The ERP Software Market size was USD 44.75 billion in 2022. Covid-19's impacts have been unprecedented and staggering on a global scale, with the pandemic leading to positive demand shocks for the ERP software market across all domains and regions. Between 2023 and 2031, the market is projected to grow at a CAGR of 6.7%, from USD 46.85 Billion in 2023 to USD 71.90 Billion in 2031. The sudden rise in CAGR is attributed to this market growth returning to the pre-pandemic level once the pandemic is over according to a new report by IMIR Market Research.
The ERP (Enterprise Resource Planning) software market refers to the industry that involves the development, sale, and implementation of software systems designed to help businesses manage and integrate their core operations and processes. ERP software is a suite of integrated applications that enable organizations to automate and streamline various functions, such as finance, human resources, manufacturing, supply chain management, customer relationship management, and more.
The scope of the ERP software market is broad and encompasses businesses of all sizes and across various industries. ERP systems are commonly used in industries such as manufacturing, retail, distribution, healthcare, finance, and services. These software solutions provide a centralized platform that facilitates the flow of information and enables efficient decision-making by providing real-time insights into the organization's operations.
- Enterprise resource planning software analyses unstructured and structured databases to visualise and deliver insights based on correlation, hidden patterns, changing market trends, and other factors. For example, in July 2022, IFS announced IFS Assist 11.5, an automated cloud solution to assist businesses with database configuration management and general administration of IT infrastructure.
Scope of ERP Software Market Report:
A recent market research report added to repository of Intellectual Market Insights Research is an in-depth analysis of Global ERP Software Market. On the basis of historic growth analysis and current scenario of ERP Software market place, the report intends to offer actionable insights on global market growth projections. Authenticated data presented in report is based on findings of extensive primary and secondary research. Insights drawn from data serve as excellent tools that facilitate deeper understanding of multiple aspects of global ERP Software market. This further helps users with their developmental strategy.
This report examines all the key factors influencing growth of global ERP Software market, including demand-supply scenario, pricing structure, profit margins, production and value chain analysis. Regional assessment of global ERP Software market unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling enables users to evaluate company shares analysis, emerging product lines, pricing strategies, innovation possibilities and much more.
The report covers the all the aspects of industry with dedicated study of key players that includes market leaders, followers and new entrants by region. PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors by region on the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give clear futuristic view of the industry to the decision makers.
Growing Need for Enterprises to Improve Operational Efficiency and Streamline Business Processes to Drive Growth.
The requirement for transparency and operational effectiveness in company processes has compelled multinational corporations to embrace a variety of business models. Technological advancements reduce the complexity of Enterprise Resource Planning software systems and enable third-party apps to more efficiently handle company procedures. According to PwC's 22nd Annual Global CEO Survey, 80% of all CEOs feel that product commercialisation will have a substantial impact on their organisations and business models in the next years.
Companies throughout the world are focusing on improving their business processes in order to boost operational productivity while keeping expenses under control. Organisations are looking for a unified solution to handle a variety of company processes, such as sales and marketing, procurement, and supply chain management. The integration of ERP software has simplified and improved business operations. Manual data entry is no longer required, allowing businesses to view all data on a single, consistent platform. This cloud-based software has the potential to make complex procedures, such as a multi-step manufacturing plan, simple and painless.
Rising Adoption of Advanced Technologies such as Artificial Intelligence (AI), Machine Learning, and Cloud Computing to be a Major Market Trend Setter
The increasing usage of AI-based and cloud-based Enterprise Resource Planning software, as well as the increased investment by market leaders in these technologies for automating business operations, will drive market expansion. According to the Accenture estimate, by 2020, over 63.0% of firms will be using cognitive technologies such as AI, blockchain, and cloud-based solutions to automate their businesses.
Major market participants invest in modern software technologies such as artificial intelligence (AI), cloud computing, machine learning, and others. For example, Focus Softnet, a provider of enterprise applications and software development, will debut the next-generation Focus X ERP solution in October 2021. For businesses, this solution is available on mobile and laptop computers. Focus X is designed with artificial intelligence and machine learning-driven applications for predictive analysis and forecasting in enterprises.
The variables listed above are some of the ERP software market trends.
Market Restraining Factors:
ERP Adoption Will Be Limited Due to Integration Issues with On-premises Deployment Models
Organisations are gradually integrating cloud enterprise resource planning tools and services. However, companies continue to encounter significant integration challenges.
