Top 10 Procurement Software Vendors, Market Size and Market Forecast 2018-2023

Worldwide Procurement Applications Market reach $6 billion by 2023, compared with $5.3 billion in 2018 at a compound annual growth rate of 2.6%.

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In 2018, the top 10 Procurement software vendors accounted for nearly 58.4% of the global Procurement applications market which grew 2.7% to approach nearly $5.3 billion in license, maintenance and subscription revenues.

In 2018, SAP led the pack with a 24.3% market share while Oracle was #2 followed by, Coupa Software, Microsoft and Mercateo.

We ask the simple question: Who’s buying Procurement applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)

Exhibit 1 - 2018 Procurement Applications Market Shares Split By Top 10 Procurement Vendors and Others
Exhibit 1 – 2018 Procurement Applications Market Shares Split By Top 10 Procurement Vendors and Others

Through our forecast period, the Procurement applications market size is expected to reach $6 billion by 2023, compared with $5.3 billion in 2018 at a compound annual growth rate of 2.6%.

Exhibit 2: Worldwide Procurement Software Market 2018-2023 Forecast, $M
Year201820232018-2023CAGR, %
Total531160432.6%

Source: Apps Run The World, December 2019

Top 10 Procurement Software Vendors

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.

Here are the rankings of the top 10 Procurement software vendors in 2018 and their market shares.

RankVendor2017 Procurement Apps Revenues, $M2018 Procurement Apps Revenues, $MYoY Growth2018 Procurement Market Share, %Recent Developments
1SAP Subscribe Subscribe4,0% SubscribeSAP Ariba ramps up procurement apps sales into SMBs and midmarket by creating Premikati Marketplace for small companies to automate procurement for as little as $30 per user per month. Ariba also introduced new packaged offering for midmarket companies.
2Oracle Subscribe Subscribe4,1% SubscribeOracle is making increased inroads into its ERP installed base by migrating them to its Fusion Cloud (about 200 every quarter) with built-in Procurement features. NetSuite Procurement is also gaining traction among thousands of Netsuite ERP customers.
3Coupa Software Subscribe Subscribe39,5% SubscribeCoupa acquired Exari for contract lifecycle management, Hiperos for risk management apps and DCR Workforce for contingent workforce management to complement its procurement solutions.
4Microsoft Subscribe Subscribe14,0% SubscribeMicrosoft Dynamics 365 now covers all ERP and procurement apps.
5Mercateo Subscribe Subscribe17,1% SubscribeIn November 2018, Mercateo Unite, the neutral B2B connectivity platform, will cover BeNeering’s portfolio. BeNeering is a provider specializing in SAP software with a focus on web shop design in group purchasing.
6IBM Subscribe Subscribe-20,7% SubscribeIBM to Sunset IBM Emptoris, transition customers to SAP Ariba as part of broader partnership agreement. IBM Spun off its eCommerce products formerly IBM Sterling Commerce for B2B procurement to HCL in late 2018.
7Infor Subscribe Subscribe2,0% SubscribeInfor acquired Vivonet for hospitality with point-of-sale and inventory and procurement functionality for food service management, full and quick service restaurant, and hotel food and beverage micro-verticals.
8GEP Subscribe Subscribe83,3% SubscribeGEP offers the perfect blend of strategic and advisory services, pace-setting technology and managed services. GEP’s cloud-based, unified source-to-pay procurement platform, SMART by GEP, saw 66% increase in revenues in 2018.
9BasWare Subscribe Subscribe-5,4% SubscribeTradeshift Holdings with backing from Ping An Insurance Group aims to acquire Basware in hostile takeover.
10Jaggaer Subscribe Subscribe4,0% SubscribeJaggaer added 185 new customers in 2018, resulting in a total of over 2,000 for its Procure to Pay, Source to Contract and Supply Chain Management apps.
Subtotal Subscribe Subscribe6,9% Subscribe
Other Subscribe Subscribe-2,6% Subscribe
Total Subscribe Subscribe2,7% Subscribe

