In 2020, the top 10 Cloud Procurement software vendors accounted for nearly 60.9% of the global Cloud Procurement applications market which grew 6.5% to approach nearly $3.3 billion in subscription revenues.
In 2020, SAP led the pack with a 30.3% market share while Coupa Software was #2 followed by, Mercateo, GEP, and OpenText Corporation.
We ask the simple question: Who’s buying Cloud Procurement 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 Cloud Procurement applications market size is expected to reach $4.37 billion by 2025, compared with $3.3 billion in 2020 at a compound annual growth rate of 5.3%.
| Exhibit 2: Worldwide Cloud Procurement Software Market 2020-2025 Forecast, $M | |||
|---|---|---|---|
| Year | 2020 | 2025 | 2020-2025 CAGR, % |
| Total | 3371 | 4373 | 5.3% |
Source: Apps Run The World, April 2021
Top 10 Cloud Procurement Software Vendors
Cloud Procurement covers applications designed for purchasing material (whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain-specific business process; or in support of performing a service) and services (business or professional).
Other functions include contract management, electronic network, punch-out, sourcing, and supplier rating to optimize the overall supplier relationship management business processes. Cloud Procurement applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise.
Additionally, supplier discovery and relationship management, coupled with networked marketplace, boost overall procurement activities.
Here are the rankings of the top 10 Cloud Procurement software vendors in 2020 and their market shares.
| Rank | Vendor | 2019 Cloud Procurement Apps Vendors, $M | 2020 Cloud Procurement Apps Vendors, $M | Growth, % | 2020 Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | 2.0% | Subscribe | SAP Ariba remains the No. 1 B2B network for procurement, sourcing and supplier management with 5.3 million companies being connected over the online marketplace and more than $3.75 trillion in commerce flows through the Ariba Network annually. |
| 2 | Coupa | Subscribe | Subscribe | 20.0% | Subscribe | In November 2020, Coupa acquired LLamasoft, a leader in AI-powered supply chain design and planning for $1.5 billion. LLamasoft’s technology is used by hundreds of enterprise customers, including brands such as Boeing, Danone S.A., Home Depot, and Nestle. The acquisition will strengthen Coupa’s supply chain capabilities, enabling businesses to drive greater value through Business Spend Management. As of January, over 1,300 customers had subscribed to Coupa’s platform. |
| 3 | Mercateo | Subscribe | Subscribe | 8.8% | Subscribe | Mercateo serves 1.5 million customers that turn to its procurement platform for an array of business to business eCommerce transactions. Among its customers are Gelsenwasser AG, Fujitsu Technology Solutions, Uniklinik Köln, Manuflex, AOC, MVV Energie AG, IDT Biologika GmbH, and many others. |
| 4 | GEP | Subscribe | Subscribe | 34.9% | Subscribe | GEP helps more than 450 Fortune 500 and Global 2000 enterprises worldwide including Honda, Dupont, Kellog’s, Prudential, BrightHouse Financial, General Mills, Cinncinati Bell, Brooks Brothers, ExxonMobil, Chevron, Petronas, Biogen, Bayer, Bristol-Myers Squibb, Royal London, Macy’s Inc., Chevron, and others. |
| 5 | Workday | Subscribe | Subscribe | 58.3% | Subscribe | Following its 2019 purchase of Scout RFP $540 million, Workday continues to make inroads into the Cloud procurement market by supporting a combined group of nearly 1,000 customers with such features as strategic sourcing, supplier engagement as well as eprocurement. Before the purchase, Scout had 240 customers and Workday Procurement signed over 650 customers. |
| 6 | Open Text | Subscribe | Subscribe | 2.5% | Subscribe | OpenText Business Network incorporates expertise from the leaders of OpenText acquired companies, such as GXS, EasyLink, ANX, Covisint, and Liaison Technologies to offer the most comprehensive B2B suite. More than 1 million trading partners and 33,000 customers in 130 countries, execute 26 billion transactions worldwide, facilitating the transfer of goods, money, and information between customers, suppliers, and service providers. |