Due to implementation costs and system complexity, these solutions cannot be implemented with their existing systems. To be effective, existing legacy systems must be tightly integrated with the new cloud-based ERP. Due to a lack of resources, a few businesses continue to rely on their current systems, which are based on obsolete technology. They include manual methods, which result in a longer turnaround time and a higher risk of error.
ERP Software Market Players Analysis:
- SAP SE
- Oracle Corporation
- Microsoft Corporation
- Epicor Software Corporation
- Sage Group plc
- IBM Corporation
- NetSuite Inc. (owned by Oracle)
- Plex Systems
- Workday, Inc.
- QAD Inc.
- IFS AB
ERP Software Market Players & Competitor Analysis:
The report covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price and Gross Margin 2023-2031 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.
Key Industry Developments:
- In July,2022, Alleaves was awarded USD 40 million in series A funding. Alleaves is an ERP software for cannabis firms in the United States. This cash will aid in the expansion of several states in the United States, as well as the ongoing development of their platform.
- In July ,2022, As part of its growth into the Enterprise asset management market, IFS purchased Ultimo Software Solutions. The acquisition is part of the company's ambition to expand into the midmarket category of EAM softwares. IFS has a long and illustrious history in asset management. It provides end-to-end industry-specific EAM software solutions to businesses with complex needs who wish to track the effectiveness of their assets from start to finish (cradle to grave).
ERP Software Market Segmentation Analysis:
The market scope is segmented on the basis by component, by deployment model, by enterprise size, by business function, by industry vertical, by region
By Component Analysis:
- "Software: ERP software solutions form the core component of the market. These software systems are designed to integrate and automate various business processes, including finance, human resources, supply chain management, manufacturing, and customer relationship management. The ERP software segment includes a wide range of applications and modules that cater to specific functionalities and industry requirements. Leading ERP software vendors offer robust and feature-rich solutions that enable organizations to streamline their operations, enhance productivity, and gain better visibility into their business processes.
- Services: Alongside software, the ERP market also comprises a significant component of services. These services encompass a range of activities aimed at supporting the implementation, customization, integration, training, and ongoing maintenance of ERP systems. Service offerings may include consultancy, system integration, data migration, software customization, project management, training and support, and managed services. ERP service providers work closely with organizations to ensure smooth deployment, optimal configuration, and efficient utilization of ERP software to meet specific business needs.
By Deployment Model Analysis:
- On-premise: On-premise deployment involves installing and hosting the ERP software locally on the organization's own servers or data centers. The organization is responsible for managing and maintaining the software infrastructure, including hardware, software updates, security, and backups. On-premise deployments offer greater control and customization options but require significant upfront investments in infrastructure and IT resources.
- Cloud: Cloud deployment involves hosting the ERP software on remote servers managed by a third-party cloud service provider. Users can access the software through the internet, eliminating the need for on-site infrastructure. Cloud-based ERP solutions offer scalability, flexibility, and ease of access from anywhere, as well as automatic software updates and maintenance by the service provider. This model is often subscription-based, allowing organizations to pay for usage on an ongoing basis.
- Hybrid: Hybrid deployment combines elements of both on-premise and cloud models. In a hybrid deployment, organizations use a combination of on-premise and cloud-based ERP solutions, integrating them to meet their specific requirements. This allows organizations to leverage the benefits of both models, such as keeping sensitive data on-premise while utilizing cloud capabilities for scalability, remote access, or specific functions.
By Business Function Analysis:
- "Large Enterprises: This segment includes organizations with a significant scale of operations, typically having a large workforce and complex business processes. Large enterprises often have diverse departments and require robust ERP solutions to manage their operations across various functions. ERP software designed for large enterprises usually offers extensive scalability, advanced features, and the ability to handle high data volumes and complex workflows.
- Medium Enterprises: Medium enterprises are organizations that fall between small and large enterprises in terms of size and operational complexity. They have a moderate scale of operations and require ERP software solutions that can streamline their business processes, improve efficiency, and support growth. ERP software for medium enterprises is often designed to be flexible, cost-effective, and customizable to fit the specific needs of these organizations.
- Small Enterprises: Small enterprises are typically characterized by a smaller workforce, simpler organizational structures, and limited resources. ERP software for small enterprises aims to provide affordable and user-friendly solutions that can automate core processes, enhance productivity, and provide better visibility into operations. These solutions may have scaled-down features and functionality to meet the specific requirements and budget constraints of small businesses.
By Business Function Analysis:
- Finance: ERP software provides financial management functionalities, including accounting, budgeting, financial planning, financial reporting, and financial analysis. It helps organizations streamline financial processes, track financial transactions, and manage financial resources effectively.
