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

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.