The latest report by IMARC Group, titled “Enterprise Resource Planning (ERP) Market Report by Component (Solutions, Services), Business Segment (Sales and Marketing, Finance and Accounting, Order Management, and Others), Deployment Type (On-premises, Cloud-based), Organization Size (Large Organizations, Small and Medium-Sized Organizations), Vertical (BFSI, Manufacturing, Healthcare, Education, Government, Automotive, and Others), and Region 2024-2032”, offers a comprehensive analysis of the industry, which comprises insights on the ERP market share.
How big is the ERP market?
The global enterprise resource planning (ERP) market size reached US$ 50.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 101.0 Billion by 2032, exhibiting a growth rate (CAGR) of 7.9% during 2024-2032.
Top 11 Enterprise Resource Planning (ERP) Companies:
- Epicor Software Corporation (KKR & Co. Inc.)
- International Business Machines Corporation
- Kronos Incorporated (Hellman & Friedman LLC)
- Microsoft Corporation
- Oracle Corporation
- SAP SE
- The Sage Group Plc
- TOTVS S.A
- Unit4 (Advent International)
- Workday Inc.
- Yonyou Network Technology Co. Ltd.
Factors Affecting the Growth of the Enterprise Resource Planning (ERP) Industry:
- Popularity of Subscription-Based Pricing Models:
The shift toward subscription-based pricing models by ERP vendors is transforming the accessibility and scalability of ERP solutions. It also offers organizations the flexibility to access sophisticated ERP capabilities without the substantial upfront costs associated with traditional perpetual licensing. Moreover, subscription pricing aligns with the evolving business environments, enabling organizations to scale their ERP solutions up or down based on current requirements, thereby ensuring cost-effectiveness and agility. It also allows businesses, especially small and medium-sized enterprises (SMEs), to use advanced ERP functionalities that were previously financially out of reach, promoting broader adoption across various industries.
- Growing Focus on User Experience (UX):
Enhancing user experience (UX) has become a critical focus area for ERP vendors, recognizing that user-friendly systems drive wider adoption rates, increase productivity, and reduce the learning curve for end-users. Moreover, modern ERP solutions are designed with intuitive interfaces, role-based access, and personalized dashboards that cater to the specific needs and preferences of various users, from frontline employees to top executives, thus representing another major growth-inducing factor. Also, improving UX involves streamlining navigation, simplifying complex processes, and providing real-time data visualization, which collectively enhances decision-making and operational efficiency. Currently, ERP vendors aim to deliver systems that meet the functional requirements of businesses and provide an engaging and satisfying experience for users by prioritizing UX, thus contributing to market growth.
- Growing Preference for Industry-Specific Solutions:
The evolution of ERP systems has seen a significant shift toward the development of industry-specific solutions, as vendors recognize the necessity for tailored software that aligns closely with the unique operational requirements and challenges of various sectors. For instance, the manufacturing industry is using ERP systems to support complex product lifecycle management, supply chain logistics, and real-time inventory management, integrating seamlessly with shop floor control and quality assurance processes, thus contributing to market growth. Moreover, the widespread use of ERP solutions in the healthcare sector focuses on patient-centric workflows, compliance with healthcare regulations, data security for patient information, and integration with medical billing and electronic health records, representing another major growth-inducing factor. Besides this, the retail-oriented ERP systems emphasize point-of-sale integrations, e-commerce, customer relationship management, and omnichannel retailing, providing retailers with the tools to manage their operations efficiently while enhancing customer satisfaction, thus creating a positive market outlook.
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Enterprise Resource Planning (ERP) Market Report Segmentation:
By Component:
- Solutions
- Services
Based on the components, the market has been bifurcated into solutions and services.
By Business Segment:
- Sales and Marketing
- Finance and Accounting
- Order Management
- Others
Finance and accounting hold the largest market share due to the critical role these functions play in organizational operations and the high demand for comprehensive financial management solutions.
By Deployment Type:
- On-premises
- Cloud-based
On-premises dominates the market share as many enterprises, particularly in highly regulated industries, prioritize data control and security, often preferring on-premises solutions over cloud-based alternatives.
By Organization Size:
- Large Organizations
- Small and Medium-Sized Organizations
Large organizations represent the leading market segment, as they have complex operations that require improved ERP solutions to manage their vast resources and processes effectively.
By Vertical:
- BFSI
- Manufacturing
- Healthcare
- Education
- Government
- Automotive
- Others
Manufacturing holds the leading market segment, as ERP systems are essential for managing production, supply chain, inventory, and other critical aspects of manufacturing operations.
Regional Insight:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America’s dominance in the enterprise resource planning (ERP) market is attributed to its growing IT infrastructure, widespread adoption of advanced technologies, and the presence of many large enterprises requiring sophisticated ERP solutions.
Global Enterprise Resource Planning (ERP) Market Trends:
At present, the shift toward cloud-based ERP solutions due to benefits such as scalability, flexibility, and cost-effectiveness is contributing to the market growth. In addition, ERP vendors are developing industry-specific solutions tailored to the needs of sectors such as manufacturing, healthcare, retail, and finance. This customization allows for more efficient processes and better integration with industry-specific systems. Moreover, AI and machine learning are integrated into ERP systems to enhance automation, predictive analytics, and decision-making capabilities which helps in areas such as demand forecasting, inventory management, and customer service optimization. Besides this, mobile ERP applications allow users to access data and perform tasks from anywhere, improving productivity and decision-making on the go across the globe.
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