Source: Apps Run The World, December 2019

Other procurement software providers included in the report are: abas Business Software, Access Group, Achilles, Advanced (ex Science Warehouse), American Software, Aptos, Arrowstream, Asseco Group, Beeline, BirchStreet Systems, Bravosolution, CDK Global, Cegid, Comarch SoftM, Constellation Software Inc., Dairy.com, Determine, Inc., Digital Dimension, a Econocom Group Company, Duzon Digitalware, E2open, Ellucian, Epicor, ESM Solutions Corporation, Exact Holding BV, Exela Technologies, Inc., Fourth Ltd, FuturMaster, GFI Informatique, GHX, IBS Software Services, IFS, Ignite Technologies, Ivalua, JDA Software, KDS, LLamasoft, MercuryGate International, OBIC Co. Ltd., Oildex, Open Text Corporation, Openbravo, S.L.U., Oxygen Finance, Per Angusta, PRGX Global Inc., PRO Unlimited, PROACTIS Group, Procurify, Procuro, Pronto Software, QAD, Ramco Systems, River Logic, Inc., Roper Technologies, Inc., Sage, Scanmarket, Selenity, Sênior Sistemas, SmartERP, SupplyOn, Synertrade, Taulia, Tigernix Pte Ltd, Tungsten, TotalSoft, Tradeshift, UNIT4, Visma, Vormittag Associates Inc., VORTAL Connecting Business, Vroozi, WEX Health, Wax Digital, Workday, Yonyou, Zycus, and others.

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

  • Top 60+ Procurement Applications Vendors and Market Forecast 2017-2022
  • 2018 Procurement Applications Market By Industry (21 Verticals)
  • 2018 Procurement Applications Market By Functional Market (16 Markets)
  • 2018 Procurement Applications Market By Country (USA + 45 countries)
  • 2018 Procurement Applications Market By Region (Americas, EMEA, APAC)
  • 2018 Procurement Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
  • 2018 Procurement Applications Market By Customer Size (revenue, employee count, asset)
  • 2018 Procurement Applications Market By Channel (Direct vs Direct)
  • 2018 Procurement Applications Market By Product

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 2018-2023, By Functional Market, $M
Exhibit 4 – Worldwide Enterprise Applications Market Forecast 2018-2023, 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 systems 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.

