In 2020, the top 10 Supply Chain software vendors accounted for nearly 48% of the global SCM market which grew 4.3% to approach nearly $8.6 billion in license, maintenance and subscription revenues.
Last year SAP led the pack with a 14.1% market share, while Oracle was #2, followed by Blue Yonder, Verizon Connect and Infor.
We ask the simple question: Who’s buying SCM applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the SCM applications market size is expected to reach $10.2 billion by 2025, compared with $8.6 billion in 2020 at a compound annual growth rate of 3.5%.
| Exhibit 2: Worldwide SCM Software Market 2020-2025 Forecast, $M | |||
|---|---|---|---|
| Year | 2020 | 2025 | 2020-2025 CAGR, % |
| Total | 8585 | 10173 | 3.5% |
Source: Apps Run The World, December 2021
Top 10 SCM Software Vendors
Supply chain management covers Inventory Optimization (Warehouse Management, Replenishment), Transportation and Logistics (Routing, Scheduling, Carrier/Fleet/Fuel Management), Planning (Advanced Planning and Scheduling, Forecasting, Supply Chain Planning through Execution), Distribution Management (Order Orchestration, Management, Global Trade Management), E-Commerce (POS, Store Inventory & Fulfillment, EDI).
Internet of Things, global trade management are considered growth drivers, offset by retailing woes.
Here are the rankings of the top 10 SCM software vendors in 2020 and their market shares.
| Rank | Vendor Name | 2019 Supply Chain Management Apps Revenues, $M | 2020 Supply Chain Management Apps Revenues, $M | YoY Growth | 2020 Supply Chain Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | SAP | Subscribe | Subscribe | -4.4% | Subscribe | The 2021 acquisition of Signavio is expected to help SAP better compete with fast-growing vendors such as ABBYY Solutions, Blue Prism, and Celonis in the process mining market as well as adjacent space like Supply Chain Management. |
| 2 | Oracle | Subscribe | Subscribe | 0.3% | Subscribe | Organisations of all sizes currently leverage the Oracle SCM and gain access to latest innovations in artificial intelligence, blockchain, and the Internet of Things across their supplier networks to enhance productivity, reduce costs, and minimise risk. Oracle’s Fusion Cloud SCM applications is now exceeding 3,300 customers, compared with about 1,000 in 2018. |
| 3 | Blue Yonder | Subscribe | Subscribe | 4.0% | Subscribe | In September 2021, Panasonic Corporation has completed the acquisition of Blue Yonder, Panasonic has purchased the remaining 80% of shares of Blue Yonder, adding to the 20% which Panasonic acquired in July 2020. The investment values Blue Yonder at USD 8.5 billion. |
| 4 | Verizon Connect | Subscribe | Subscribe | -2.7% | Subscribe | Verizon Connect Reveal fleet management platform was launched in 2021. The asset tracker device was built for easy self-installation, customizable check-in rates, and the replaceable battery significantly extends the life of the device and its values. Verizon has the largest GPS fleet management system globally with over 1.9 million vehicles managed through over 80,000 customers. |
| 5 | Infor | Subscribe | Subscribe | 5.4% | Subscribe | Infor Nexus combines the power of GT Nexus, IoT and Infor Coleman AI to deliver an intelligent supply chain network with a path to the autonomous supply chain. Infor Nexus serves more than 25,000 companies managing more than $100 billion worth of goods each year. |
| 6 | SPS Commerce, Inc. | Subscribe | Subscribe | 13.1% | Subscribe | In November 2021, SPS Commerce acquired Genius Central, a software solution provider known for its expertise in the natural and organic foods industry. As of December 2020, SPS had approximately 33,000 recurring revenue customers and approximately 95,000 total customers. |
| 7 | Manhattan Associates Inc. | Subscribe | Subscribe | 8.5% | Subscribe | In 2021, lauched a new transportation management (TMS) offering, entitled Manhattan Active Transportation Management. This cloud-native offering is a system with optimization speed up to 80% faster. Manhattan Associates has more than 1,200 clients worldwide. |
