In 2020, the top 10 Procurement software vendors accounted for nearly 59.6% of the global Procurement applications market which declined 2.8% to approach nearly $4.45 billion in license, maintenance and subscription revenues.
In 2020, SAP led the pack with a 29.2% market share while Oracle was #2 followed by Coupa, GEP, 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)
Through our forecast period, the Procurement applications market size is expected to reach $5.45 billion by 2025, compared with $4.45 billion in 2020 at a compound annual growth rate of 4.1%.
| Exhibit 2: Worldwide Procurement Software Market 2020-2025 Forecast, $M | |||
|---|---|---|---|
| Year | 2020 | 2025 | 2020-2025CAGR, % |
| Total | 4454 | 5455 | 4.1% |
Source: Apps Run The World, December 2021
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 2020 and their market shares.
| Rank | Vendor | 2019 Procurement Apps Revenues, $M | 2020 Procurement Apps Revenues, $M | YoY Growth | 2020 Procurement Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | -3.9% | Subscribe | SAP Ariba remains the No. 1 B2B network for procurement, sourcing and supplier management with 5.3 million companies being connected over the online marketplace and more than $3.75 trillion in commerce flows through the Ariba Network annually. |
| 2 | Oracle | Subscribe | Subscribe | -2.4% | 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. |
| 3 | Coupa Software | Subscribe | Subscribe | 36.4% | 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. As of January, over 1,300 customers had subscribed to Coupa’s platform. |
| 4 | GEP | Subscribe | Subscribe | 5.6% | Subscribe | GEP helps more than 450 Fortune 500 and Global 2000 enterprises worldwide including Honda, Dupont, Kellog’s, Prudential, BrightHouse Financial, General Mills, Cinncinati Bell, Brooks Brothers, ExxonMobil, Chevron, Petronas, Biogen, Bayer, Bristol-Myers Squibb, Royal London, Macy’s Inc., Chevron, and others. |
| 5 | Mercateo | Subscribe | Subscribe | -13.5% | Subscribe | Mercateo serves 1.5 million customers that turn to its procurement platform for an array of business to business eCommerce transactions. Among its customers are Gelsenwasser AG, Fujitsu Technology Solutions, Uniklinik Köln, Manuflex, AOC, MVV Energie AG, IDT Biologika GmbH, and many others. |
| 6 | Workday | Subscribe | Subscribe | 23.3% | 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 1,000 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 | BasWare | Subscribe | Subscribe | 27.5% | Subscribe | Basware has over 2,000 software and SaaS customers in Invoice Automation and Procurement and 900,000 active organizations transacting through the Basware supplier and buyer network for invoices and purchase messages. |
| 8 | Jaggaer | Subscribe | Subscribe | -9.9% | Subscribe | After addressing the procurement software needs of more than 1,700 customers including some of the largest companies, Jaggaer has launched Digital Mind that incorporates prescriptive and predictive analytics, machine learning, and natural language processing tools to deliver new capabilities across the Jaggaer ONE platform for more contextual data, insights and decision support for meeting next-generation procurement and supply chain requirements. |
| 9 | Infor | Subscribe | Subscribe | 1.5% | 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 | Corcentric | Subscribe | Subscribe | 10.0% | Subscribe | Corcentric expands its Global Alliance Partner Program. Through the program, Corcentric provides its clients with a world-class network of third-party software and services, while enabling strategic partners with Corcentric’s industry-leading solutions in procurement, accounts payable automation, integrated payments, fleet procurement, indirect and fleet group purchasing organization (GPO), and managed accounts receivable solutions to grow and expand their businesses |
| Subtotal | Subscribe | Subscribe | 1.9% | Subscribe | ||
| Other | Subscribe | Subscribe | -8.9% | Subscribe | ||
| Total | 4580 | 4454 | -2.8% | 100% |
Source: Apps Run The World, December 2021
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, 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, 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 and others.
Custom data cuts related to the Procurement Applications market are available:
- Top 60+ Procurement Applications Vendors and Market Forecast 2020-2025
- 2020 Procurement Applications Market By Industry (21 Verticals)
- 2020 Procurement Applications Market By Functional Market (16 Markets)
- 2020 Procurement Applications Market By Country (USA + 45 countries)
- 2020 Procurement Applications Market By Region (Americas, EMEA, APAC)
- 2020 Procurement Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2020 Procurement Applications Market By Customer Size (revenue, employee count, asset)
- 2020 Procurement Applications Market By Channel (Direct vs Direct)
- 2020 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, December 2021
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 2015-2020 product revenues.
Their 2020 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.
