German software vendor SAP has taken the crown in the 2020 global enterprise applications market as the vendor making the most revenue during last year at US$18.1 billion, yet only made up 7.5 per cent of the total market.
This is according to research firm IDC, which claimed that overall revenue in the market grew by 4.1 per cent to US$241 billion in 2020 and is expected to surge up to nearly US$334 billion by 2025, a five-year compound annual growth rate (CAGR) of 6.7 per cent.
Following SAP was Salesforce at US$13.1 billion or 5.4 per cent of the total market, Oracle with US$11.4 billion or 4.7 per cent, Intuit clocking in with US$7.2 billion or 3 per cent and Microsoft rounding out the top five at US$5.3 billion or 2.2 per cent.
In total, these five players only accounted for 22.8 per cent of the total figure.
The growing demand for these products, the firm claimed, was due to an increasing need for digital resiliency -- so much so that IDC labelled it as a “focal point” during 2020.
"Digital resiliency is a requirement in the digital-first world," said Mickey North Rizza, program vice president for enterprise applications and digital commerce at IDC. “Rapidly adapting to a business disruption requires a business to leverage its digital capabilities within its enterprise application portfolio.
“Modular, intelligent applications are helping the organisation leverage the data and gain insights to better manoeuvre the organisation so it can remain resilient and capitalise on the changed conditions," she added.
The longer-term forecast to 2025 sees organisations updating their applications portfolio to deliver the required digital resiliency and flexibility to thrive in the market, which is expected to be a gradual process, the firm claimed.
Over the period, demand for public cloud-based enterprise applications is predicted to grow at a five-year CAGR of 13.6 per cent, blowing past the overall market CAGR and setting it up to overtake on-premises software in the next several years.
Indeed, public cloud is garnering a lot of attention as of late, with enterprises in Asia Pacific, excluding Japan, expected to continue to latch onto public cloud services over the next four years, as the market is forecast to reach US$124 billion by 2025.