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.
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 $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|
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.
|Rank||Vendor||2017 Procurement Apps Revenues, $M||2018 Procurement Apps Revenues, $M||YoY Growth||2018 Procurement Market Share, %||Recent Developments|
|1||SAP||Subscribe||Subscribe||4,0%||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||4,1%||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||Coupa Software||Subscribe||Subscribe||39,5%||Subscribe||Coupa acquired Exari for contract lifecycle management, Hiperos for risk management apps and DCR Workforce for contingent workforce management to complement its procurement solutions.|
|4||Microsoft||Subscribe||Subscribe||14,0%||Subscribe||Microsoft Dynamics 365 now covers all ERP and procurement apps.|
|5||Mercateo||Subscribe||Subscribe||17,1%||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.|
|6||IBM||Subscribe||Subscribe||-20,7%||Subscribe||IBM 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.|
|7||Infor||Subscribe||Subscribe||2,0%||Subscribe||Infor 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||GEP||Subscribe||Subscribe||83,3%||Subscribe||GEP 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.|
|9||BasWare||Subscribe||Subscribe||-5,4%||Subscribe||Tradeshift Holdings with backing from Ping An Insurance Group aims to acquire Basware in hostile takeover.|
|10||Jaggaer||Subscribe||Subscribe||4,0%||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.|
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.
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.
|AGCO Corporation||Manufacturing||21200||$9.35B||United States||SAP||SAP Ariba|
|AIA Group||Insurance||22000||$36.30B||Hong Kong||SAP||SAP Ariba|
|Air Liquide||Oil, Gas and Chemicals||66000||$23.27B||France||SAP||SAP Ariba|
|Al-Futtaim Auto||Automotive||44000||$81.68B||United Arab Emirates||SAP||SAP Ariba|
|Altria Group, Inc||Consumer Packaged Goods||8300||$25.36B||United States||SAP||SAP Ariba|
|American Express Company||Banking and Financial Services||59000||$28.87B||United States||SAP||SAP Ariba|
|Arla Foods UK||Consumer Packaged Goods||19000||$10.60B||United Kingdom||SAP||SAP Ariba|
|Betfair||Professional Services||7300||$2.00B||Ireland||Oracle||Oracle Procurement Cloud|
|Danone||Consumer Packaged Goods||105783||$27.30B||France||Oracle||Oracle Procurement Cloud|
|DHL||Transportation||424351||$56.63B||Germany||Oracle||Oracle Procurement Cloud|
|Mount Sinai||Healthcare||38000||$2.40B||United States||Oracle||Oracle Procurement Cloud|
|The Sherwin-Williams Company||Manufacturing||53368||$17.53B||United States||Oracle||Oracle Procurement Cloud|
|Univision Communications||Media||4008||$3.04B||United States||Oracle||Oracle Procurement Cloud|
|Vantiv||Banking and Financial Services||3526||$3.58B||United States||Oracle||Oracle Procurement Cloud|
|Atlassian Philippines Inc||Professional Services||2193||$620.0M||Philippines||Coupa Software||Coupa Procurement|
|Australian Unity||Leisure and Hospitality||7500||$2.05B||Australia||Coupa Software||Coupa Procurement|
|Caterpillar Inc.||Manufacturing||104000||$54.72B||United States||Coupa Software||Coupa Procurement|
|DS Smith Plc||Distribution||32000||$7.25B||United Kingdom||Coupa Software||Coupa Procurement|
|Fastweb||Media||3417||$1.69B||Italy||Coupa Software||Coupa Procurement|
|Forest City||Construction and Real Estate||2800||$1.30B||United States||Coupa Software||Coupa Procurement|
