In 2016, the top 10 Procurement software vendors accounted for nearly 56% of the global Procurement applications market which grew 2% to approach nearly $5 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with a 23% market share and $1.1 billion in procurement license, maintenance and subscription revenues. In 2016, Oracle was No. 2 in the procurement applications market, followed by IBM, Coupa Software and Infor in that order. In 2015, SAP was No. 1, followed by Oracle, IBM, Infor and Mercateo.
Through our forecast period, the Procurement applications market is expected to reach $5.6 billion by 2021, compared with $5.0 billion in 2016 at a compound annual growth rate of 2.1%.
| Exhibit 2: Worldwide Procurement Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 5052 | 5593 | 2.1% |
Source: Apps Run The World, December 2017
Procurement Market Definitions And Forecast Assumptions
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.
Top 10 Procurement Software Vendors
Here are the rankings of the top 10 Procurement software vendors in 2016 and their market shares.
| Rank | Vendor | 2015 Procurement Apps Revenues, $M | 2016 Procurement Apps Revenues, $M | 2016 Procurement Apps YoY Growth, % | 2016 Procurement Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | Subscribe | Subscribe | SAP Ariba continues to show momentum within Business Networks and the procurement market because of its ease of use for buyers and suppliers. |
| 2 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | Oracle SCM Suite in the Cloud added additional Service Contracts and Supplier Management capabilities. |
| 3 | IBM | Subscribe | Subscribe | Subscribe | Subscribe | IBM is repositioning its Sterling as a cross-channel order orchestration platform. |
| 4 | Coupa Software | Subscribe | Subscribe | Subscribe | Subscribe | In 2017, Coupa acquired Deep Relevance for fraud detection, Trade Extensions for supply chain risk management, and Spend360for spend data classification. |
| 5 | Infor | Subscribe | Subscribe | Subscribe | Subscribe | Infor unveiled Coleman, its AI play for helping companies better manage different business processes including procurement. |
| 6 | Mercateo | Subscribe | Subscribe | Subscribe | Subscribe | Mercateo is a key procurement platform mostly for European companies. |
| 7 | BravoSolution | Subscribe | Subscribe | Subscribe | Subscribe | In November 2017, JAGGAER acquired BravoSolution to become a procurement powerhouse. |
| 8 | Achilles | Subscribe | Subscribe | Subscribe | Subscribe | Achilles sustains its growth by focusing on supplier information management. |
| 9 | Cvent | Subscribe | Subscribe | Subscribe | Subscribe | Cvent Supplier Network has created an extensive database of venue information with Cvent sourcing over $11 billion in meetings and events through its marketplace in 2016. |
| 10 | JDA Software Group, Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Reported double-digit product growth across its SCM and procurement applications in 3Q17. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | 4955 | 5053 | 2.0% | 100.0% |
Source: Apps Run The World, December 2017
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 2016-2021, 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.
| Vendor | Customer Win | Industry | No. of employees | Revenue, $M | Old Product | New Product | Wins in |
|---|---|---|---|---|---|---|---|
| SAP | Al-Futtaim Automotive Group | Retail | 44000 | 81678 | AFM Service | SAP Ariba | 3Q15 |
| SAP | Talen Energy | Oil & Energy | 3500 | 4300 | Legasy System | SAP Ariba Procure-to-Pay | 4Q15 |
| SAP | Dole | Consumer products | 74300 | 4400 | Legasy System | SAP Ariba Procure-to-Pay | 3Q15 |
| SAP | Groupe Auchan | Retail | 337800 | 60000 | Legasy System | SAP Ariba Procure-to-Pay, Ariba Sourcing Solutions | 4Q15 |
| SAP | AIA Group | Insurance | 20000 | 23275 | Legasy System | SAP Ariba Solutions | 2Q15 |
| Oracle | Transit Wireless | Wireless | 150 | 25 | Legasy System | Oracle iProcurement | 1Q15 |
| Oracle | Rancon Group | Professional Services | 125 | 20 | Legasy System | Oracle Enterprise Resource Planning Cloud, Oracle Procurement Cloud | 2Q14 |
