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A00517 | Pages: 499 | Charts: 63 | Tables: 258 |
The global ERP market size was valued at $16.3 billion in 2023, and is projected to reach $40.6 billion by 2033, growing at a CAGR of 9.4% from 2024 to 2033. Enterprise resource planning (ERP) is a modular software system primarily designed to integrate the main functional areas of an organization's business processes into a unified system. An ERP system includes core software components, often called modules, which focus on essential business areas such as finance and accounting, human resource (HR), production and materials management, customer relationship management (CRM), supply chain management, and others. ERP software enables efficient resource management and integration of organizational activities and its implementation enhances the operational efficiency, thus providing competitive edge to enterprises.
By component, the software segment held the largest ERP market share in 2023.
By deployment mode, the on-premises segment held the largest share in the enterprise resource planning (ERP) market for 2023.
By end user, the large enterprise segment held the largest share in the enterprise resource planning (ERP) market for 2023.
By business function, the finance segment held the largest share in the enterprise resource planning (ERP) market for 2023
By industry vertical, the manufacturing segment held the largest share in the enterprise resource planning (ERP) market for 2023
Region-wise, North America held largest market share in 2023. However, LAMEA is expected to witness the highest CAGR during the ERP market forecast period.
Factors such as increase in need for operational efficiency and transparency in business processes and rise in demand for data-driven decision-making are expected to fuel the ERP market growth. In addition, surge in adoption of cloud as well as mobile applications is expected to drive the growth of the enterprise resource planning (ERP) market. However, availability of open-source applications and higher investment and maintenance costs are expected to hamper the growth of the enterprise resource planning (ERP) market. On the other hand, increase in demand for ERP among small & medium sized enterprises and technological advancements in enterprise resource planning software are expected to provide lucrative opportunities for the market growth in the coming years.
The enterprise resource planning (ERP) market is segmented on the basis of component, deployment model, enterprise size, business function, industry vertical, and region. On the basis of component, the market is bifurcated into software and service. By deployment model, the market is categorized into on-premise, cloud, and hybrid. As per enterprise size, it is divided into large enterprises and small and medium-sized enterprises. Depending on business function, it is classified into finance, human resource (HR), supply chain, customer management, inventory management, manufacturing module, and others. By industry vertical, it is segregated into manufacturing, BFSI, healthcare, retail & distribution, government & utilities, IT & telecom, construction, aerospace and defense, and
others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of deployment type, the on-premise segment dominated the global ERP market share in 2023 and is expected to maintain its dominance in the upcoming years, owing to enhanced data security, greater customization options, and control over infrastructure, making it a preferred choice for industries with stringent compliance requirements. However, the hybrid segment is expected to witness the highest CAGR during the forecast period, due to its flexibility, combining on-premise security with cloud accessibility, cost efficiency, and seamless scalability for growing business needs.
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By region, North America dominated the ERP market share in 2023 for the enterprise resource planning market, owing to the region's advanced IT infrastructure, high adoption of cloud-based solutions, significant presence of key market players, and increase in demand for automation. However, LAMEA is expected to exhibit the highest CAGR during the forecast period. This is attributed to increasing digital transformation initiatives, rising investments in IT infrastructure, growing adoption of cloud-based ERP solutions, and government efforts to modernize industries across the region.
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The report analyzes the profiles of key players operating in the ERP industry such as SAP SE, Infor Inc., Oracle Corporation, Microsoft Corporation, Sage Software Solutions Pvt Ltd., SYSPRO, Unit4, IFS, Workday Inc., Acumatica, Inc., QAD Inc., Deltek, Inc., Priority Software, Ramco Systems Ltd., Odoo SA, Intact (Aptech Business Systems Ltd.), Epicor Software Corporation, Tally Solutions Private Limited, Zoho Corporation and MYOB Australia Pty Ltd.. These players have adopted various strategies to increase their market penetration and strengthen their position in the enterprise resource planning market.
In October 2024, Sage acquired Anvyl to enhance supply chain technology solutions. The acquisition will allow Sage to deliver a cost-effective Supply Chain Execution (SCE) solution that provides SMBs with complete visibility across their entire supply chains
In March 2023, SYSPRO, a global provider of industry-built ERP software for manufacturers and distributors, announced new capabilities to its latest ERP release with enriched functionality for improved internal and organizational controls, a connected supply chain, deeper business intelligence and digital dexterity.
In January 2023, Unit4 launched Unit4 Marketplace, a new platform where its independent software vendor, reseller, and service partners can showcase their innovative, bespoke industry and vertical Apps that link to Unit4’s ERP solutions.
Traditionally, most of the businesses invest most of the time and effort in communicating business information and making decisions. Organizations aiming at becoming successful continuously seek for systems that will help them serve their clients and increase their profit margin. Presently, ERP systems have become strategic platforms, providing a solid foundation and information backbone for businesses among emerging countries. A fully integrated ERP system helps to capture and create accurate, consistent, and timely relevant data and assist to take better business decision. With better visibility into operations, businesses can make informed decisions, optimize processes, and reduce operational bottlenecks, which propels the ERP market size.
In addition, companies are adopting ERP systems to improve efficiency and ensure a better information integration. Organizations need to access all relevant information quickly to take a necessary business action, owing to increased competition and rapid changes in business environment. An ERP system scales and deals with the global competition while introducing efficiency and transparency in operations which is expected to propel the growth of the market.
Majority of software vendors offer ERP software for industries such as manufacturing, healthcare, telecom, retail, and aerospace & defense. The initial investment to acquire and implement an ERP system is substantial. The global ERP software vendors such as Microsoft, SAP, Oracle, and IBM Corp. charge high cost for their solutions. In addition, these software vendors charge high fees for maintenance and support function, thereby limitsing the adoption of ERP solutions. The total annual cost of maintaining and updating the ERP system includes internal cost (user training, salaries for IT, project management, and others), external costs (IT vendors, contractors, and others), and maintenance & support fee paid annually to application vendors. Moreover, software providers charge higher prices due to which enterprises are not ready to spend more on applications, which limits the adoption of ERP software. Furthermore, end users are not showing willingness for upgrade and renewals due to high cost of these services, which significantly hampers the growth of the market.
ERP applications have helped organizations to bring clarity and visibility in their business. Most of the large organizations are able to leverage the benefits of ERP. Presently, small and medium enterprises (SMEs) gain the same benefits, such as increased business efficiency, simplified business processes, and others by integrating ERP services. ERP serves as an ideal choice among SMEs, as it directly affects their operating margins. For instance, SMEs have become one of the major end-user segments for ERP solutions in India, as about 60% of the SME sector has integrated ERP solutions into their business. A cloud-based ERP is most preferred by SMEs, as it facilitates organizations to purchase ERP solution on a lease basis.
In SaaS ERP software, the cloud is a host site where the ERP applications and data are stored, and the computing takes place on remote servers. As SMEs have limited resources for the implementation and maintenance of ERP, thus leading to increase in adoption of cloud-based ERP software, thereby creating several opportunities during the forecast period.
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the ERP market analysis from 2023 to 2033 to identify the prevailing enterprise resource planning market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the enterprise resource planning market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global ERP market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
Key Market Players