USD 45.82 billion
Enterprise Resource Planning (ERP) Software Market Size, Share, Growth Analysis, By Deployment Type(On-Premises, Cloud), By Function(HR, Supply Chain, Others), By Enterprise Size(Large Enterprises, Medium Enterprises, Small Enterprises), By Vertical(Manufacturing & Services, BFSI, Healthcare, Retail), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2120 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|Tables:
121
|Figures:
77
Enterprise Resource Planning (ERP) Software Market Insights
Enterprise Resource Planning (ERP) Software Market size was valued at USD 45.82 billion in 2019 and is poised to grow from USD 49.28 billion in 2023 to USD 90.63 billion by 2031, growing at a CAGR of 9.1% in the forecast period (2024-2031).
The development is attributed to elements like the expanding demand for data-driven decision-making, the rising usage of mobile and cloud apps, and the growing requirement for operational efficiency and transparency in business processes. Through an enterprise resource planning software inventory costs can be reduced by 25-30% and raw material costs by about 15% when ERP software is implemented in businesses. The program guarantees a seamless exchange of information across functional boundaries, improving efficiency and decision-making. Over the projected period, growth in the number of SMEs in developing nations like China, India, and Brazil is expected to increase product demand.
It is expected that the uptake of IT technology in these economies will alter customer behaviour and increase the use of ERP software rather than manual processes.
The availability of mobile device integration and low infrastructure costs are expected to drive up demand for cloud services. Businesses are prepared to spend money on cloud-connected mobile applications that make it easier to synchronize, update, and manage documents. Since the COVID-19 pandemic, there has been a growth in demand for cloud-based ERP solutions, particularly from small-and medium-sized firms which is expected to present a number of opportunities for market participants.
The market for ERP software is expanding as a result of a boom in the adoption of cloud and mobile applications. Companies can now implement a single platform that oversees all operations thanks to the growth in business apps and the volume of data generated by various supply chains. The enterprise resource planning software market has grown as a result of rising automation and technological deployments in the supply chain management process, which has also increased the demand for ERP systems.
US Enterprise Resource Planning (ERP) Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Fastest Growth
function
Growth Rate
9.1% CAGR
Global Enterprise Resource Planning (ERP) Software Market ($ Bn)
Country Share for NA and AP Region (%)
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Enterprise Resource Planning (ERP) Software Market Segmental Analysis
The Global Enterprise Resource Planning (ERP) Software market can be segmented on the basis of deployment, function, enterprise size, vertical, and region. Based on deployment, the enterprise resource planning software market is further sub-segmented into on-premises, and cloud. According to function, the market is further sub-segmented into hr, supply chain, and others. Based on enterprise size, the market is further sub-segmented into large enterprises, medium enterprises, and small enterprises. according to vertical, the enterprise resource planning software market is further sub-segmented into manufacturing & services, BFSI, healthcare, retail, government, aerospace & defence, telecom, and others
Enterprise Resource Planning (ERP) Software Market Analysis by Deployment
Over 70% of the market in 2022 was accounted by the on-premises segment, which accounted for the biggest share. This deployment strategy gives a continuous control and high levels of data protection, which is one of its main advantages for any firm. In numerous developing nations, the adoption of on-premises solutions is facilitated by a lack of knowledge about the advantages of cloud-based business solutions. Additionally, it is projected that a significant amounts of traditional methods for managing the supply chain and other corporate activities, along with little automation and technological use, will fuel category growth.
By 2028, the cloud sector is expected to rule the Enterprise Resource Planning Software Market due to its growing adoption. Additionally, it provides advantages including quicker adoption and cheaper upfront costs. Additionally, business owners can use cloud-based ERP solutions to handle voluminous data effectively thanks to the widespread adoption of connected devices that efficiently manage operational business processes and offer real-time insights.
Enterprise Resource Planning (ERP) Software Market Analysis by Function
In 2022, the finance sector held the greatest market share with more than 28.0%. Accounting, investments, asset management, and cash flow management are just a few of the financial tasks that the ERP software aids in managing. Therefore, it is expected that throughout the course of the projected period, the segment's growth will be aided by the increased usage of ERP in the financial function. A sizable portion of the market was accounted for by the Human Resource (HR) segment. The segment expansion is largely attributed to the organization’s quick expansion, that makes it challenging to oversee all business operations. Additionally, throughout the course of the forecast period, a rise in the demand for automation in HR operations is expected to fuel market expansion.
