Top 10 Distribution Software Vendors and Market Forecast 2017-2022

Worldwide Distribution Applications Market to reach $7.7 billion by 2022, compared with $7.4 billion in 2017 at a compound annual growth rate of 0.9%.

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In 2016, the top 10 Distribution software vendors accounted for nearly 43% of the global Distribution applications market which grew 14.5% to approach nearly $7.4 billion in license, maintenance and subscription revenues.

Last year Microsoft was the market leader with 11% market share in license, maintenance and subscription revenues, followed by SAP, Oracle, Epicor and Intuit in that order.

Exhibit 1 - 2017 Distribution Applications Market Shares Split By Top 10 Distribution Vendors and Others, %
Exhibit 1 – 2017 Distribution Applications Market Shares Split By Top 10 Distribution Vendors and Others, %

Through our forecast period, the Distribution applications market is expected to reach $7.7 billion by 2022, compared with $7.4 billion in 2017 at a compound annual growth rate of 0.9%.

Exhibit 2: Worldwide Distribution Software Market 2017-2022 Forecast, $M
Year 2017 2022 2017-2022 CAGR, %
Total 7373 7710 0.9%

Source: Apps Run The World, January 2019

Top 10 Distribution Software vendors

Distribution (Wholesale and distribution of goods to other enterprises) – Supply Chain Management, Transportation Management, Financials, HR, Procurement

Mobility forms the basis of next-generation supply chain systems, while distributors are increasingly gravitating to the Cloud for reductions in total costs of IT ownership.

Here are the rankings of the top 10 Distribution software vendors in 2017 and their market shares.

Rank Vendor 2016 Distribution Apps Revenues, $M 2017 Distribution Apps Revenues, $M YoY Growth 2017 Distribution Market Share, % Recent Developments
1 Microsoft Subscribe Subscribe 1.1% Subscribe Migrating legacy AX, C5, GP, NAV, and SL to Dynamics 365 for the Cloud remains the top priority for Microsoft’s evolving enterprise apps strategy, whose success will depend on strengthening ties with ISV partners in strategic verticals.
2 SAP Subscribe Subscribe 6.4% Subscribe SAP was on track to sign more than 10,000 customers including many listed below for its next-generation ERP S/4HANA by end of 2018 with 40% of the latest additions being considered net new wins for the vendor.
3 Oracle Subscribe Subscribe 3.4% Subscribe Oracle has signed more than 22,000 Cloud ERP customers including many listed below. The number of Oracle Cloud ERP customers totals nearly 6,000 for Oracle ERP Cloud and 16,000 for NetSuite. Each quarter Oracle is migrating at least 200 customers of its on-premise ERP systems like E-Business Suite to the Cloud.
4 Epicor Subscribe Subscribe 1.6% Subscribe Upgraded Epicor Prophet 21 and Epicor Eclipse for distribution vertical. Enhancements included migration of Prophet 21 Wireless Warehouse Management System to the Prophet 21 web application, a time clock entry feature, and improved integration between Prophet 21 and Epicor Manifest for shipping management.
5 Intuit Inc. Subscribe Subscribe 14.1% Subscribe QuickBooks Online subscribers now top 3.6 million(including many listed below), up from 1.6 million in 2016. Meanwhile, Intuit strengthened working capital management and payment offerings for SMBs, along with same-day payroll processing.
6 Verizon Connect Subscribe Subscribe 12.5% Subscribe Unveiled Work Mobile, an app that enables people to work offline and still receive job details, share notes, photos and signatures from the field to help increase speed and performance.
7 Infor Subscribe Subscribe 7.2% Subscribe Infor received $1.5 billion in additional investment from existing investors and planned to go public in 2019 or 2020.
8 Sage Subscribe Subscribe 20.9% Subscribe Sage aims to drive ERP growth through Business Cloud Enterprise Management(version 12 is the latest) for large enterprises to run a robust framework for improving workflow, enhanced insights and efficiency gains such as automating tax declarative processes. That is being supported by Intacct for midmarket Cloud ERP apps and Sage People for HCM and talent management.
9 Salesforce Subscribe Subscribe 23.2% Subscribe The recent buy of MuleSoft will be instrumental for Cloud integration, especially in helping customers extend into non-Salesforce systems for key verticals as well as those that Salesforce is still playing catch-up.
10 ECi Software Solutions Subscribe Subscribe 33.3% Subscribe ECi Software acquired Lasso Data Systems for cloud-based CRM software for new home marketing and sales and Mark Systems for software solutions for the residential home construction industry.
Subtotal Subscribe Subscribe 7.0% Subscribe
Other Subscribe Subscribe 20.7% Subscribe
Total Subscribe Subscribe 14.5% Subscribe

