Enterprise Applications Market Will Reach $78 Billion By 2004.

AMR Research Inc., a leading industry and market analysis firm specializing in e-business strategy and infrastructure, predicts that the Enterprise Applications Market will reach $78 billion by 2004, with an overall compound annual growth rate (CAGR) of 24 percent over the next five years. In conjunction with the firm's Spring Executive Conference, AMR Research released predictions for all coverage areas including E-commerce, Enterprise Resource Planning (ERP), E-Business Relationship Management (ERM), Supply Chain Management (SCM), Retail, and Manufacturing and Plant and Technical Operations.

"Companies adapting to the high velocity of e-business must incorporate the fundamentals of planning, coordination, and business intelligence. The goal of our market numbers and predictions is to identify trends that will shape the market for e-Business technology and services," says John Bermudez, group vice president, Research Operations. "As traditional businesses develop and implement end-to-end strategies for transforming into e-businesses, AMR Research's staff offers insights into e-business applications and new infrastructure models."

AMR Research defines the Enterprise Application Market Segments as core ERP, ERM, SCM and E-Commerce applications. The firm predicts the total revenue for this market will grow from $27 billion in 1999 to $78 billion in 2004. This growth is largely due to the strategic extension areas, Supply Chain, ERM, and E-Commerce applications. Revenue share in each Enterprise Application Market segment from 1999 to 2004 is as follows: e-commerce applications from six percent to 20 percent, ERM applications from 16 percent to 26 percent, SCM applications from 14 percent to 26 percent, and ERP applications from 64 percent to 28 percent.

The E-Commerce Application Market remains highly fragmented and is expected to grow aggressively, reaching $16 billion in 2004 from $1.7 billion in 1999, with an expected CAGR of 56 percent over the next five years. The trading exchange platform segment will grow to almost 20 percent of the market by 2004, with many partnerships and acquisitions on the horizon. Trading exchange will also be the battleground where segment leaders from procurement, sell-side, ERP, SCM and ERM will come into direct competition. The top five vendors in this space include Broadvision Inc., Sterling Commerce, Vignette Corp., Open Market Inc., and Oracle.

ERP market growth will slow, growing at only a five percent CAGR from $16.9 billion in 1999 to $21.4 billion in 2004. Leading vendors, including SAP, Oracle, Peoplesoft, JD Edwards, and GEAC SmartEnterprise Solutions, are in flux and being challenged by new market dynamics, allowing new players to gain ground. These five market leaders account for 62 percent of the total market revenue, and will find new opportunities in ERM, SCM and e-commerce markets.

The ERM market is being reshaped and sales environments are changing as companies move to e-business and contact centers. The firm predicts that the ERM market will grow from $4.4 billion in 1999 to $20.8 billion by 2004, a 36 percent CAGR. Siebel Systems Inc., Clarify/Nortel, Oracle, Aspect Communications, and Vantive/Peoplesoft round out the top five vendors in this space.

The SCM market leaders include i2 Technologies, International Business Systems (IBS), SAP, Manugistics, and EXE. With an estimated CAGR of 40 percent, AMR Research predicts that the SCM market will climb from $3.8 billion in 1999 to $20.3 billion by 2004. Fulfillment issues are being addressed by Supply Chain Event Management (SCEM) applications providing inventory visibility into product availability and order status across a corporate supply chain.

Personalized e-merchandising, e-commerce, and initiatives such as Collaborative Planning, Forecasting and Replenishment (CPER) are reshaping the Retail Application Market. AMR Research predicts that this market will climb from $2.3 billion in 1999 to $12.7 billion by 2004, a 40 percent CAGR for the next five years. The top five vendors of retail software account for 26 percent of the total market and include SAP America, JDA Software, Oracle, IBM, and STS Systems.

The Plant & Technical Operations Market consisting of Enterprise Asset Management (EAM), Product Lifecycle Management (PLM), and Plant Management is expected to grow from $3.8 billion in 1999 to $7.1 billion in 2004. AMR Research predicts a 13 percent CAGR over the next five years.

AMR Research predicts the Enterprise Applications Market will reach $78 billion by 2004. The firm's predictions for segments within the Enterprise Applications Market will help user and vendor communities identify which trends and business strategies to focus on to increase leadership position and succeed in the e-business world.