| 8 | E2open, LLC | Subscribe | Subscribe | 19.0% | Subscribe | With the 21.4 release, E2open introduces two new intelligent applications: Supply Sensing to predict supply shortages and mitigate risk; and Global Logistics Orchestration to determine the business impact of shipping delays on downstream operations and service commitments. E2open has a direct business network with more than 60,000 partners and over 200,000 users across 120 countries. |
| 9 | Descartes Systems Group | Subscribe | Subscribe | 5.0% | Subscribe | In 2021, Descartes Systems made several acquisitions; GreenMile, Portrix Logistics Software (Portrix), QuestaWeb, and VitaDex Solutions. This acquisitions will help Decartes Systems’s customers to improve logistics and supply chain management business processes. |
| 10 | Flexport | Subscribe | Subscribe | 22.8% | Subscribe | In 2021, Flexport released its Certified Partner Network. The Certified Partner Network will help Flexport clients scale across 89 countries where Certified Partners currently operate. In addition, it creates an opportunity for Certified Partners to lower their cost to serve and scale operations for their own clients by bringing them onto the Flexport Platform. |
| Subtotal | Subscribe | Subscribe | 2.5% | Subscribe | ||
| Other | Subscribe | Subscribe | 6.0% | Subscribe | ||
| Total | 8234 | 8585 | 4.3% | 100% |
Source: Apps Run The World, December 2021
Other SCM software providers included in the report are: abas Business Software, ABB’s Enterprise Software Group, Access Group, Achilles, Adexa, Advanced, Aera Technology, AFAS ERP Software, Allscripts, Amber Road, American Software, Aptean, Aptos, Arena Solutions Arkieva, Arrowstream, Aspen Technology, BluJay Solutions, CDK Global, Cerner, ClickSoftware, Comarch SoftM Concentra Analytics Ltd, Construction Industry Solutions Corp., Dematic E2open, ENGIE Impact, Epicor, ESM Solutions, Exact Holding BV, Exela Technologies, Famous Software, FOURGEN Information Systems, Fourth Ltd, FuturMaster, GAINSystems, Generix Group, GEP Procurement, GHX, HCL Technologies Ltd., HighJump, IBM, IFS, Ignite Technologies, Intelex Technologies, iptor, KBC Advanced Technologies plc, Kinaxis Inc., Kingdee, Mercateo, MercuryGate, NCR Corporation, NeoGrid, OM Partners, Omnitracs, One Network Enterprises, OrderDynamics, ORTEC, Pitney Bowes, Plex Systems Inc, Pronto Software, QAD Inc., Quorum Business Solutions, Ramco Systems, Relex Solutions, River Logic, Inc., Roper Technologies, Inc., Sage, Sênior Sistemas, Slimstock, SmartERP SPICA GROUP, SupplyOn, Symphony RetailAI, Synchronoss, Taulia, TechnologyOne Limited, Tecsys, Tigernix Pte Ltd ToolsGroup, Tradeshift, Transplace, Trimble, UNIT4, Vizient, Vormittag Associates Inc., Works Apps, Yonyou, and others.
Custom data cuts related to the SCM Applications market are available:
- Top 120+ SCM Applications Vendors and Market Forecast 2020-2025
- 2020 SCM Applications Market By Industry (21 Verticals)
- 2020 SCM Applications Market By Functional Market (16 Markets)
- 2020 SCM Applications Market By Country (USA + 45 countries)
- 2020 SCM Applications Market By Region (Americas, EMEA, APAC)
- 2020 SCM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2020 SCM Applications Market By Customer Size (revenue, employee count, asset)
- 2020 SCM Applications Market By Channel (Direct vs Direct)
- 2020 SCM Applications Market By Product
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.
SCM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in SCM systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest SCM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
Source: Apps Run The World, December 2021
Further Readings
An expanded version of this report covers the top 120+ SCM Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.
We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2020 product revenues.
Their 2020 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