Source: Apps Run The World, January, 2019

Custom data cuts related to the Distribution Applications market are available:

  • Top 700 Distribution Applications Vendors and Market Forecast 2017-2022
  • 2017 Distribution Applications Market By Functional Market (16 Markets)
  • 2017 Distribution Applications Market By Country (USA + 45 countries)
  • 2017 Distribution Applications Market By Region (Americas, EMEA, APAC)
  • 2017 Distribution Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
  • 2017 Distribution Applications Market By Customer Size (revenue, employee count, asset)
  • 2017 Distribution Applications Market By Channel (Direct vs Direct)
  • 2017 Distribution 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.

Exhibit 4 - Worldwide Enterprise Applications Market Forecast 2017-2022, By Vertical Industry, $M
Exhibit 4 – Worldwide Enterprise Applications Market Forecast 2017-2022, By Vertical Industry, $M

Distribution Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in Distribution 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 Distribution 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 Distribution 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.

Customer Industry Empl. Revenue Country Vendor New Product Function
Vinnell Arabia Distribution 1200 $100.0M Saudi Arabia Epicor Epicor Cloud ERP ERP
ArcBest Distribution 13000 $28.21B United States IBM IBM Watson Talent Frameworks
Talent Management
De La Rue Distribution 3500 $603.0M United Kingdom SAP SAP Business ByDesign
Enterprise Resource Planning
Pets at Home Distribution 7500 $1.11B United Kingdom SAP SAP S/4 HANA
Enterprise Resource Planning
Pets at Home Distribution 7500 $1.11B United Kingdom SAP SAP SuccessFactors Employee Central
Human Capital Management
Pets at Home Distribution 7500 $1.11B United Kingdom SAP SAP Promotion Management for Retail
Promotion Management
Schnellecke Distribution 19000 $1.20B Germany SAP SAP Predictive Analytics Analytics and BI
Schnellecke Distribution 19000 $1.20B Germany SAP SAP S/4 HANA
Enterprise Resource Planning
Waberer’s International Nyrt Distribution 7600 $675.0M Hungary SAP SAP S/4 HANA
Enterprise Resource Planning
Schnellecke Distribution 19000 $1.20B Germany SAP SAP Leonardo Machine Learning
Machine Learning Platform
Schnellecke Distribution 19000 $1.20B Germany SAP SAP Leonardo IoT Platform
ALFA Distribution 68000 $18.00B Mexico Google G Suite (formerly Google Apps for Work) Collaboration
Sysco Distribution 51700 $48.68B United States IBM IBM Kenexa BrassRing
Applicant Tracking Systems
TruTrade Africa Distribution 10 $1.0M Uganda IBM IBM Domino Collaboration
Système U Distribution 65000 $24.00B France Intralinks Holdings Intralinks VIA Pro Edition Collaboration
Van Marcke Distribution 1400 $500.0M Belgium Manhattan Associates Manhattan SCALE
Warehouse Management System
Amsted Industries Distribution 2000 $200.0M United States Microsoft Microsoft Dynamics GP
Enterprise Resource Planning
International Chamber of Commerce Distribution 50 $400.0M France Microsoft Microsoft Dynamics CRM
Customer Relationship Management
Mastermate Distribution 300 $70.0M Netherlands Microsoft Microsoft Dynamics NAV
Enterprise Resource Planning
Pickles Auctions Distribution 800 $1.63B Australia Microsoft Microsoft Dynamics 365 for Finance and Operations
Enterprise Resource Planning
De La Rue Distribution 3500 $603.0M United Kingdom SAP SAP Business Planning and Consolidation
Enterprise Performance Management
De La Rue Distribution 3500 $603.0M United Kingdom SAP SAP Concur
Travel & Expense
Wollschläger GmbH & Co. KG Distribution 1000 $300.0M Germany SAP SAP EWM (Extended Warehouse Management)
Warehouse Management
Viatek Products Distribution 35 $3.0M United States Shopify Shopify eCommerce

Source: Apps Run The World, January 2019

Further Readings

An expanded version of this report covers the top 700+ Distribution 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.

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.

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