CustomerIndustryEmpl.RevenueCountryVendorNew Product
AGCO CorporationManufacturing21200$9.35BUnited StatesSAPSAP Ariba
AIA GroupInsurance22000$36.30BHong KongSAPSAP Ariba
Air LiquideOil, Gas and Chemicals66000$23.27BFranceSAPSAP Ariba
Al-Futtaim AutoAutomotive44000$81.68BUnited Arab EmiratesSAPSAP Ariba
Altria Group, IncConsumer Packaged Goods8300$25.36BUnited StatesSAPSAP Ariba
American Express CompanyBanking and Financial Services59000$28.87BUnited StatesSAPSAP Ariba
Arla Foods UKConsumer Packaged Goods19000$10.60BUnited KingdomSAPSAP Ariba
BetfairProfessional Services7300$2.00BIrelandOracleOracle Procurement Cloud
DanoneConsumer Packaged Goods105783$27.30BFranceOracleOracle Procurement Cloud
DHLTransportation424351$56.63BGermanyOracleOracle Procurement Cloud
Mount SinaiHealthcare38000$2.40BUnited StatesOracleOracle Procurement Cloud
The Sherwin-Williams CompanyManufacturing53368$17.53BUnited StatesOracleOracle Procurement Cloud
Univision CommunicationsMedia4008$3.04BUnited StatesOracleOracle Procurement Cloud
VantivBanking and Financial Services3526$3.58BUnited StatesOracleOracle Procurement Cloud
Atlassian Philippines IncProfessional Services2193$620.0MPhilippinesCoupa SoftwareCoupa Procurement
Australian UnityLeisure and Hospitality7500$2.05BAustraliaCoupa SoftwareCoupa Procurement
Caterpillar Inc.Manufacturing104000$54.72BUnited StatesCoupa SoftwareCoupa Procurement
DS Smith PlcDistribution32000$7.25BUnited KingdomCoupa SoftwareCoupa Procurement
FastwebMedia3417$1.69BItalyCoupa SoftwareCoupa Procurement
Forest CityConstruction and Real Estate2800$1.30BUnited StatesCoupa SoftwareCoupa Procurement
NvidiaProfessional Services10000$6.91BUnited StatesCoupa SoftwareCoupa Procurement
Danfoss Power SolutionsManufacturing3000$600.0MDenmarkMercateoMercateo Procurement Platform
Essent N.VUtilities4300$4.19BNetherlandsMercateoMercateo Procurement Platform
Hagemeyer ModehausRetail1000$100.0MGermanyMercateoMercateo Procurement Platform
IDT Biologika GmbHLife Sciences1600$300.0MGermanyMercateoMercateo Procurement Platform
UNILINManufacturing5000$1.73BBelgiumMercateoMercateo Procurement Platform
nBev (UK) LtdConsumer Packaged Goods155000$47.06BUnited KingdomIBMIBM Emptoris
SunovionLife Sciences1700$3.30BUnited StatesIBMIBM Emptoris
TelstraCommunications29769$17.91BAustraliaIBMIBM Emptoris
UHGHealthcare200000$200.00BUnited StatesIBMIBM Emptoris
Cost Plus World MarketRetail2927$800.0MUnited StatesInforInfor Nexus Procure-to-Pay Automation
Kirkland’s, IncRetail7300$647.0MUnited StatesInforInfor Nexus Procure-to-Pay Automation
Levi Strauss & CoConsumer Packaged Goods15000$4.49BUnited StatesInforInfor Nexus Procure-to-Pay Automation
Shoe Carnival, IncRetail2300$1.03BUnited StatesInforInfor Nexus Procure-to-Pay Automation
The Children’s PlaceRetail3700$1.79BUnited StatesInforInfor Nexus Procure-to-Pay Automation
U.S. BancorpBanking and Financial Services73333$22.52BUnited StatesInforInfor Nexus Procure-to-Pay Automation
Altria Group, IncConsumer Packaged Goods8300$25.36BUnited StatesGEPSMART by GEP
Boston ScientificManufacturing32000$9.82BUnited StatesGEPSMART by GEP
Brunei Shell PetroleumOil, Gas and Chemicals3500$6.75BBruneiGEPSMART by GEP
Chevron CorporationOil, Gas and Chemicals48600$158.90BUnited StatesGEPSMART by GEP
DentsplyManufacturing16000$3.99BUnited StatesGEPSMART by GEP
Duke EnergyUtilities30083$24.52BUnited StatesGEPSMART by GEP
Exelon EnergyUtilities34000$31.36BUnited StatesGEPSMART by GEP
Goodman FielderConsumer Packaged Goods6000$1.20BAustraliaGEPSMART by GEP
Kellogg CompanyConsumer Packaged Goods34000$13.55BUnited StatesGEPSMART by GEP
MaerskTransportation79900$39.02BDenmarkGEPSMART by GEP
Mars, IncorporatedConsumer Packaged Goods115000$35.00BUnited StatesGEPSMART by GEP
Reckitt BenckiserConsumer Packaged Goods37345$16.51BUnited KingdomGEPSMART by GEP
HeidelbergCement AGConstruction and Real Estate58000$18.14BGermanyBasWareBasware Procurement
HeinekenConsumer Packaged Goods85000$24.83BNetherlandsBasWareBasware Procurement
HuhtamakiConsumer Packaged Goods17000$3.10BFinlandBasWareBasware Procurement
IKEARetail139000$29.09BDenmarkBasWareBasware Procurement
Koninklijke BAM Groep N.V.Professional Services21300$8.30BNetherlandsBasWareBasware Procurement
Lloyds PharmacyRetail17000$24.48BUnited KingdomBasWareBasware Procurement
AllerganManufacturing11400$6.20BUnited StatesJaggaerJaggaer One (ex SciQuest)
Bühler GroupConsumer Packaged Goods13000$3.36BSwitzerlandJaggaerJaggaer One (ex SciQuest)
Carl Zeiss AG (ZEISS Group Company)Manufacturing31260$7.19BGermanyJaggaerJaggaer One (ex SciQuest)
GROHE AGManufacturing6000$2.00BGermanyJaggaerJaggaer One (ex SciQuest)

Source: Apps Run The World, December 2019

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 2015-2018 product revenues.

Their 2018 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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