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Enterprise Resource Planning (ERP) Software Market Size, Share & COVID-19 Impact Analysis, By Enterprise Type (Small & Medium Enterprises (SMEs) and Large Enterprises), By Deployment (Cloud & Hybrid and On-premise), By Business Function (Financial Management, Human Capital Management, Supply Chain Management, Customer Management, Inventory & Work Order Management & Others), By End-user (Manufacturing, BFSI, IT & Telecom, Healthcare & Life Sciences, Transportation & Logistics, Government & Others), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI102498

 

KEY MARKET INSIGHTS

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The global Enterprise Resource Planning (ERP) software market size was valued at USD 63.33 billion in 2022. The market is projected to grow from USD 71.41 billion in 2023 to USD 187.79 billion by 2030, exhibiting a CAGR of 14.8% during the forecast period.


In the scope of work, the report includes Enterprise Resource Planning software solutions provided by key players such as Oracle Corporation, IBM Corporation, SAP SE, Workday, Inc., and Microsoft Corporation.


Enterprise Resource Planning software studies the unstructured and structured database to visualize and provide insights based on correlation, hidden patterns, and the market’s changing trends, and more. For instance,



  • In July 2022, IFS introduced IFS Assist 11.5, an automated cloud solution, to aid companies in configuration management databases and provide overall control of IT infrastructure.


COVID-19 IMPACT


Rising Adoption of Digital Transformation Strategies amid COVID-19 Pandemic to Strengthen Market Growth


Several small & medium-scale organizations implemented digital strategies to automate their business processes. For instance, in the second quarter of 2020, MacKay & Sposito, a civil engineering firm, faced difficulties in measuring the projects and its business operations. Hence, the company implemented an ERP system that increased its cash flows and profitability by managing several operations, including its finance, projects, and material management.


In addition, the increasing digitalization of businesses and rising government favorable policies for digital technology software implementation propelled market growth. For instance,



  • According to industry experts, the global digital transformation investment reached USD 1.5 trillion owing to a surge in investments by SMEs and large-scale organizations.


This increase in the adoption of digital technology platforms and government initiatives for digitalization amid the COVID-19 pandemic had slightly increased the demand for Enterprise Resource Planning software solutions.


LATEST TRENDS


Rising Adoption of Advanced Technologies such as Artificial Intelligence (AI), Machine Learning, and Cloud Computing is a Key Trend Setter for the Market


The rising adoption of AI-based and cloud-based Enterprise Resource Planning software enhances the growth of enterprises and organizations. Implementing artificial intelligence and machine learning in ERP helps businesses automate repetitive tasks, deliver better user experience, cater to superior customer service, and many other benefits. The surge in investments by the leading players to adopt such technologies for automating business processes would boost market progress.


Major players in the market invest in advanced software technologies such as AI, cloud computing, machine learning, and others. For instance,



  • October 2021: Focus Softnet, an enterprise applications and software development provider, launched the next-generation Focus X ERP solution. This solution is available on mobile and laptop devices for enterprises. Focus X is built with artificial intelligence and machine learning-driven applications for businesses' predictive analysis and forecasting.


The above factors are considered some of the ERP software market trends.


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DRIVING FACTORS


Growing Need to Improve Operational Efficiency and Streamline Business Processes among Enterprises to Drive Market Growth


The need for transparency and operational efficiency in business processes has forced companies operating globally to adopt various business models. Advancements in technology minimize the complexity of ERP software systems and allow third-party apps to maintain corporate processes more efficiently. For instance,



  • According to the survey conducted by PwC, 80% of all CEOs believe that product commercialization will significantly influence their organizations and business models in the following years.


Worldwide, companies are focused on enhancing their business processes to increase operational productivity while keeping track of running costs. Organizations are looking for an integrated solution to handle various business operations, including sales and marketing, procurement, and supply chain management. The integration of ERP software has simplified business operations, making them more efficient. Manual data entry is no longer necessary, allowing companies to see all the data on a single, uniform platform. This cloud-based software may make complex procedures, such as a multi-step production plan, easy and painless.


RESTRAINING FACTORS


Integration Issues with On-premises Deployment Models to Limit ERP Adoption


Organizations have progressively started to integrate cloud Enterprise Resource Planning software and services. However, companies still face substantial problems integrating these solutions with their existing systems due to implementation costs and system complexity. Existing legacy systems must be strongly linked with the new cloud-based ERP to be executed successfully. Due to lack of resources, a few companies continue to depend on their present systems, which are based on outdated technology. They include manual procedures that result in a longer turnaround time and a high possibility of mistakes.


SEGMENTATION


By Enterprise Type Analysis


Rising Demand for Resource Planning for Business Expansion by Large Enterprises Boosts Market Growth


Based on enterprise type, the market is segmented into Small & Medium Size Enterprise (SME) and large enterprises. 


The large enterprises segment captured the maximum market share. Factors such as increased operational efficiency, reduced production costs, and the central collection of data for wide distribution are expected to augment the demand for the product among large enterprises over the forecast period. For instance, SYSPRO software helps large enterprises manage global operations and multiple subsidiaries with scalable tools. Besides this, compliance with strict government rules has prompted product adoption in several industries, improving efficiency and minimizing operational complexities.