|Nvidia||Professional Services||10000||$6.91B||United States||Coupa Software||Coupa Procurement|
|Danfoss Power Solutions||Manufacturing||3000||$600.0M||Denmark||Mercateo||Mercateo Procurement Platform|
|Essent N.V||Utilities||4300||$4.19B||Netherlands||Mercateo||Mercateo Procurement Platform|
|Hagemeyer Modehaus||Retail||1000||$100.0M||Germany||Mercateo||Mercateo Procurement Platform|
|IDT Biologika GmbH||Life Sciences||1600||$300.0M||Germany||Mercateo||Mercateo Procurement Platform|
|UNILIN||Manufacturing||5000||$1.73B||Belgium||Mercateo||Mercateo Procurement Platform|
|nBev (UK) Ltd||Consumer Packaged Goods||155000||$47.06B||United Kingdom||IBM||IBM Emptoris|
|Sunovion||Life Sciences||1700||$3.30B||United States||IBM||IBM Emptoris|
|UHG||Healthcare||200000||$200.00B||United States||IBM||IBM Emptoris|
|Cost Plus World Market||Retail||2927||$800.0M||United States||Infor||Infor Nexus Procure-to-Pay Automation|
|Kirkland’s, Inc||Retail||7300||$647.0M||United States||Infor||Infor Nexus Procure-to-Pay Automation|
|Levi Strauss & Co||Consumer Packaged Goods||15000||$4.49B||United States||Infor||Infor Nexus Procure-to-Pay Automation|
|Shoe Carnival, Inc||Retail||2300||$1.03B||United States||Infor||Infor Nexus Procure-to-Pay Automation|
|The Children’s Place||Retail||3700||$1.79B||United States||Infor||Infor Nexus Procure-to-Pay Automation|
|U.S. Bancorp||Banking and Financial Services||73333||$22.52B||United States||Infor||Infor Nexus Procure-to-Pay Automation|
|Altria Group, Inc||Consumer Packaged Goods||8300||$25.36B||United States||GEP||SMART by GEP|
|Boston Scientific||Manufacturing||32000||$9.82B||United States||GEP||SMART by GEP|
|Brunei Shell Petroleum||Oil, Gas and Chemicals||3500||$6.75B||Brunei||GEP||SMART by GEP|
|Chevron Corporation||Oil, Gas and Chemicals||48600||$158.90B||United States||GEP||SMART by GEP|
|Dentsply||Manufacturing||16000||$3.99B||United States||GEP||SMART by GEP|
|Duke Energy||Utilities||30083||$24.52B||United States||GEP||SMART by GEP|
|Exelon Energy||Utilities||34000||$31.36B||United States||GEP||SMART by GEP|
|Goodman Fielder||Consumer Packaged Goods||6000||$1.20B||Australia||GEP||SMART by GEP|
|Kellogg Company||Consumer Packaged Goods||34000||$13.55B||United States||GEP||SMART by GEP|
|Maersk||Transportation||79900||$39.02B||Denmark||GEP||SMART by GEP|
|Mars, Incorporated||Consumer Packaged Goods||115000||$35.00B||United States||GEP||SMART by GEP|
|Reckitt Benckiser||Consumer Packaged Goods||37345||$16.51B||United Kingdom||GEP||SMART by GEP|
|HeidelbergCement AG||Construction and Real Estate||58000||$18.14B||Germany||BasWare||Basware Procurement|
|Heineken||Consumer Packaged Goods||85000||$24.83B||Netherlands||BasWare||Basware Procurement|
|Huhtamaki||Consumer Packaged Goods||17000||$3.10B||Finland||BasWare||Basware Procurement|
|Koninklijke BAM Groep N.V.||Professional Services||21300||$8.30B||Netherlands||BasWare||Basware Procurement|
|Lloyds Pharmacy||Retail||17000||$24.48B||United Kingdom||BasWare||Basware Procurement|
|Allergan||Manufacturing||11400||$6.20B||United States||Jaggaer||Jaggaer One (ex SciQuest)|
|Bühler Group||Consumer Packaged Goods||13000||$3.36B||Switzerland||Jaggaer||Jaggaer One (ex SciQuest)|
|Carl Zeiss AG (ZEISS Group Company)||Manufacturing||31260||$7.19B||Germany||Jaggaer||Jaggaer One (ex SciQuest)|
|GROHE AG||Manufacturing||6000||$2.00B||Germany||Jaggaer||Jaggaer One (ex SciQuest)|
Source: Apps Run The World, December 2019
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.
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.