Top 10 Government Software Vendors and Market Forecast 2016-2021 Worldwide Government Applications Market to reach $10.6 billion by 2021, compared with $9.9 billion in 2016 at a compound annual growth rate of 1.5%. By Miso Markovski - January 24, 2018
In 2016, the top 10 Government software vendors accounted for nearly 35% of the global Government applications market which grew 2.7% to approach nearly $9.9 billion in license, maintenance and subscription revenues. Last year Microsoft was the market leader with 8% market share in license, maintenance and subscription revenues, followed by Oracle, Tyler Technologies, SAP and IBM in that order.
Top 10 Government Software Vendors and 2016 Applications Market Shares, Apps Run The World, January 2018
Through our forecast period, the Government applications market is expected to reach $10.6 billion by 2021, compared with $9.9 billion in 2016 at a compound annual growth rate of 1.5%. Exhibit 2: Worldwide Government Software Market 2016-2021 Forecast, $M Year
2016
2021
2016-2021 CAGR, %
Total
9875
10648
1.5%
Source: Apps Run The World, January 2018
Government Market Definitions And Forecast Assumptions Government (Federal, state and local government agencies, nonprofit) – Public Safety Software, Grants and performance management, Computer Assisted Dispatch, Jail Management, Courts Management, Tax Collections, Records Management, Financials, HR, Procurement e-Government is the catalyst for new system purchases especially among developing countries. Apps designed to improve tax revenue collection will continue to take precedence over other front-office systems.
Top 10 Government Software vendors Here are the rankings of the top 10 Government software vendors in 2016 and their market shares.
Rank
Vendor
2015 Government
2016 Government
Apps Revenues,
Apps Revenues,
$M
$M
2016 YoY
Government
Growth
Market Share, %
1
Microsoft
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2
Oracle
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3
4
Tyler Technologies SAP
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Microsoft Dynamics 365 now covers both CRM and ERP functionality for multiple verticals. With its extensive Cloud product portfolio, Oracle has captured more than 25,000 Cloud customers covering 65M+ active users across different verticals. Tyler aims to reinvent itself in government vertical after ending its OEM deal Microsoft. SAP has signed more than 6,900 customers for its next-generation ERP suite S/4 HANA as of October 2017. IBM Watson serves as the brain behind its BI strategy, redefining how different
5
IBM
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verticals incorporate and optimize artificial intelligence into their business processes.
6
7
8
9
10
Constellation
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Software Inc. UNIT4
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Other
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CGI Group Inc. Infor SAS Institute
Constellation Software becomes industry-specific solution powerhouse with its
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blend of ERP and business management applications. Delivered PSA Suite for target verticals like accountancy. Roadmap includes project alert center and reference project assistant. Acquired Affecto for BI and analytics offerings. Infor unveiled Coleman, its AI play for helping companies better manage business processes across different verticals. SAS’s AI strategy centers around Viya for Visual Data Mining, Machine Learning and SAS Visual Text Analytics.
Source: Apps Run The World, January, 2018 Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database. Exhibit 4: Worldwide Enterprise Applications Market Forecast 2016-2021, By Vertical Industry, $M
Worldwide Enterprise Applications Market Forecast 2016-2021, By Vertical Industry, $M, Apps Run The World, January 2018
Government Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database On the buyer side, customers are investing in Government 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 Government 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 Government 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.
DON’T MISS OUR CUSTOMER DATABASE Further Readings An expanded version of this report covers the top 500+ Government 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.
Miso Markovski https://www.appsruntheworld.com
Head of Research
