In 2015, the top 10 CRM software vendors accounted for nearly 51% of the global CRM applications market which grew 2% to approach nearly $24 billion in license, maintenance and subscription revenues.
Last year Salesforce led the pack with 21% market share and $5.1 billion in CRM product revenues, riding on a 21% jump in subscription revenues. Oracle was No. 2 achieving 6% share, SAP was the third at 5% and Adobe Systems and Microsoft were fourth and fifth place with 4% and 4%, respectively.
Through our forecast period, the CRM applications market is expected to reach $25.2 billion by 2020, compared with $24.0 billion in 2015 at a compound annual growth rate of 1.7%.
|Exhibit 2: Worldwide CRM Software Market 2015-2020 Forecast, $M|
|Year||2015||2020||2015-2020 CAGR, %|
Source: Apps Run The World, June 2016
CRM Market Definitions And Forecast Assumptions
Customer Relationship Management includes applications for sales force automation, marketing automation, customer service and support management such as email automation. Social Media Management, Customer Experience Management, Activity and Participant Management are among some of the newly available CRM applications available via Cloud delivery.
As Salesforce aims to expand with price hikes, enlarged ecosystem and recommitment to its SFA roots, seismic shifts are driving a wedge among key vendors within customer service and marketing automation segments as restructuring moves dim outlook of incumbents.
Top 10 CRM Software Vendors
Here are the rankings of the top 10 CRM software vendors in 2015 and their market shares.
|Rank||Vendor||2014 CRM Apps Revenues, $M||2015 CRM Apps Revenues, $M||YoY Growth||2015 CRM Market Share, %||Recent Developments|
|1||Salesforce||Subscribe||Subscribe||21%||21%||In May 2016, Salesforce acquired Demandware for $2.8 billion, the biggest purchase in its history, bolstering its eCommerce and retail applications offerings. Demandware’s revenues will be counted toward Salesforce’s Commerce Cloud.|
|2||Oracle||Subscribe||Subscribe||3%||6%||Oracle continues to post robust results with its CX Cloud, securing thousands of CX customers including 834 in its latest quarter.|
|3||SAP||Subscribe||Subscribe||23%||5%||In May 2016, SAP ramped up its Digital offerings with Digital Consumer Insight data service, which leverages mobile network data to help marketers pinpoint physical customer behavior and develop effective CRM strategies to respond to buyer preferences and demographic shifts at a moment’s notice.|
|4||Adobe Systems||Subscribe||Subscribe||16%||4%||In May 2016, Adobe acquired Livefyre, a content curation and audience engagement developer that gives brands access to billions of pieces of user generated content that can be streamed in real-time right to their sites, ads, emails, TV, digital billboards, and apps.|
|5||Microsoft||Subscribe||Subscribe||-5%||4%||Microsoft readies the Fall 2016 launch of Dynamics 365, its next-generation Cloud CRM and ERP that shares a common data model with its popular Office 365, optimizing experience for hundreds of millions of Office users and improving their workflow in the enterprise.|
|6||Genesys Telecommunications Laboratories||Subscribe||Subscribe||7%||3%||In July 2016, Genesys received a $900 million investment from PE firm Hellman & Friedman. After the sale, Permira, Technology Crossover Ventures, and other investors remain majority owners of Genesys.|
|7||Verint Systems Inc.||Subscribe||Subscribe||15%||3%||Projects flat FY17 with declines in security intelligence unit offset by single-digit growth in enterprise sales.|
|8||Nice Systems||Subscribe||Subscribe||8%||3%||Nice acquired InContact for $940 million in May 2016 after InContact bought intellectual property around advanced analytics from Attensity and AC2 for workforce optimization.|
|9||IMS Health||Subscribe||Subscribe||1%||1%||Acquired Cegedim CRM apps in 2014.|
|10||Constant Contact||Subscribe||Subscribe||10%||1%||Acquired by Endurance, a hosting company, for $1.1 billion in 2015.|
Source: Apps Run The World, June 2016
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M
CRM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in CRM applications 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 CRM 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 CRM 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.
