Top 10 Procurement Software Vendors and Market Forecast 2017-2022

Worldwide Procurement Applications Market reach $5.7 billion by 2022, compared with $5.1 billion in 2017 at a compound annual growth rate of 2%.

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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.

Exhibit 1 - 2017 Procurement Applications Market Shares Split By Top 10 Procurement Vendors and Others, %
Exhibit 1 – 2017 Procurement Applications Market Shares Split By Top 10 Procurement Vendors and Others, %

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.

Exhibit 4 - Worldwide Enterprise Applications Market Forecast 2017-2022, By Functional Market, $M
Exhibit 4 – Worldwide Enterprise Applications Market Forecast 2017-2022, 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 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.

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