- Human Resource (HR): ERP software includes modules for managing human resource functions such as employee data management, payroll processing, benefits administration, recruitment, performance management, training and development, and workforce planning. It assists organizations in optimizing HR processes, tracking employee information, and enhancing workforce management.
- Supply Chain: ERP software offers supply chain management functionalities, including procurement, inventory management, demand forecasting, order management, logistics, and supplier relationship management. It helps organizations optimize supply chain operations, improve inventory control, and enhance overall efficiency and collaboration in the supply chain.
- Customer Management: ERP software often includes customer relationship management (CRM) modules, which enable organizations to manage and track customer interactions, sales pipelines, marketing campaigns, and customer support activities. It helps organizations enhance customer satisfaction, improve sales effectiveness, and streamline customer-related processes.
- Inventory Management: ERP software provides inventory management capabilities, including inventory tracking, stock control, warehouse management, and demand planning. It helps organizations optimizeinventory levels, reduce carrying costs, and improve inventory accuracy.
- Manufacturing Module: ERP software includes modules dedicated to manufacturing processes, such as production planning, scheduling, shop floor control, quality management, and product lifecycle management. It assists organizations in managing manufacturing operations, optimizing production processes, and ensuring quality control.
- Others: ERP software may also offer modules or functionalities specific to other business functions such as project management, service management, asset management, marketing automation, and business intelligence and reporting.
Report Scope and Segmentations:
Estimated Forecast Year
CAGR of 6.7% from 2023 to 2031
By Component, By Deployment Model, By Enterprise Size, By Business Function, By Industry Vertical, By region.
By Deployment Model
By Enterprise Size
- Large Enterprises
- Medium Enterprises
- Small Enterprises
By Business Function
- Human Resource (HR)
- Supply Chain
- Customer Management
- Inventory Management
- Manufacturing Module
By Industry Vertical
- Retail & Distribution
- Government & Utilities
- IT & Telecom
- Aerospace & Defense
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
- Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
- LAMEA (Latin America, Middle East, Africa)
Global ERP Software Market Regional Analysis:
North America has traditionally been a significant market for ERP software. The region is characterized by a high adoption rate of technology across industries. Key factors driving the market include the presence of large enterprises, advanced IT infrastructure, and a focus on process automation and optimization. The United States and Canada are the major contributors to the ERP software market in this region.
Europe is another prominent market for ERP software. Countries such as Germany, the United Kingdom, France, and Italy are key players in the region. The market is driven by the presence of diverse industries, including manufacturing, automotive, healthcare, and retail. Additionally, regulatory compliance requirements and a focus on operational efficiency contribute to the adoption of ERP solutions in the region.
The Asia Pacific region is witnessing significant growth in the ERP software market. Rapid industrialization, expanding manufacturing sectors, and the increasing adoption of digital technologies in countries like China, India, Japan, and South Korea are driving market growth. Small and medium-sized enterprises (SMEs) are also embracing ERP solutions to enhance their operational efficiency and competitiveness.
Latin America is an emerging market for ERP software, with countries like Brazil, Mexico, and Argentina leading the way. The region's market growth is propelled by the modernization of business processes, increasing investments in infrastructure, and a rising emphasis on improving productivity and supply chain management.
Middle East and Africa
The Middle East and Africa region exhibit a growing demand for ERP software, driven by the expansion of industries such as manufacturing, construction, and oil and gas. Countries like the United Arab Emirates, Saudi Arabia, and South Africa are witnessing increased adoption of ERP solutions to streamline operations, improve decision-making, and enhance customer experience.
ERP Software Market Report is also available for below Regions and Country Please Ask for that
- Rest of Europe
- South Korea
- Rest Of APAC
- Rest of South America
Middle East and Africa
- Saudi Arabia
- South Africa
- Rest Of MEA
Points Covered in the Report:
The report will cover the qualitative and quantitative data on the global ERP software market . The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country and segments according to your requirements. We can also provide customize report in every industry vertical.
The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.
Key Reasons to Purchase:
To gain insightful analyses of the ERP Software market and have comprehensive understanding of the global market and its commercial landscape.
Assess the production processes, major issues, and solutions to mitigate the development risk.
To understand the most affecting driving and restraining forces in the market and its impact in the global market.
Learn about the ERP Software market strategies that are being adopted by leading respective organizations.
To understand the future outlook and prospects for the ERP Software market. Besides the standard structure reports, we also provide custom research according to specific requirements.
Research Scope of ERP Software Market:
- Historic year: 2018- 2021
- Base year: 2022
- Forecast: 2023 to 2031
- Representation of Market revenue in USD Million
ERP Software Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: