Supply chain management software market worth $9.9 billion

Will Green is news editor of Supply Management
25 May 2015

The market for supply chain management (SCM) and procurement software grew by 10.8 per cent to $9.9 billion in 2014, according to Gartner.

Gartner said SCM applications “outpaced most software markets” because “supply chain remains a key source of competitive advantage in driving business growth objectives”.

According to the research SAP increased its share of the SCM software market to 25.8 per cent with revenues in 2014 of $2.56 billion, followed by Oracle, with 14.6 per cent and revenues of $1.45 billion; and JDA Software, with 4.4 per cent market share and $437.6 million revenues.

Chad Eschinger, research vice president at Gartner, said: “For the most part, building off several years of vendor consolidation, 2014 represented a favourable environment for supply chain technologies.

"The 2012 strategic acquisition and business combination activity of SAP and JDA Software demonstrated growth and stability during 2014, as organisations 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."

Top five global SCM software vendors by 2014 revenue and market share:

1. SAP – $2.56 billion (25.8 per cent)
2. Oracle – $1.45 billion (14.6 per cent)
3. JDA Software – $437.6 million (4.4 per cent)
4. Manhattan Associates – $187.6 million (1.9 per cent)
5. Epicor – $163.5 million (1.6 per cent)

Others – $5.12 billion (51.7 per cent)

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