In 2019, the top 10 Aerospace and Defense software vendors accounted for 49.5% of the global Aerospace and Defense applications market which grew 5.6% to approach nearly $5.3 billion in license, maintenance and subscription revenues.
Dassault Systemes led the pack with a 10.3% market share riding on a 6.6% jump in Aerospace and Defense license, maintenance and subscription revenues. Microsoft was #2, followed by Autodesk, Cadence Design Systems and Ansys.
We ask the simple question: Who’s buying Aerospace and Defence applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Aerospace and Defense applications market size is expected to reach $5.8 billion by 2024, compared with $5.3 billion in 2019 at a compound annual growth rate of 1.7%.
| Exhibit 2: Worldwide Aerospace and Defense Software Market 2019-2024 Forecast, $M | |||
|---|---|---|---|
| Year | 2019 | 2024 | 2019-2024 CAGR, % |
| Total | 5315 | 5792 | 1.7% |
Source: Apps Run The World, November 2020
Top 10 Aerospace and Defense Software vendors
Aerospace and Defense (Aircraft and parts, defense contractors) – Aviation Maintenance Management, Air Traffic Management applications, Flight operations software, Quality management system, Financials, HR, Procurement
Legacy replacements could spur growth in the A&D market, but cybersecurity risks may prevent A&D firms from embracing the Cloud in its current form. Still GE Digital is pushing ahead with Cloud initiatives like Predix to reshape the A&D market with device connectivity solutions for predictive maintenance.
Here are the rankings of the top 10 Aerospace and Defense applications vendors in 2019 and their market shares.
| Rank | Vendor | 2018 Aerospace & Defense Apps Revenues, $M | 2019 Aerospace & Defense Apps Revenues, $M | YoY Growth | 2019 Aerospace & Defense Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Dassault Systemes | Subscribe | Subscribe | 6.6% | Subscribe | In 2019 Dassault Systèmes acquired IQMS, a manufacturing ERP software company, for $425 million. Earlier Dassault Systèmes acquired Exa Corporation. The group has over 270,000 customers of all sizes, in all industries, in more than 140 countries. |
| 2 | Microsoft | Subscribe | Subscribe | 24.1% | Subscribe | In October 2019, The United States Department of Defense has awarded Microsoft a massive $10 billion contract to run the Pentagon’s cloud network, selecting the company over competitors including Amazon.com Inc. |
| 3 | Autodesk | Subscribe | Subscribe | 27.4% | Subscribe | In 2020, Autodesk acquired CAMplete Solutions and Spacemaker. Earlier, in 2014 Autodesk completes acquisition of Delcam. |
| 4 | Cadence Design Systems | Subscribe | Subscribe | 9.3% | Subscribe | In January 2020 Cadence Completes Acquisition of AWR Corporation from National Instruments. The addition of AWR’s technologies and talent will further expand Cadence’s reach into 5G RF communications and support system innovation for the aerospace and defense, automotive and wireless market segments. |
| 5 | Ansys Inc. | Subscribe | Subscribe | 13.2% | Subscribe | In November 2019, Ansys completed the acquisition of LST. The acquisition empowers its customers to solve a new class of engineering challenges, including developing safer automobiles, aircraft, and trains while reducing or even eliminating the need for costly physical testing. Additionally, Ansys acquired Dynardo, Helic, and DfR. |
| 6 | Siemens PLM Software | Subscribe | Subscribe | 9.3% | Subscribe | As part of its Vision 2020, Siemens is acquiring CD-adapco and sharpening its focus on growth in digital business and expanding its portfolio in the area of industry software. CD-adapco will be integrated into the PLM software business of Siemens’ Digital Factory (DF) Division. Siemens acquired Mentor Graphics in 2017 |
