USD 45.82 billion
Report ID: SQSG45F2026 | Region: Global | Published Date: December, 2022 | Pages: 165 | Tables: 121 | Figures: 77
Enterprise Resource Planning (ERP) Software Market size was valued at USD 45.82 billion in 2021 and is poised to grow from USD 49.28 billion in 2022 to USD 90.63 billion by 2030, growing at a CAGR of 9.1% in the forecast period (2023-2030).
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.
Global Market Size
USD 45.82 billion
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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
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.
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.
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.
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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.
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Enterprise Resource Planning Software Market Driver
Businesses increasingly need to increase operational effectiveness and streamline business processes in order to spur growth.
Enterprise Resource Planning Software Market Restraint
High costs and a lack of skilled workers followed with limited integration challenges to limit the market growth.
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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
Enterprise Resource Planning Software Market Recent Development
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.
|Market size value in 2021||USD 45.82 billion|
|Market size value in 2030||USD 49.28 billion|
|Forecast Unit (Value)||USD Billion|
|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)|
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Parent Market Analysis
KEY MARKET INSIGHTS
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Global 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 Global 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.
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