Worldwide Manufacturing and Retail/Wholesale Application Revenues on Course to Reach $22.5 Billion in 2004, IDC Says

FRAMINGHAM, MA – JULY 25, 2000 — Demand for applications that specifically support manufacturing and retail/wholesale distribution will remain healthy for the foreseeable future. According to IDC, worldwide revenues in this market will increase at a compound annual growth rate (CAGR) of almost 11% from $13.6 billion in 1999 to $22.5 billion in 2004.


"Business processes such as engineering collaboration, retail customer personalization, and work-order optimization will be automated in the product supply chain for the first time, contributing to growth in this market," said Dennis Byron, director of IDC's Enterprise Applications research programs.

"Additionally, long-automated product supply-chain-specific business processes such as materials requirement planning will be updated, further driving the market."

IDC divides the overall market into three segments: product engineering, manufacturing-specific, and retail/wholesale-specific applications. The segment for product engineering applications is currently the largest part of this application market. It accounted for $6.3 billion of the market's revenues in 1999. However, this segment of the market will grow slower than any other segment through 2004.

The market for retail/wholesale applications will be the fastest-growing segment. Revenues here will earn a CAGR of 13.3% from 1999 to 2004. In 1999, more than $6.4 billion on these applications' revenues were generated in North America, accounting for 47% of the market.

Information such as the above, geographical and operating environment breakdowns, forecasts, and details on market leaders are available in IDC's report, Product-Supply-Chain Vertical Applications Market Forecast and Analysis, 2000-2004 (IDC #B22284). This report analyzes markets for packaged applications that are designed to automate targeted industries and industry- related functions in the product supply chain. Specifically, the report looks at the following segments: manufacturing, engineering, and retail/wholesale. For each segment, and the overall market, the report presents vendors' 1999 revenue shares and forecasts revenues through 2004 by operating environment and region. The report also discusses trends affecting the market. To purchase the report, contact Cheryl Toffel at 1-800-343-4952, extension 4389 or

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

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