Press Release

STAMFORD, Conn., May 12, 2015 View All Press Releases

Gartner Says Worldwide Supply Chain Management and Procurement Software Market Grew 10.8 Percent in 2014

Analysts Explore Key Issues in Supply Chain Industry at Gartner Supply Chain Executive Conference 2015 May 12-14 in Phoenix

With 10.8 percent annual growth, supply chain management (SCM) and procurement applications outpaced most software markets to total $9.9 billion in 2014, according to Gartner, Inc. The SCM and procurement software market experienced solid growth through sustained application demand, as supply chain remains a key source of competitive advantage in driving business growth objectives, such as improved customer satisfaction, greater business agility and operational improvements.

"Organizations modernizing supply chains drove opportunity for both large-suite and specialized providers to become more agile and drive innovation within their businesses during 2014," said Chad Eschinger, research vice president at Gartner. "SCM offerings delivered as cloud showed above-market growth of 17 percent, while new on-premises licenses also grew significantly at nine percent, as organizations sought to modernize their supply chain portfolio through a variety of delivery models."

SAP grew 19.9 percent to hold onto the top spot, and extended its lead within the SCM market, with 25.8 percent market share (see Table 1). It continues to innovate and introduce new and acquired SCM products to the market, and has been able to upsell solutions within its large and established ERP installed base. While Oracle retained its position as the second-largest provider of supply chain technologies and the largest within supply chain execution (SCE), its software revenue momentum has waned, and market share has declined to 14.6 percent, from 16 percent in 2013.

In generating revenue of $438 million in 2014, JDA Software sustained its market share ranking of third globally, with 4.4 percent of the global market, and remains the largest pure-play, supply chain-focused vendor despite a decline of 1.7 percent since 2013.

Table 1

Top Five Vendors by Total SCM and Procurement Software Revenue, Worldwide, 2014 (Millions of Dollars)


2014 Revenue

2014 Market Share (%)

2013 Revenue

2013 Market Share (%)

2013-2014 Growth (%)













JDA Software






Manhattan Associates
























Source: Gartner (May 2015)

Overall, the SCM market is fragmented, with the top 10 vendors maintaining about 55 percent of total market share. Collectively, the remaining 57 vendors experienced annual revenue growth of 9.6 percent, indicating not only opportunity in the market created by acquisitions, but also strong demand for specialized offerings that are competitive, and often complementary, to the larger-suite providers' offerings.

"For the most part, building off several years of vendor consolidation, 2014 represented a favorable environment for supply chain technologies," said Mr. Eschinger. "The 2012 strategic acquisition and business combination activity of SAP and JDA Software demonstrated growth and stability during 2014, as organizations became more comfortable with the vendors' direction and messaging. However, we can expect a new wave of acquisitions to continue to drive market disruption in 2015."

Additional information is available in the Gartner report "Market Share Analysis: Supply Chain Management and Procurement Software, Worldwide, 2014."

About Gartner Supply Chain Executive Conferences

Additional details on the future direction of the supply chain industry is being discussed at the Gartner Supply Chain Executive Conference 2015 taking place through May 14 in Phoenix, Arizona.

The Gartner Supply Chain Executive Conference 2015 will also be held September 23-24 in London. Media can register to attend by contacting

Additional information from the events will be shared on Twitter at and using #GartnerSCC.

About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company 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 approximately 10,000 distinct enterprises worldwide. 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, USA, and has 6,800 associates, including more than 1,500 research analysts and consultants, and clients in 90 countries. For more information, visit

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