|Vendor||Customer Win||Industry||No. of employees||Revenue, $M||Old Product||New Product||Wins in|
|Adobe Systems||Etihad Airlines||Airlines & Aviation||19700||7600||Legacy System||Addobe Marketing Cloud||4Q15|
|Adobe Systems||Fnac Group||Retail||14100||4410||Oracle Siebel||Adobe Neolane||1Q16|
|Adobe Systems||Home Depot||Retail||371000||83176||Adobe Omniture||Addobe Marketing Cloud||4Q15|
|Adobe Systems||MGM Resorts International||Hospitality||62000||9200||Legacy System||Addobe Marketing Cloud||1Q16|
|Adobe Systems||Nissan||Automotive||152400||118850||Legacy System||Addobe Marketing Cloud||1Q16|
|Adobe Systems||Nissan Motor Co., Ltd.||Automotive||142925||1750000||Legacy System||Adobe Neolane||1Q15|
|Adobe Systems||Southwest Airlines||Airlines & Aviation||49583||19820||Salesforce CRM||Addobe Marketing Cloud||2Q16|
|Aquitem||InVivo||Wholesale Distribution||8400||5700||Klee Commerce||Aquitem Zefid||3Q15|
|Conecteo||Cristal Union||Consumer Products||2200||1930||Legacy System||Conecteo||4Q15|
|Constant Contact||Association For Neighborhood and Housing Development||Civic & Social Organization||10||2||Legacy System||Constant Contact Email Marketing||3Q15|
|Constant Contact||Bitterman Family Confections||Food & Beverages||40||11||Legacy System||Constant Contact Email Marketing||1Q15|
|Constant Contact||International Franchise Association (IFA)||Government Relations||200||20||Legacy System||Constant Contact for Franchise||1Q15|
|Constant Contact||KBB Salon||Proffesional Services||10||1||Legacy System||Constant Contact Email Marketing||3Q15|
|Constant Contact||Linchris Hotel Corporation||Hospitality||600||100||MailChimp||Constant Contact Email Marketing||3Q15|
|Genesys||Bosch Service Solutions||Outsourcing||5000||900||Legacy System||Genesys Customer Experience Platform||3Q15|
|Genesys||Drones Etc.||Consumer Electronics||2||15||Legacy System||Genesys Customer Experience Platform||4Q15|
|Genesys||Emerson Ecologics||Health, Wellness and Fitness||130||15||In-House Legacy CRM||Genesys Customer Experience Platform||3Q15|
|Genesys||Enrollment Resources Group||Insurance||200||25||In-House Legacy CRM||Genesys Customer Experience Platform||2Q15|
|Genesys||InfoArmor||Information Technology and Services||80||8||Legacy System||Genesys Customer Experience Platform||1Q16|
|IMS Health||Servier Russia||Pharmaceuticals||21200||4300||Cegedim||Nexxus Mobile Intelligence CRM||1Q16|
|IMS Health||UCB||Pharmaceuticals||7500||4200||Cegedim||Nexxus Suite||3Q14|
|IMS Health||Valeant Pharmaceuticals||Pharmaceuticals||16800||8263||ATLAS CRM||Nexxus Mobile Intelligence CRM||1Q16|
|IMS Health||VAYA Pharma||Consumer Goods||120||15||Legacy System||Nexxus Mobile Intelligence CRM||1Q16|
|Microsoft||Airbus Group||Aerospace and Defense||136574||74000||Legacy System||Microsoft Dynamics CRM||1Q16|
|Microsoft||Baltimore Orioles||Sport||239||500||Legacy System||Microsoft Dynamics CRM Online||1Q16|
|Microsoft||Banque Française Mutualiste||Banking||17||207||Legacy System||Microsoft Dynamics CRM||4Q15|
|Microsoft||Ingram Micro||Wholesale Distribution||21700||42000||Salesforce CRM||Microsoft Dynamics CRM||2Q15|
|Microsoft||International Chamber of Commerce||International Trade and Development||50||400||In-House Legacy CRM||Microsoft Dynamics CRM||4Q15|
|Microsoft||LANXESS S.A.S.||Wholesale Distribution||16200||9020||Legacy System||Microsoft Dynamics CRM||1Q15|
|Microsoft||NAS Broker||Financial Services||5||50||Legacy System||Microsoft Dynamics CRM||4Q15|
|Microsoft||Nexus Energy Systems||Renewables & Environment||75||7||Legacy System||Microsoft Dynamics CRM Online||1Q16|
|Microsoft||Paprec, Paprec Recyclage||Utilities||4250||1100||Legacy System||Microsoft Dynamics CRM||1Q15|
|Microsoft||VM Matériaux||Wholesale Distribution||2700||650||Legacy System||Microsoft Dynamics CRM||1Q15|
|Mirakl||Ludendo Groupe||Retail||3500||800||Legacy System||Mirakl||1Q15|