| 7 | Jaggaer | Subscribe | Subscribe | 12.9% | Subscribe | After addressing procurement software needs of more than 1,700 customers including some of the largest companies, Jaggaer has launched Digital Mind that incorporates prescriptive and predictive analytics, machine learning and natural language processing tools to deliver new capabilities across the Jaggaer ONE platform for more contextual data, insights and decision support for meeting next-generation procurement and supply chain requirements. |
| 8 | Infor | Subscribe | Subscribe | 15.4% | Subscribe | The Infor Nexus has more than 65,000 companies connected to its network, overseeing a total of $50 billion in global payments and helps manage $1 trillion in trade over the online platform. The procurement and supply chain management tool augments Infor’s different Cloud ERP products. |
| 9 | Visma | Subscribe | Subscribe | 30.0% | Subscribe | In November 2020, Visma entered into an agreement with Mercell Holding to divest two of its purchasing and procurement services, Opic and Tendsign. Visma Proceedo will still be available from Visma and supported for an extended period by both Visma and Mercell. Visma continues to offer a range of procurement applications including ProActive, a set of Cloud procure-to-pay software solutions with over 730 customers in the Netherlands and Germany. |
| 10 | Zycus | Subscribe | Subscribe | 20.0% | Subscribe | Zycus has successfully deployed about 200 solutions to over 1,000 global clients. Among Zycus customers are Curtiss-Wright, SMRT Corporation, Nestle Waters, 3M, Fonterra, ING Bank, Carlson, Colgate Palmolive, AMD, and others. |
| Subtotal | Subscribe | Subscribe | 11.0% | Subscribe | ||
| Other | Subscribe | Subscribe | -0.5% | Subscribe | ||
| Total | Subscribe | Subscribe | 6.5% | Subscribe |
Source: Apps Run The World, April 2021
Other cloud procurement software providers included in the report are: abas Business Software, Access Group, Achilles, American Software, Aptos, Arrowstream, Asseco Group, Beeline, BirchStreet Systems, Bravosolution, CDK Global, Cegid, Comarch SoftM, Constellation Software Inc., Dairy.com, Determine, Inc., Digital Dimension, a Econocom Group Company, Duzon Digitalware, E2open, Ellucian, Epicor, ESM Solutions Corporation, Exact Holding BV, Exela Technologies, Inc., Fourth Ltd, FuturMaster, GFI Informatique, GHX, IBS Software Services, IFS, Ignite Technologies, Ivalua, JDA Software, KDS, LLamasoft, MercuryGate International, OBIC Co. Ltd., Oildex, Open Text Corporation, Openbravo, S.L.U., Per Angusta, PRGX Global Inc., PRO Unlimited, PROACTIS Group, Procurify, Procuro, Pronto Software, QAD, Ramco Systems, River Logic, Inc., Roper Technologies, Inc., Sage, Scanmarket, Selenity, Sênior Sistemas, SmartERP, SupplyOn, Synertrade, Taulia, Tigernix Pte Ltd, TotalSoft, Tradeshift, UNIT4, Visma, Vormittag Associates Inc., VORTAL Connecting Business, Vroozi, WEX Health, Workday, Yonyou, Zycus, and others.
Custom data cuts related to the Cloud Procurement Applications market are available:
- Top 60+ Cloud Procurement Applications Vendors and Market Forecast 2020-2025
- 2020 Cloud Procurement Applications Market By Industry (21 Verticals)
- 2020 Cloud Procurement Applications Market By Procurement Segments and Categories
- 2020 Cloud Procurement Applications Market By Country (USA + 45 countries)
- 2020 Cloud Procurement Applications Market By Region (Americas, EMEA, APAC)
- 2020 Cloud Procurement Applications Market By Revenue Type
- 2020 Cloud Procurement Applications Market By Customer Size (revenue, employee count, asset)
- 2020 Cloud Procurement Applications Market By Channel (Direct vs Direct)
- 2020 Cloud Procurement Applications Market By Product
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like Analytics and BI, Collaboration, eCommerce, PPM and TRM, where first movers remain less established than those that for decades have been entrenched in functional areas like Content Management and CRM.
Cloud Procurement Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Cloud Procurement 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 cloud procurement 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 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.
List of Cloud Procurement Customers
Source: Apps Run The World, April 2021
Further Readings
An expanded version of this report covers the top 60+ Cloud Procurement 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 2015-2020 product revenues.
Their 2018 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.
