Date: 17/05/2012

Worldwide supply chain management software market touched $7.7 Billion in 2011, says Gartner

Gartner, Inc says that the worldwide supply chain management (SCM) software market totaled $7.7 billion in 2011, a 12.3 percent increase from 2010. It was the second year of double-digit growth for the SCM software market as supply chain investments kept their priority status and moved forward, despite caution from IT budget decision makers.

"Despite ongoing economic uncertainty, the market for supply chain applications showed itself to be pretty resilient in 2011 with most SCM providers continuing to expand their footprints," said Chad Eschinger, research vice president at Gartner. "North America and Western Europe continued to be the prime consumers of SCM software in terms of dollars spent, with nearly 79 percent of market revenue. However, European growth slowed in 2011 while Asia/Pacific continued to experience robust growth that significantly outpaced the market average."

SAP continued to lead the SCM software market, accounting for 19.9 percent of the worldwide market (see Table 1). Oracle was the No. 2 vendor with 16.9 percent market share. Ariba experienced the strongest growth among the top five vendors with SCM software revenue increasing 46.5 percent in 2011.

Table 1
Top five SCM software vendors by total software revenue, worldwide (millions of Dollars):

Company 2011 Revenue 2011 Market Share (%) 2010 Revenue 2010 Market Share (%) 2010-2011 Growth (%)
SAP 1,542 19.9 1,310 19 17.8
Oracle 1,306 16.9 1,210 17.6 7.9
JDA Software 390 5 362 5.2 7.7
Ariba 367 4.7 250 3.6 46.5
Manhattan Associates 142 1.8 136 2 3.7
Others 3,995 51.7 3,625 52.6
Total 7,742 100 6,893 100 12.3
Source: Gartner (May 2012)

"The SCM software market is fragmented, with a plethora of small and midsize vendors (with revenue of less than $50 million) across regions and its four primary market segments," said Mr. Eschinger. "Nevertheless, the top five vendors - SAP, Oracle, JDA Software, Ariba and Manhattan Associates - collectively held 48.3 percent of the worldwide SCM software market based on 2011 total software revenue."

Mr. Eschinger said that SCM offerings delivered as software as a service (SaaS) subscriptions continued to bolster above-market growth in 2011 at 21 percent for both long-standing incumbents and many best-of-breed point product vendors, with focused capabilities for specific niche markets, while perpetual licenses also grew significantly at 15 percent.

Key issues facing the SCM market to be discussed at Gartner supply chain executive conference 2012, May 21-23, in Palm Desert; July 23-24, in Sydney; and September 17-18, in London

For more information: http://www.gartner.com/technology/summits/apac/supply-chain/