In 2021, the top 10 Procurement software vendors accounted for nearly 59.1% of the global Procurement applications market which grew 10.8% to approach nearly $4.9 billion in license, maintenance and subscription revenues.
In 2021, SAP led the pack with a 26.3% market share while Coupa was #2 followed by Oracle, GEP, and Unite (Formerly Mercateo Group).
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)
Through our forecast period, the Procurement applications market size is expected to reach $5.6 billion by 2026, compared with $4.9 billion in 2021 at a compound annual growth rate of 2.8%.
| Exhibit 2: Worldwide Procurement Software Market 2021-2026 Forecast, $M | |||
|---|---|---|---|
| Year | 2021 | 2026 | 2021-2026 CAGR, % |
| Total | 4934 | 5651 | 2.8% |
Source: Apps Run The World, September 2022
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 2021 and their market shares.
| Rank | Vendor | 2020 Procurement Apps Revenues, $M | 2021 Procurement Apps Revenues, $M | YoY Growth | 2021 Procurement Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | -0.2% | Subscribe | Because of the pandemic, SAP has shifted its priorities – focusing more attention on S/4 HANA Cloud aiming to deliver more of these back-office featues via all the major hyperscalers, while emphasizing the long-term value of sustainability push. SAP’s long track record of delivering apps like Environment Health and Safety underscores its commitment to sustainabilty. Other new products from SAP like Responsible Design and Production and Rural Sourcing Management will help realize the goal of building a Circular Economy to reduce waste. |
| 2 | Coupa Software | Subscribe | Subscribe | 34.5% | Subscribe | In November 2020, Coupa acquired LLamasoft, a leader in AI-powered supply chain design and planning for $1.5 billion. LLamasoft’s technology is used by hundreds of enterprise customers, including brands such as Boeing, Danone S.A., Home Depot, and Nestle. The acquisition will strengthen Coupa’s supply chain capabilities, enabling businesses to drive greater value through Business Spend Management. Coupa has more than 2,000 customers on it’s platform. |
| 3 | Oracle | Subscribe | Subscribe | 8.8% | Subscribe | Oracle’s newest pre-built procurement analytics capabilities within Fusion ERP Analytics provide executives and category managers the comprehensive visibility into spend, supplier performance, and operational efficacy required to remain competitive. This offering brings finance and procurement data together, providing CPO and CFO organizations with in-depth spend, purchasing, and delivery insights from a single source of truth. |
| 4 | GEP | Subscribe | Subscribe | 37.3% | Subscribe | In March 2022, GEP has agreed to acquire COSTDRIVERS, a leading supply markets forecasting, pricing trends and cost-modeling platform, and procurement intelligence and data science firm Datamark Ltd., based in São Paulo, Brazil, through the acquisition of its parent company, Datamark International (Bermuda) Ltd. COSTDRIVERS, which has more than 200 enterprise customers in 40 countries, tracks more than 50,000 commodities and operating supplies in markets all over the world. Unlike its COSTDRIVERS platform, Datamark Ltd. has focused mainly on servicing the Brazilian market with specialized procurement data on consumer products, packaging and industrial inputs. Datamark has more than 25% of Brazil’s top 1,000 companies as customers. |
| 5 | Unite (Formerly Mercateo Group) | Subscribe | Subscribe | 12.8% | Subscribe | In January 2022, Mercateo Group merges its two lines of business – the Mercateo B2B marketplace and the Unite Network – under one new brand, Unite. The Unite B2B platform brings buyers and sellers together for mutual benefit. Based on more than 20 years of e-procurement and networking expertise, Unite will provide a more coherent brand experience for its users. |
| 6 | Workday | Subscribe | Subscribe | 22.5% | Subscribe | Following its 2019 purchase of Scout RFP $540 million, Workday continues to make inroads into the Cloud procurement market by supporting a combined group of nearly 1,100 customers with such features as strategic sourcing, supplier engagement as well as eprocurement. Before the purchase, Scout had 240 customers and Workday Procurement signed over 650 customers. |
