Top 10 eCommerce Software Vendors and Market Forecast 2015-2020

Worldwide eCommerce Applications Market to reach $4.5 billion by 2020, compared with $3.7 billion in 2015 at a compound annual growth rate of 4.1%.

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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.

Top 10 eCommerce Software Vendors & 2015 eCommerce Applications Market Shares
Top 10 eCommerce Software Vendors & 2015 eCommerce Applications Market Shares

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, %
Total 3685 4495 4.1%

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.
Subtotal Subscribe Subscribe 14.01% 63.00%
Other Subscribe Subscribe -3.97% 37.00%
Total Subscribe Subscribe 6.63% 100.00%

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

Exhibit 4 Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M
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.

DON’T MISS OUR CUSTOMER DATABASE

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 Belk Retail 24700 4000 SAP Hybris Demandware 1Q16
Demandware BoConcept Furniture 750 185 Sitecore Demandware 1Q16
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 Sonos Consumer Electronics 1400 550 Sitecore Demandware 1Q16
Demandware Timex Consumer Goods 5500 2000 ChannelAdvisor 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 Marabraz.com Retail 150 15 Legacy System Magento 3Q15
Magento Ludendo Retail 3500 800 SAP Hybris Magento 1Q15
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 Poo~Pourri Consumer Goods 60 6 WordPress Shopify 3Q15
Shopify Viatek Consumer Products Group, Inc. Consumer Goods 35 3 Big Commerce Shopify 4Q15
Shopify OneLive Media Entertainment 30 3 Magento Shopify 2Q15
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

Further Readings

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.

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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