In 2017, the top 10 CRM software vendors accounted for nearly 60% of the global CRM applications market which grew 11.85% to approach nearly $27.2 billion in license, maintenance and subscription revenues. Last year Salesforce led the pack with a 25% market share riding on a 23% jump in CRM revenues. Adobe was #2, followed by Oracle, SAP and Genesys.
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 is expected to reach $29.7 billion by 2022, compared with $27.1 billion in 2017 at a compound annual growth rate of 1.9%.
|Exhibit 2: Worldwide CRM Software Market 2017-2022 Forecast, $M|
|Year||2017||2022||2017-2022 CAGR, %|
Source: Apps Run The World, December 2018
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 2017 and their market shares.
|Rank||Vendor||2016 CRM Apps Revenues, $M||2017 CRM Apps Revenues, $M||YoY Growth||2017 CRM Market Share, %||Recent Developments|
|1||Salesforce||Subscribe||Subscribe||23.21%||Subscribe||The recent buy of MuleSoft will be instrumental for Cloud integration, especially in helping customers extend into non-Salesforce systems.|
|2||Adobe||Subscribe||Subscribe||24.72%||Subscribe||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||3.41%||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||6.40%||Subscribe||Spending $8B in its biggest purchase, SAP acquired Qualtrics for survey and experience management apps.|
|5||Genesys Telecommunications Laboratories||Subscribe||Subscribe||40.00%||Subscribe||Genesys PureCloud for customer engagement and communications, signed deals with more than 500 customers in the first three quarters of 2018, resulting in nearly 1,300 to date.|
|6||Microsoft||Subscribe||Subscribe||1.10%||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.|
|7||Nice Systems||Subscribe||Subscribe||76.77%||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||16.73%||Subscribe||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||4.43%||Subscribe||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||38.11%||Subscribe||Acquired Base for sales force automation to complement Zendesk’s customer service and support apps.|
Source: Apps Run The World, December 2018
Custom data cuts related to the CRM Applications market are available:
- Top 200+ CRM Applications Vendors and Market Forecast 2017-2022
- 2017 CRM Applications Market By Industry (21 Verticals)
- 2017 CRM Applications Market By Functional Market (16 Markets)
- 2017 CRM Applications Market By Country (USA + 45 countries)
- 2017 CRM Applications Market By Region (Americas, EMEA, APAC)
- 2017 CRM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2017 CRM Applications Market By Customer Size (revenue, employee count, asset)
- 2017 CRM Applications Market By Channel (Direct vs Direct)
- 2017 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 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.
|American Cancer Society||Non Profit||8500||$1.20B||United States||Adobe Systems||Adobe Marketing Cloud (ex Omniture)|
|CenturyLink||Professional Services||47000||$21.30B||United States||Adobe Systems||Marketo|
|T-Mobile||Communication||51000||$40.32B||United States||Adobe Systems||Adobe Experience Manager|
|Marquette University||Education||1100||$550.0M||United States||Blackbaud||Blackbaud CRM|
|PSA Group||Automotive||184107||$75.39B||France||CDK Global||Autoline Drive DMS|
|SERE Motors||Automotive||100||$58.0M||United Kingdom||CDK Global||Autoline Drive DMS|
|Air Liquide||Life Sciences||68000||$16.38B||France||Medallia||Medallia Experience Cloud|
|Driven Brands||Automotive||270||$2.10B||United States||Medallia||Medallia Experience Cloud|
|IntegraMed Fertility||Professional Services||2200||$450.0M||United States||Medallia||Medallia Experience Cloud|
|TUI UK & Ireland||Leisure and Hospitality||12500||$3.20B||United Kingdom||Medallia||Medallia Experience Cloud|
|Zurich Insurance UK||Insurance||2500||$2.19B||United Kingdom||Medallia||Medallia Experience Cloud|
|Arm Limited||Professional services||6250||$1.35B||United Kingdom||Microsoft||Microsoft Dynamics CRM|
|Shropshire Council||Government||12000||$270.0M||United Kingdom||Microsoft||Microsoft Dynamics 365 Customer Engagement|
|WhiteWater||Manufacturing||650||$70.0M||Canada||Microsoft||Microsoft Dynamics CRM|