The supply chain ERP module improves customer satisfaction by increasing efficiency, speed, and visibility of numerous supply chain operations. It is projected that the growing use of ERP software in automated sales and distribution will fuel industry expansion. Additionally, as the e-commerce sector expands, businesses are more able to choose cutting-edge solutions for efficiently managing supply chain operations, which supports the segment's expansion.
Analysis by Enterprise Size
With almost 39% of the market share in 2021, the big enterprise category held the highest share. One of the main factors influencing the segment's growth is the growing requirement for large businesses to operate and coordinate complex processes including production planning, inventory management, procurement, order fulfilment, and shipping. A further factor that encourages the use of cloud-based ERP software is the large-sized businesses' high spending capacity for the deployment of contemporary technology and software solutions.
By 2028, the medium-sized business segment is expected to grow quickly and take the lead. Over the projection period, elements including the availability of cloud-based ERP, improved operational effectiveness, lower manufacturing costs, and on-time product delivery are expected to boost the segment's growth. Additionally, strict government requirements have encouraged a variety of businesses to use ERP software, which has improved efficiency and simplified operations across a number of industries.
Enterprise Resource Planning (ERP) Software Market Analysis by Vertical
The manufacturing and services sector held the greatest market share in 2022, accounting for more than 20%. The ERP software aids in managing customer services, monitoring daily operations, and tracking daily performances. The software also provides easy inventory management, production scheduling, and real-time data tracking, among other advantages. Manufacturers can choose ERP solutions that help them with effective operations planning and management as a result of the growing demand to monitor vendor performance and improve visibility across the supply chain.
Partnerships between major North America and European ERP software providers and manufacturers have boosted productivity. ERP suppliers in the market are expected to have a wide range of opportunities as a result of the increasing automation and digital transformation processes occurring throughout the industrial industries in rising Asia-Pacific nations. Additionally, businesses use ERP solutions to generate reports based on real-time insights into market circumstances, enabling them to make swift strategic decisions and increase the productivity and profitability of the company.
Global Enterprise Resource Planning (ERP) Software Market By Component
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Enterprise Resource Planning (ERP) Software Market Regional Insights
Due to the presence of key providers like Oracle, Microsoft, Infor, and Epicor in the area, North America accounted for the biggest market share. Advanced technologies including cloud computing, IoT, Big Data, and business intelligence are more widely used in North America, which further contributes to the expansion of the regional market. Additionally, increased ERP solution adoption across business verticals is boosting the market in North America.
The growing demand for company functionalities to be automated using digital techniques is driving the market expansion in North America. ERP solutions are being implemented by businesses in the US and Canada to improve internal business efficiency and optimize business processes. For instance, Loblaw Companies Limited, Canada's market leader in food and pharmacy, uses SAP technologies to enhance operational efficiency.
During the projection period, Asia Pacific is expected to rise with a spectacular CAGR. Manufacturing, BFSI, transportation, and logistics are just a few of the industry verticals that are constantly changing and driving this region's growth. Several important suppliers in the area are concentrating on creating and presenting cutting-edge ERP systems in order to meet the growing need for sustainable ERP solutions among various verticals.
To increase efficiency and simplify operations, many small and medium-sized enterprises in the area are embracing cloud-based solutions. In addition, it is expected that government legislation supporting IT infrastructure will accelerate market expansion in the area.
Rising technological improvements and the expansion of the local manufacturing sector are the primary drivers of market growth in Europe. A significant portion of small and medium-sized firms, particularly in Germany, Italy, and France are using hosted ERP systems to manage their business operations more effectively which is another factor driving growth in the sector.
Global Enterprise Resource Planning (ERP) Software Market By Region
- Largest
- Fastest
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Enterprise Resource Planning (ERP) Software Market Dynamics
Enterprise Resource Planning Software Market Driver
Businesses increasingly need to increase operational effectiveness and streamline business processes in order to spur growth.
- Global organizations have been compelled to adopt a variety of business models due to the increasing need for operational efficiency and transparency in corporate processes. Enterprise resource planning (ERP) system complexity has decreased due to advances in technology, and third-party apps can now more efficiently assist corporate procedures.
- In the upcoming years, 80% of technology stakeholders anticipate that the commercialization of their products would have a substantial impact on their organizations and business models, according to PwC's 22nd Annual Global CEO Survey.
