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SAP, Oracle Lead Supply Chain Management Software Market

By Vangie Beal     Feedback

Gartner says strong growth returned to the worldwide supply chain management (SCM) software market last year, with SAP and Oracle once again in the lead.

The worldwide supply chain management software market rebounded strongly last year, according to research and advisory company Gartner Inc.

For 2010, the worldwide supply chain management (SCM) software market returned to double-digit growth, as the year saw SCM software revenue total $6.8 billion, a 10 percent increase over 2009 revenue, according to the new Gartner report "Market Share Analysis: Supply Chain Management Software, Worldwide, 2010."

In the supply chain management software market, SAP (NYSE: SAP) maintained its lead, accounted for 19.5 percent of the worldwide market share. Oracle (NASDAQ: ORCL) was the number two vendor with 17.9 percent market share. Number three vendor JDA Software (NASDAQ: JDAS), with 5.4 percent market share, posted the strongest growth rate (40.2 percent) among the top five vendors.

Rounding out the top five supply chain management software vendors were Ariba (NASDAQ: ARBA) with 3.7 percent market share, and Manhattan Associates (NASDAQ: MANH) with 2.0 percent market share and 22 percent growth from 2009.

"Despite a difficult selling environment, the current market for SCM shows signs of renewed health," said Chad Eschinger, research director at Gartner. "The market for supply chain applications was more resilient than most in 2009 and rebounded well in 2010. Pure-play vendors and specialized (point solutions) vendors drove a majority of the overall market's growth in 2010, outpacing enterprise resource planning (ERP) suite providers' growth three to one, and, in general terms, we are seeing consistent momentum across all market segments."

Worldwide, Gartner said North America and Western Europe continue to be the prime consumers of SCM software in terms of dollars spent, with nearly 79 percent of market revenue. However, Asia/Pacific and Latin America experienced robust growth in 2010 that significantly outpaced the market average.

Eschinger said vendor movement has been characterized by partnering, new sales emphasis beyond North America, and improved packaging and delivery options, as well as by new product releases.

"Through 2010, SCM product development was generally focused more on solution integration, business process platforms and mobility," said Eschinger. "Vendors continued to show signs of resiliency and innovation, as some vendors transformed themselves to support changing user requirements and expanded their 'reach' into additional SCM markets."

This article was originally published on May 16, 2011
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