Top 10 Procurement Software Vendors and Market Forecast 2015-2020

Worldwide Procurement Applications Market to reach $5.4 billion by 2020, compared with $5.0 billion in 2015 at a compound annual growth rate of 1.6%.

3713

In 2015, the top 10 Procurement software vendors accounted for nearly 52% of the global Procurement applications market which grew 2% to approach nearly $5 billion in license, maintenance and subscription revenues.

Last year SAP led the pack with 22% market share and $1.1 billion in Procurement product revenues, riding on a 23% jump in license, maintenance and subscription revenues. Oracle was No. 2 achieving 12% share, IBM was the third at 10% and Infor and Mercateo were fourth and fifth place with 2% and 1%, respectively.

Top 10 Procurement Software Vendors & 2015 Procurement Applications Market Shares
Top 10 Procurement Software Vendors & 2015 Procurement Applications Market Shares

Through our forecast period, the Procurement applications market is expected to reach $5.4 billion by 2020, compared with $5.0 billion in 2015 at a compound annual growth rate of 1.6%.

Exhibit 2: Worldwide Procurement Software Market 2015-2020 Forecast, $M
Year 2015 2020 2015-2020 CAGR, %
Total 4978 5402 1.6%

Source: Apps Run The World, June 2016

Procurement Market Definitions And Forecast Assumptions

Procurement covers applications designed for purchasing material (whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain-specific business process; or in support of performing a service) and services (business or professional).

Other functions include contract management, electronic network, punch-out, sourcing, and supplier rating to optimize the overall supplier relationship management business processes. Procurement applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise.

Supplier discovery and relationship management, coupled with networked markeplace, boost procurement activities.

Top 10 Procurement Software Vendors

Here are the rankings of the top 10 Procurement software vendors in 2015 and their market shares in 2015.

Rank Vendor 2014 Procurement Apps Revenues, $M 2015 Procurement Apps Revenues, $M YoY Growth 2015 Procurement Market Share, % Recent Developments
1 SAP Subscribe Subscribe 23% 22% Procurement strategy is led by SAP Business Networks, which include Ariba for eProcurement, sourcing and supplier relationship management. It covers 2.2 million connected firms and $820 billion of B2B commerce as of 2Q16.
2 Oracle Subscribe Subscribe 3% 12% Oracle offers eProcurement applications through its E-Business Suite, PeopleSoft Enterprise and JD Edwards Enterprise One apps.
3 IBM Subscribe Subscribe -4% 10% As part of its Smarter Commerce offerings, IBM’s procurement strategy revolves around Sterling Supplier Relationship Management and the 2014 acquisition of Aspera for secure transfer of massive data files such as EDI.
4 Infor Subscribe Subscribe 0% 2% Acquired GTNexus for eMarketplace solutions in 2015.
5 Mercateo Subscribe Subscribe 18% 1% Mercateo aims to simplify B2B procurement with the latest digital networking applications with the ease of consumer products.
6 Cvent Subscribe Subscribe 32% 1% Divested consumer ticketing assets in December 2015 and consumer mobile assets in January 2016 as Cvent focuses on corporate event management solutions and group business platform for the hospitality industry.
7 Coupa Software Subscribe Subscribe 20% 1% Acquired Contractually for contract management apps in 2016.
8 Achilles Subscribe Subscribe 13% 1% Continued to expand supplier relationship management offerings among key verticals like construction and oil and gas in Europe.
9 JDA Software Group, Inc. Subscribe Subscribe 3% 1% Signed 127 net-new customers in 2015 as its shift to the Cloud gathered momentum with over $100M in revenue.
10 SciQuest, Inc. Subscribe Subscribe 0% 1% SciQuest, which specializes in eProcurement apps for Commercial (including Manufacturing, Retail, Financial Services, Life Sciences, Utilities, and Chemicals), Higher Education, Healthcare, Public Sector, was acquired by Accel-KKR for $509 million, in May 2016.
Subtotal Subscribe Subscribe 10% 52%
Other Subscribe Subscribe -5% 48%
Total Subscribe Subscribe 2% 100%

Source: Apps Run The World, June 2016

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.

Exhibit 4: Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M

Exhibit 4 Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M
Exhibit 4 Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M

Procurement Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in Procurement 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 procurement 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 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.

