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% increase from 2009 revenue, according to Gartner. In 2009, the market declined 2,1% 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," says Chad Eschinger, research director at Gartner. "Pure-play vendors and specialised (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% of the worldwide market. Oracle was the number two vendor with 17,9% market share. JDA Software experienced the strongest growth among the top five vendors, with 40,2% growth in 2010.
"Vendor movement has been characterised by partnering, some new sales emphasis beyond North America, and improved packaging and delivery options, as well as by new product releases," says 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 per cent of market revenue. However, Asia/Pacific and Latin America experienced robust growth in 2010 that significantly outpaced the market average.