In 2019, the top 10 Government software vendors accounted for nearly 41.4% of the global Government applications market which grew 3.9% to approach nearly $14.5 billion in license, maintenance and subscription revenues.
Last year Microsoft was the market leader with an 18.8% market share in license, maintenance and subscription revenues, followed by SAP, Tyler Technologies, Oracle, and Motorola Solutions in that order.
We ask the simple question: Who’s buying 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 Government applications market size is expected to reach $16.5 billion by 2024, compared with $14.5 billion in 2019 at a compound annual growth rate of 2.7%.
| Exhibit 2: Worldwide Government Software Market 2019-2024 Forecast, $M | |||
|---|---|---|---|
| Year | 2019 | 2024 | 20189-2024 CAGR, % |
| Total | 14489 | 16543 | 2.7% |
Source: Apps Run The World, November 2020
Top 10 Government Software vendors
Government (Federal, state and local government agencies, nonprofit) – Public Safety Software, Grants and performance management, Computer Assisted Dispatch, Jail Management, 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 Government software vendors in 2019 and their market shares.
| Rank | Vendor | 2018 Government Apps Revenues, $M | 2019 Government Apps Revenues, $M | YoY Growth | 2019 Government Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Microsoft | Subscribe | Subscribe | 12.5% | Subscribe | Microsoft wins Pentagon’s $10 billion JEDI cloud contract, beating Amazon AWS. |
| 2 | SAP | Subscribe | Subscribe | 6.8% | Subscribe | More than 15,800 public sector institutions in 151 countries are innovating with SAP solutions. |
| 3 | Tyler Technologies | Subscribe | Subscribe | 6.5% | Subscribe | In 2019, Tyler Technologies added 596 new SaaS clients and 78 existing clients elected to convert to their SaaS model. Tyler has more than 26,000 successful installations across 10,000 sites, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. |
| 4 | Oracle | Subscribe | Subscribe | 4.1% | 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. |
| 5 | Motorola Solutions | Subscribe | Subscribe | 7.4% | Subscribe | In August 2020 Motorola Solutions acquired Callyo. Callyo is serving thousands of public safety customers across North America. Earlier, Motorola Solutions acquired Avtec, Inc., a provider of advanced dispatch solutions for public safety and commercial customers. Motorola Solutions has more than 100,000 customers in more than 100 countries. |
| 6 | Visma | Subscribe | Subscribe | 9.3% | Subscribe | In 2019, Visma expanded it’s presence in the Dutch market with the acquisitions of Roxit Group, provider of cloud software solutions for Dutch eGovernment segments in the Netherlands. 800,000 customers in Northern Europe utilize Visma’s products and services, and an additional 300,000 use Visma as a hosting partner. |
| 7 | IBM | Subscribe | Subscribe | -26.6% | Subscribe | IBM acquired software company Red Hat for $34 billion. The Nova Scotia government has launched a public sector innovation garage in collaboration with IBM. IBM has more than 50000 customers around the world. |
| 8 | Civica | Subscribe | Subscribe | 15.8% | Subscribe | In 2019 two thirds of major new sales were cloud-based. Civica offers their solutions to more than 3,000 customers, and it’s managed services to more than 500. |
| 9 | Workday | Subscribe | Subscribe | 30.5% | Subscribe | Workday serves approximately 7,900 customers globally (includes acquisitions). Workday ended FY’20 with more than 3,200 total customers, up 23% year over year. |
| 10 | CGI Group Inc. | Subscribe | Subscribe | 5.7% | Subscribe | In March 2020 CGI acquired TeraThink, a leading information technology and management consulting firm providing digitization, enterprise finance, risk management, and data analytics services to the U.S. federal government. CGI Group has more than 2,000 government agencies as customers. |
| Subtotal | Subscribe | Subscribe | 8.3% | Subscribe | ||
| Other | Subscribe | Subscribe | 1.1% | Subscribe | ||
| Total | Subscribe | Subscribe | 3.9% | Subscribe |
Source: Apps Run The World, November 2020
Other Government software providers included in the report are: 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 Government Applications market are available:
- Top 800+ Government Applications Vendors and Market Forecast 2019-2024
- 2019 Government Applications Market By Functional Market (16 Markets)
- 2019 Government Applications Market By Country (USA + 45 countries)
- 2019 Government Applications Market By Region (Americas, EMEA, APAC)
- 2019 Government Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2019 Government Applications Market By Customer Size (revenue, employee count, asset)
- 2019 Government Applications Market By Channel (Direct vs Direct)
- 2019 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.
Government Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in 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 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.
| Customer | Industry | Empl. | Revenue | Country | Vendor | New Product | Function |
| 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 |
| USAMM | Government | 65 | $6.0M | United States | Shopify | Shopify | eCommerce |
| 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 |
| Cox Automotive | Government | 19500 | $7.00B | United States | Xactly | Xactly Connect | Sales Performance Management |
Source: Apps Run The World, November 2020
Further Readings
An expanded version of this report covers the top 800+ 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 2015-2019 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.
