ERP Software Market

ERP Software Market Size

ERP Software Market is anticipated to grow at a CAGR of 10.2% in the forecast period (2023-2032), with the market size valued at USD 51.73 billion in 2021 and projected to reach USD 150.2 billion by 2032.

Enterprise Resource Planning (ERP) software is a set of integrated tools designed to automate essential operations within an organization. The software performs critical functions like accounting, human resources, inventory management, supply chain operations, customer relationship management (CRM), and more. ERP provides a centralized system that integrate business operations, facilitates informed decision-making, and provides real-time access to critical information. Additionally, ERP software offers modules that can be customized to meet specific business requirements, which enhances efficiency and flexibility within an enterprise.

Market Highlights

ERP Software Market is expected to exhibit a CAGR of 10.2% during the forecast period, 2023-2032

ERP Software Market is expected to reach USD 150.2 billion, growing at a CAGR of 10.2% during forecast period, owing to the rising demand from organizations which are seeking to improve their operational efficiency and benefit from data-driven insights. ERP software market offers improved functionality and adaptability as companies continue to modernize cloud-based ERP systems. These systems are becoming necessary tools in multiple sectors to simplify important business operations. This transformative adoption of ERP software aligns with the rapid evolution of technology and encourages businesses to stay flexible in a dynamic marketplace.

Source: Fatpos Global

ERP Software Market Segmentation

Large Enterprise segment will dominate as ERP software provides efficiency, lower production costs, and centralized data

Based on the Enterprise Type, the market is divided into Small & Medium Enterprise (SMEs) and Large Enterprise. Large enterprise segment dominated the ERP software market, owing to their complex operational needs and size. Large enterprises are expected to increase their demand for the ERP software due to various factors like improved efficiency in operations, lower costs of production, and centralized data collection for global distribution.

Cloud segment to dominate due to low infrastructure costs and flexibility

By Deployment, the ERP Software Market is typically segmented into Cloud, On-premises, and Hybrid. The cloud segment will have the largest market share due to low infrastructure costs and the flexibility of connecting with multiple electronic devices. Cloud solutions enable enterprises to store data via the internet while also providing data recovery options in the event of a data loss or breach. Additionally, the cloud segment provides subscription-based model that offers more flexibility, enabling companies to expand their operations without major initial expenditures and ensuring constant software updates for improved functionalities and security measures.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increased ERP Software Adoption by Businesses to Support Market Growth

ERP software plays a critical role in helping businesses modernize their operations in the evolving business environment where it is essential to stay relevant and competitive. These systems allow for the seamless integration of various departments such as finance, human resources, sales, and supply chain, which gives an integrated overview of the company's data. This integration improves efficiency by simplifying operations and reducing manual labor. Additionally, the demand for ERP software is rising as organizations recognize the potential for increased efficiency and flexibility through digital transformation.

Flexibility and Affordability of Cloud-based ERP Software Will Accelerate Market Expansion

Cloud-based ERP solution is transforming the ERP software market as it offers multiple benefits including scalability, flexibility, and affordability. Cloud-based ERP allows organizations to scale their resources and expand their business without requiring significant initial hardware and infrastructure investments. Additionally, it provides remote access, which was crucial during the COVID-19 epidemic as it allowed people to work remotely. Cloud ERP is a popular alternative for businesses owing to its flexibility and the reduced need for physical equipment maintenance. As a result, an increasing number of companies are switching to cloud-based ERP systems, which is significantly boosting market expansion.

Restraints

Challenges and Integration Strategies in Adopting Cloud ERP for Business Operations

Organizations are gradually integrating cloud ERP tools and services with their business operations. However, due to high installation cost and system complexity, companies are facing significant challenges in deploying new software with their existing one. The existing outdated systems need to be securely connected with the new cloud-based ERP software to work efficiently. These enterprises continue to operate with outdated technology in their current systems due to the absence of latest resources. They include manual procedures, which result in a longer processing time and a higher chance of error. Such integration and deployment obstacles can hinder the growth of ERP software market.

Recent Developments

• Exact bought weclapp, a significant provider of cloud ERP software in the DACH area, from 3U Holding, a German holding firm, in September 2022. Weclapp management would remain involved and lead the firm forward.
• T.D. bank implemented NetSuite's Cloud-based ERP software in August 2022 to give its clients with a full digital banking experience. T.D. Bank incorporated cloud-based ERP software to establish a one-stop shop for its clients to deliver a much better experience.

ERP Software Market

Key Players:

• SAP SE
• Oracle Corporation
• Microsoft Corporation
• Infor
• Epicor Software Corporation
• Sage Group plc
• IFS AB
• Workday, Inc.
• NetSuite (a subsidiary of Oracle)
• Plex Systems, Inc.
• Acumatica, Inc.
• Unit4
• SYSPRO
• QAD Inc.
• Ramco Systems Limited
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

ERP Software Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America leads the Enterprise Resource Planning (ERP) software industry, owing to the rising demand for automating company tasks, which has resulted in significant market share increase. Regional companies are increasingly investing in R&D to improve ERP systems. Asia Pacific is expected to grow at the fastest rate due to the ongoing evolution of industrial verticals such as manufacturing, BFSI, and transportation and logistics. Market expansion is attributed to technical improvements and the development of regional manufacturing companies, resulting in high ERP adoption rates across various sectors.

 Source: Fatpos Global

Impact of Covid-19 on ERP Software Market

The Covid-19 pandemic had a major impact on the ERP software market. During the epidemic, the use of digital transformation methods, such as remote work and cloud-based services, gained popularity. Several small and medium-sized enterprises used ERP tools and services to automate their business operations. Additionally, the increasing digitization and government measures promoted the use of digital technology applications. The need for enterprise resource planning solutions has expanded as a result of the greater adoption of digital technology platforms during the Covid-19 pandemic.

ERP Software Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

ERP Software Market Scope and Segments:

Frequently Asked Questions (FAQ):