- Businesses all around the world are focusing on streamlining their operations to improve operational effectiveness while monitoring operating expenses. Businesses are looking for a single solution to manage a range of corporate processes, including procurement, supply chain management, sales and marketing, finance and accounting. Business operations are now simpler and more effective thanks to the integration of ERP software. It eliminates the need for manual data entry and enables businesses to view all of the data on a single unified platform.
Enterprise Resource Planning Software Market Restraint
High costs and a lack of skilled workers followed with limited integration challenges to limit the market growth.
- Enterprise resource planning software is a viable yet expensive option, and setting up ERP systems can be pricey for SMEs and new businesses. Businesses struggle to run smoothly and efficiently, thus good planning, qualified personnel, and an experienced team are crucial.
- Over time, businesses have started to include cloud enterprise resource planning services and solutions. Due to system complexity and implementation costs, businesses still have a lot of trouble integrating new solutions with their current systems. For cloud ERP to be successfully implemented, new systems must be closely integrated with legacy ones.
- Few organizations still use their current systems, which are based on old technology and manual processes, leading to a high rate of errors and a lengthy response time, because of a lack of resources. Additionally, since most current legacy systems are on-premises, connecting them to brand-new cloud-based systems could be a challenge for businesses looking to implement digital process automation solutions and services.
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Enterprise Resource Planning (ERP) Software Market Competitive Landscape
Most companies are actively investing in R&D activities to develop innovative products that help the company to improve its market share and generate more revenue. On the other hand, Unit 4 Company is planning to increase its market revenue by acquiring small market players. In its Unit 4 partner program, Unit 4 collaborated with Enbridge Consulting. With this alliance, the businesses hope to provide SaaS-based ERP systems for small and medium-sized businesses while also gaining access to the services and technology business experience that other businesses provide.
Enterprise Resource Planning Software Market Top Player’s Company Profiles
- Acumatica
- Aptean
- Deltek
- Epicor Software Corporation
- IFS AB
- Infor
- Intuit Inc.
- Microsoft Corporation
- NetSuite Inc.
- Oracle Corporation
- QAD Inc.
- Ramco Systems
- Sage Group
- SAP SE
- SYSPRO
- Technology One Limited
- Unit4
- Workday, Inc.
- Xledger
- Zoho Corporation
Enterprise Resource Planning Software Market Recent Development
- In April 2021, Unit 4 announced the wide availability of ERPX for mid-market and people-centric enterprises in order to expand its global presence and support manufacturing firms with powerful ERP tools for cost-cutting.
- In June 2021, in its product kinetic, Epicor reintroduced its integrated flagship manufacturing ERP tool. The recently released solution offers a platform that is modernized and future-proof, along with an updated UX architecture and a new feature called updated Epicor Commerce Connect.
Enterprise Resource Planning (ERP) Software Key Market Trends
- Robust Adoption of Cloud-Based ERP Solutions: The market is expected to increase as a result of the rising demand for cloud-based solutions. Enterprises can save their data on shared computing resources thanks to cloud-based solutions. Contrary to traditional software, cloud-based solutions assist businesses in sharing information between divisions.
- Reduced Initial Expenditure: Businesses can reduce their initial expenditures for computing infrastructure including hardware and data servers and simple installation, thanks to the cloud. It offers companies the adaptability and scalability they require to streamline their processes and boost production. Thus, cloud-based ERP systems will allow businesses to coordinate their company strategy as a result of advancements in cloud technology.
Enterprise Resource Planning (ERP) Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to the global enterprise resource planning ERP market report analysis, the finance, and on-premises segment dominated the Global Enterprise Resource Planning (ERP) Software Market in 2022 and is expected to maintain its dominance throughout the forecast period. In 2022, North America dominated the Global Enterprise Resource Planning (ERP) Software Market owing to the region's highly aware and economically stable population, as well as a significantly increasing streamlining of business processes.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 45.82 billion |
| Market size value in 2031 | USD 90.63 billion |
| Growth Rate | 9.1% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered | |
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Enterprise Resource Planning (ERP) Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Enterprise Resource Planning (ERP) Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Enterprise Resource Planning (ERP) Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Enterprise Resource Planning (ERP) Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Enterprise Resource Planning (ERP) Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Enterprise Resource Planning (ERP) Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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