-effective, efficient, and scalable procurement solutions that leverage digital technologies and automation to optimize sourcing, supplier management, and procurement operations across industries. The market is expected to grow by USD 100-150 million at a CAGR of 14%-16% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies in this market include:

• Aegis
• Tata Consultancy Services
• Infosys Ltd ADR
• HCL Technologies
• Others

IPO Company Overview: Arisinfra Solutions in the Indian procurement as a service market

Arisinfra Solutions Ltd recently launched its IPO on the BSE and NSE in February 2025, creating a new opportunity for investors. Arisinfra Solutions is a leading provider of procurement-as-a-service (PaaS) solutions in India, specializing in leveraging advanced AI and cloud technologies to streamline and optimize procurement processes for the construction industry. With a focus on improving efficiency, reducing costs, and enhancing supplier management, Arisinfra helps businesses achieve seamless procurement workflows, from sourcing to delivery. Their platform empowers organizations to manage construction materials and resources effectively, enabling them to make data-driven decisions and foster long-term supplier relationships.

Market Segmentation: How is the Indian procurement as a service market segmented?

By Deployment Model

• Cloud-based
• On-premises
• Hybrid

End-User

• Construction
• Manufacturing
• Retail
• Others

The construction segment is growing rapidly due to India’s booming infrastructure and real estate sectors, with companies seeking efficient procurement solutions to manage large-scale projects. Cloud-based deployment is leading due to its cost-effectiveness, ease of integration, and the growing adoption of cloud technologies by businesses looking for scalable and flexible procurement solutions.

Investment Opportunities: Why explore the Indian procurement as a service market with Technavio?

The procurement-as-a-service (PaaS) market in India has witnessed significant developments in recent years, driven by the increasing demand for digital transformation across industries. Companies are increasingly adopting AI-powered platforms, cloud-based solutions, and automation tools to optimize their procurement functions. The integration of advanced technologies like machine learning, predictive analytics, and blockchain has further enhanced the efficiency and transparency of procurement processes, allowing businesses to streamline sourcing, improve supplier management, and reduce costs. With the rapid growth of sectors like construction, manufacturing, and retail, PaaS solutions are becoming essential for organizations looking to improve their procurement capabilities while adapting to the evolving digital landscape.

Another major trend is the rising focus on sustainability and ethical sourcing, with companies leveraging PaaS solutions to improve visibility into supply chains and ensure compliance with environmental and social standards. Additionally, small and medium-sized enterprises (SMEs) are increasingly adopting PaaS solutions to level the playing field with larger competitors by accessing cost-effective procurement services that were once out of reach. With these advancements, the PaaS market in India is expected to continue its upward trajectory, with more businesses embracing digital procurement solutions to drive growth, innovation, and operational excellence in a highly competitive market.

Market Dynamics: What factors are influencing the procurement as a service market in India?

Drivers: The procurement-as-a-service (PaaS) market in India is primarily driven by the growing need for operational efficiency and cost optimization across industries. Businesses are increasingly adopting PaaS solutions to streamline procurement processes, reduce overheads, and enhance supplier relationships. The rise of digital technologies, including AI, cloud computing, and automation, is further fueling the demand for smarter and more efficient procurement models. Additionally, the rapid growth of industries like construction, manufacturing, and retail in India is propelling the need for scalable procurement solutions that can handle large volumes of transactions and complex supply chains.

Trends: A key trend in the Indian PaaS market is the shift toward AI and machine learning integration in procurement platforms. These technologies enable predictive analytics, data-driven decision-making, and more accurate demand forecasting. Another prominent trend is the growing emphasis on cloud-based procurement solutions, offering flexibility, scalability, and lower upfront investment. Additionally, sustainability has emerged as a crucial focus, with businesses seeking to ensure ethical sourcing and environmental compliance through transparent and traceable procurement processes. The demand for mobile-enabled and user-friendly platforms is also increasing as companies aim to improve accessibility and streamline supplier interactions.

