Gartner Says Worldwide Supply Chain Management Software Market Grew 10 Percent to Reach $6.8 Billion In 2010

Key Issues Facing the SCM Market to be Discussed at Gartner Supply Chain Executive Conference, June 1-3, in Scottsdale, and, September 14-15, in London

STAMFORD, Conn., May 11, 2011— The worldwide supply chain management (SCM) software market returned to double-digit growth in 2010, as SCM software revenue totaled $6.8 billion in 2010, a 10 percent increase from 2009 revenue, according to Gartner, Inc. In 2009, the market declined 2.1 percent with revenue at $6.1 billion.

"Despite a difficult selling environment, the current market for SCM shows signs of renewed health. The market for supply chain applications was more resilient than most in 2009 and rebounded well in 2010," said Chad Eschinger, research director at Gartner. "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."

SAP continued to lead the SCM software market, as it accounted for 19.5 percent of the worldwide market (see Table 1). Oracle was the No. 2 vendor with 17.9 percent market share. JDA Software experienced the strongest growth among the top five vendors, with 40.2 percent growth in 2010.

Table 1
Top Five SCM Software Vendors by Total Software Revenue, Worldwide (Millions of Dollars)

	2010 Revenue	2010 Market Share (%)	2009 Revenue	2009 Market Share (%)	2009-2010 Growth (%)
SAP	1,317	19.5	1,213	19.7	8.6
Oracle	1,210	17.9	1,038	16.9	16.6
JDA Software	362	5.4	258	4.2	40.2
Ariba	250	3.7	229	3.7	9.5
Manhattan Associates	136	2.0	112	1.8	22.0
Others	3,488	51.5	3,298	53.7	5.8
Total	6,763	100.0	6,146	100.0	10.0

Source: Gartner (May 2011)

"Vendor movement has been characterized by partnering, some new sales emphasis beyond North America, and improved packaging and delivery options, as well as by new product releases," said Mr. Eschinger. "Through 2010, SCM product development was generally focused more on solution integration, business process platforms and mobility. 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."

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, Asia/Pacific and Latin America experienced robust growth in 2010 that significantly outpaced the market average.

Additional information is available in the Gartner report "Market Share Analysis: Supply Chain Management Software, Worldwide, 2010." The report is available on Gartner's website at http://www.gartner.com/resId=1651415.

About Gartner Supply Chain Executive Conference
Analysts will be further discussing the future direction of the supply chain industry at the Gartner Supply Chain Executive Conference This event brings together supply chain executives to look ahead to a smarter, more-connected and more-sustainable physical and information infrastructure as they plan for 2011 and beyond. Gartner analysts and industry leaders from across sectors will look ahead at what this new infrastructure means to business growth.

The Gartner Supply Chain Executive Conference 2011 will take place June 1-3 at The Phoenician in Scottsdale. For more information about the conference, please visit http://www.gartner.com/technology/summits/na/supply-chain/. Members of the media can register for this event by contacting Christy Pettey at christy.pettey@gartner.com.

The Gartner Supply Chain Executive Conference 2011 will also be held September 14-15 at the Lancaster London in London. For additional information about this conference, please visit http://www.gartner.com/technology/summits/emea/supply-chain/. Members of the media can register for this event by contacting Holly Stevens at holly.stevens@gartner.com.

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

 

Contacts:


Christy Pettey
Gartner
+1 408 468 8312
christy.pettey@gartner.com


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, www.gartner.com.