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SCM software market grew 10 p.c. in 2010

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CIOL Bureau
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MUMBAI, INDIA: 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 per cent increase from 2009 revenue, according to IT research firm Gartner.

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In 2009, the market declined 2.1 per cent with revenue at $6.1 billion, said a press release.

“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.

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He added that pure-play vendors and specialized vendors drove a majority of the overall market's growth in 2010, outpacing enterprise resource planning (ERP) suite providers' growth three to one.

SAP continued to lead the SCM software market, as it accounted for 19.5 per cent of the worldwide market.

Oracle was the No. 2 vendor with 17.9 per cent market share. JDA Software experienced the strongest growth among the top five vendors, with 40.2 per cent growth in 2010.

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“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 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, added Eschinger

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.