Gartner Says Worldwide CRM New License Software Revenue Declined 25 Percent in 2002
STAMFORD, Conn., June 12, 2003 — The customer relationship management (CRM) software industry suffered through a second year of declining new license revenue in 2002, according to Gartner, Inc. (NYSE: IT and ITB). Worldwide CRM new license revenue totaled $2.8 billion in 2002, a 24.7 percent decline from 2001 revenue of $3.7 billion. In 2001, the market declined 6.4 percent.
"The slow economy, combined with buyer behavioral changes and priorities, have had a huge impact on sales of new license revenue for the CRM software vendors," said Tom Topolinski, vice president for Gartner's worldwide software applications research group. "Smaller deals, tactical projects, longer sales cycles and heavy competition have caused CRM vendors to struggle."
Siebel continued to be the No. 1 vendor based on worldwide new license CRM software revenue with a 24.9 percent market share, but its market share slipped more than 3 percentage points in 2002 (see Table 1). SAP and PeopleSoft were the only top-tier vendors to experience a gain in market share in 2002.
Table 1
Top 5 Worldwide CRM Software New License Revenue Market Share Estimates for 2002
Company
2002 Market Share (%)
2001 Market Share (%)
Siebel
24.9
28.5
SAP
15.9
10.9
PeopleSoft
4.3
3.9
Oracle
4.3
5.5
Amdocs (Clarify)
3.2
3.8
Source: Gartner Dataquest (June 2003)
All regions of the world experienced a decline in new license CRM software revenue in 2002. North America, the largest region for new license CRM software revenue, experienced a decline of 27.6 percent, while Western Europe dropped 22.4 percent. Asia/Pacific suffered a 15.2 percent decline.
Gartner also states a new perspective based on "intent to implement within 12 months," which is outlined in the Gartner Alert Siebel Still Holds Lead in Shrinking CRM Software Market. The Alert provides statistics on the top-tier vendors within the CRM software market. The document is available on Gartner's Web site. More detailed statistics will be available in an upcoming Market Statistics report due out later this month.
More analysis on the industry is available in Gartner's CRM Managers Membership Program. Gartner recently launched a robust new research tool for CRM managers designed to help address the issues and trends managers face that are critical to the success of their CRM initiatives. The Gartner CRM Managers Membership Program combines the full power of Gartner research, consulting and software tools into one package. Included in the membership program are market analysis, decision support tools, newsletters, bulletins and access to analysts via a Web portal designed specifically for CRM managers. For more information, visit www.gartner.com/crmmanagers or call Gartner at 203-316-1233.
To subscribe to Gartner programs, please call 408-468-8000. Reports can be purchased on the Web at www.gartner.com.
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