In 2017, the top 10 Procurement software vendors accounted for nearly 64% of the global Procurement applications market which grew 1.4% to approach nearly $5.1 billion in license, maintenance and subscription revenues. SAP led the pack with a 27.3% market share while Oracle was #2 followed by IBM, Coupa Software and Microsoft.
Through our forecast period, the Procurement applications market is expected to reach $5.7 billion by 2022, compared with $5.1 billion in 2017 at a compound annual growth rate of 2%.
| Exhibit 2: Worldwide Procurement Software Market 2017-2022 Forecast, $M | |||
|---|---|---|---|
| Year | 2017 | 2022 | 2017-2022 CAGR, % |
| Total | 5125 | 5668 | 2% |
Source: Apps Run The World, December 2018
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 2017 and their market shares.
| Rank | Vendor | 2016 Procurement Apps Revenues, $M | 2017 Procurement Apps Revenues, $M | YoY Growth | 2017 Procurement Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | 6.4% | Subscribe | SAP 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. |
| 2 | Oracle | Subscribe | Subscribe | 3.4% | Subscribe | Oracle 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. |
| 3 | IBM | Subscribe | Subscribe | -4.7% | Subscribe | Spun off its eCommerce products formerly Sterling Commerce for B2B procurement to HCL in late 2018. |
| 4 | Coupa Software | Subscribe | Subscribe | 41.0% | Subscribe | Acquired Hiperos for risk management apps and DCR Workforce for contingent workforce management to complement its procurement solutions. |
| 5 | Microsoft | Subscribe | Subscribe | 1.1% | Subscribe | Dynamics 365 now covers all ERP and procurement apps. |
| 6 | Mercateo | Subscribe | Subscribe | 12.7% | Subscribe | In 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. |
| 7 | Infor | Subscribe | Subscribe | 7.2% | Subscribe | 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. |
| 8 | BasWare | Subscribe | Subscribe | 10.7% | Subscribe | Tradeshift Holdings with backing from Ping An Insurance Group aims to acquire Basware in hostile takeover. |
| 9 | Open Text Corporation | Subscribe | Subscribe | 22.9% | Subscribe | OpenText Business Network, formerly GXS, unveiled Release 16 Enhancement Pack 5 with expanded self-service, trading partners, and integrated fax capture, archive, SMS notifications. |
| 10 | Jaggaer | Subscribe | Subscribe | 12.2% | Subscribe | Jaggaer 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 | Subscribe | 6.1% | Subscribe | ||
| Other | Subscribe | Subscribe | -5.9% | Subscribe | ||
| Total | Subscribe | Subscribe | 1.4% | Subscribe |
Source: Apps Run The World, December 2018
Custom data cuts related to the Procurement Applications market are available:
- Top 60+ Procurement Applications Vendors and Market Forecast 2017-2022
- 2017 Procurement Applications Market By Industry (21 Verticals)
- 2017 Procurement Applications Market By Functional Market (16 Markets)
- 2017 Procurement Applications Market By Country (USA + 45 countries)
- 2017 Procurement Applications Market By Region (Americas, EMEA, APAC)
- 2017 Procurement Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2017 Procurement Applications Market By Customer Size (revenue, employee count, asset)
- 2017 Procurement Applications Market By Channel (Direct vs Direct)
- 2017 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 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.