| Oracle | CyraCom | Translation and Localization | 1400 | 100 | Legasy System | Oracle ERP Financials Cloud, Sales Cloud, and Procurement Cloud | 3Q15 |
| Oracle | RedMart | Internet | 500 | 120 | Legasy System | Oracle ERP Cloud | 1Q16 |
| IBM | Optum – United Health Group | Hospital & Health Care | 172000 | 157000 | Coupa Procurement System | IBM Emptoris System | 1Q15 |
| IBM | Telstra | Telecommunications | 36165 | 26700 | Legasy System | IBM Emptoris Procurement | 1Q16 |
| Infor | Lineage Logistics | Warehousing | 3000 | 500 | Legasy System | IBM Emptoris Procurement | 1Q16 |
| Infor | Travelodge | Hospitality | 4300 | 550 | Legasy System | Infor SunSystems, Infor Professional Advantage iPoS Procure to Pay Solution, Infor V1 Document Management | 4Q15 |
| Infor | Michaels | Retail | 13000 | 5000 | Legasy System | Infor Workforce Management | 2Q16 |
| Cvent | Flextronics | Electrical/Electronic Manufacturing | 200000 | 24900 | Legasy System | Cvent Event Management Software | 3Q15 |
| Cvent | McKesson | Hospital & Health Care | 70400 | 190884 | Legasy System | Cvent Event Management Software | 3Q15 |
| Cvent | Merck KGaA | Pharmaceuticals | 50000 | 12500 | Legasy System | Cvent Event Management Software | 3Q15 |
| Cvent | Hard Rock Hotel & Casino Las Vegas | Hospitality | 2500 | 750 | Legasy System | Cvent Event Management Software | 3Q15 |
| Cvent | National Journal | Online Media | 300 | 100 | Legasy System | Cvent Event Management Software | 3Q15 |
| Coupa Software | Forest City Enterprises | Real Estate | 2800 | 1300 | Legasy System | Coupa Procurement System | 1Q15 |
| Coupa Software | TOMS Shoes | Apparel & Fashion | 800 | 350 | Legasy System | Coupa Procurement System | 1Q16 |
| Coupa Software | World Vision Canada | Fund-Raising | 700 | 290 | Legasy System | Coupa Procurement System | 1Q16 |
| Coupa Software | Glassdoor | Internet | 900 | 320 | Legasy System | Coupa Procurement System | 1Q16 |
| Coupa Software | Wacom | Computer Hardware | 1300 | 680 | Legasy System | Coupa Procurement System | 3Q15 |
| JDA Software Group, Inc. | At Home Group Inc. | Retail | 2941 | 1050 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Ahold USA | Retail | 236000 | 38200 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Avon | Cosmetics | 31000 | 60000 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Becton Dickinson | Medical Devices | 49500 | 10280 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Speedway LLC | Retail | 33820 | 55000 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Halyard Health | Hospital & Health Care | 16500 | 1700 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | CVS Pharmacy | Pharmaceuticals | 155000 | 160170 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Crossmark | Consumer Goods | 40000 | 1200 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| JDA Software Group, Inc. | Cook Medical Group | Medical Devices | 11000 | 2100 | Legasy System | JDA Supply Chain and Retail Solutions | 1Q16 |
| SciQuest, Inc. | Loyola University Maryland | Higher Education | 650 | 230 | Legasy System | SciQuest Source-To-Settle | 2Q16 |
| SciQuest, Inc. | Tulane University | Higher Education | 5100 | 1200 | Legasy System | e-Procurement Software | 2Q16 |
| SciQuest, Inc. | L.A. Care Health Plan | Hospital & Health Care | 1500 | 350 | Legasy System | SciQuest e-Procurement Software | 1Q16 |
| SciQuest, Inc. | Sunoco LP | Oil & Energy | 11000 | 3200 | Legasy System | SciQuest Source-To-Settle | 1Q16 |
| SciQuest, Inc. | Wor-Wic Community College | Education Management | 300 | 75 | Legasy System | SciQuest e-Procurement Software | 1Q15 |
| UNIT4 | AGS Airports | Airlines | 2500 | 950 | Oracle | Unit4 Business World On | 2Q16 |
| UNIT4 | Relay Graduate School of Education | Education | 220 | 25 | Legasy System | Unit4 Business World On, Unit4 Student Management | 2Q16 |
| UNIT4 | University of Waterloo | Education | 2500 | 800 | Legasy System | Unit4 Business World On | 2Q16 |
| UNIT4 | Canadian Diabetes Association (CDA) | Non Profit | 600 | 55 | Legasy System | Unit4 Business World On | 2Q15 |
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 2015-2016 product revenues.
Their 2016 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.
