Enterprise resource planning software is utilized by businesses to manage various normal business processes, including supply chain management, compliance and risk management, and project management. The financial planning, budgeting, forecasting, and reporting processes inside a business are all facilitated by ERP software. 

The market worth of ERP software in 2021 was USD 50.84 billion, and it will reach USD 117.68 billion by 2030, growing at a 9.87% CAGR during the forecast period.

The growing use of ERP software to improve operational efficiency and the considerable consumer migration from offline to online, particularly to mobile devices like smartphones and laptops, are driving the growth of the global ERP software market.

Market Dynamics

Drivers

The demand for cloud-based ERP software is rising due to the rising adoption of cutting-edge SaaS technologies, the expansion of the value of current ERP systems, the reduction of third-party dependencies, more highly secured resources, the development of financial systems, and other notable factors. Additionally, the global demand for ERP software has increased due to the growing popularity of cloud-based ERP systems in the manufacturing, banking, financial services, insurance (BFSI), I.T., and telecom sectors. Increased company insight, reduced operating expenses, improved collaboration, increased productivity, higher user adoption rates, etc., are just a few advantages that cloud-based ERP software offers. 

Restraints

The biggest drawback of using ERP software is the high initial capital costs, followed by the need for highly skilled workers to maintain the product.

Opportunity 

Any system that relies on the cloud indicates that the data is created at one site and saved somewhere else, typically on servers. Along with the added security features, cloud storage gives people and enterprises more flexibility in their operations. Due to the pandemic, several ERP vendors started providing more cloud-based solutions to businesses that needed them. Among the most well-known corporations to do so are Toyota, Starbucks, and Amazon. The market for ERP software will therefore experience rapid growth in the upcoming years as more ERP product providers enable cloud computing.

Market Segmentation

Function Insights

In 2022, the finance sector held the greatest market with over 25.0% of the revenue share. The management of numerous financial tasks, such as accounting, investments, assets, and cash flow management, is made simple by the ERP software. Therefore, demand will increase due to the rising adoption of ERP in financial functions.

Deployment Insights

The on-premise segment had the biggest share of over 70% of the market in 2022. The on-premise deployment approach drives the market, which provides advantages like continuous control and strong data security in an enterprise. Additionally, in certain emerging nations, the adoption of on-premise solutions is made easier by the need for greater awareness of the advantages of cloud-based business solutions.

Enterprise Size Insights

In 2022, the big enterprise sector held the largest market share of more than 39%. One of the main factors influencing the segment’s growth is the increasing demand for large organizations to maintain and align complex processes, including production planning, inventory management, procurement, order fulfillment, and shipping.

Vertical Insights

In 2022, the manufacturing & services sector accounted for more than 20.0% of the market. Operations are managed by ERP software, which also keeps track of daily performance and client services that will increase demand throughout the projection term. Additionally, the simplicity of inventory management, production scheduling, and real-time data tracking will spur expansion.

Regional Overview

North America led the entire market with the biggest revenue share of nearly 35.0% in 2022. The largest market share is due to the growing use of ERP software by small and medium-sized businesses, the expansion of ERP providers’ investments in the creation of new software using cutting-edge technology, and the existence of several market competitors. Additionally, the use of ERP software with mobile devices would increase demand during the projected period.

Due to the expanding manufacturing industry and small and medium-sized businesses, the Asia-Pacific market will expand rapidly. Many businesses in the area have already used on-premise ERP solutions to increase efficiency and performance. Additionally, the growing number of start-ups and their increased demand for cloud-based solutions will accelerate market expansion.

Key Players 

  • Epicor Software Corporation
  • Genius Solutions, Inc.
  • Acumatica 
  • Deltek 
  • Global Shop Solutions
  • IFS, AB.
  • Infor Inc.
  • Hewlett-Packard Development Company, L.P.
  • IBM Corporation
  • IQMS
  • NetSuite Inc.
  • OpenPro
  • Microsoft Corporation
  • MIE Track Pro
  • Oracle Corporation
  • Plex System 
  • Sage Group, plc
  • SAP SE
  • TOTVS S.A.
  • Unit4
  • QAD Inc.
  • Ramco System
  • SYSPRO
  • Workday, Inc. (U.S.)

The market worth of ERP software in 2021 was USD 50.84 billion, and it will reach USD 117.68 billion by 2030, growing at a 9.87% CAGR during the forecast period. The growing requirement for operational efficiency and transparency in company processes and the expanding acceptance of mobile and cloud applications are the main factors driving the global market for ERP software.

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