SAP ERP - Revenue Breakdown

Part
01
of one
Part
01

SAP's ERP - Revenue Breakdown

The estimated global market revenue of SAP's ERP is $3.515 billion. The revenue breakdown by region includes $1.917 billion in North America, $277.322 million in South America, $‭851.648 million in Europe, $348.321 million in Asia-Pacific, and $119.504 million in Australia. Furthermore, the revenue breakdown by segment/industry includes $861.138 million from computer, $695.940 million from software information technology and services, $397.178 million from staffing and recruiting, $231.980 million from retail and $274.158 million from food production.

SAP's ERP GLOBAL REVENUE

  • The size of the global ERP software market was $32.44 billion in 2017.
  • In 2017, the global ERP software market was projected to grow at the rate of 7.45%.
  • SAP's ERP has a market share of 9.44%.

SAP'S ERP BY REGION

  • For SAP's ERP, its total number of customers by country is 106,526. The breakdown of this number is as follows:

SAP's ERP by industry/segment revenue

  • Computer — 24.5%
  • Software Information technology and services — 19.8%
  • Staffing and recruiting — 11.3%
  • Retail — 6.6%
  • Food production — 7.8%
  • Construction — 6.4%
  • Automotive — 6.1%
  • Machinery — 5.9%
  • Chemicals — 5.8%
  • Computer hardware — 5.8%

Research Strategy:

We looked for financial reports like the latest Sap's quarterly statement, however, they only reveal the revenue of non-IFRS and IFRS cloud. Hence, we looked and found trusted market research reports that provided the latest global forecast of the ERP software market size and the market share of SAP's ERP globally. With these, we could calculate SAP's revenue from ERP globally.

Next, we found a database that provided an estimate of its customers based on countries and its revenue share by segment/industry. This allowed us to triangulate the breakdown of SAP's ERP revenue per region and the revenue by segment/industry.

Calculations:

Global ERP software market size = $32.44 billion in 2017
Global ERP software market (CAGR) = 7.45% in 2017
Global ERP Market size 2019 = 2(32,440,00,000 x 7.45%) + 32,440,00,000 = $37,233,560,000
-------------------------------
Market share of SAP ERP in percentage of total global market size = 9.44%
Therefore, the market size of SAP's ERP = 37,233,560,000 x 9.44% = $3,514,848,064 or $3.514 billion
------------------------------
Revenue by Region:

The revenue breakdown by region was obtained with this formula:
  • Regional percentage of market share dollars = Market size of SAP's ERP x Percentage per region
But first, we found the percentage per region as follows:

Total number of customers = 106,526

Number of customers in Canada = 4,941
Number of customers in United states = 53,169
North American percentage of revenue = [(4,941 + 53,169) / 106,526 x 100] = 54.55%
North American revenue in Dollars = 3,514,848,064 x 54.55% = $1,917,349,618 or $1.917 billion

Number of customers in Brazil = 8,412
South America percentage of revenue = [(8,412 / 106,526) x 100] = 7.89%
South American revenue in Dollars = 3,514,848,064 x 7.89% = $277,321,512 or $277.322 million

Number of customers in Germany = 5,717
Number of customers in Italy = 3,116
Number of customers in France = 4,052
Number of customers in Spain = 3,256
Number of customers in United Kingdom = 9,676
European percentage of revenue = [(5717 + 3,116 + 4,052 + 3,256 + 9,676) / 106,526] x 100 = 24.23%
European revenue in Dollars = 3,514,848,064 x 24.23% = $‭851,647,685 or $851.648 million

Number of customers in India = 10,555
Percentage of revenue for Asia-Pacific = [(10,555 / 106,526) x 100] = 9.91%
Revenue in Dollars for Asia-Pacific = 3,514,848,064 x 9.91% = $348,321,443 or $348.321 million

Number of customers in Australia = 3,631
Australian percentage of revenue = [(3,631 / 106,526) x 100] = 3.40%
Australian revenue in Dollars = 3,514,848,064 x3.40% = $119,504,834 or $119.505 million
----------------------------
Revenue per segment/industry:

Using the formula below, we estimated the breakdown of SAP's ERP by segment/industry.

SAP's ERP market size x Share of the segment = Revenue of segment
  • Computer = 3,514,848,064 x 24.5% =$861,137,775 or $861.138 million
  • Software information technology and services = 3,514,848,064 x 19.8% =$695,939,916 or $695.940 million
  • Staffing and recruiting = 3,514,848,064 x 11.3% = $397,177,831 or $397.178 million
  • Retail = 3,514,848,064 x 6.6% = $231,979,972 or $231.980 million
  • Food production = 3,514,848,064 x 7.8% = $274,158,148 or $274.158 million
  • Construction = 3,514,848,064 x 6.4% = $224,950,276 or $224.950 million
  • Automotive = 3,514,848,064 x 6.1% = $214,405,731 or $214.406 million
  • Machinery = 3,514,848,064 x 5.9% = $207,376,035 or $207.376 million
  • Chemicals = 3,514,848,064 x 5.8% = $203,861,187 or $203.861 million
  • Computer hardware = 3,514,848,064 x 5.8% = $203,861,187 or $203.861 million



Sources
Sources