|Arcadis||Construction and Real Estate||27000||$3.40B||Netherlands||Oracle||Oracle Sales Cloud|
|City of Albuquerque||Government||5854||$882.0M||United States||Oracle||Oracle Service Cloud (ex RightNow)|
|City of Fort Wayne||Government||1862||$280.0M||United States||Oracle||Oracle Service Cloud (ex RightNow)|
|City of San Jose||Government||6600||$3.70B||United States||Oracle||Oracle Service Cloud (ex RightNow)|
|Corporate Synergies (CSG)||Manufacturing||300||$80.0M||United States||Oracle||Oracle CX Cloud|
|Fanatics, Inc||Professional Services||1800||$200.0M||United States||Oracle||Oracle Marketing Cloud|
|Fanatics, Inc||Professional Services||1800||$200.0M||United States||Oracle||Oracle CX Cloud|
|Mack Trucks||Manufacturing||2200||$300.0M||United States||Oracle||Oracle CX Cloud|
|NRGi||Government||1100||$317.0M||Denmark||Oracle||Oracle CX Cloud|
|Perry Ellis International, Inc||Consumer Packaged Goods||2400||$875.0M||United States||Oracle||Oracle Retail Customer Engagement Cloud|
|Sacramento County||Government||11691||$3.50B||United States||Oracle||Oracle Service Cloud (ex RightNow)|
|West Midlands Police||Insurance||10884||$728.0M||United Kingdom||Oracle||Oracle CX Cloud|
|Australia and New Zealand Banking Group||Banking and Financial Services||50000||$14.90B||Australia||Pegasystems||Pega 7 Platform|
|Tokio Marine HCC||Insurance||2500||$2.30B||United States||Pegasystems||Pega 7 Platform|
|Aggregate Industries||Construction and Real Estate||4100||$400.0M||United Kingdom||Salesforce||Salesforce CRM|
|Ashley Furniture Industries||Retail||23000||$4.00B||United States||Salesforce||Salesforce Service Cloud|
|Michelin||Automotive||105600||$25.06B||France||Salesforce||Salesforce Sales Cloud|
|Stockland||Construction and Real Estate||1440||$2.60B||Australia||Salesforce||Salesforce Sales Cloud|
|Associated British Ports||Transportation||2432||$550.0M||United Kingdom||SAP||SAP Cloud for Customer|
|Atlas Copco||Manufacturing||36536||$11.60B||Sweden||SAP||SAP Cloud for Customer|
|Ballance Agri-Nutrients||Retail||728||$547.0M||New Zealand||SAP||SAP Marketing Cloud|
|Chimelong Group Co. Ltd.||Leisure and Hospitality||10000||$950.0M||China||SAP||SAP Cloud for Customer|
|doTERRA||Retail||2300||$1.50B||United States||SAP||SAP Service Cloud|
|doTERRA||Retail||2300||$1.50B||United States||SAP||SAP Marketing Cloud|
|Grupo Q||Automotive||2400||$500.0M||El Salvador||SAP||SAP Cloud for Customer|
|Hampshire County Council||Government||7000||$938.0M||United Kingdom||SAP||SAP Cloud for Customer|
|KENGEE||Consumer Packaged Goods||3000||$500.0M||China||SAP||SAP Marketing Cloud|
|MINISO Co. Ltd.||Retail||10000||$1.80B||Japan||SAP||SAP Cloud for Customer|
|Office Depot Europe B.V.||Professional Services||6500||$11.60B||Netherlands||SAP||SAP C/4 HANA|
|Palladium Hotel Group||Leisure and Hospitality||12000||$680.0M||Spain||SAP||SAP Marketing Cloud|
|Pets at Home||Distribution||7500||$1.11B||United Kingdom||SAP||SAP Promotion Management for Retail|
|Scotts Miracle-Gro Company||Consumer Packaged Goods||5500||$2.80B||United Kingdom||SAP||SAP Cloud for Customer|
|SEA Group||Transportation||2900||$812.0M||Italy||SAP||SAP Marketing Cloud|
|Sealed Air||Consumer Packaged Goods||23000||$7.03B||United States||SAP||SAP Cloud for Customer|
|Signify N.V.||Manufacturing||32000||$7.98B||Netherlands||SAP||SAP Cloud for Customer|
|Vestas Wind Systems A/S||Utility||24351||$9.53B||Denmark||SAP||SAP Cloud for Customer|
|Apple||Professional Services||132000||$233.12B||United States||SugarCRM||SugarCRM|
|Rheem||Leisure and Hospitality||7000||$1.50B||United States||SugarCRM||SugarCRM|
|The Whiddon Group||Professional Services||2000||$400.0M||Australia||SugarCRM||SugarCRM|
|Virgin Mobile USA||Professional Services||600||$150.0M||United States||SugarCRM||SugarCRM|
|EVER Pharma||Life Sciences||850||$100.0M||Poland||Veeva Systems||Veeva CRM|
|Merck & Co||Life Sciences||69000||$40.12B||United States||Veeva Systems||Veeva CRM|
|Santhera Pharmaceuticals||Life Sciences||106||$23.0M||Switzerland||Veeva Systems||Veeva CRM|
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 2015-2017 product revenues.
Their 2017 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.