Gartner: Worldwide supply chain management software market grew 7.1% to reach $8.3 billion in 2012

21st May 2013 | By Mouseworld Now Correspondent |

New Delhi, India, May 21, 2013: Despite economic challenges, the worldwide supply chain management (SCM) software market grew 7.1 percent to $8.3 billion in 2012. During 2012, IT budget decision makers remained highly cautious overall, but supply chain investments kept their priority status and moved forward.

Chad Eschinger, research vice president at Gartner, said, ”While IT budget scrutiny and global economic conditions are moving cost reduction back to a main business driver, supply chain remains a key source of competitive advantage in driving business growth objectives. North America and Western Europe continue to be the prime consumers of SCM software, with nearly 77 percent of market revenue. However, Western European growth slowed and Asia/Pacific continued to experience robust growth, reflecting a shift toward investment in technology in emerging-market manufacturing centers.”

SAP retained its No. 1 market share position in SCM in 2012, with an 11.6 percent increase in U.S. dollars. SAP held 20.8 percent of the market and reached $1.7 billion in software revenue. SAP has been the market share leader within the aggregated supply chain market for more than a decade. Second-place Oracle had another good year in its supply chain business, growing 12.1 percent and reaching $1.5 billion in revenue during 2012. JDA Software retained the third spot in 2012, exhibiting strong new sales and increased average sales price through most of the year.

In a highly fragmented market, the top five SCM software vendors maintained their status quo over smaller competitors in 2012, accounting for nearly 50 percent of revenue. This consistency in share occurred, despite the market consolidations that happened in 2012 — the most significant of which was SAP acquiring Ariba in October. The other major acquisition took place in December 2012 between RedPrairie and JDA Software, creating the largest supply-chain-focused vendor and further consolidating the top of the market.

 

© Mouseworld Now News Service

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