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%.


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 2020, 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, $B
Year201520202015-2020 CAGR, %

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.

RankVendor2014 Procurement Apps Revenues, $M2015 Procurement Apps Revenues, $MYoY Growth2015 Procurement Market Share, %Recent Developments
1SAP Subscribe Subscribe23%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.
2Oracle Subscribe Subscribe3%12%Oracle offers eProcurement applications through its E-Business Suite, PeopleSoft Enterprise and JD Edwards Enterprise One apps.
3IBM 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.
4Infor Subscribe Subscribe0%2%Acquired GTNexus for eMarketplace solutions in 2015.
5Mercateo Subscribe Subscribe18%1%Mercateo aims to simplify B2B procurement with the latest digital networking applications with the ease of consumer products.
6Cvent Subscribe Subscribe32%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.
7Coupa Software Subscribe Subscribe20%1%Acquired Contractually for contract management apps in 2016.
8Achilles Subscribe Subscribe13%1%Continued to expand supplier relationship management offerings among key verticals like construction and oil and gas in Europe.
9JDA Software Group, Inc. Subscribe Subscribe3%1%Signed 127 net-new customers in 2015 as its shift to the Cloud gathered momentum with over $100M in revenue.
10SciQuest, Inc. Subscribe Subscribe0%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 Subscribe10%52%
Other Subscribe Subscribe-5%48%
Total Subscribe Subscribe2%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.


VendorCustomer WinIndustryNo. of employeesRevenue, $MOld ProductNew ProductWins in
SAPAl-Futtaim Automotive GroupRetail4400081678AFM ServiceSAP Ariba3Q15
SAPTalen EnergyOil & Energy35004300Legasy SystemSAP Ariba Procure-to-Pay4Q15
SAPDoleConsumer products743004400Legasy SystemSAP Ariba Procure-to-Pay3Q15
SAPGroupe AuchanRetail33780060000Legasy SystemSAP Ariba Procure-to-Pay, Ariba Sourcing Solutions4Q15
SAPAIA GroupInsurance2000023275Legasy SystemSAP Ariba Solutions2Q15
OracleTransit WirelessWireless15025Legasy SystemOracle iProcurement1Q15
OracleRancon GroupProfessional Services12520Legasy SystemOracle Enterprise Resource Planning Cloud, Oracle Procurement Cloud2Q14
OracleCyraComTranslation and Localization1400100Legasy SystemOracle ERP Financials Cloud, Sales Cloud, and Procurement Cloud3Q15
OracleRedMartInternet500120Legasy SystemOracle ERP Cloud1Q16
IBMOptum – United Health GroupHospital & Health Care172000157000Coupa Procurement SystemIBM Emptoris System1Q15
IBMTelstraTelecommunications3616526700Legasy SystemIBM Emptoris Procurement1Q16
InforLineage LogisticsWarehousing3000500Legasy SystemIBM Emptoris Procurement1Q16
InforTravelodgeHospitality4300550Legasy SystemInfor SunSystems, Infor Professional Advantage iPoS Procure to Pay Solution, Infor V1 Document Management4Q15
InforMichaelsRetail130005000Legasy SystemInfor Workforce Management2Q16
CventFlextronicsElectrical/Electronic Manufacturing20000024900Legasy SystemCvent Event Management Software3Q15
CventMcKessonHospital & Health Care70400190884Legasy SystemCvent Event Management Software3Q15
CventMerck KGaAPharmaceuticals5000012500Legasy SystemCvent Event Management Software3Q15
CventHard Rock Hotel & Casino Las VegasHospitality2500750Legasy SystemCvent Event Management Software3Q15
CventNational JournalOnline Media300100Legasy SystemCvent Event Management Software3Q15
Coupa SoftwareForest City EnterprisesReal Estate28001300Legasy SystemCoupa Procurement System1Q15
Coupa SoftwareTOMS ShoesApparel & Fashion800350Legasy SystemCoupa Procurement System1Q16
Coupa SoftwareWorld Vision CanadaFund-Raising700290Legasy SystemCoupa Procurement System1Q16
Coupa SoftwareGlassdoorInternet900320Legasy SystemCoupa Procurement System1Q16
Coupa SoftwareWacomComputer Hardware1300680Legasy SystemCoupa Procurement System3Q15
JDA Software Group, Inc.At Home Group Inc.Retail29411050Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.Ahold USARetail23600038200Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.AvonCosmetics3100060000Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.Becton DickinsonMedical Devices4950010280Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.Speedway LLCRetail3382055000Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.Halyard HealthHospital & Health Care165001700Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.CVS PharmacyPharmaceuticals155000160170Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.CrossmarkConsumer Goods400001200Legasy SystemJDA Supply Chain and Retail Solutions1Q16
JDA Software Group, Inc.Cook Medical GroupMedical Devices110002100Legasy SystemJDA Supply Chain and Retail Solutions1Q16
SciQuest, Inc.Loyola University MarylandHigher Education650230Legasy SystemSciQuest Source-To-Settle2Q16
SciQuest, Inc.Tulane UniversityHigher Education51001200Legasy Systeme-Procurement Software2Q16
SciQuest, Inc.L.A. Care Health PlanHospital & Health Care1500350Legasy SystemSciQuest e-Procurement Software1Q16
SciQuest, Inc.Sunoco LPOil & Energy110003200Legasy SystemSciQuest Source-To-Settle1Q16
SciQuest, Inc.Wor-Wic Community CollegeEducation Management30075Legasy SystemSciQuest e-Procurement Software1Q15
UNIT4AGS AirportsAirlines2500950OracleUnit4 Business World On2Q16
UNIT4Relay Graduate School of EducationEducation22025Legasy SystemUnit4 Business World On, Unit4 Student Management2Q16
UNIT4University of WaterlooEducation2500800Legasy SystemUnit4 Business World On2Q16
UNIT4Canadian Diabetes Association (CDA)Non Profit60055Legasy SystemUnit4 Business World On2Q15

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.