Further, the SME segment is expected to rise with the highest CAGR during the forecast period. Cloud ERPs are introduced to help SMEs simplify business processes along with cost benefits to remain competitive in the market. Also, expanding SMEs requires proper database management, which is expected to surge in demand. For instance,



  • As per industry experts, 92% of midsize enterprises are experiencing noteworthy revenue and market growth and have either implemented or planned to implement ERP software.


By Deployment Analysis


Increased Demand for Cloud & Hybrid ERP Software with Enhanced Data Storage Will Drive Market Growth


Based on deployment, the market is segmented into cloud & hybrid and on-premise. 


The cloud & hybrid segment is expected to account for the largest market share during the forecast period. Low infrastructure costs and the ability to integrate with mobile and tablet devices are projected to increase the global market share of the cloud segment over the forecast period. Cloud solutions enable businesses to store data over the internet and provide tools to restore data in the event of any data loss or breach. Hybrid helps to increase the availability of big data through cloud computing, rising demand for better end-user experiences, and significant players investing in hybrid ERP solutions. For instance,



  • February 2022: SAP SE and IBM Corporation partnered to shift their ERP software to the cloud. With this partnership, IBM offered SAP consumers with access to SAP S/4HANA on the IBM cloud. SAP S/4HANA is a widely-used ERP solution for many organizations.


By Business Function Analysis


Use of ERP Solutions to Automate Business Processes and Strengthen Financial Transactions in inventory & Work management to Drive Market Growth


Based on business function, the market is segmented into financial management, human capital management, supply chain management, customer management, inventory & work order management, and others.


The inventory & work order management segment is expected to grow at the highest CAGR over the forecast period. The global Enterprise Resource Planning software market growth is mainly attributed to the increasing demand for these software to prioritize and coordinate work orders accurately and efficiently. Companies can manage the process of identifying and executing scheduled and urgent maintenance activities throughout an organization using an interactive work order management function from an ERP application.


The financial management segment accounts for the maximum revenue in the global market and is expected to maintain its dominance over the forecast period. The segment focuses on financial management features offered in the software. For example, financial management features from SAP SE’s suite offer streamlined financial processes, planning, budgeting, and forecasting capabilities, among others. Financial services companies now rely entirely on new, scalable systems to guarantee compliance with government data, operations, and accountability regulations.


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By End-user Analysis


IT & Telecom Segment to Lead Due to Rising Popularity of ERP Technology to Increase Operational Efficiency


Based on end-user, the market is segmented into manufacturing, BFSI, IT & telecom, retail & consumer goods, healthcare & life sciences, transportation & logistics, government, and others (aerospace & defense).


IT & telecom is expected to grow with the highest CAGR during the forecast period. It helps to streamline back-end office operations with incorporation over a single platform. It also helps to improve communication across various channels and helps managers get a 360-degree view of the process. Hence, the increasing adoption of ERP software in IT and telecom is expected to enhance the market growth.


Moreover, the manufacturing segment controlled a sizable portion of the global market. These solutions for manufacturing companies aim to use advanced features and functionality to optimize all facets of the manufacturing process, from sourcing and acquisition to development, storage, quality testing, and distribution. Therefore, such a solution for production can improve efficiency, reduce costs, and increase sales and profits.


REGIONAL INSIGHTS


Geographically, the market is segmented across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.


North America Enterprise Resource Planning (ERP) Software Market Size, 2022 (USD Billion)

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North America captured the largest market share due to the rising need to automate business functionalities through digital methods, boosting the North American market growth. In addition, key regional players invest in research and development activities to develop enhanced ERP solutions. In addition, various technological investments with emerging technologies enhance the product offerings in the region’s market. For instance,



  • October 2022: SYSPRO ERP announced a partnership with SugarCRM to provide an all-inclusive product line for streamlining operations and enhancing revenue growth. The partnership incorporated ERP and CRM solutions for mid-market distributors and manufacturers.


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Asia Pacific is expected to grow with the highest CAGR during the forecast period. This region's growth is mainly due to continually evolving industry verticals, including manufacturing, BFSI, and transportation & logistics. For instance,



  • January 2023: RIPL, in collaboration with ORGNN Technologies Pvt. Ltd., announced the launch of FashionHub cloud ERP software in the Indian market. FusionHub Cloud ERP is a comprehensive business management software designed to assist enterprises in the engineering, architecture, and construction industries in handling various business functions such as project management and human resources.


The market growth in Europe is mainly driven by rising technological advancements and the development of regional manufacturing companies. In addition, the organizational and enterprise initiatives for digital transformation across various sectors contribute to the growth of the market in the region. For instance,



  • According to the European Commission, in 2021, 33% of small businesses and 81% of large enterprises implemented enterprise resource planning software tools.


Various factors, such as the penetration of new industries and the development of the economy in the Middle East & Africa and South America, led to the Enterprise Resource Planning software market share in 2021. Furthermore, due to the low cost of deployment and maintenance, firms in this region are migrating from on-premise to cloud-based software.