Opportunities: The expansion of SMEs in India presents a significant opportunity for the PaaS market, as these businesses look to leverage cost-effective procurement services that offer scalability and flexibility. Furthermore, sectors such as e-commerce, automotive, and pharmaceuticals are experiencing rapid growth and are adopting PaaS solutions to handle complex procurement needs. As digital transformation accelerates across industries, there is a growing opportunity for PaaS providers to offer customized solutions that cater to specific industry requirements, such as managing raw materials, equipment, and workforce in sectors like construction and manufacturing. Additionally, with the increasing focus on sustainability, PaaS platforms that integrate environmental and social governance (ESG) criteria can offer businesses a competitive edge.

Challenges: Despite the rapid growth of the PaaS market in India, several challenges remain. One key issue is the lack of digital literacy and technical expertise among smaller businesses, which can hinder the adoption of advanced procurement solutions. Additionally, data security and privacy concerns are significant challenges, as businesses need to ensure that sensitive procurement and supplier information is adequately protected in cloud environments. Another challenge is the complexity of integrating PaaS solutions with existing enterprise resource planning (ERP) systems, which can require significant time and resources. Finally, the procurement landscape in India is highly fragmented, with numerous suppliers, making it difficult to create a seamless and standardized procurement process across different industries.

Investment Questions: Topics to consider when investing in the procurement as a service market in India

Technology Adoption: How quickly are businesses in India adopting digital and AI-powered procurement solutions, and what is the level of maturity in technology infrastructure across various sectors?

Regulatory Environment: What are the government regulations related to procurement processes, data privacy, and cybersecurity in India? How might these affect the PaaS market?

Customer Base and Retention: What is the company’s existing customer base, and how do they retain customers in a competitive market? What is the churn rate, and how scalable are their solutions?

Sustainability Trends: How well are companies in the PaaS market addressing the growing demand for sustainability and ethical sourcing in procurement? Are there opportunities to capitalize on ESG (Environmental, Social, and Governance) trends?

Economic and Infrastructure Challenges: What are the potential challenges posed by India’s infrastructure gaps, digital literacy levels, and supply chain complexities that could impact the scalability and success of PaaS solutions?

For a detailed analysis of the procurement as a service market in India, buy the full report

Technavio Report Insights: How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the procurement as a service market in India, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth Competitive Landscape: Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

1. What is Procurement-as-a-Service (PaaS)?

Procurement-as-a-Service (PaaS) is a cloud-based solution that provides businesses with outsourced procurement services, enabling them to optimize their purchasing processes, reduce costs, and improve efficiency. It includes activities like supplier sourcing, contract management, order processing, and procurement analytics through advanced technologies such as AI, machine learning, and automation.

2. How is the PaaS market in India evolving?

The PaaS market in India is rapidly expanding due to the country's digital transformation initiatives, growing industries like construction, manufacturing, and retail, and the increasing demand for efficient and scalable procurement solutions. With advancements in technology, companies are increasingly adopting AI, automation, and cloud-based procurement models to streamline their operations and enhance supplier management.

3. How does technology like AI and automation impact the PaaS market?

AI and automation play a crucial role in enhancing the capabilities of PaaS solutions by enabling predictive analytics, automating routine tasks, improving supplier selection, and enhancing procurement decision-making. AI also allows businesses to forecast demand more accurately, track supplier performance, and optimize sourcing strategies, leading to improved efficiency and reduced operational costs.

4. What are the key trends driving the PaaS market in India?

Key trends driving the PaaS market in India include the growing adoption of cloud-based solutions, increased focus on sustainability and ethical sourcing, the rise of AI and machine learning in procurement, and the demand for mobile-enabled platforms. Additionally, the need for real-time data and analytics to improve procurement decision-making is becoming a critical trend.

5. What is the future outlook for the PaaS market in India?

The future of the PaaS market in India looks promising, driven by increasing digital transformation, demand for automation, and the growth of industries such as construction, e-commerce, and manufacturing. As more businesses in India embrace cloud technologies and focus on improving supply chain efficiency, the PaaS market is expected to continue to grow at a rapid pace, offering ample opportunities for both service providers and adopters.