Procurement software market worth $8.9 billion in 2013

Will Green is news editor of Supply Management
13 May 2014

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13 May 2014 | Will Green

The market in supply chain management and procurement software grew by 7.3 per cent to $8.9 billion (£5.27 billion) in 2013, according to Gartner.

SAP retained its number one position with a 23.9 per cent market share, growing its revenue by 24 per cent from $1.7 billion (£1.02 billion) in 2012 to $2.14 billion (£1.27 billion) in 2013. The firm has been the market leader for more than a decade, said Gartner.

In second place was Oracle with a market share of 16.3 per cent, down on 17.4 per cent in 2012, and revenue of $1.46 billion (£861.5 million), up just 0.1 per cent on 2012.

JDA Software remained in third place in 2013, which Gartner said was a “year of transition as it worked through product rationalisation and integration of several years of acquisitions and the 2013 merger with RedPraire”.

Gartner said the market grew because supply chain investments “kept their priority”, even as IT budget managers “remained cautious”.

Chad Eschinger, research VP at Gartner, said: “Both influences have impacted strategic planning processes and have resulted in stronger price-based competition and smaller contracts. Cloud and subscription-based pricing is shifting revenue streams and influencing growth.”

The top five procurement and supply chain software vendors, by revenue in millions of dollars, in 2013 were:                                 

1.     SAP – 2,138

2.     Oracle – 1,455

3.     JDA Software – 455.3

4.     Manhattan Associates – 167.5

5.     Epicor – 159.4

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