- SaaS and cloud-enabled applications continue their growth across the enterprise applications market.
- Market will be more than $600b in 2028 as organisations further integrate traditional AI, machine learning, and GenAI into workflows, creating faster and more intelligent insights and decisions.
- Public cloud will become the foundational deployment model for enterprise applications software, accounting for more than 70 per cent of new enterprise applications spending in 2028.
The top 5 enterprise application vendors in 2023 were SAP, Salesforce, Oracle, Microsoft and Intuit, which together accounted for 21.2 per cent of the worldwide revenues, which stood at $356 billion.
In 2023, the market grew 12 per cent year on year.
With just 0.2 per cent of the market share separating SAP and Salesforce, International Data Corporation (IDC) regards these two companies as statistically tied for the number one position in the worldwide enterprise applications market for 2023.
IDC declares a statistical tie in software competitive markets when there is a difference of 0.5 per cent or less between the market share of two or more companies.
“SaaS and cloud-enabled applications continue their growth across the enterprise applications market. With new innovation such as generative AI and its plethora of use cases, the opportunity to reshape businesses with intelligent technology using cloud applications brings greater competitive advantage,” Mickey North Rizza, group vice president for enterprise software at IDC, said. “Experience-orchestrated (X-O) businesses are leveraging more modern, innovative, and intelligent enterprise applications, improving their decision velocity with smarter business decisions and ultimately bringing greater differentiation for organisations globally.”
IDC forecasts worldwide revenues for the enterprise applications market will be more than $600 billion in 2028 as organisations further integrate traditional AI, machine learning, and GenAI into workflows, creating faster and more intelligent insights and decisions.
Organisations will also invest in new tools to keep their application portfolio up to date as they move further into the digital era.
Meanwhile, public cloud will become the foundational deployment model for enterprise applications software, accounting for more than 70 per cent of new enterprise applications spending in 2028. Demand for public cloud-based enterprise applications is forecast to produce a five-year compound annual growth rate (CAGR) of 16.5 per cent, surpassing the 11.1 per cent CAGR for the overall market.
The enterprise applications market is comprised of the following secondary markets: enterprise resource management (ERM), customer relationship management (CRM), engineering applications, supply chain management (SCM), and production applications. Each of these secondary markets consists of multiple functional markets.