ERP Software Market size was estimated at USD 44.7 billion in 2021 and is expected to reach USD 93.1 billion by 2029, expanding at a CAGR of 9.6% over the forecast period 2022-2029.
Key ERP Software Market Drivers
Primary factors driving global ERP software market are increasing adoption of advanced IT technologies, growing need for more transparency in different business processes and rising demand for solutions which can facilitate data-based decisions. In addition, number of stat-ups in developing and developed countries are increasing rapidly, as the business activities continues to grow. As per recent estimates, on June 30th, 2022, number of start-ups in India reached around 72,993. ERP solutions are gaining traction amongst start-ups as they have limited budgets and ERP software can help them to reduce their inventory cost by 25-30% and raw material cost by 15%. Growing focus of companies on automating their supply chain processes and increasing adoption of cloud based solutions, are expected to have positive impact on the ERP software market. Enterprises are increasing their spending on cloud-connected mobile applications because it allows synchronization provides control of documents to individual users, which will positively impact the ERP market in coming years. However, increasing availability of open-source applications and high maintenance costs, are restraining the growth of ERP software market.
Based on Deployment Model, Cloud segment is expected to hold a major share in the ERP Software Market.
Cloud-ERP software gaining popularity amongst enterprises as it minimizes third-party dependencies, increases collaboration within organization and offers more security to resources. In addition, low-infrastructure cost of cloud-ERP software and surge in adoption of connected devices for managing different business activities, are propelling the demand for cloud based solutions.
Finance segment is projected to dominate the market due to growing demand for efficiency in business processes.
ERP software are used for managing different business functions such as inventory management, supply chain management, human resource and Finance. In the Finance department ERP software finds it application primarily in cash flow management, accounting and managing investments. Furthermore, various banks worldwide are adopting advanced technologies like Artificial Intelligence and Blockchain to improve their operational efficiency. As the adoption of these technologies, role of ERP software will become more critical in the banking domain. In the manufacturing industry, ERP software are used for monitoring daily operations and easing production schedules.
Large Enterprises segment is estimated to hold the largest market share.
Large enterprises use ERP software in different processes such as order fulfilment and inventory management. Large enterprise software companies are spending more on latest technologies like cloud computing and Artificial intelligence, which is creating more demand for ERP software amongst these enterprises. Moreover, Small sized companies are using cloud-based ERP software for increasing their operational efficiency, meeting regulatory compliance and reducing production cost.
Based on Region, North American region is forecast to capture the largest market share.
North American region is home to various leading vendors such as IBM Corporation, Oracle Corporation and Microsoft. Companies in the North America are increasing investing in ERP software to streamline their business processes coupled with rising use of ERP software with mobile application, are driving the market growth in the region.
Top 10 ERP companies
Some of the leading ERP companies are Workday, Inc., Sage Group Plc, SYSPRO, Microsoft, Oracle Corporation, SAP SE, IBM Corporation, TOTVS S.A, Infor and Epicor Software Corporation, among others.
- In October 2022, Oracle, a global leader in computer technology based out of United States, announced the launch of its new B2B services, which is designed to help companies for automating B2B transactions and introducing new products.
- In August 2021, Sage Software introduced Sage X3 R 2021 in the Indian Market. This product is cost-effective and designed to help companies to bring business functions under one enterprise-grade business management solution.
Segmentation by Deployment Model
Segmentation by Component
Segmentation by Business Function
o Supply Chain
o Human Resource
o Inventory Management
o Customer Management
o Manufacturing Module
Segmentation by Enterprise Size
o Small & Medium Enterprises
o Large Enterprises
Segmentation by Industry
o Government & Utilities
o Retail & Distribution
o Aerospace & Defense
o IT & Telecom
Segmentation by Region
• Asia Pacific
o Rest of APAC
• North America
o United States of America
o United Kingdom
o Rest of Europe
o South Africa
o Saudi Arabia
About GMI Research
GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and business decisions.
Media Contact Company Name: GMI RESEARCH Contact Person: Sarah Nash Email: [email protected] Phone: Europe – +353 1 442 8820; US – +1 860 881 2270 Address: Dublin, Ireland Website: https://www.gmiresearch.com/