May 11, 2011 – Despite losses in 2009, the 2010 supply chain management software market gained ground, according to new research from Gartner. Gartner’s report, "Market Share Analysis: Supply Chain Management Software, Worldwide, 2010,” shows that the worldwide SCM software market increased 10 percent from 2009. Revenue totaled $6.8 billion in 2010, up from 2009’s $6.1 billion.
Pure-play vendors and specialized vendors drove a majority of SCM software’s growth in 2010, according to the research. Gartner says this market outpaced enterprise resource planning suite providers' growth three to one. The research also found SCM product development focused on solution integration, business process platforms and mobility in 2010. Gartner sees vendor movement as characterized by partnering, new product releases, and improved packaging and delivery options.
“We’re seeing a shift that began last year where organizations are focused less on cost cutting and more on driving growth and improving customer intimacy. Perhaps a shift from ‘running the business’ to growing the business," says Chad Eschinger, research director at Gartner and report author.
As in 2009, North America and Western Europe were the prime consumers of SCM software in terms of dollars spent, with nearly 79 percent of market revenue for 2010. SAP continued to lead the SCM software market, and it accounted for 19.5 percent of the worldwide market. Oracle had 17.9 percent market share. With 5.4 percent market share, JDA Software experienced the most growth, with a 40.2 percent revenue increase from 2009 to 2010.
Eschinger says that as organizations ready their supply chains for economic recovery, IT organizations will feel pressure to use the substantial investments made in SCM technologies to help the business exploit capabilities.
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