| 7 | Synopsys | Subscribe | Subscribe | 4.8% | Subscribe | In Jnauary 2020, Synopsys acquired Tinfoil Security, a provider of dynamic application security testing (DAST) and application programming interface (API) testing. This acquisition tightly aligns with the vision Synopsys began with when established the Software Integrity Group over five years ago. |
| 8 | Hexagon | Subscribe | Subscribe | 2.8% | Subscribe | In March 2020, Hexagod acquired Romax Technology. Romax will be consolidated with MSC Software within the Manufacturing Intelligence division of Hexagon. US-based Computer Aided Engineering company MSC Software provides design and simulation tools to companies and organizations in the aerospace sector such as Boeing and NASA and was acquired by Hexagon in 2017. |
| 9 | SAP | Subscribe | Subscribe | 4.8% | Subscribe | The world’s leading aerospace and defense companies like B/E Aerospace, Bombardier, Pratt & Whitney, Boeing, and others rely on SAP for core business applications. |
| 10 | Adobe | Subscribe | Subscribe | -2.0% | Subscribe | By leveraging Adobe Sensei, Adobe’s AI and machine learning framework, Adobe Virtual Analyst will empower brands to drive more value from analytics by surfacing signals that would have otherwise gone unnoticed. |
| Subtotal | Subscribe | Subscribe | 10.9% | Subscribe | ||
| Other | Subscribe | Subscribe | 0.9% | Subscribe | ||
| Total | Subscribe | Subscribe | 5.6% | Subscribe |
Source: Apps Run The World, November 2020
Other Aerospace and Defence software providers included in the report are: ADP, AerData B.V., Altair Engineering, Inc., Amadeus, AMT-SYBEX’s Leasepoint, AVEVA Group, Bentley Systems Inc., Boeing Jeppesen, Cegid Cisco Systems, Citrix, Corel Corporation, CoStar Group, E2open, LLC, GE Digital, Gerber Technology, GFI Informatique Google, Hitit Bilgisayar, Honeywell International, Emerging Technologies, IBM, IBS Software Services, IFS, Infor, Intuit Inc., JDA Software Group, Inc., Kinaxis Inc., Landmark, a Halliburton business line, Mentor, a Siemens Business, Nuance Communications Inc., Open Text Corporation Oracle, Qualtrics, RingCentral, Rockwell Automation, Roper Technologies, Inc., Saab Sensis, Sage, Salesforce, SAS Institute, ServiceNow, Shopify, SITA, SupplyOn, Trimble Workday and many others.
Custom data cuts related to the Aerospace and Defense Applications market are available:
- Top 500 Aerospace and Defense Applications Vendors and Market Forecast 2019-2024
- 2019 Aerospace and Defense Applications Market By Functional Market (16 Markets)
- 2019 Aerospace and Defense Applications Market By Country (USA + 45 countries)
- 2019 Aerospace and Defense Applications Market By Region (Americas, EMEA, APAC)
- 2019 Aerospace and Defense Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2019 Aerospace and Defense Applications Market By Customer Size (revenue, employee count, asset)
- 2019 Aerospace and Defense Applications Market By Channel (Direct vs Direct)
- 2019 Aerospace and Defense Applications Market By Product
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Aerospace and Defense Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Aerospace and Defense systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Aerospace and Defense software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer Aerospace and Defense wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
| Customer | Industry | Empl. | Revenue | Country | Vendor | New Product | Function |
| Aerojet Rocketdyne | Aerospace and Defense | 5070 | $1.70B | United States | PTC | PTC FlexPLM | Product Lifecycle Management |
| Airbus Group | Aerospace and Defense | 134000 | $74.00B | Netherlands | Microsoft | Microsoft Dynamics CRM | Customer Relationship Management |
| Airbus Group | Aerospace and Defense | 134000 | $74.00B | Netherlands | Workday | Workday HCM | Human Capital Management |
| ArianeGroup | Aerospace and Defense | 9000 | $3.47B | France | Siemens PLM Software | Siemens Teamcenter | Product Lifecycle Management |
