In 2020, the top 10 Federal Government software vendors accounted for nearly 54% of the global Federal Government applications market which grew 11.5% to approach nearly $6.1 billion in license, maintenance and subscription revenues.
Last year Microsoft was the market leader with a 30.5% market share in license, maintenance and subscription revenues, followed by SAP, Palantir Technologies, Zoom Video Communications, and Oracle in that order.
We ask the simple question: Who’s buying Federal Government 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 Federal Government applications market size is expected to reach $6.57 billion by 2025, compared with $6.1 billion in 2020 at a compound annual growth rate of 1.5%.
|Exhibit 2: Worldwide Federal Government Software Market 2020-2025 Forecast, $M|
|Year||2020||2025||2020-2025 CAGR, %|
Source: Apps Run The World, December 2021
Top 10 Federal Government Software vendors
Federal Government (Federal government agencies) – Grants and performance management, Computer Assisted Dispatch, Courts Management, Tax Collections, Records Management, Financials, HR, Procurement
e-Government is the catalyst for new system purchases, especially among developing countries. Apps designed to improve tax revenue collection will continue to take precedence over other front-office systems.
Here are the rankings of the top 10 Federal Government software vendors in 2020 and their market shares.
|Rank||Vendor||2019 Federal Government Apps Revenues, $M||2020 Federal Government Apps Revenues, $M||YoY Growth||2020 Federal Government Market Share, %||Recent Developments|
|1||Microsoft||Subscribe||Subscribe||12.9%||Subscribe||In response to the unique and evolving requirements of the United States public sector, Microsoft has created Office 365 Government plans (or Office 365 Government). This service description provides an overview of features that are specific to Office 365 Government US environments.|
|2||SAP||Subscribe||Subscribe||2.5%||Subscribe||SAP works with 16,000 public sector institutions in 151 countries.|
|3||Palantir Technologies||Subscribe||Subscribe||238.0%||Subscribe||Palantir has garnered its reputation from its work with the U.S. Defense Department and intelligence agencies like the U.S. Central Intelligence Agency, and it only works with the United States and its allies. Now, the company plans to shift its entire UK data processing out of the United States, while Palantir already hosts all UK customer data within the country, handling of metadata is currently done in the United States.|
|4||Zoom Video Communications||Subscribe||Subscribe||177.7%||Subscribe||Parts of the US Government, UK Government and Singapore use Zoom and recently the Indian Government had also issued an advisory saying Zoom was safe for use for Government purposes.|
|5||Oracle||Subscribe||Subscribe||-9.8%||Subscribe||Many federal, state and local customers are using Oracle to deliver critical government services. Oracle’s cloud services are used by 8 of the top 10 federal agencies by budget, all 4 branches of the U.S. military, and 36 states. Globally, more than 1,000 public sector organizations take advantage of Oracle’s industry-leading technologies.|
|6||SAS Institute||Subscribe||Subscribe||7.8%||Subscribe||In 2021, SAS has completed FedRAMP Ready status, enabling more US federal government agencies to move to the SAS Cloud. The Federal Risk and Authorization Management Program (FedRAMP) Project Management Office authorized Ready status for the SAS Cloud for Government platform-as-a-service (PaaS) offering.|
|7||Constellation Software Inc.||Subscribe||Subscribe||56.9%||Subscribe||The public sector segment develops and distributes software solutions primarily to government and government-related customers. Its public sector segment includes Volaris Operating Group, Harris Operating Group and Total Specific Solutions Operating Group.|
|8||UKG||Subscribe||Subscribe||10.7%||Subscribe||UKG is a partner to 2,500 public sector organizations across all 50 states and Canada, from the City of Miami to Washington State’s Sound Transit to the City of Calgary in Alberta, Canada, and is helping to propel digital transformation among government agencies, including Boulder County, Colorado; Broward County, Florida; the City of Fishers, Indiana; the City of Oklahoma City; the City of Strongsville, Ohio; the Georgia Department of Corrections; NJ TRANSIT; Stark County, Ohio; the State of Colorado; the Town of Gilbert, Arizona; and Utah Transit Authority.|
|9||CGI Group Inc.||Subscribe||Subscribe||6.7%||Subscribe||In October 2021, CGI Federal Inc. acquired Array Holding Company, a digital services provider that optimizes mission performance for the U.S. Department of Defense and other government organizations. In March 2020 CGI acquired TeraThink, leading information technology and management consulting firm providing digitization, enterprise finance, risk management, and data analytics services to the U.S. federal government.|
|10||Workday||Subscribe||Subscribe||19.2%||Subscribe||In 2021, Workday has achieved Ready status for the Federal Risk and Authorization Management Program (FedRAMP). Entry into the federal market will mark a significant milestone for Workday and its opportunity for growth, building on the company’s established history of providing applications to public and private sector organizations at scale. With Workday Government Cloud, the company’s forthcoming FedRAMP Moderate offering, federal agencies will have access to a portfolio of enterprise cloud applications.|
Source: Apps Run The World, December 2021
Other Federal Government software providers included in the report are: Abila, Accela, ACI Worldwide, Inc., Acumen Data Systems, Adobe, ADP, Advanced, Aladtec, Alfresco, ARCHIBUS, ASG Technologies, Asseco Group, Atlas Business Solutions, Atlassian, Avue Technologies, Benefitexpress, Berger-Levrault, Berger-Levrault, Blackbaud, Blackboard, Capita Software, Cegid, Celayix Software, CentralSquare Technologies, Ceridian, Cerner Corporation, Cisco Systems, Citrix, Computer Modeling Group, Connecting-Expertise NV, Dileoz, Dropbox, Dude Solutions Inc., eCivis, a GTY Technology Company, FIS Global, Fiserv, Google, Granicus, Hexagon, High Line, a NEOGOV Company, Huddle, Informatica, Intime Solutions, Itineris, Ivanti, Kofax, Kronos Incorporated, Laserfiche, LogMeIn, Inc., NEOGOV, Nice Systems, Oleeo, Open Text Corporation, OptForce, Peopleadmin, a Powerschool Company, PROACTIS Group, Roper Technologies, Inc., Salesforce, ServiceNow, Silverlake Axis, Squiz, Sunview Software, Tableau Software, TeamDynamix, Teradata Corporation, TMA Systems, UNIT4, viDesktop Inc., Visma, Vitech Systems Group, Workday, XCD HR Limited, Zoom Video Communications, and others.
