Key Government Procurement Statistics 2023 – MY Choice


  • The US government spent approximately $4.4 trillion on procurement in 2020.
  • In the UK, the government spent £292 billion on procurement in 2019/20.
  • In 2019, the Indian government spent Rs 2.75 lakh crore ($38 billion) on procurement.
  • The Australian government spent AUD 71.5 billion on procurement in 2019-20.
  • In 2020, the Canadian government spent CAD 23.4 billion on procurement.
  • The Brazilian government spent R$48.6 billion ($8.6 billion) on procurement in 2020.
  • The Chinese government spent RMB 8.3 trillion ($1.3 trillion) on procurement in 2020.
  • In 2019, the Mexican government spent MXN 590 billion ($28.3 billion) on procurement.
  • The South African government spent ZAR 832.9 billion ($56 billion) on procurement in 2019/20.
  • The European Union spent €13.7 billion on procurement in 2019.

Government Procurement Statistics

  1. In 2020, the U.S. government spent approximately $586 billion on contracts for goods and services.
  2. The top five industries for government contracts in 2020 were Professional, Scientific, and Technical Services; Information; Construction; Administrative and Support and Waste Management and Remediation Services; and Manufacturing.
  3. The Federal Government awarded contracts to 118,638 unique small businesses in 2020.
  4. The U.S. government’s largest contractor is Lockheed Martin, which received $72 billion in government contracts in 2020.
  5. In 2020, the U.S. Department of Defense awarded $370 billion in contracts.
  6. The U.S. Small Business Administration (SBA) reported that 23.5% of government contracts were awarded to small businesses in 2020.
  7. In 2020, the U.S. government awarded 4.4 million contracts to 585,000 unique contractors.

Government Procurement Facts

  1. Government procurement is the process of purchasing goods and services by the government.
  2. The government procurement process typically involves several stages, including identification of needs, development of specifications, advertising, evaluation of proposals, and contract award.
  3. Government procurement can be conducted through various methods, including sealed bidding, competitive proposals, sole source contracting, and simplified acquisition procedures.
  4. Government procurement is subject to various laws and regulations, including the Federal Acquisition Regulation (FAR) and the Small Business Act.
  5. Government procurement can be a significant source of revenue for businesses of all sizes, including small businesses.
TopicData
Global Government Procurement MarketEstimated at $4.4 trillion annually
Government Procurement Opened to Foreign CompetitionReported by the United States and Next Five Largest GPA Parties, 2010
Percentage of Adults Supporting Organ Donation90%
Percentage of Public Procurement to GDP13% to 20%
Global Expenditure in ProcurementEstimated at nearly 9.5 trillion US dollars
Percentage of Contract’s Value Lost due to Corruption10% to 25%
Threshold Value$ Billion
Below $80k1.5
$80k and above68.3

Government Procurement Benefits

  1. Government procurement can provide a steady source of revenue for businesses.
  2. Government procurement can help businesses establish a reputation for quality and reliability.
  3. Government procurement can provide opportunities for businesses to develop new products and services.
  4. Government procurement can help stimulate economic growth and job creation.
  5. Government procurement can help promote competition and innovation.

Government Procurement Trends

  1. The use of technology in government procurement is increasing, with many governments adopting e-procurement systems.
  2. Governments are increasingly focusing on sustainability in their procurement practices, with many implementing green procurement policies.
  3. Governments are placing greater emphasis on transparency and accountability in their procurement processes.
  4. Governments are exploring new procurement models, including public-private partnerships and outcome-based contracting.

Government Procurement Adoption

  1. Many governments around the world have adopted e-procurement systems to streamline their procurement processes and increase transparency.
  2. The use of e-procurement systems has been shown to increase efficiency and reduce costs.
  3. The adoption of green procurement policies is becoming increasingly common among governments around the world.
  4. The adoption of outcome-based contracting is growing, particularly in areas such as healthcare and social services.

Government Procurement Market Analysis

  1. The global government procurement market is expected to grow from $487.9 billion in 2020 to $651.1 billion by 2025, at a CAGR of 5.9%.
  2. The North American government procurement market is the largest in the world, accounting for 43% of the global market in 2020.
  3. The Asia-Pacific government procurement market is expected to grow at the highest CAGR of 8.4% from 2020 to 2025.

Government Procurement Global Market Size:

  1. The global government procurement market was valued at $7.7 trillion in 2020.
  2. The market is projected to grow at a CAGR of 5.9% from 2021 to 2028.
  3. North America is the largest market for government procurement, followed by Europe and Asia Pacific.
  4. The US government is the world’s largest buyer of goods and services, with an annual budget of over $4 trillion.

Most Popular Procurement Methods:

  1. The most common procurement methods used by governments include competitive bidding, request for proposals (RFP), and request for quotations (RFQ).
  2. In competitive bidding, suppliers compete to provide the best value for money.
  3. RFPs are used for more complex purchases and require suppliers to submit detailed proposals outlining their approach and cost.
  4. RFQs are used for smaller purchases and require suppliers to provide a price quote for a specific product or service.

Challenges Faced by Procurement Professionals:

  1. Procurement professionals face several challenges, including managing supplier relationships, ensuring compliance with regulations, and balancing cost with quality.
  2. Other challenges include managing risk, dealing with complex procurement processes, and navigating political and cultural factors.

Impact of Technology on Government Procurement:

  1. The adoption of technology has transformed government procurement, making it more efficient and transparent.
  2. Procurement software can automate many procurement processes, such as purchase order generation and invoice processing.
  3. E-procurement systems allow suppliers to submit bids electronically and reduce the time and cost associated with traditional procurement methods.
  4. Big data analytics can be used to identify potential cost savings and improve decision-making.

Role of Small Businesses:

  1. Small businesses play a vital role in government procurement, accounting for a significant percentage of government contracts.
  2. In the US, the government has set a target of awarding 23% of all federal contracts to small businesses.
  3. Small businesses face several challenges when competing for government contracts, including limited resources and access to financing.

Future Outlook:

  1. The use of artificial intelligence (AI) and machine learning is expected to play an increasingly important role in government procurement.
  2. The adoption of blockchain technology is expected to improve the transparency and security of procurement processes.
  3. The COVID-19 pandemic has accelerated the adoption of e-procurement and other digital procurement methods.

Other Government Procurement Statistics:

  1. The global public sector software market is projected to reach $37.7 billion by 2023.
  2. The top 10 countries in terms of government procurement as a percentage of GDP are predominantly from Europe, with Norway leading the pack at 19.7%.
  3. The US federal government spent $582 billion on contracts in fiscal year 2020.
  4. The UK government spent £292 billion on goods and services in 2019-2020.
  5. The Indian government spent $429 billion on procurement in 2020.
  6. The most common goods and services procured by governments include IT equipment, construction services, and healthcare products.

The use of green procurement practices is growing, with governments increasingly seeking to purchase sustainable and environmentally friendly products and services.

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