Top 10 Procurement Software Vendors and Market Forecast 2016-2021

Worldwide Procurement Applications Market to reach $5.6 billion by 2021, compared with $5.0 billion in 2016 at a compound annual growth rate of 2.1%.

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In 2016, the top 10 Procurement software vendors accounted for nearly 56% 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 a 23% market share and $1.1 billion in procurement license, maintenance and subscription revenues. In 2016, Oracle was No. 2 in the procurement applications market, followed by IBM, Coupa Software and Infor in that order. In 2015, SAP was No. 1, followed by Oracle, IBM, Infor and Mercateo.

Top 10 Procurement Software Vendors & 2016 Procurement Applications Market Shares, Apps Run The World, December 2017
Top 10 Procurement Software Vendors & 2016 Procurement Applications Market Shares, Apps Run The World, December 2017

Through our forecast period, the Procurement applications market is expected to reach $5.6 billion by 2021, compared with $5.0 billion in 2016 at a compound annual growth rate of 2.1%.

Exhibit 2: Worldwide Procurement Software Market 2016-2021 Forecast, $M
Year 2016 2021 2016-2021 CAGR, %
Total 5052 5593 2.1%

Source: Apps Run The World, December 2017

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 2016 and their market shares.

Rank Vendor 2015 Procurement Apps Revenues, $M 2016 Procurement Apps Revenues, $M 2016 Procurement Apps YoY Growth, % 2016 Procurement Market Share, % Recent Developments
1 SAP Subscribe Subscribe Subscribe Subscribe SAP Ariba continues to show momentum within Business Networks and the procurement market because of its ease of use for buyers and suppliers.
2 Oracle Subscribe Subscribe Subscribe Subscribe Oracle SCM Suite in the Cloud added additional Service Contracts and Supplier Management capabilities.
3 IBM Subscribe Subscribe Subscribe Subscribe IBM is repositioning its Sterling as a cross-channel order orchestration platform.
4 Coupa Software Subscribe Subscribe Subscribe Subscribe In 2017, Coupa acquired Deep Relevance for fraud detection, Trade Extensions for supply chain risk management, and Spend360for spend data classification.
5 Infor Subscribe Subscribe Subscribe Subscribe Infor unveiled Coleman, its AI play for helping companies better manage different business processes including procurement.
6 Mercateo Subscribe Subscribe Subscribe Subscribe Mercateo is a key procurement platform mostly for European companies.
7 BravoSolution Subscribe Subscribe Subscribe Subscribe In November 2017, JAGGAER acquired BravoSolution to become a procurement powerhouse.
8 Achilles Subscribe Subscribe Subscribe Subscribe Achilles sustains its growth by focusing on supplier information management.
9 Cvent Subscribe Subscribe Subscribe Subscribe Cvent Supplier Network has created an extensive database of venue information with Cvent sourcing over $11 billion in meetings and events through its marketplace in 2016.
10 JDA Software Group, Inc. Subscribe Subscribe Subscribe Subscribe Reported double-digit product growth across its SCM and procurement applications in 3Q17.
Subtotal Subscribe Subscribe Subscribe Subscribe
Other Subscribe Subscribe Subscribe Subscribe
Total 4955 5053 2.0% 100.0%

Source: Apps Run The World, December 2017

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 2016-2021, By Functional Market, $M

Worldwide Enterprise Applications Market Forecast 2016-2021, By Functional Market, $M
Worldwide Enterprise Applications Market Forecast 2016-2021, 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 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.