In 2016, the top 10 eCommerce software vendors accounted for nearly 69% of the global eCommerce applications market which grew 3.2% to approach nearly 3.8 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with a 15% market share and $584 million in eCommerce license, maintenance and subscription revenues. In 2016, Oracle was No. 2, followed by Shopify, Salesforce/Demandware and IBM in that order. In 2015, the top five were SAP, Oracle, IBM, Shopify and Demandware.
Through our forecast period, the eCommerce applications market is expected to reach $4.7 billion by 2021, compared with $3.8 billion in 2016 at a compound annual growth rate of 4.2%.
| Exhibit 2: Worldwide eCommerce Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 3802 | 4679 | 4.2% |
Source: Apps Run The World, December 2017
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 2016 and their market shares.
| Rank | Vendor | 2015 eCommerce Apps Revenues, $M | 2016 eCommerce Apps Revenues, $M | 2016 eCommerce Apps YoY Growth, % | 2016 eCommerce Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | Subscribe | Subscribe | Combination of Hybris and other eCommerce apps from SAP has expanded its wallet share among its ERP accounts. |
| 2 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | Oracle is banking on Oracle Data Cloud to boost appeal of eCommerce apps like ATG. |
| 3 | Shopify | Subscribe | Subscribe | Subscribe | Subscribe | Shopify now powers 500,000 online stores and $46B worth of eCommerce transactions. |
| 4 | Salesforce | Subscribe | Subscribe | Subscribe | Subscribe | Formerly Demandware is now part of Commerce Cloud from Salesforce. |
| 5 | IBM | Subscribe | Subscribe | Subscribe | Subscribe | Continuous upgrades of its Sterling Commerce offerings with help from Watson. |
| 6 | Open Text Corporation | Subscribe | Subscribe | Subscribe | Subscribe | After buying GXS and Covisint, Open Text has a B2B eCommerce network. |
| 7 | Digital River | Subscribe | Subscribe | Subscribe | Subscribe | Digital River focuses on recurring customer and billing management for tech firms. |
| 8 | Pitney Bowes | Subscribe | Subscribe | Subscribe | Subscribe | Pitney Bowe announced possible sale of the company in November 2017. |
| 9 | Magento | Subscribe | Subscribe | Subscribe | Subscribe | Magento launched BI for B2B eCommerce as it goes after enterprise sales. |
| 10 | Fiserv | Subscribe | Subscribe | Subscribe | Subscribe | Payments underpin its eCommerce offerings. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | 3685 | 3802 | 3.2% | 100.0% |
Source: Apps Run The World, December 2017
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 2016-2021, 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 | 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 2015-2016 product revenues.
Their 2016 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.
