The global supply chain management (SCM) software market increased by 12.3 percent to reach $7.7 billion in 2011, according to new numbers from technology research firm Gartner.
According to the firm, this marks the second year of double-digit growth for the SCM software market and was driven by an increasing number of supply chain investments. Gartner noted that these investments often came over objections or caution from IT budget decision makers.
The market for supply chain applications was resilient in 2011 with most SCM providers expanding their footprints despite the economic uncertainty, said Gartner research vice president Chad Eschinger. “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.”
Eschinger said other markets should also be watched for their shifts. “European growth slowed in 2011 while Asia/Pacific continued to experience robust growth that significantly outpaced the market average,” he said.
SAP remained the leader of the SCM pack with 19.9 percent of the worldwide market, followed by Oracle with 16.9 percent. Ariba experienced the strongest growth among the top five vendors as its related revenue increased 46.5 percent in 2011.
Gartner also pointed out the SCM market remains fragmented, with many smaller vendors of revenues of less than $50 million.
The top five vendors — SAP, Oracle, JDA Software, Ariba and Manhattan Associates — jointly held 48.3 percent of the worldwide SCM software market based on total software revenue for 2011. - Geoff Whiting