In 2018, the top 10 CRM software vendors accounted for nearly 62.4% of the global CRM applications market which grew 12.6% to approach nearly $34.9 billion in license, maintenance and subscription revenues.
We ask the simple question: Who’s buying CRM 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 CRM applications market size is expected to reach $40.2 billion by 2023, compared with $34.9 billion in 2018 at a compound annual growth rate of 2.8%.
|Exhibit 2: Worldwide CRM Software Market 2018-2023 Forecast, $M|
|Year||2018||2023||2017-2022 CAGR, %|
Source: Apps Run The World, December 2019
Top 10 CRM Software Vendors
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.
Here are the rankings of the top 10 CRM software vendors in 2018 and their market shares.
|Rank||Vendor||2017 CRM Apps Revenues, $M||2018 CRM Apps Revenues, $M||YoY Growth||2018 CRM Market Share, %||Recent Developments|
|1||Salesforce||Subscribe||Subscribe||25,0%||Subscribe||Salesforce revved up its expansion by acquiring Tableau for $15.7 billion in 2019, a little over a year after it bought MuleSoft for $6.5 billion.|
|2||Adobe||Subscribe||Subscribe||23,7%||Subscribe||Adobe acquired Marketo for marketing automation and Magento for eCommerce as it pivots from content to CRM and aims to unseat Salesforce.|
|3||Oracle||Subscribe||Subscribe||4,2%||Subscribe||Oracle Digital Assistant is reshaping its CX offerings by enabling conversational AI for retailers to engage with customers using voice commands.|
|4||SAP||Subscribe||Subscribe||4,0%||Subscribe||Spending $8B in its biggest purchase, SAP acquired Qualtrics for survey and experience management apps.|
|5||Microsoft||Subscribe||Subscribe||14,4%||Subscribe||Microsoft’s CRM strategy now extends beyond Dynamics 365 to cover Teams for collaboration, Office 365 for content and ERP for back-office integration.|
|6||Genesys Telecommunications Laboratories||Subscribe||Subscribe||7,1%||Subscribe||Genesys PureCloud for customer engagement and communications, signed deals with more than 600 customers in the first three quarters of 2019, resulting in nearly 2,000 to date.|
|7||Nice Systems||Subscribe||Subscribe||8,5%||Subscribe||After beefing up its CRM strategy with InContact buy, Nice announced X-Sight for financial crime and compliance platform-as-a-service.|
|8||Pegasystems||Subscribe||Subscribe||2,2%||Subscribe||PegaSystems upgraded robotic process automation features for customer service and unveiled T-Switch that offers businesses AI transparency controls to mitigate data risks.|
|9||Verint Systems Inc.||Subscribe||Subscribe||9,7%||Subscribe||Verint acquired ForeSee for CX measurement, feedback, replay, text analytics, case management, ratings and reviews to expand Verint’s voice of the customer offerings.|
|10||Zendesk||Subscribe||Subscribe||36,6%||Subscribe||Zendesk acquired Base for sales force automation to complement Zendesk’s customer service and support apps.|
Source: Apps Run The World, December 2019
Other CRM software providers included in the report are: 8×8, ACI Worldwide, Act-On Software, AdRoll, Amdocs, Ameyo, Apttus, Aspect Software, Aurea, Avaya Inc., Backbase, Bazaarvoice, Blackbaud, BounceX, Capillary Technologies, CAS Software AG, CDK Global, Cision, Clarabridge, Constant Contact, Constellation Software Inc., Cox Automotive, Creatio (formerly bpm’online), CSG Systems International, DealerSocket, Deluxe Corporation, eGain Corporation, Emarsys, Enghouse Interactive Inc., Fiserv, Five9, Freshworks (formerly Freshdesk), Hansen Technologies, Hootsuite, HubSpot, IBM, Infor, InMoment, InsideSales.com, Intense Technologies, IQVIA, Keap, Khoros, Knowlarity Communications Pvt. Ltd., Listrak, LiveChat Inc., LiveOps, LivePerson Inc., LogMeIn, Marin Software, Maropost, Maximizer Software Inc., Medallia, Meltwater Group, Mitel, NCR Corporation, Noble Systems, Nuance Communications Inc., Operative, Puzzel, Quadient, Reynolds and Reynolds Company, RingCentral, Rubicon Project, Sage, SAS Institute, Selligent Marketing Cloud, Serenova, ServiceSource, Sprinklr, SugarCRM, Swiftpage, Talkdesk, Thunderhead, TTEC, Twilio, Unify Software and Solutions GmbH & Co. KG., Veeva Systems Inc., Vocalcom, Vonage, Zoho Corp.,
Custom data cuts related to the CRM Applications market are available:
- Top 200+ CRM Applications Vendors and Market Forecast 2018-2023
- 2018 CRM Applications Market By Industry (21 Verticals)
- 2018 CRM Applications Market By Functional Market (16 Markets)
- 2018 CRM Applications Market By Country (USA + 45 countries)
- 2018 CRM Applications Market By Region (Americas, EMEA, APAC)
- 2018 CRM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2018 CRM Applications Market By Customer Size (revenue, employee count, asset)
- 2018 CRM Applications Market By Channel (Direct vs Direct)
- 2018 CRM Applications Market By Product
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.
CRM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in CRM 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 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.
Source: Apps Run The World, January 2019
An expanded version of this report covers the top 200+ 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 2015-2018 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.
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.