| BAE Systems – Maritime Services, UK | Aerospace and Defense | 3500 | $1.49B | United Kingdom | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| Dassault Aviation | Aerospace and Defense | 11398 | $5.52B | France | Dassault Systemes | 3DEXPERIENCE Platform | Project Portfolio Management |
| Drones Etc. | Aerospace and Defense | 10 | $15.0M | United States | Genesys | Genesys Customer Experience Platform | Customer Experience Platform |
| Dynamic Aviation | Aerospace and Defense | 850 | $200.0M | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Elixir Aircraft | Aerospace and Defense | 30 | $5.0M | France | Dassault Systemes | Dassault Enovia PLM | Product Lifecycle Management |
| Embraer | Aerospace and Defense | 18343 | $18.71B | Brazil | Salesforce | Salesforce Service Cloud | Customer Service Software |
| General Dynamics Mission Systems | Aerospace and Defense | 13000 | $2.36B | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Kratos Defense and Security Solutions | Aerospace and Defense | 2900 | $653.0M | United States | ADP | ADP Vantage HCM | Human Capital Management |
| Medrobotics | Aerospace and Defense | 120 | $15.0M | United States | Host Analytics | Host Analytics Cloud EPM Suite | Enterprise Performance Management |
| Moog | Aerospace and Defense | 11000 | $2.60B | United States | Infor | Infor LN | Enterprise Resource Planning |
| Phacil | Aerospace and Defense | 800 | $120.0M | United States | Deltek | Deltek Cobra | Project Portfolio Management |
| Preferred Systems Solutions | Aerospace and Defense | 200 | $96.0M | United States | NetSuite | NetSuite CRM+ | Customer Relationship Management |
| QinetiQ | Aerospace and Defense | 6114 | $1.04B | United Kingdom | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| QinetiQ | Aerospace and Defense | 6114 | $1.04B | United Kingdom | SAP | SAP Cloud for Customer | Customer Relationship Management |
| Remington Arms Company | Aerospace and Defense | 3500 | $950.0M | United States | Oracle | Oracle Service Cloud (ex RightNow) | Customer Experience Platform |
| Safran | Aerospace and Defense | 70000 | $18.00B | United States | ADP | ADP Vantage HCM | Human Capital Management |
| Safran Transmission Systems | Aerospace and Defense | 1350 | $540.0M | France | Dassault Systemes | Dassault Enovia PLM | Product Lifecycle Management |
| Team Rubicon | Aerospace and Defense | 60 | $5.0M | United States | Cornerstone OnDemand | Cornerstone Learning Suite | Learning Management System |
| Turkish Aerospace Industries | Aerospace and Defense | 5254 | $1.00B | Turkey | Dassault Systemes | 3DEXPERIENCE Platform | Project Portfolio Management |
| Turkish Aerospace Industries | Aerospace and Defense | 5254 | $1.00B | Turkey | Siemens PLM Software | Siemens Teamcenter | Product Lifecycle Management |
| U.S. Navy | Aerospace and Defense | 200000 | $26.28B | United States | Oracle | Oracle HCM Cloud | Human Capital Management |
| Umbra Group | Aerospace and Defense | 1200 | $200.0M | Italy | Microsoft | Microsoft Dynamics 365 for Finance and Operations | Enterprise Resource Planning |
| Umbra Group | Aerospace and Defense | 1200 | $200.0M | Italy | Microsoft | Microsoft Office 365 | Content Management |
| Umbra Group | Aerospace and Defense | 1200 | $200.0M | Italy | Microsoft | Microsoft Power BI | Business Intelligence |
| United Airlines | Aerospace and Defense | 88400 | $37.74B | United States | Microsoft | Microsoft Project Server | Project Portfolio Management |
| United Airlines | Aerospace and Defense | 88400 | $37.74B | United States | Anaplan | Anaplan | Planning and Performance Management Platform |
Source: Apps Run The World, November 2020
Further Readings
An expanded version of this report covers the top 500+ Aerospace and Defense Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2019 product revenues.
Their 2019 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
