Top 10 ERP Software Vendors and Market Forecast 2016-2021

In 2016, the top 10 ERP software vendors accounted for nearly 28.5% of the global ERP applications market which grew 1.4% to approach nearly $82.2 billion in license, maintenance and subscription revenues. The ERP applications market includes both ERP Financial Management & ERP Services and Operations applications.

Last year SAP led the pack with nearly 7% market share and $5.6 billion in ERP product revenues, riding on a 4% jump in license, maintenance and subscription revenues. In 2016, FIS Global was No. 2, followed by Oracle, Fiserv and Intuit in that order. In 2015, the standings of the top five were the same with SAP being No. 1, followed by FIS Global, Oracle, Fiserv and Intuit.

Through our forecast period, the ERP applications market is expected to reach $84.7 billion by 2021, compared with $82.2 billion in 2016 at a compound annual growth rate of 0.6%.

Source: Apps Run The World, December 2017

ERP Market Definitions And Forecast Assumptions

ERP Financial Management software covers finance-specific business processes such as accounts payable, accounts receivable, general ledger, and fixed asset accounting, as well as online functions such as invoicing, factoring, electronic payments and financial reporting. FM applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise.

ERP Services and Operations Management covers integrated applications suites designed to automate a range of business processes from back-office operations to financial management and from sales order capture to customer information management. Currently ERP also covers functions not being addressed by other functional markets. Examples include Environment and Health and Safety, Governance, Risk and Compliance, as well as industry-specific applicatons for 21 verticals.

Buoyed by NetSuite, Workday and Xero, the ERP FM market has never looked more promising, but incumbents are fighting back with quick conversion toolkits, GL upgrades and embedded analytics for easy reporting.

Industry-specific ERP applications continue to exert considerable influence over direction of enterprise applications market, but growth remains muted because of entrenched presence of legacy systems.

Top 10 ERP Software Vendors

Here are the rankings of the top 10 ERP software vendors in 2016 and their market shares.

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 2017-2021, By Functional Market, $M

ERP Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

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

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Source: Apps Run The World, August 2016

Further Readings

An expanded version of this report covers the top 500+ ERP Financial Management Software Vendors and ERP Services and Operations Management 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.