AMR projects 3% increase in enterprise applications market in 2003

Scottsdale, AZ—The enterprise applications market is predicted to grow 3% to reach a total market size of $36.9 billion by the end of 2003, according to research released June 5 by AMR Research (Boston, MA) at its Spring Executive Conference.

06/12/2003


Scottsdale, AZ— The enterprise applications market is predicted to grow 3% to reach a total market size of $36.9 billion by the end of 2003, according to research released June 5 by AMR Research

The company says its survey results point to an improving economic climate for information technology (IT) spending. AMR adds that, while the forecast is modest, the outlook is positive, with an emphasis on smaller, incremental purchases. In its 'Enterprise Applications Market Forecasts,' AMR attributes its optimistic outlook to building demand for new application projects, and the increased penetration of major Enterprise Resource Planning (ERP) vendors in markets, including Supply Chain and Customer Relationship Management (CRM).

The firm released market projections for the major application categories it tracks, the forecasts for which clearly show slower long-term growth than expected and overall consolidation and maturity in many markets. Key highlights of AMR's projections in each market segment include:

  • Enterprise Resource Planning (ERP), which will grow from a projected $20.6 billion in 2003 to $21.6 billion in 2004. ERP's traditional messages around integration, internal controls, and cost savings have been well received in the current economic environment. AMR expects continued market consolidation, as larger ERP vendors and investment firms make acquisitions to increase the size of their customer base and expand into new horizontal, vertical or geographic markets.

  • Customer Relationship Management (CRM), which struggled in 2002 and dipped 1%. The corporate mantra of cost savings took a heavy toll on newer generation products, such as online sales, marketing, and analytical applications. More traditional products, such as Sales Force Automation (SFA) and customer service/call centers tended to fare better during the past year. Long term, AMR Research expects 9% annual growth, with the market reaching $10.8 billion in 2004.

  • Supply Chain Management (SCM), which is expected to grow to $6.0 billion in 2004, up from a predicted $5.6 billion in 2003. This growth will likely be fueled by a continued focus on cost savings and the increasing complexity of corporate supply chains. Products from the major ERP vendors should enjoy healthy growth on the Supply Chain Planning (SCP) side. Overall, however, the highest growth is expected in supply chain execution applications, such as order fulfillment and inventory management.

  • Sourcing & Procurement, which was dragged down 9.5% in 2002,

AMR adds that its annual enterprise market forecasts are based on surveys with more than 1,000 software vendors representing ERP, Procurement, SCM, Product Lifecycle Management (PLM), and CRM platforms. The analysis consists of end-user surveys that measure spending and penetration in each application area. Metrics are based on total revenue, product type, software revenue, applications segments, operating environment, regional market, customer size, vertical industry, and sales channel.

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Controller programming; Safety networks; Enclosure design; Power quality; Safety integrity levels; Increasing process efficiency
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me