SAP leads supply chain management software market in 2012, ahead of Oracle

Infotech Lead India: SAP is leading the supply chain management (SCM) software market in 2012, ahead of Oracle.

SAP had market share of 20.8 percent in the SCM market in 2012, up from 19.9 percent in 2011.

Oracle, the #2 software vendor in the supply chain management (SCM) software market, has increased its share to 17.5 percent in 2012 from 16.7 percent in 2011.

The other major SCM software vendors include JDA Software, Ariba and Manhattan Associates.

Gartner says the supply chain management software market rose 7.1 percent to $8.3 billion in 2012

In 2012, IT budget decision makers remained cautious overall, but supply chain investments kept their priority status and moved forward.

North America and Western Europe continue to be the prime consumers of SCM software, with nearly 77 percent of market revenue. However, Western European growth slowed and Asia/Pacific continued to experience robust growth, reflecting a shift toward investment in technology in emerging-market manufacturing centers.

Top Five SCM Software Vendors by Total Software Revenue, Worldwide 2012 (Millions of Dollars)

Company 2012 Revenue 2012 Market Share (%) 2011 Revenue 2011 Market Share (%) 2011-2012 Growth (%)
SAP 1,721.2 20.8 1,542.8 19.9 11.6
Oracle 1,453.3 17.5 1,296.9 16.7 12.1
JDA Software 426.0 5.1 430.4 5.6 -1.0
Ariba* 319.2 3.8 366.9 4.7 -13.0
Manhattan Associates 160.1 1.9 141.5 1.8 13.2
Others 4,216.0 50.9 3,114.5 51.3 20.4
Total 8,295.8 100.0 6,893.0 100.0 7.1

*Ariba’s estimates represent nine months of business operations before its acquisition by SAP.

Note: Gartner’s methodology, which converts U.S. dollars from euro-based income statements for software sold during 2012 globally, has reduced 2012 growth for vendors reporting in non-U.S. dollars.

Source: Gartner (May 2013)

In a fragmented market, the top five SCM software vendors maintained their status quo over smaller competitors in 2012, accounting for nearly 50 percent of revenue.

Software as a service (SaaS) SCM offerings showed above-market growth (13 percent in 2012), while perpetual new licenses experienced slower growth of 3.5 percent, as organizations focused on fast implementation at a lower upfront cost.

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