KEY INDUSTRY PLAYERS


Strategic Acquisition by Leading Players to Boost Market Expansion of Key Players


The key players are offering ERP software across all business segments. Major market players extend the scope to create novel solutions, upgrade their tools and technology, and strengthen their technological capabilities. Also, through collaborations, companies are gaining expertise and expanding their business by reaching a larger customer base. The key players focus on market share expansion and customer reach through strategic acquisitions.


LIST OF KEY COMPANIES PROFILED:



  • Oracle Corporation (U.S.)

  • IBM Corporation (U.S.)

  • SAP SE (Germany)

  • Workday, Inc. (U.S.)

  • Microsoft Corporation (U.S.)

  • Sage Group plc (U.K.)

  • Infor (U.S.)

  • Deltek (U.S.)

  • Acumatica, Inc. (U.S.)

  • Epicor (U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • September 2023: SAP Africa extended their alliance with Microsoft to provide RISE with SAP to clientele across several global markets, along with Africa. It is a complete solution of ERP software and result-driven services intended to aid enterprises in transforming the core SAP ERP to the cloud, leveraging the cloud hosting abilities of hyper-scalers such as Microsoft.

  • May 2023: SAP, in partnership with IBM, extended its ERP offerings by incorporating IBM Watson AI smarts with ERP. IBM Watson integrated with various offerings, comprising its digital assistant SAP Start, which serves as a combined entry point within its cloud-based software.

  • March 2023: SAP introduced new cloud ERP offerings for midsize enterprises. The new offering is specifically designed for midsize firms to allow them to enjoy the all-inclusive benefits of cloud ERP. The GROW with SAP offers features, tools, and services to simplify delivery at a fixed rate and assures customers of faster time to value their requirements.

  • March 2023: Microsoft introduced Microsoft Dynamics 365, the copilot that comprises both ERP and CRM and offered AI-powered, interactive assistance across various business functions. With Dynamics 365 Copilot, enterprises can empower their employees with AI tools developed for sales, marketing, service, operations, and supply chain responsibilities.

  • July 2022: Infor collaborated with Syntellis, a supplier of enterprise resource solutions, to assist healthcare consumers in accessing Syntellis Axiom Healthcare Suite. This suite offered EPM tools with data-driven insights for enhancing the company’s operations.


REPORT COVERAGE


The research report includes prominent areas across the globe to get a better knowledge of the market. Furthermore, it provides insights into the most recent industry and market trends, as well as an analysis of technologies that are being adopted quickly on a global scale. It also emphasizes some of the restrictions, allowing the reader to obtain a thorough understanding of the market.


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REPORT SCOPE & SEGMENTATION










































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 14.8% from 2023 to 2030



Unit



Value (USD Billion)


Segmentation

By Enterprise Type



  • Small & Medium Enterprises (SMEs)

  • Large Enterprises


By Deployment



  • Cloud & Hybrid

  • On-premise


By Business Function



  • Financial Management

  • Human Capital Management

  • Supply Chain Management

  • Customer Management

  • Inventory & Work Order Management

  • Others (Sourcing & Procurement)


By End-user



  • Manufacturing

  • BFSI

  • IT & Telecom

  • Retail & Consumer Goods

  • Healthcare & Life Sciences

  • Transportation & Logistics

  • Government

  • Others (Aerospace & Defense)


By Region



  • North America (By Enterprise Type, Deployment, Business Function, End-user, and Country)

    • U.S. (By Business Function)

    • Canada (By Business Function)

    • Mexico (By Business Function)



  • Europe (By Enterprise Type, Deployment, Business Function, End-user, and Country)

    • Germany (By Business Function)

    • U.K. (By Business Function)

    • Russia (By Business Function)

    • France (By Business Function)

    • Italy (By Business Function)

    • Spain (By Business Function)

    • Benelux (By Business Function)

    • Nordics (By Business Function)

    • Rest of Europe





  • Asia Pacific (By Enterprise Type, Deployment, Business Function, End-user, and Country)





    • China (By Business Function)

    • India (By Business Function)

    • Japan (By Business Function)

    • South Korea (By Business Function)

    • ASEAN (By Business Function)

    • Oceania (By Business Function)

    • Rest of Asia Pacific



  • Middle East & Africa (By Enterprise Type, Deployment, Business Function, End-user, and Country)

    • Turkey (By Business Function)

    • Israel (By Business Function)

    • GCC (By Business Function)

    • North Africa (By Business Function)

    • South Africa (By Business Function)

    • Rest of the Middle East & Africa



  • South America (By Enterprise Type, Deployment, Business Function, End-user, and Country)

    • Brazil (By Business Function)

    • Argentina (By Business Function)

    • Rest of South America





Frequently Asked Questions

The market is projected to reach USD 187.79 billion by 2030.

The market is projected to grow at a CAGR of 14.8% in the forecast period (2023-2030).

The cloud segment is likely to lead the market.

Sage, Oracle Corporation, Workday, Inc., Infor, and Deltek are the markets top players.

North America is expected to hold the highest market share.

Asia Pacific is expected to grow with the highest CAGR.

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