In 2019, the top 10 eCommerce software vendors accounted for nearly 74% of the global eCommerce applications market which grew 5.8% to approach nearly 6 billion in license, maintenance and subscription revenues.
Shopify led the pack with a 24% market share riding on a 34.9% jump in eCommerce license, maintenance and subscription revenues. Adobe was #2, followed by Salesforce (ex Demandware), SAP and Oracle.
We ask the simple question: Who’s buying eCommerce 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 eCommerce applications market size is expected to reach $7.3 billion by 2024, compared with $6 billion in 2019 at a compound annual growth rate of 4%.
| Exhibit 2: Worldwide eCommerce Software Market 2019-2024 Forecast, $M | |||
|---|---|---|---|
| Year | 2019 | 2024 | 2019-2024 CAGR, % |
| Total | 6041 | 7333 | 4% |
Source: Apps Run The World, November 2020
Top 10 eCommerce Software Vendors
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.
Here are the rankings of the top 10 eCommerce software vendors in 2019 and their market shares.
| Rank | Vendor | 2018 eCommerce Apps Revenues, $M | 2019 eCommerce Apps Revenues, $M | YoY Growth | 2019 eCommerce Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Shopify | Subscribe | Subscribe | 34.9% | Subscribe | In May 2019, Shopify acquired Handshake, a business-to-business e-commerce platform for wholesale goods. Shopify has more than 800000 businesses in approximately 175 countries using its platform. Among its customers are Tesla Motors, Budweiser, Red Bull, LA Lakers, the New York Stock Exchange, GoldieBlox, and many more. |
| 2 | Adobe | Subscribe | Subscribe | 336.5% | Subscribe | In March 2019, Adobe announced the launch of its Commerce Cloud, the newest part of the company’s Experience Cloud. Unsurprisingly, the Commerce Cloud builds on the company’s $1.68 billion acquisition of Magento in 2018. |
| 3 | Salesforce.com | Subscribe | Subscribe | 54.1% | Subscribe | Saleforce acquired Demandware and CloudCraze for B2B eCommerce apps. |
| 4 | SAP | Subscribe | Subscribe | 12.9% | Subscribe | SAP acquired Qualtrics and XM capabilities from Qualtrics have been integrated across the SAP C/4HANA suite, specifically within its commerce, marketing, sales and service offerings. |
| 5 | Oracle | Subscribe | Subscribe | -16.8% | Subscribe | Oracle Digital Assistant is reshaping its CX offerings by enabling conversational AI for retailers to engage with customers using voice commands. |
| 6 | HCL Technologies Ltd. | Subscribe | Subscribe | 5.6% | Subscribe | In July 2019, HCL Technologies acquired and took full ownership of IBM products: AppScan, BigFix, Commerce, Connections, Digital Experience (Portal and Content Manager), Notes Domino, and Unica. HCL also introduced HCL Software, a new division that will operate and meet customer demand. |
| 7 | Cox Automotive | Subscribe | Subscribe | 2.1% | Subscribe | Cox Automotive has completed the acquisition of Intersection Technologies Inc., which does business as F&I Express. The deal furthers Cox Automotive’s mission to transform the way the world buys, sells, owns and uses cars. |
| 8 | FastSpring | Subscribe | Subscribe | 10.8% | Subscribe | In May 2020, FastSpring has released an improved interface for the company’s platform. FastSpring conducted customer surveys and market research to understand the needs of software providers in the global eCommerce sector, the company said. |
| 9 | ChannelAdvisor | Subscribe | Subscribe | -4.0% | Subscribe | In 2020, ChannelAdvisor Corporation acquired BlueBoard, a leading e-commerce analytics company. By acquiring BlueBoard, ChannelAdvisor continues to enhance its capabilities for brands seeking to accelerate e-commerce growth. |
| 10 | BigCommerce | Subscribe | Subscribe | 23.4% | Subscribe | In June 2020, BigCommerce released Page Builder, an intuitive, drag-and-drop visual design tool designed to empowers retailers to quickly build differentiated shopping experiences across their online storefronts. |
| Subtotal | Subscribe | Subscribe | 46.6% | Subscribe | ||
| Other | Subscribe | Subscribe | -41.0% | Subscribe | ||
| Total | Subscribe | Subscribe | 5.8% | Subscribe |
Source: Apps Run The World, November 2020
Other eCommerce software providers included in the report are: 2Checkout (ex Avangate), 3dcart, ACI Worldwide, Inc., Amazon Web Services (AWS), Aptean, Aptos, ARI Network, Asseco Group, Automattic, Brightpearl, BroadVision, Capillary Technologies, CDK Global, ChannelAdvisor, Cleverbridge, Constellation Software Inc., Construction Industry Solutions Corp., Cox Automotive, CSG Systems International, Deem, Digital River, Ekm Systems, Elastic Path, Episerver, FastSpring, First Data, Fiserv, GFI Informatique, GHX, Heartland Payment Systems, a Global Payments Company, Insite Software, Intershop, iptor, Jack Henry & Associates, Kentico Software, Kibo, Kingdee, Kooomo, Liferay, Inc, NCR Corporation, Odoo, OrderDynamics, Pronto Software, PROS Holdings, Retail Solutions, Reynolds and Reynolds Company, Sage, Travelport, Unilog, Volusion, Inc., VTEX The True Cloud Commerce Platform, WisageTech, Works Apps and many others.
Custom data cuts related to the eCommerce Applications market are available:
- Top 80 eCommerce Applications Vendors and Market Forecast 2019-2024
- 2019 eCommerce Applications Market By Industry (21 Verticals)
- 2019 eCommerce Applications Market By Functional Market (16 Markets)
- 2019 eCommerce Applications Market By Country (USA + 45 countries)
- 2019 eCommerce Applications Market By Region (Americas, EMEA, APAC)
- 2019 eCommerce Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2019 eCommerce Applications Market By Customer Size (revenue, employee count, asset)
- 2019 eCommerce Applications Market By Channel (Direct vs Direct)
- 2019 eCommerce 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.
eCommerce Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in eCommerce 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 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.
Source: Apps Run The World, November 2020
Further Readings
An expanded version of this report covers the top 80+ 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 2015-2019 product revenues.
Their 2019 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.