| 7 | Jaggaer | Subscribe | Subscribe | 9.8% | Subscribe | In 2022, Jaggaer completes the acquisition of AI-powered contracts analysis platform, DocSkiff Inc. The integration of DocSkiff into the JAGGAER ONE platform will enable organizations to intelligently extract, review and analyze contract information using artificial intelligence and machine learning. DocSkiff, renamed as JAGGAER Contracts AI, will be integrated into JAGGAER’s Contracts+ solution. |
| 8 | Ivalua | Subscribe | Subscribe | 13.3% | Subscribe | The company continued to grow rapidly, achieving record new subscription sales, customer acquisition and revenue. Nearly 60 new customers signed with Ivalua, including Danske Bank, the state of Alabama, Coca Cola Philippines, Millicom, Leaseplan, Ahlsell, Music Tribe, Parkland, SoFi, and many others. Ivalua’s Source-to-Pay suite is leveraged by over 300 leading companies across the globe to manage over $500 Billion in direct and indirect spend. |
| 9 | Infor | Subscribe | Subscribe | 6.3% | Subscribe | The Infor Nexus has more than 65,000 companies connected to its network, overseeing a total of $50 billion in global payments and helps manage $1 trillion in trade over the online platform. The procurement and supply chain management tool augments Infor’s different Cloud ERP products. |
| 10 | BasWare | Subscribe | Subscribe | 2.8% | Subscribe | Basware has over 2,000 customers in Invoice Automation and Procurement and 900,000 active organizations transacting through the Basware supplier and buyer network for invoices and purchase messages. Basware’s top 200 key customers brought on average approximately EUR 330 thousand annual recurring cloud revenue in 2021. Through add-on sales and geographical expansions, there is potential to increase the average revenue from existing customers. |
| Subtotal | Subscribe | Subscribe | 9.8% | Subscribe | ||
| Other | Subscribe | Subscribe | 12.2% | Subscribe | ||
| Total | 4454 | 4934 | 10.8% | 100% |
Source: Apps Run The World, September 2022
Other procurement software providers included in the report are: abas Business Software, Access Group, Achilles, Advanced, American Software, Aptos, Arrowstream, Asseco Group, Beeline, BirchStreet Systems, CDK Global, Cegid, Comarch SoftM, Constellation Software Inc., Corcentric, Dairy.com, Duzon Digitalware, E2open, Ellucian, Epicor, ESM Solutions Corporation, Exact Holding BV, Exela Technologies, Inc., Fourth Ltd, FuturMaster, Inetum (ex GFI Informatique), GHX, IBS Software Services, icertis, IFS, Ignite Technologies, Blue Yonder, MercuryGate International, OBIC Co. Ltd., Open Text Corporation, Openbravo, PRGX Global Inc., PRO Unlimited, PROACTIS Group, Procore, Pronto Software, QAD, Ramco Systems, River Logic, Inc., Roper Technologies, Inc., Sage, Scanmarket, ServiceNow, Sênior Sistemas, SmartERP, SupplyOn, Taulia, Tigernix Pte Ltd, Tungsten, TotalSoft, Tradeshift, UNIT4, Visma, Vormittag Associates Inc., VORTAL Connecting Business, Vroozi, Yonyou Zycus, and others.
Custom data cuts related to the Procurement Applications market are available:
- Top 180+ Procurement Applications Vendors and Market Forecast 2021-2026
- 2021 Procurement Applications Market By Industry (21 Verticals)
- 2021 Procurement Applications Market By Procurement Segments and Categories
- 2021 Procurement Applications Market By Country (USA + 45 countries)
- 2021 Procurement Applications Market By Region (Americas, EMEA, APAC)
- 2021 Procurement Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2021 Procurement Applications Market By Customer Size (revenue, employee count, asset)
- 2021 Procurement Applications Market By Channel (Direct vs Direct)
- 2021 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.
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.
Source: Apps Run The World, September 2022
Further Readings
An expanded version of this report covers the top 180+ 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 2015-2021 product revenues.
Their 2021 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.
