India, Brazil, China, Russia to show double-digit growth in enterprise resource management applications market


The worldwide enterprise resource management (ERM)
applications market experienced year-over-year revenue growth of 4.6 percent in
the second half of 2010 (2H10) on revenues $17.6 billion, according to the
International Data Corporation.


IDC forecasts that global ERM Applications revenues will, for the first time,
increase by more than $2 billion in 2011, achieving a total market size of
$36.2 billion.


“While the overall ERM Applications market is expected
grow 5.9 percent in 2011, five out of its eight functional markets are poised
to achieve above average market growth. These are the Human Capital Management
(HCM), Procurement, Financial Performance and Strategy Management Applications
(FPSM), Order Management, and Enterprise Asset Management (EAM) markets,”
said Wilvin Chee, associate vice president, Worldwide Software Trackers.


Among the largest country markets, double-digit growth is
expected in Australia, Brazil, China, Russia, and India during 2011. And each
country is expected to feature a different functional market as the local
growth leader.


In China, for example, HCM applications will be the
top-performing market while FPSM will be the market leader in Brazil. In
Australia, Financial Accounting applications will be the strongest ERM
functional market. Project and Portfolio Management (PPM) will be the key
growth market in Russia, and Order Management applications are expected to
produce the best growth this year in India.


“In this post-recession business environment,
companies are investing in automation for competitive advantage, and in tools
to help them get closer to their customers, partners and suppliers. While the
overall ERM market should produce steady growth for some time, we expect
spending to increase in vertical-specific applications, applications that
increase social collaboration and community, mobile applications, and
applications that facilitate both B2B (Business-to-Business) and B2C
(Business-to-Consumer) commerce processes,” said Michael Fauscette, group
vice president, Software Business Solutions.


A total of 351 vendors were included in the latest ERM
tracker. Five vendors – SAP, Oracle, Microsoft, Sage, and Intuit  earned
more than $1 billion each in ERM software revenue during 2010. SAP held the top
spot with 17 percent market share globally. Within these top 5 vendors, only
SAP, Oracle, and Microsoft managed to outperform the market in terms of growth.
These three vendors showed very strong growth performance with their FPSM
products, in particular.


Additionally, SAP enjoyed double-digit growth performance
in the EAM space, while Oracle achieved the same in the Order Management and
Procurement functional markets. In terms of geography, SAP earned over 20
percent growth in its Asia/Pacific (excluding Japan) and Latin America regions
while Microsoft enjoyed double-digit growth rates in regions outside of North
America and Western Europe. Among the top 3 vendors globally, Oracle
experienced the best growth in the North America region.


By Team

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