|Nice Systems||American Support||Outsourcing||500||30||Legacy System||NICE Workforce Management||1Q16|
|Nice Systems||Asurion||Information Technology and Services||15000||6000||LivePerson||NICE Real-Time||1Q16|
|Nice Systems||Hermes Group UK||Logistics and Supply Chain||12000||2500||Legacy System||NICE Workforce Management||4Q15|
|Nice Systems||Long Term Care Partners||Insurance||250||20||Legacy System||NICE Workforce Management||1Q16|
|Nice Systems||Oi Telecom Group||Telecommunications||20000||12000||Legacy System||NICE Workforce Management||1Q16|
|Oracle||Abu Dhabi Food Control Authority||Food & Beverages||450||60||Legacy System||Oracle Siebel||4Q15|
|Oracle||CLK Enerji||Oil & Energy||200||80||Legacy System||Oracle Utilities – CRM||1Q16|
|Oracle||dunnhumby||Marketing and Advertising||2000||1500||Salesforce CRM||Oracle Marketing Cloud||1Q16|
|Oracle||DX Marketing||Marketing and Advertising||100||10||Legacy System||Oracle Marketing Cloud||3Q15|
|Oracle||Pfizer||Pharmaceuticals||78300||48850||Legacy System||Oracle Siebel Clinical Trial Management||2Q16|
|Oracle||Sopra Steria||High Tech||38000||4200||Legacy System||Oracle Siebel||3Q15|
|Oracle||Carrefour||Retail||365000||113960||Legacy System||Oracle Siebel||4Q15|
|Sage||Veolia Group||Utilities||179000||35500||Legacy System||Sage CRM||1Q16|
|Salesforce||Clarins Group||Consumer Products||10000||350||Adobe Campaign||Salesforce CRM||4Q15|
|Salesforce||Encyclopaedia Britannica||Publishing||400||15||Oracle Siebel||Salesforce CRM||4Q15|
|Salesforce||ENGIE||Utilities||152900||83350||SAP CRM, IBM Unica||Salesforce CRM||2Q15|
|Salesforce||IKEA Group||Retail||139000||29090||Legacy System||Oracle RightNow Service Cloud||4Q15|
|Salesforce||Lesaffre||Consumer Products||7700||1710||SAP CRM||SAP Cloud for Customer||3Q15|
|Salesforce||Miner||Facilities Services||550||150||Legacy System||Salesforce CRM||2Q16|
|Salesforce||Neopost||High Tech||6200||1300||Oracle Siebel||Salesforce CRM||4Q15|
|Salesforce||Nissan Motor Co., Ltd.||Automotive||142925||1750000||Oracle Siebel||Salesforce CRM||1Q15|
|Salesforce||ST Microelectronics||High Tech||49450||8082||Legacy System||Salesforce CRM||4Q15|
|Salesforce||Virgin Media||Telecommunications||14000||6000||Oracle Siebel||Salesforce CRM||2Q16|
|Salesforce||Western Union||Financial Services||10000||5500||Legacy System||Salesforce CRM||3Q15|
|SAP||H&M||Retail||132000||18370||Legacy System||SAP CRM||3Q15|
|SAP||Johns Manville Europe GmbH||Building Materials||7000||2500||Salesforce CRM||SAP CRM||4Q15|
|SAP||Lampiris||Utilities||500||1750||SAP CRM||SAP Cloud for Customer||1Q16|
|SAP||Mohawk Durkan||Textiles||34000||7800||Legacy System||SAP Cloud for Customer||4Q15|
|SAP||PrimeSource||Building Materials||1200||500||Legacy System||SAP Cloud for Customer||4Q15|
|SAP||RAK Ceramics||Building Materials||15000||850||Legacy System||SAP CRM||3Q15|
|SAP||Vivendi||Utilities||60000||25500||Legacy System||SAP CRM||2Q15|
|Verint Systems Inc.||Barclays||Banking and Financial Services||129400||33000||Legacy System||Verint Engagement Management||1Q15|
|Verint Systems Inc.||Insurance Australia Group (IAG)||Insurance||15000||7390||KANA Enterprise||Verint Engagement Management||2Q16|
|Verint Systems Inc.||Scottish Power Energy Networks||Utilities||9200||6590||Legacy System||Verint Engagement Management||1Q15|
|Verint Systems Inc.||Tesco||Retail||500000||80850||Legacy System||Verint Engagement Management||1Q15|
|Verint Systems Inc.||Western Union||Financial Services||10000||5500||Legacy System||Verint Engagement Management||1Q15|
Source: Apps Run The World, August 2016
An expanded version of this report covers the top 135+ CRM 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 2014-2015 product revenues.
Their 2015 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.
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.