Product Supply Chain Automation (SCA) Applications Will Maintain Solid Growth, Reaching Almost $24 Billion in 2006, IDC Says

FRAMINGHAM, MA – JULY 9, 2002 – Solid growth is expected for the product supply chain automation (SCA) applications market, with revenue reaching almost $24 billion in 2006, a significant increase from $8.5 billion in 2001. According to IDC, a deeper integration of SCA operations will drive the growth of this market.


"The benefits of product supply chain visibility for improved demand forecasting, business planning, and company internal and external collaboration are being driven home right now as companies struggle to adjust supplies and manufacturing planning to a highly volatile market environment," said Gisela Wilson, director in IDC’s Enterprise Applications research department. "The major growth drivers in this market include the benefits companies can derive from a deeper integration of their SCA operations."

This market environment is fueling a number of start-up companies that offer highly desirable functions, such as route optimization and transportation planning for business improvements. At this point, customers are primarily interested in tactical solutions that promise rapid return on investment. Vendors are discovering that their customers are not very receptive to complex strategic solutions with lengthy implementation times. In 2004, IDC expects this scenario to change as the economy returns to healthier growth rates.

IDC’s recently released bulletin, Product Supply Chain Automation Applications: Market Forecast and Analysis, 2002-2006 (IDC #27418) discusses market opportunities and hurdles for growth through 2006 in the product supply chain automation application space, and identifies the top 10 suppliers and their market shares in 2000 and 2001.

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About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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