Worldwide Enterprise Resource Management Applications Market Rebounds in 2010 with Further Growth Expected in 2011, According to IDC 

FRAMINGHAM, Mass., June 21, 2010 – The worldwide enterprise resource management (ERM) applications market experienced year-over-year revenue growth of 4.6% in the second half of 2010 (2H10) on revenues $17.6 billion, according to the International Data Corporation (IDC) Worldwide Semiannual Enterprise Resource Management Applications Tracker. 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% in 2011, five out of its eight functional markets are poised to achieve above average market growth," said Wilvin Chee, associate vice president, Worldwide Software Trackers. "These are the Human Capital Management (HCM), Procurement, Financial Performance and Strategy Management Applications (FPSM), Order Management, and Enterprise Asset Management (EAM) markets."

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," said Michael Fauscette, group vice president, Software Business Solutions. "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."

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% 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% 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.

The Worldwide Semiannual Enterprise Resource Management Applications Tracker provides total market size and vendor share for the following ERM market segments: financial accounting applications, human capital management, payroll accounting, procurement, order management, financial performance and strategy management applications, project and portfolio management (PPM), and enterprise asset management. Measurement for this Tracker is total software revenue, which includes license plus maintenance plus SaaS and other subscription revenue. The Tracker covers six geographic regions with country-level data for 13 nations. Annual five-year market forecasts for this Tracker are updated semiannually and include five-year annual market projections. Forecasts are available at worldwide, regional, and country levels.

For more information about IDC's Worldwide Semiannual Software Trackers, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

###