In 2015, the top 10 eCommerce software vendors accounted for nearly 63% of the global eCommerce applications market which grew 7% to approach nearly 3.7 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with 15% market share with $541 million in eCommerce product revenues, riding on a 23% jump in license, maintenance and subscription revenues. Oracle was No. 2 achieving 13% share, IBM was the third at 6%, and Shopify and Demandware were fourth and fifth place with 6% and 5%, respectively.
Through our forecast period, the eCommerce applications market is expected to reach $4.5 billion by 2020, compared with $3.7 billion in 2015 at a compound annual growth rate of 4.1%.
|Exhibit 2: Worldwide eCommerce Software Market 2015-2020 Forecast, $M|
|Year||2015||2020||2015-2020 CAGR, %|
Source: Apps Run The World, June 2016
eCommerce Market Definitions And Forecast Assumptions
eCommerce applications include those designed for shopping cart automation, order management, inventory management, Web-based point of sale, multi-channel retailing, procurement, sourcing, and supplier relationship management.
New apps from the likes of SAP and Shopify are taking eCommerce to the next level with more personalization and integrated capabilities such as mobile storefront, ad retargeting and subscription management.
Top 10 eCommerce Software Vendors
Here are the rankings of the top 10 eCommerce software vendors in 2015 and their market shares in 2015.
|Rank||Vendor||2014 eCommerce Apps Revenues, $M||2015 eCommerce Apps Revenues, $M||YoY Growth||2015 eCommerce Market Share, %||Recent Developments|
|1||SAP||Subscribe||Subscribe||23.42%||14.67%||eCommerce successes are based on strengths of its Hybris products as well as other apps that boost customer experience and omnichannel sales and marketing.|
|2||Oracle||Subscribe||Subscribe||2.56%||13.12%||Flagship eCommerce products include ATG as well as its growing set of CX apps for optimizing customer experience.|
|3||IBM||Subscribe||Subscribe||-4.13%||5.98%||IBM’s eCommerce strategy revolves around its Sterling software for EDI transactions and B2B integration products.|
|4||Shopify||Subscribe||Subscribe||95.24%||5.56%||Projects up to 61% growth in 2016 sales, compared with 95% in 2015.|
|5||Demandware||Subscribe||Subscribe||37.93%||5.43%||In June 2016, Salesforce announced plan to buy Demandware for $2.8 billion. Demandware acquired Tomax for retail apps in 2015.|
|6||Open Text Corporation||Subscribe||Subscribe||7.14%||4.88%||GXS has been renamed OpenText Business Network after the eCommerce vendor was acquired in 2014. OpenText also acquired Daegis for information archiving, information governance tools in 2015.|
|7||Pitney Bowes||Subscribe||Subscribe||-10.23%||4.29%||Pitney Bowes acquired Borderfree in 2015 to shore up its global trade management applications business.|
|8||Digital River||Subscribe||Subscribe||11.11%||3.66%||Digital River went private after 2015 sale to Siris Capital Group for $840M.|
|9||Magento||Subscribe||Subscribe||5.26%||2.71%||Magento became a private company after its spinoff by eBay in 2015.|
|10||Constellation Software Inc.||Subscribe||Subscribe||14.73%||2.68%||Constellation’s eCommerce offerings are designed for different verticals including club membership, healthcare, public sector, and construction.|
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
eCommerce Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in eCommerce 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 eCommerce 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.
