The supply chain management (SCM) software market grew 13.9% in 2017 to reach $12.2bn in value, according to Gartner.
Gartner said growth was driven by cloud-based services and the biggest software players were changing tack in response.
The SCM software market remains dominated by SAP, with a 2017 market share of 26.6% and revenues of $3.3bn, followed by Oracle (13.7% and $1.7bn) and JDA (4.4% and $544m).
Balaji Abbabatulla, research director at Gartner, said the top five vendors remained unchanged from 2016 but the group of other vendors, representing 51.1% of the market, was growing “significantly faster” than the top five.
Abbabatulla said smaller “cloud-native” vendors had average revenue growth of 41.1% in 2017. “The top five vendors are defending their market share by pivoting toward cloud-first strategies and quickly introducing new products through development, acquisition or partnerships on their cloud platform,” he said.
“Cloud solutions typically have lower barriers to entry and are more easily scalable, and are therefore a better fit for midsize organisations looking at SCM for competitive advantage.
“We expect that vendors offering a well-defined, vertical industry oriented strategy for midsize organisations will grow rapidly over the next five years.”
SCM software vendors by market share:
1. SAP – 26.6%
2. Oracle – 13.7%
3. JDA – 4.4%
4. Infor – 2.3%
5. Manhattan Associates – 1.8%
☛ Want to stay up to date with the news? Sign up to our daily bulletin.