DON’T MISS OUR CUSTOMER DATABASE

Vendor Customer Win Industry No. of employees Revenue, $M Old Product New Product Wins in
SAP Al-Futtaim Automotive Group Retail 44000 81678 AFM Service SAP Ariba 3Q15
SAP Talen Energy Oil & Energy 3500 4300 Legasy System SAP Ariba Procure-to-Pay 4Q15
SAP Dole Consumer products 74300 4400 Legasy System SAP Ariba Procure-to-Pay 3Q15
SAP Groupe Auchan Retail 337800 60000 Legasy System SAP Ariba Procure-to-Pay, Ariba Sourcing Solutions 4Q15
SAP AIA Group Insurance 20000 23275 Legasy System SAP Ariba Solutions 2Q15
Oracle Transit Wireless Wireless 150 25 Legasy System Oracle iProcurement 1Q15
Oracle Rancon Group Professional Services 125 20 Legasy System Oracle Enterprise Resource Planning Cloud, Oracle Procurement Cloud 2Q14
Oracle CyraCom Translation and Localization 1400 100 Legasy System Oracle ERP Financials Cloud, Sales Cloud, and Procurement Cloud 3Q15
Oracle RedMart Internet 500 120 Legasy System Oracle ERP Cloud 1Q16
IBM Optum – United Health Group Hospital & Health Care 172000 157000 Coupa Procurement System IBM Emptoris System 1Q15
IBM Telstra Telecommunications 36165 26700 Legasy System IBM Emptoris Procurement 1Q16
Infor Lineage Logistics Warehousing 3000 500 Legasy System IBM Emptoris Procurement 1Q16
Infor Travelodge Hospitality 4300 550 Legasy System Infor SunSystems, Infor Professional Advantage iPoS Procure to Pay Solution, Infor V1 Document Management 4Q15
Infor Michaels Retail 13000 5000 Legasy System Infor Workforce Management 2Q16
Cvent Flextronics Electrical/Electronic Manufacturing 200000 24900 Legasy System Cvent Event Management Software 3Q15
Cvent McKesson Hospital & Health Care 70400 190884 Legasy System Cvent Event Management Software 3Q15
Cvent Merck KGaA Pharmaceuticals 50000 12500 Legasy System Cvent Event Management Software 3Q15
Cvent Hard Rock Hotel & Casino Las Vegas Hospitality 2500 750 Legasy System Cvent Event Management Software 3Q15
Cvent National Journal Online Media 300 100 Legasy System Cvent Event Management Software 3Q15
Coupa Software Forest City Enterprises Real Estate 2800 1300 Legasy System Coupa Procurement System 1Q15
Coupa Software TOMS Shoes Apparel & Fashion 800 350 Legasy System Coupa Procurement System 1Q16
Coupa Software World Vision Canada Fund-Raising 700 290 Legasy System Coupa Procurement System 1Q16
Coupa Software Glassdoor Internet 900 320 Legasy System Coupa Procurement System 1Q16
Coupa Software Wacom Computer Hardware 1300 680 Legasy System Coupa Procurement System 3Q15
JDA Software Group, Inc. At Home Group Inc. Retail 2941 1050 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Ahold USA Retail 236000 38200 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Avon Cosmetics 31000 60000 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Becton Dickinson Medical Devices 49500 10280 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Speedway LLC Retail 33820 55000 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Halyard Health Hospital & Health Care 16500 1700 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. CVS Pharmacy Pharmaceuticals 155000 160170 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Crossmark Consumer Goods 40000 1200 Legasy System JDA Supply Chain and Retail Solutions 1Q16
JDA Software Group, Inc. Cook Medical Group Medical Devices 11000 2100 Legasy System JDA Supply Chain and Retail Solutions 1Q16
SciQuest, Inc. Loyola University Maryland Higher Education 650 230 Legasy System SciQuest Source-To-Settle 2Q16
SciQuest, Inc. Tulane University Higher Education 5100 1200 Legasy System e-Procurement Software 2Q16
SciQuest, Inc. L.A. Care Health Plan Hospital & Health Care 1500 350 Legasy System SciQuest e-Procurement Software 1Q16
SciQuest, Inc. Sunoco LP Oil & Energy 11000 3200 Legasy System SciQuest Source-To-Settle 1Q16
SciQuest, Inc. Wor-Wic Community College Education Management 300 75 Legasy System SciQuest e-Procurement Software 1Q15
UNIT4 AGS Airports Airlines 2500 950 Oracle Unit4 Business World On 2Q16
UNIT4 Relay Graduate School of Education Education 220 25 Legasy System Unit4 Business World On, Unit4 Student Management 2Q16
UNIT4 University of Waterloo Education 2500 800 Legasy System Unit4 Business World On 2Q16
UNIT4 Canadian Diabetes Association (CDA) Non Profit 600 55 Legasy System Unit4 Business World On 2Q15

Further Readings

An expanded version of this report covers the top 60+ Procurement 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 2014-2015 product revenues.

Their 2015 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.

1 COMMENT

LEAVE A REPLY