SAP leads all 11 vertical segments covered in a recently released IDC competitive study focusing on the $7.1 billion Western European enterprise resource planning (ERP) applications market.
The study analyzes the top ERP vendors in Western European vertical industries. Manufacturing is approximately 40% of the total market with discrete manufacturing being almost twice as large as process manufacturing. Retail/wholesale is the third largest industry.
Compared to the overall software spending by vertical, discrete and process manufacturing, transport, communications, utilities, retail/wholesale, and business services recorded relatively high levels of ERP spending, while financial services, government, education and healthcare, and other
industries recorded relatively low levels of spending.
SAP dominated the Western European ERP applications market with a 41% market share in 2004, up two percentage points compared to 2003. Oracle ranked second. While SAP was more than five times larger than Oracle during 2003, this was reduced to less then four times the size of Oracle in 2004 when measured by ERP application revenues, due to Oracle's acquisition of PeopleSoft. Sage ranked third, Microsoft Business Solution held fourth place, and SSA Global ranked fifth.
Of greater interest are the industries in which other ERP vendors have significant presence, competing with SAP. After the acquisition of PeopleSoft, Oracle emerged as the significant SAP contender in industries such as communications, government, healthcare and education, and financial services.
On a country level, Oracle lead certain segments, such as government, communications, and financial services in the U.K., and communications, financial services, and government in France. In Germany, SAP maintained an overwhelming lead in all segments covered in this study.
"The ERP battle is shifting to which vendor can establish the richest and most diverse ecosystem on top of its ERP platform. SAP and Microsoft Business Solutions are off to an early start, but more will follow. Customers in non-traditional ERP industries such as financial services, communications, and the public sector can benefit significantly as specialists make their applications available on top of ERP suites. SOA architectures and pre-integration greatly reduces the complexity barrier, which has inhibited ERP adoption in these verticals so far," said Bo Lykkegaard, program manager, European Enterprise Applications, IDC.
This study, Western European ERP Applications Vertical Competitive Analysis 2005 (Doc# SV04M, December 2005), represents a detailed competitive view of the Western European ERP applications market by vertical market. The study segments the 2004 license and maintenance revenues of the Western European ERP applications market by 11 vertical segments overall in five European countries.
To purchase this document, please contact your local IDC office or visit idc.com.