Gartner: Supply Chain Management Software Market Grew 12.3 Percent to Reach US$7.7 Billion In 2011

Announcement posted by Gartner 17 May 2012

Top Issues Facing the Supply Chain to be Discussed at Gartner Supply Chain Executive Conference 2012 in Sydney, July 23-24

Worldwide supply chain management (SCM) software market revenue totaled US$7.7 billion in 2011, a 12.3 percent increase from 2010, according to research and advisory firm Gartner, Inc. 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	19.0	17.8
Oracle	1,306	16.9	1,210	17.6	7.9
JDA Software	390	5.0	362	5.2	7.7
Ariba	367	4.7	250	3.6	46.5
Manhattan Associates	142	1.8	136	2.0	3.7
Others	3,995	51.7	3,625	52.6
Total	7,742	100.0	6,893	100.0	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.

Additional information is available in the Gartner report "Market Share Analysis: Supply Chain Management Software, Worldwide, 2011." The report is available on Gartner's website at http://www.gartner.com/resId=2005516.

About Gartner Supply Chain Executive Conference 2012

The Gartner Supply Chain Executive Conference series provides a unique opportunity to collaborate and connect with the world's leading supply chain executives. The conference combines strategic and tactical advice from Gartner analysts and thought leaders who collectively have over 150 years of supply chain and end-user experience.

For further information about the Gartner Supply Chain Executive Conference 2012 taking place May 21-23 in California, please visit www.gartner.com/us/supplychain. Members of the media can register by contacting Christy Pettey at christy.pettey@gartner.com.

The Gartner Supply Chain Executive Conference 2012 in Sydney will be held July 23-24. More information is available at http://www.gartner.com/technology/summits/apac/supply-chain/. Members of the media can register by contacting Susan Moore at susan.moore@gartner.com.

For additional details about the Gartner Supply Chain Executive Conference 2012 taking place September 17-18 in London, please visit http://www.gartner.com/technology/summits/emea/supply-chain/. Members of the media can register by contacting laurence.goasduff@gartner.com.

Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #Gartnerscc.

About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in 12,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 5,000 associates, including 1,280 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

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