European Financial Applications Market Shares, 2022: Shifting to Cloud

European Financial Applications Market Shares, 2022: Shifting to Cloud

European financial applications vendors had a prosperous 2022, building upon their post-COVID-19 success in 2021. The market increased from $9.2 billion to $10.1 billion in constant 2H22 dollars, boasting a 10.2% year-over-year (YoY) growth. Finance applications continue to be a significant component of the enterprise applications market, with numerous local vendors and international software powerhouses vying for greater share within an expanding European market.   The following are the main conclusions of this IDC Market Share on the European financial applications market:    SAP was able to retain its market supremacy with 3.8% YoY growth and 13.5% market share in 2022. The Germany-based provider recorded 14.9% YoY public cloud revenue growth in 2022. Visma experienced 13.1% growth, taking its market share to 7.7%. As it expands geographically to become a top European SMB vendor, Visma landed in second place with steady growth. DATEV recorded 5.8% YoY growth and a 6.4% share of the market, placing third. Sage posted a 0.3% YoY decline and 5.8% market share, while Wolters Kluwer rounded out the top 5, recording 6.7% growth in 2022 with 2.8% market share.   Financial applications growth champions in 2022 included Visma, Microsoft, Oracle, Xero, AFAS, Bottomline Technologies, Exact, SS&C Technologies, and TeamSystem, which all posted double-digit growth rates. Western European countries outperformed both Southern and Eastern European markets. Germany is the largest market in Europe, reaching $2.3 billion and recording 10.6% growth with a 22.2% market share. The U.K. closely followed as the second-largest market, with 13.3% growth and 20% market share. Coming in at third place was France, with 8.0% growth, while the Netherlands placed fourth with 12.0% growth. Russia was the only market to regress, recording an 18% decline as a result of sanctions due to Russia-Ukraine War.   The entire European financial applications public cloud market grew 25%, totaling an absolute growth of $983.3 million in 2022. This means that virtually all market growth was driven by cloud-native or cloud-first software providers.   The entire European public cloud market grew 25%. The public cloud segment holds 48.6% of the overall market as of 2022, reaching a total value of $4.9 billion. Public cloud remains on the rise obtaining almost 50% of the total market revenue in 2022 capturing an additional 6% share of the market from 2021 to 2022. Visma, Xero and Microsoft appeared to be on the same impressive trajectory as the public cloud segment in 2022 with 23.1%, 27.8% and 27% year-on-year growth in cloud revenues. SAP and Exact respectively recorded 14.9% and 12.4% public cloud revenue growth.    This IDC Market Share provides sizing and share per vendor of the financial applications market in Western Europe and Central and Eastern Europe (CEE) for 2020 to 2022. This is the first report in which IDC examines the two markets combined across Europe. The study segments the combined market by function, deployment model (public cloud services and on-premises), and major country/region. It includes the respective top 5 tables, showing growth and relevant market share."The European financial applications market is thriving in 2022, growing more than 10% from the year prior. The evolution of technologies such as automation and AI, appetite for cloud solutions, and the complexities of meeting compliance requirements have been significant driving forces for this growth. The role of a CFO is becoming vastly more dynamic; CFOs are moving away from solely assessing numbers to connecting and supporting other areas of the business using financial data. The finance function will need to leverage new technologies to become more data driven and analytically savvy to cope with a more strategic role in most organizations as well as tackle new responsibilities such as sustainability reporting, new compliance requirements, and better decision support to line-of-business managers," said Charles Aladesuru, research analyst, IDC European Enterprise Applications .

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