In 2016, the top 10 Manufacturing software vendors accounted for nearly 55% of the global Manufacturing applications market which grew 1.6% to approach nearly $21.7 billion in license, maintenance and subscription revenues.
Last year SAP was the market leader with 16% market share in license, maintenance and subscription revenues, followed by Synopsys, Mentor Graphics, Oracle and Dassault Systemes in that order.
Through our forecast period, the Manufacturing applications market is expected to reach $22 billion by 2021, compared with $21.7 billion in 2016 at a compound annual growth rate of 0.3%.
| Exhibit 2: Worldwide Manufacturing Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 21700 | 21993 | 0.3% |
Source: Apps Run The World, January 2018
Manufacturing Market Definitions And Forecast Assumptions
Manufacturing (Discrete, high-tech, process manufacturing) – Production Planning, Maintenance Management, Quality Management, CAD/CAM software, Manufacturing ERP, Manufacturing Execution System, Product lifecycle management, Financials, HR, Procurement
A loss of talents could rise as current managers retire in droves, prompting manufacturers to invest in systems for capturing and retaining domain expertise and tribal knowledge.
Top 10 Manufacturing Software vendors
Here are the rankings of the top 10 Manufacturing software vendors in 2016 and their market shares.
| Rank | Vendor | 2015 Manufacturing Apps Revenues, $M | 2016 Manufacturing Apps Revenues, $M | YoY Growth | 2016 Manufacturing Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | Subscribe | Subscribe | SAP has signed more than 6,900 customers for its next-generation ERP suite S/4 HANA as of October 2017. |
| 2 | Synopsys | Subscribe | Subscribe | Subscribe | Subscribe | Continued its expansion with a series of acquisitions to shore up its manufacturing and design applications. |
| 3 | Mentor Graphics | Subscribe | Subscribe | Subscribe | Subscribe | Siemens PLM acquired Mentor Graphics in 2017. |
| 4 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | With its extensive Cloud product portfolio, Oracle has captured more than 25,000 Cloud customers covering 65M+ active users across different verticals. |
| 5 | Dassault Systemes | Subscribe | Subscribe | Subscribe | Subscribe | Acquired Exa software in September 2017 for designers to evaluate highly dynamic fluid flow throughout the design process. |
| 6 | Microsoft | Subscribe | Subscribe | Subscribe | Subscribe | Microsoft Dynamics 365 now covers both CRM and ERP functionality for multiple verticals. |
| 7 | Cadence Design Systems | Subscribe | Subscribe | Subscribe | Subscribe | Cadence shows no sign of a slowdown in its EDA software business thanks to holistic, integrated design flow for chip makers like TSMC. |
| 8 | Siemens PLM Software | Subscribe | Subscribe | Subscribe | Subscribe | Siemens PLM acquired Mentor Graphics in 2017. |
| 9 | Infor | Subscribe | Subscribe | Subscribe | Subscribe | Infor’s Industry Clouds gain traction within manufacturing subverticals. |
| 10 | Salesforce | Subscribe | Subscribe | Subscribe | Subscribe | Focusing on migrating Classic users to Lightning user interface in order to deliver next-gen CRM experiences. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
Source: Apps Run The World, January, 2018
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 2016-2021, By Vertical Industry, $M
Manufacturing Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Manufacturing 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 Manufacturing 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 Manufacturing 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.
Further Readings
An expanded version of this report covers the top 500+ Manufacturing 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 2015-2016 product revenues.
Their 2016 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.