Custom data cuts related to the Federal Government Applications market are available:
- Top 800+ Federal Government Applications Vendors and Market Forecast 2020-2025
- 2020 Federal Government Applications Market By Functional Market (16 Markets)
- 2020 Federal Government Applications Market By Country (USA + 45 countries)
- 2020 Federal Government Applications Market By Region (Americas, EMEA, APAC)
- 2020 Federal Government Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2020 Federal Government Applications Market By Customer Size (revenue, employee count, asset)
- 2020 Federal Government Applications Market By Channel (Direct vs Direct)
- 2020 Federal Government Applications Market By Product
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Federal Government Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Federal Government 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 has been studying the patterns of the latest Federal Government 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 Government 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.
|Ministry of Education (Brazil)||Government||100000||$2.60B||Brazil||BMC Software||BMC Remedy ITSM Suite||IT Service Management|
|Florida Highway Safety and Motor Vehicles||Government||2475||$500.0M||United States||Cornerstone OnDemand||Cornerstone HR Suite||Human Resource Management|
|City of Avondale||Government||507||$88.0M||United States||Genesys||Genesys Customer Experience Platform||Customer Experience Platform|
|BuzzFeed||Government||1500||$167.0M||United States||IBM||IBM Watson Candidate Assistant||AI and Cognitive Talent Management Solution|
|City of Dallas||Government||13000||$2.80B||United States||Kronos||Kronos Workforce Central||Human Capital Management, Workforce Management|
|City of Hampton||Government||1875||$450.0M||United States||Kronos||Kronos Workforce Central||Human Capital Management, Workforce Management|
|Business Sweden||Government||550||$50.0M||Sweden||Microsoft||Azure Machine Learning||ML & Data Science Platform|
|Cook County Government||Government||22000||$600.0M||United States||Microsoft||Microsoft Dynamics GP||Enterprise Resource Planning|
|Cook County Pension Fund||Government||448||$50.0M||United States||Microsoft||Microsoft Dynamics GP||Enterprise Resource Planning|
|Shropshire Council||Government||12000||$270.0M||United Kingdom||Microsoft||Microsoft Dynamics 365 Customer Engagement||Customer Relationship Management|
|Texas Association of Counties||Government||190||$20.0M||United States||Microsoft||Microsoft Dynamics GP||Enterprise Resource Planning|
|Wisconsin Department of Health Services||Government||5500||$1.10B||United States||NetSuite||NetSuite CRM+||Customer Relationship Management|
|City of Albuquerque||Government||5854||$882.0M||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|City of Fort Wayne||Government||1862||$280.0M||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|City of San Jose||Government||6600||$3.70B||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|Department of Conservation||Government||2000||$800.0M||New Zealand||Oracle||Oracle WebCenter Sites||Web Experience Management Solution|
|Kent County Council||Government||12000||$1.80B||United Kingdom||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|M.E.T.C.||Government||1200||$400.0M||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|Metro Vancouver||Government||1500||$600.0M||Canda||Oracle||Oracle PeopleSoft HCM||Human Capital Management|
|NRGi||Government||1100||$317.0M||Denmark||Oracle||Oracle CX Cloud||Customer Experience|
|Sacramento County||Government||11691||$3.50B||United States||Oracle||Oracle Service Cloud (ex RightNow)||Customer Experience Platform|
|Ministry of Economy, Trade and Industry(METI) of Japan||Government||4000||$1.50B||Japan||Salesforce||Service Cloud||Customer Service and Support|
|U.S. Census Bureau||Government||12000||$3.50B||United States||Salesforce||Service Cloud||Customer Service and Support|
|Hampshire County Council||Government||7000||$938.0M||United Kingdom||SAP||SAP Cloud for Customer||Customer Relationship Management|
|Cheshire West and Chester Council||Government||11386||$708.0M||United Kingdom||UNIT4||Unit4 Business World On!||Enterprise Resource Planning|
|Metro Vancouver||Government||1500||$600.0M||Canda||UNIT4||Unit4 Business World||Enterprise Resource Planning|
|Shropshire Council||Government||12000||$270.0M||United Kingdom||UNIT4||Unit4 Business World On!||Enterprise Resource Planning|
|BuzzFeed||Government||1500||$167.0M||United States||Workday||Workday HCM||Human Capital Management|
|City and County of Denver Government||Government||3600||$1.00B||United States||Workday||Workday HCM||Human Capital Management|
|City of Orlando||Government||1750||$401.0M||United States||Workday||Workday Planning||Planning, Budgeting, and Forecasting|
|Cook County Government||Government||22000||$600.0M||United States||WorkForce Software||EmpCenter||Workforce Management|
Source: Apps Run The World, December 2021
An expanded version of this report covers the top 800+ Federal Government 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 2015-2020 product revenues.
Their 2020 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.
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.