Top 10 Government Software Vendors and Market Forecast 2017-2022

Worldwide Government Applications Market to reach $10.1 billion by 2022, compared with $9.3 billion in 2017 at a compound annual growth rate of 1.7%.

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In 2017, the top 10 Government software vendors accounted for nearly 40% of the global Government applications market which grew 2.0% to approach nearly $9.3 billion in license, maintenance and subscription revenues.

Last year Microsoft was the market leader with 8.3% market share in license, maintenance and subscription revenues, followed by Oracle, Tyler Technologies, SAP and SAS Institute in that order.

Exhibit 1 - 2017 Government Applications Market Shares Split By Top 10 Government Vendors and Others, %
Exhibit 1 – 2017 Government Applications Market Shares Split By Top 10 Government Vendors and Others, %

Through our forecast period, the Government applications market is expected to reach $10.1 billion by 2022, compared with $9.3 billion in 2017 at a compound annual growth rate of 1.7%.

Exhibit 2: Worldwide Government Software Market 2017-2022 Forecast, $M
Year 2017 2022 2017-2022 CAGR, %
Total 9312 10122 1.7%

Source: Apps Run The World, January 2019

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 2017 and their market shares.

Rank Vendor 2016 Government Apps Revenues, $M 2017 Government Apps Revenues, $M YoY Growth 2017 Government Market Share, % Recent Developments
1 Microsoft Subscribe Subscribe 1.1% Subscribe Migrating legacy AX, C5, GP, NAV, and SL to Dynamics 365 for the Cloud remains the top priority for Microsoft’s evolving enterprise apps strategy, whose success will depend on strengthening ties with ISV partners in strategic verticals.
2 Oracle Subscribe Subscribe 3.4% Subscribe Oracle has signed more than 22,000 Cloud ERP customers including many listed below. The number of Oracle Cloud ERP customers totals nearly 6,000 for Oracle ERP Cloud and 16,000 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 Tyler Technologies Subscribe Subscribe 12.8% Subscribe Tyler acquired Socrata for $150 million. Socrata helps agencies accelerate their shift to digital government. It also bought SceneDoc for mobile-first, software-as-a-service (SaaS) field reporting for law enforcement agencies; MobileEyes for apps that improve public safety; CaseloadPro for SaaS criminal justice software and Sage Data Security for information security advisory, assessment, assurance & compliance.
4 SAP Subscribe Subscribe 6.4% Subscribe SAP was on track to sign more than 10,000 customers including many listed below for its next-generation ERP S/4HANA by end of 2018 with 40% of the latest additions being considered net new wins for the vendor.
5 SAS Institute Subscribe Subscribe 2.7% Subscribe SAS’s analytics strategy revolves around Viya that enables customers to speed decision-making process by turning to artifiicial intelligence for recommendations and instill trust within their machine learning initiatives that come with data privacy protection.
6 Constellation Software Inc. Subscribe Subscribe 16.7% Subscribe For its latest nine-month period, CSI saw 24% growth in total revenues mostly through acquisitions. Organic growth was in low single digit.
7 IBM Subscribe Subscribe -4.7% Subscribe IBM acquired Red Hat for Cloud security, while IBM unloaded Notes, Sterling and other assets to HCL.
8 Infor Subscribe Subscribe 7.2% Subscribe Received $1.5 billion in additional investment from existing investors and planned to go public in 2019 or 2020.
9 UNIT4 Subscribe Subscribe 5.3% Subscribe UNIT4, in close partnership with Microsoft, eyes additional ERP and EPM opportunities in key verticals including Nonprofit, Professional Services and Public Sector.
10 Civica Subscribe Subscribe 14.7% Subscribe Acquired e-recruitment software provider Trac Systems Limited.
Subtotal Subscribe Subscribe 5.4% Subscribe
Other Subscribe Subscribe -0.1% Subscribe
Total Subscribe Subscribe 2.0% Subscribe

Source: Apps Run The World, January, 2019

Custom data cuts related to the Government Applications market are available:

  • Top 700+ Government Applications Vendors and Market Forecast 2017-2022
  • 2017 Government Applications Market By Functional Market (16 Markets)
  • 2017 Government Applications Market By Country (USA + 45 countries)
  • 2017 Government Applications Market By Region (Americas, EMEA, APAC)
  • 2017 Government Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
  • 2017 Government Applications Market By Customer Size (revenue, employee count, asset)
  • 2017 Government Applications Market By Channel (Direct vs Direct)
  • 2017 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.

Exhibit 4 - Worldwide Enterprise Applications Market Forecast 2017-2022, By Vertical Industry, $M
Exhibit 4 – Worldwide Enterprise Applications Market Forecast 2017-2022, By Vertical Industry, $M

Government Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in Government 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 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, January 2019

Further Readings

An expanded version of this report covers the top 700+ 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 2015-2017 product revenues.

Their 2017 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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