In 2018, the top 10 ERP software vendors accounted for nearly 31.9% of the global ERP applications market which grew 3% to approach nearly $91.1 billion in ERP 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 6.8% market share riding on a 4% jump in ERP license, maintenance and subscription revenues. Oracle was #2, followed by Intuit , FIS Global and Fiserv.
We ask the simple question: Who’s buying ERP 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 ERP applications market size is expected to reach $96.7 billion by 2023, compared with $91.1 billion in 2018 at a compound annual growth rate of 1.2%.
| Exhibit 2: Worldwide ERP Software Market 2018-2023 Forecast, $M | |||
|---|---|---|---|
| Year | 2018 | 2023 | 2018-2023 CAGR, % |
| Total | 91128 | 96742 | 1.2% |
Source: Apps Run The World, December 2019
Top 10 ERP Software Vendors
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.
Here are the rankings of the top 10 ERP software vendors in 2018 and their market shares.
| Rank | Vendor | 2017 ERP Apps Revenues, $M | 2018 ERP Apps Revenues, $M | YoY Growth | 2018 ERP Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | 4.0% | Subscribe | SAP was on track to sign more than 12,000 customers for its next-generation ERP S/4HANA by end of 2019 with 40% of the latest additions being considered net new wins for the vendor. |
| 2 | Oracle | Subscribe | Subscribe | 4.2% | Subscribe | Oracle has signed more than 25,000 Cloud ERP customers including nearly 7,000 for Oracle ERP Cloud and 18,000 for NetSuite. Each quarter Oracle is migrating at least 200 customers of its on-premise ERP systems like E-Business Suite to the Cloud. |
| 3 | Intuit Inc. | Subscribe | Subscribe | 17.0% | Subscribe | Inuit QuickBooks Online subscribers now top 5 million, up from 1.6 million in 2016. Meanwhile, Intuit strengthened working capital management and payment offerings for SMBs, along with same-day payroll processing. |
| 4 | FIS Global | Subscribe | Subscribe | -2.8% | Subscribe | FIS sees low single-digit growth for its ERP apps for banks and FIs aided by its maintenance revenues. Cloud migration is a work in progress. |
| 5 | Fiserv | Subscribe | Subscribe | 2.2% | Subscribe | Fiserv acquired the debit card processing, ATM Managed Services and MoneyPass surcharge free network of Elan Financial Services, a unit of U.S. Bancorp. |
| 6 | Microsoft | Subscribe | Subscribe | 14.4% | Subscribe | Migrating legacy AX, C5, GP, NAV, and SL to Microsoft Dynamics 365 for the Cloud remains the top priority for Microsoft’s evolving enterprise apps strategy. |
| 7 | Cerner Corporation | Subscribe | Subscribe | 4.3% | Subscribe | While Cerner focuses on digitally transforming healthcare providers, it also relies heavily on provider-sponsored health plans for population health and government sales to entities like Department of Defense and Veterans Affairs. |
| 8 | IQVIA | Subscribe | Subscribe | 7.3% | Subscribe | In June 2018, IQVIA launched IQVIA ePromo, a new cloud-based content management technology solution. ePromo makes it easier for life sciences companies to manage their regulated promotional and medical materials across the entire content cycle of creation, approval, dissemination and withdrawal. |
| 9 | Constellation Software Inc. | Subscribe | Subscribe | 23.4% | Subscribe | For its latest nine-month period, CSI saw 24% growth in total revenues mostly through acquisitions. Organic growth was in low single digit. |
| 10 | Infor | Subscribe | Subscribe | 1.9% | Subscribe | Infor Acquired Vivonet for ERP apps for hospitality industry with point-of-sale and inventory and procurement functionality. |
| Subtotal | Subscribe | Subscribe | 6.5% | Subscribe | ||
| Other | Subscribe | Subscribe | 1.5% | Subscribe | ||
| Total | Subscribe | Subscribe | 3.0% | Subscribe |
Source: Apps Run The World, December 2019
Other ERP software providers included in the report are: ACI Worldwide, Active Network, Acumatica, Adobe, Allscripts, Amadeus, Aptean, ARCHIBUS, Asseco Group, athenahealth, Avalara, Blackbaud, BlackLine, Bottomline Technologies, Capita Software, CDK Global, Cegid, CGI Group Inc., Cision, CompuGroup, CoStar Group, Cox Automotive, CSG Systems International, DATEV, Ellie Mae, Ellucian, Epic Systems, Epicor, Ericsson, Exact Holding BV, Exela Technologies, FICO, FinancialForce, Finastra, GE Digital, Greenway Health, Guidewire, HealthStream, IBM, IFS, Jack Henry & Associates, JDA Software Group, Kingdee, LexisNexis, Liscor, Medidata, MYOB, NCR Corporation, NextGen Healthcare, Nuance Communications, OBIC Co. Ltd., RealPage, Reynolds and Reynolds Company, Roper Technologies, SABRE Corp, Sage, Salesforce, SAP, Sapiens, Sopra Steria Group SA, SS&C Technologies, Temenos Group AG, Tieto, TOTVS, Trimble, Tyler Technologies, UNIT4, Vertafore, Visma, Wolters Kluwer, Workday, Works Apps, Xero, Yardi, Yonyou, Zoho Corp., Zuora
Custom data cuts related to the ERP Applications market are available:
- Top 400 ERP Applications Vendors and Market Forecast 2018-2023
- 2018 ERP Applications Market By Industry (21 Verticals)
- 2018 ERP Applications Market By Functional Market (16 Markets)
- 2018 ERP Applications Market By Country (USA + 45 countries)
- 2018 ERP Applications Market By Region (Americas, EMEA, APAC)
- 2018 ERP Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2018 ERP Applications Applications Market By Customer Size (revenue, employee count, asset)
- 2018 ERP Applications Market By Channel (Direct vs Direct)
- 2018 ERP 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.
ERP Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in ERP 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 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.
Source: Apps Run The World, January 2019
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.
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 2015-2018 product revenues.
Their 2018 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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