| Customer | Industry | Empl. | Revenue | Country | Vendor | New Product |
| Caterpillar | Construction and Real Estate | 98400 | $45.46B | United States | Coupa Software | Coupa Procurement |
| CityFibre | Communication | 163 | $45.0M | United Kingdom | Coupa Software | Coupa Procurement |
| Fastweb | Media | 3417 | $1.69B | Italy | Coupa Software | Coupa Procurement |
| Telenor | Communication | 30000 | $13.60B | Norway | Coupa Software | Coupa Procurement |
| Zurich Insurance | Insurance | 55000 | $63.96B | Switzerland | Coupa Software | Coupa Procurement |
| Aggregate Industries | Construction and Real Estate | 4100 | $400.0M | United Kingdom | SAP | SAP Ariba |
| Arm Limited | Professional services | 6250 | $1.35B | United Kingdom | SAP | SAP Ariba |
| Centrica | Utility | 60000 | $36.50B | United Kingdom | SAP | SAP Ariba |
| Ferrero | Consumer Packaged Goods | 40000 | $11.94B | Italy | SAP | SAP Ariba |
| KENGEE | Consumer Packaged Goods | 3000 | $500.0M | China | SAP | SAP Ariba |
| Northern Gas Networks | Utility | 2658 | $200.0M | United Kingdom | SAP | SAP Ariba |
| Otsuka Pharmaceuticals Europe | Life Sciences | 600 | $132.0M | United Kingdom | SAP | SAP Ariba |
| Salvatore Ferragamo | Consumer Packaged Goods | 4000 | $1.39B | Italy | SAP | SAP Ariba |
| Standard Chartered | Banking and Financial Services | 86000 | $14.50B | United Kingdom | SAP | SAP Ariba |
| The AA | Automotive | 7454 | $1.25B | United Kingdom | SAP | SAP Ariba |
| The Emirates Group | Transportation | 103363 | $27.88B | United Arab Emirates | SAP | SAP Ariba |
| Whirlpool | Manufacturing | 92000 | $21.25B | United States | SAP | SAP Ariba |
| Tulane University | Education | 4600 | $1.31B | United States | SciQuest | Sciquest Source-to-Settle Suite |
| Forest City | Construction and Real Estate | 2800 | $1.30B | United States | Coupa Software | Coupa Procurement |
| Glassdoor | Professional Services | 900 | $320.0M | United States | Coupa Software | Coupa Procurement |
| TOMS | Consumer Packaged Goods | 800 | $350.0M | United States | Coupa Software | Coupa Procurement |
| Wacom | Professional Services | 1300 | $680.0M | United States | Coupa Software | Coupa Procurement |
| World Vision Canada | Non Profit | 700 | $290.0M | Canada | Coupa Software | Coupa Procurement |
| Anheuser-Busch InBev SA/NV | Consumer Packaged Goods | 150000 | $43.60B | Belgium | IBM | IBM Emptoris |
| Telstra | Communication | 36165 | $26.70B | Australia | IBM | IBM Emptoris |
| UnitedHealth Group | Healthcare | 172000 | $157.00B | United States | IBM | IBM Emptoris |
| CyraCom | Professional Services | 1400 | $100.0M | United States | Oracle | Oracle Procurement Cloud |
| Rancon Group | Construction and Real Estate | 125 | $20.0M | United States | Oracle | Oracle Procurement Cloud |
| AB SKF Group | Manufacturing | 47000 | $8.80B | Sweden | SAP | SAP Ariba |
| AIA Group Limited | Insurance | 20000 | $23.28B | Hong Kong | SAP | SAP Ariba |
| Al-Futtaim Auto | Automotive | 44000 | $81.68B | United Arab Emirates | SAP | SAP Ariba |
| American Cancer Society | Non Profit | 8500 | $1.20B | United States | SAP | SAP Ariba |
| Dixons Carphone | Retail | 43000 | $14.00B | United Kingdom | SAP | SAP Ariba |
| Dole Food Company | Consumer Packaged Goods | 74300 | $4.40B | United States | SAP | SAP Ariba |
| Dwr Cymru Welsh Water | Utility | 3000 | $400.0M | United Kingdom | SAP | SAP Ariba |
| Easa Saleh Al Gurg Group (ESAG) | Construction and Real Estate | 700 | $1.50B | United Arab Emirates | SAP | SAP Ariba |
| L.A. Care Health Plan | Healthcare | 1500 | $350.0M | United States | SciQuest | Sciquest Source-to-Settle Suite |
| Loyola University Maryland | Education | 650 | $230.0M | United States | SciQuest | Sciquest Source-to-Settle Suite |
| Sunoco Lp | Oil and Gas | 11000 | $3.20B | United States | SciQuest | Sciquest Source-to-Settle Suite |
| Wor-Wic Community College | Education | 300 | $75.0M | United States | SciQuest | Sciquest Source-to-Settle Suite |
Source: Apps Run The World, January 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 2015-2017 product revenues.
Their 2017 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.
