Enterprise Application Software Revenue To Decline 2.2% To $237 Billion In 2020

According to the research data analyzed and published by Stock Apps. A Gartner report states that the global enterprise application software industry is set to drop by 2.2% in 2020 to $237 billion.

However, based on a Statista report, the outlook could be worse, as it predicts a 4.2% drop to $195.1 billion. On the bright side, both reports project a rebound in 2021.

Global Enterprise Application Industry to Grow by 3.4% to $266 Billion by 2024

According to IDC, the market shot up by 7.5% in 2019 to $224.6 billion. For the five-year period between then and 2024, it is projected to grow at a 3.4% compound annual growth rate (CAGR) to $265.7 billion. 

On the other hand, SAP was the top player in the global industry in 2019. According to IDC, it had a 7.7% market share, ahead of Oracle, which had a 5.1% share. Salesforce was third with 5.0% while Intuit was fourth with 3%.

For the quarter which ended in September 2020, SAP reported a 4% decline in revenue to €6.54 billion. Cloud revenue grew by 11% YoY during the quarter to €1.98 billion, but software licenses dropped by a massive 23% to €0.71 billion. Overall, SAP’s cloud and software revenue fell by 2% to €5.54 billion. 

During its FY21 Q1 which ended in August 2020, Oracle returned to growth, posting a 2% revenue increase to $9.37 billion. Comparatively, it had suffered a 6.3% decline in the previous quarter. Its cloud and licenses segment, which accounts for most of the revenue, grew by 2% to $6.95 billion. 

In its FY21 Q2 which ended in July 2020, Salesforce posted a 29% upsurge in revenue to $5.15 billion. The company’s sales cloud revenue grew by 13% to $1.28 billion while the service cloud segment soared by 20% to $1.30 billion. 

Intuit also had an impressive quarter during its FY20 Q4 which ended in July 2020. Its revenue shot up by a whopping 83% to $1.8 billion.

The full story, statistics and information can be found here: https://stockapps.com/enterprise-application-software-revenue-to-decline-2-2-to-237-billion-in-2020/