|Vendor||Customer Win||Industry||No. of employees||Revenue, $M||Old Product||New Product||Wins in|
|ACI Worldwide, Inc.||Nicholas Financial, Inc.||Banking||333||90||Legacy System||ACI UP Bill Payment Solution||1Q16|
|ACI Worldwide, Inc.||John Lewis||Retail||8000||1500||Legacy System||ACI ReD Shield||1Q16|
|ACI Worldwide, Inc.||The Co-operative Group||Retail||70000||12300||Legacy System||ACI UP Merchant Payment Solution||2Q16|
|Demandware||Duluth Trading||Apparel & Fashion||1187||305||Legacy System||Demandware Commerce Cloud||1Q16|
|Demandware||Figleaves||Internet||250||30||Oracle ATG||Demandware Commerce Cloud||1Q16|
|Demandware||Fragrance Direct||Internet||60||30||Netsuite Venda||Demandware||1Q16|
|Demandware||Mitchell Gold + Bob Williams||Furniture||700||150||Legacy System||Demandware||1Q16|
|Demandware||Wolford||Apparel & Fashion||1570||180||Legacy System||Demandware||1Q16|
|Digital River||Pacific Market International (PMI)||Consumer goods||550||80||Legacy System||Digital River||3Q15|
|Digital River||Canary||Consumer Electronics||130||15||Legacy System||Digital River||2Q16|
|Digital River||HTC||Telecom.||13332||3800||Legacy System||Digital River||2Q15|
|IBM||1-800-Flowers||Retail||4000||1121||Legacy System||IBM Commerce Cloud||2Q16|
|IBM||National Instruments||Electronic Manufacturing||7400||1230||Legacy System||IBM Websphere Commerce||2Q15|
|IBM||Boots UK||Retail||72000||29700||Legacy System||IBM WebSphere Commerce||2Q16|
|IBM||ING Direct Australia||Banking||1056||515||Legacy System||IBM Commerce||2Q16|
|IBM||Standard Life||Financial Services||6500||1120||Legacy System||IBM Commerce||2Q16|
|IBM||abof.com||Apparel & Fashion||250||30||Legacy System||IBM Commerce||2Q16|
|Magento||TRIGANO||Wholesale Distribution||4500||1075||Legacy System||Magento||4Q15|
|Magento||Rosenberry Rooms||Retail||30||3||Yahoo Store||Magento||2Q16|
|Magento||The Energy Conscious||Building Materials||20||2||Yahoo Store||Magento||2Q15|
|Sitecore||Carglass||Automotive||24200||3500||Legacy System||Sitecore Experience Platform||1Q16|
|Sitecore||Bank Central Asia||Banking||4410||24820||Legacy System||Sitecore Experience Platform||2Q16|
|Sitecore||QBE Australia and New Zealand||Insurance||14500||12860||Legacy System||Sitecore Experience Platform||1Q16|
|Netsuite||WHSmith||Retail||14500||2000||BT Expedite||NetSuite SuiteCommerce||4Q15|
|Netsuite||Lindemann Chimney||Wholesale||100||10||Magento||NetSuite SuiteCommerce||2Q16|
|Netsuite||CartridgesDirect||Computer Hardware||15||2||Magento||NetSuite SuiteCommerce||3Q15|
|Open Text Corporation||Coca-Cola Refrescos Bandeirantes||Food & Beverages||2900||1000||Legacy System||OpenText B2B Managed Services||1Q16|
|Open Text Corporation||Bestop||Consumer Goods||300||80||Legacy System||OpenText B2B Managed Services||4Q15|
|Open Text Corporation||ELIOR||Food & Beverages||106000||6320||Legacy System||OpenText B2B Managed Services||4Q15|
|Open Text Corporation||Warner Music France||Music||300||100||Legacy System||OpenText B2B Managed Services||2Q16|
|Open Text Corporation||Alstom||Railroad Manufacture||32000||6900||Legacy System||OpenText B2B Managed Services||4Q15|
|Oracle||TOYS R US||Retail||62000||12400||Lengow eCommerce||Oracle ATG||2Q16|
|Oracle||Lenox||Consumer Goods||1200||550||ChannelAdvisor||Oracle Commerce||1Q16|
|Oracle||Elaine Turner||Apparel & Fashion||60||7||Volusion E-Commerce||Oracle Commerce Cloud||4Q15|
|Oracle||Rock/Creek Outfitters||Retail||100||10||ATG Commerce||Oracle Commerce Cloud||4Q15|
|Oracle||Hollander Sleep Products||Textiles||1500||400||Legacy System||Oracle Commerce||4Q15|
|SAP||Thames Water||Energy & Natural Resources||5000||3000||Legacy System||SAP Hybris Commerce||1Q16|
|SAP||ALDO Group||Retail||20000||2200||iCongo||SAP Hybris Commerce||2Q16|
|SAP||Brookshire Grocery Company||Retail||13000||1800||Legacy System||SAP Hybris Commerce||4Q15|
|SAP||DNA Oy||Telecom.||1500||850||Legacy System||SAP Hybris Omni-Channel Solution for B2B Commerce||1Q16|
|SAP||Maui Jim||Luxury Goods & Jewelry||900||250||Magento||SAP Hybris Omni-Channel Solution for B2B Commerce||4Q15|
|Shopify||Viatek Consumer Products Group, Inc.||Consumer Goods||35||3||Big Commerce||Shopify||4Q15|
|Shopify||Love Systems, Inc||Health, Wellness and Fitness||25||2||Joomla||Shopify||4Q15|
|Shopify||USA Military Medals LLC||Retail||65||6||Magento||Shopify||2Q15|
Source: Apps Run The World, August 2016
An expanded version of this report covers the top 50+ eCommerce 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.