SCM (world market)

2017: Growth of the market by 13.9% to $12.2 billion. Table of leaders

The volume of global market of the software for supply chain management (Supply Chain Management, SCM) in 2017 reached $12.2 billion, having exceeded an indicator of year prescription for 13.9%. Such data are provided in the analytical report Gartner.

The director of research in Gartner Balaji Abbabatulla says that the trend of increase in growth rates of the market of SCM remaining within several years proceeded in 2017. It occurs because technologies for logistics management became a key component for strategy implementation of digital business.

The largest producers of SCM solutions given to Gartner

SCM technologies create digital value, optimizing flows of the movement of products, services and the relevant information from a source to the client and back — the expert noted.

All five largest software makers for supply chain management in 2017 increased sales, but only the companies JDA Software and Infor recorded growth of shares quicker than the market. At the same time the category of other vendors which are not entering into top five grows much quicker top-5 the companies, but alignment of forces in the five of the best remained invariable in 2017, Baladzhi Abbabatulla emphasized.

According to him, small suppliers of cloud services in 2017 increased sales of SCM solutions on average by 41.4%. The five of the leading players strengthens the positions just the account of strategy in which cloud computing comes to the forefront. They manage to implement quickly new products due to development, cooperation and acquisition of the companies within the platforms, Abbabatulla told.

Cloud products became the driver of growth of all market partly because the companies with an amount of business above an average use SCM solutions for digitalization of the transactions.^[1]

2014: SAP caught a quarter of the market of software of logistics management

On May 12, 2015 the Gartner analytical company provided results of a research of the world market of the software for logistics management. Experts recorded growth in sales of this software and strengthening of leadership of SAP.

According to Gartner assessment for 2014, the amount of global market of software in the field of supply chain management (Supply Chain Management, SCM) and automation of process of purchases (Procurement Software, PS) was $9.9 billion, having increased by 10.8% relatively 2013. It is noted that this segment of the software industry is one of the most fast-growing.

Sales of cloud SCM products increased by 17% in 2014, implementation of new licenses for installation of this software rose by 9%. In both cases the significant growth signaling that the companies aimed to upgrade management of the supply chains by means of different models took place, the vice president for the researches Gartner Chad Eschinger noted.

Analysts say that demand for the solutions SCM and PS steadily grows as the supply channel remains a key source of strengthening of competitiveness of the companies on the way to accomplishment of such tasks as improvement of operational results and increase in level of customer satisfaction and business flexibility.

The software market for logistics management remains fragmented. There are about 67 producers: ten largest companies controlled 55% of sales in 2014, and the remained 57 vendors could increase consolidated revenues by only 9.6%. Such situation creates high potential for transactions on merges and absorption and also provides high demand on specialized solutions which are quite competitive and often supplement products of large suppliers, the study says.

Top-5 players in the world market of software for logistics management, one million dollars.

Data of Gartner, 2014.

Alignment of forces in the market of software for supply chain management and automation of process of purchases it is possible to see higher in the table. From it it is visible that SAP increased a separation from the closest persecutors, having earned from these solutions about $2.6 billion in 2014 that is 20% more, than the previous year.^[2]

2013: Supply chains of new generation – effective, fast and corresponding to individual customer needs

In a global activities overview in the field of supply chain management for 2013, carried out by specialists of consulting company "Pricewaterhouse Coopers" it is noted that the companies which consider supply chains as a strategic asset work for 70% more effectively than competitors; that interest in supply chains of new generation thanks to which it is possible to provide deliveries the effective, fast and corresponding to individual customer needs^[3] grows].

"Aberdeen Group", during the research "On Demand Applications In Supply Chain", polled 455 companies. According to the received results, "the best in the class" the companies twice more active use SCM systems "on demand" for the solution of key problems of supply chain management, at the same time showing three times the best results in the field of logistics management and relationship of B2B. In most cases SCM-applications are "on demand" used for replacement or expansion of opportunities of the normal systems for separate business processes or areas, as a rule – in the field of management of external processes.

2012: Megavendors buy up developers

The world market of management systems for supply chains (SCM) grew by 7.1% to $8.3 billion in 2012, according to Gartner Gartner Says Worldwide Supply Chain Management Software Market Grew 7.1 Percent to Reach^[4] of May, 2013. Despite economic difficulties and reduction of IT of budgets of investment into control automation remained supply chains for most the companies in a priority.

The most part of the world market of SCM systems is the share of North America and Western Europe – 77%. However in Western Europe growth of implementations of SCM slowed down, and in the Pacific Rim, on the contrary, purchased fast speed.

Among vendors the leading place in the world market of SCM belongs to SAP (20.8% of the market in terms of money in 2012 that is equivalent to $1.7 billion), and SAP wins first place in this market throughout the last more than ten years. The second place belongs to Oracle company with revenue of $1.5 billion in 2012, the third – JDA Software companies, close top five of Ariba and Manhattan Associates, and data on Ariba are provided only in 9 months 2012 – before its purchase to SAP.

Top-5 players in the world market of SCM systems in 2012, $ one million

* Data on Ariba are provided only in 9 months 2012 – before its purchase to SAP.
Gartner, 2013

In spite of the fact that about 50% of the market are the share of the first five of vendors, in general its structure remains quite fragmentary, experts of Gartner note. At the same time the market is consolidated: the large deal on purchase of SAP of Ariba developer took place in 2012, also as well as the transaction between RedPrairie and JDA Software.

Important technology trend in the world market of SCM is growth of the SaaS segment of applications: it increased by 13% in 2012 whereas the segment of the proprietary systems separately grew only by 3.5%.

2010

The world market of management systems for supply chains (supply chain management, SCM) in 2010 grew by 10% and made 6.8 billion dollars. As analysts of Gartner emphasize, the market got healthier, and on it the activity grows though to sell corporate solutions still hardly. It is curious that substantially growth of the market was influenced by efforts of niche players. Their growth in this segment exceeds growth of suppliers of ERP systems three times. Nevertheless, market leaders are still such ERP giant as SAP and Oracle. In general during 2010 efforts of vendors were aimed at providing integration opportunities of the systems and creation of mobile solutions. According to analytical reports of Gartner, solutions for performance management of supply chains are found on rise at present, in 5-10 years will use them everywhere.

At the same time in 2009 the segment of SCM systems was steadier, than others, and in 2010 he felt much more surely. At the same time suppliers of blank SCM solutions and the specialized systems last year bypassed ERP of vendors: the ratio made three to one.

At this SAP continues to be in the lead in the market of SCM, occupying a share in 19.5% of the world market. Vendor No. 2 is Oracle from 17.9% of the market. Further on the decreasing JDA Software (5.4%), Ariba (3.7%), Manhattan Associates (2%). More than a half (51.5%) is the share of smaller players.

At this JDA Software showed the highest growth rates of business in 2010 – for 40.2%. Vendors in 2010 were concentrated on strengthening of partner communications, expansion of presence in the market to North America, development of new packets and options of delivery and also exits of the next releases. Focus of SCM solutions was made on integration of solutions, business process platforms and mobility.

At the same time the companies of North America and Western Europe continue to be primary clients of SCM systems in dollar expression: 79% of the world market are the share of them. However the Pacific Rim and Latin America showed the significant growth in 2010 exceeding average market.

See Also

SCM

Notes