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AMR
Research Predicts the European Applications Market Will Reach $21.3
Billion by 2006
AMR Research announced forecasts for European enterprise applications,
estimating that the overall market will reach $21.3 Billion by 2006.
The European Market Analytix Report, 2001 - 2006 identifies the
key trends and leading vendors in each applications segment, as
well as which will fare best over the near term and survive over
the long term.
The report states that the European market began buoyantly in 2001,
but quickly stalled, forcing vendors to reassess and realign their
cost structures in order to weather an extended economic downturn.
"As companies enter the new budget cycle, it is clear that
spending will not increase in 2003," commented Tony Friscia,
CEO and President, AMR Research. "In the medium- to long-term,
however, the outlook must be brighter. Vendors that survive the
current downturn, and can still invest in research and development,
will be in a good position when organisations start spending."
The AMR Research report indicates that the majority of vendors
experienced a slowdown in license revenue and an increase in service
and maintenance. In addition, the report indicates a trend toward
fewer, large, low-risk vendors having a larger proportion of market
share.
Market conditions favour established vendors that can sell into
current customers as they continue to invest in research and development.
Business viability, key trends, and top players in the European
Enterprise Resource Planning, Supply Chain Management, Customer
Management, and Procurement and Sourcing markets are also detailed
in the European Market Analytix Report, 2001 - 2006.
Highlights of the report include:
European Core Enterprise Resource Planning (ERP) Market
AMR Research predicts the European Core ERP market for traditional
manufacturing and financial applications will decrease from an expected
$6.1 Billion in 2002 to $5.5 Billion in 2006. The report indicates
that the battle for ERP company dominance in Europe will be waged
in strategic extension areas like supply chain and customer management.
European Supply Chain Management (SCM) Market
AMR Research predicts the European Supply Chain Management (SCM)
market will reach $3.3 Billion in 2006, up from $1.5 Billion in
2002. The report states that the market remained dominant by a few
large companies, which will leave growth rates for 2002 and beyond
dependant on these leading vendors. Further consolidation is expected
within the smaller vendor market, which is predicted to only gradually
improve through 2003.
European Customer Management (CM) Market
The CM market declined in 2001, with license and total revenue
down by 3 percent. The economic downturn clearly had an effect on
this market, but the future looks bright. AMR Research expects the
European CM Market to grow rapidly, with a five year Compound Annual
Growth Rate (CAGR) of 27 percent to reach $8.7 Billion by 2006.
The current focus is on shorter, tactical projects with the ultimate
goal being the achievement of a quick ROI.
European Procurement and Sourcing Market
Totaling $466 Million - and growing by 31 percent from 2000 to
2001 -the European Procurement and Sourcing market was off to a
good start. However, the market stalled mid-year as companies rolled
out e-procurement systems spending smaller amounts of money on "quick
hit" pilots. AMR Research expects this market to maintain a
16 percent CAGR over the next five years, reaching $977 Million
in 2006.
Methodology
AMR Research's European Applications Market Analytix Report, 2001
- 2006 surveys leading enterprise software vendors that are actively
pursuing business in Europe. The overall analysis includes an extensive
review of business models and public financial records. Each vendor
is measured on total European revenue, European license revenue,
software revenue type, applications segments, vertical markets,
and customer size. Additional methodology is included in the full
report.
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