Enterprise Application Market Statistics: 2030
The global enterprise application market size was valued at $238.36 billion in 2020, and is projected to reach $527.40 billion by 2030, growing at a CAGR of 8.2% from 2021 to 2030.
The growing demand among businesses for a single solution to help them solve business problems propels growth of the enterprise application market. Companies use enterprise application software, which integrates a variety of applications such as customer relationship management (CRM), business intelligence, supply chain management, and e-commerce systems and can be customized for specific business needs and deployed across corporate networks on a variety of platforms. As firms grow, companies demand business-oriented enterprise applications that encode corporate policies, rules, and processes and are built in compliance with specific business requirements. With rise in number of mobile users in offices, these apps can help employees perform better. This also aids in the improvement of communication, increases corporate efficiency, and allows them to uncover new revenue-generating market opportunities.
On the basis of organizational size, the large-scale enterprise segment dominated the overall enterprise application industry in 2020, and is expected to continue this trend throughout the forecast period. This is due to an increase in the adoption of enterprise application by enterprises to gain strategic and a competitive advantage over their competitors. Customers uses enterprise application to discover new insights on large-scale diverse data, including historical and recent data. This technology is suitable for running algorithms and analysis across a large set of data to find relevant relationships, entities, and insights.
Furthermore, enterprise application continues to become mainstream, as more large enterprises are considering the extraction capabilities for getting valuable insights from big data, which is opportunistic for the market. However, the small and medium scale enterprise segment is expected to grow the most, and this trend is expected to continue during the forecast period. The small and medium scale businesses are shifting their business to a digital platform, small scale businesses are using enterprise application solutions for a number of uses and it is helping them to become more productive, smarter, and efficient.
Depending on the deployment model, the on-premise segment captured the largest share in 2020 and is expected to continue this trend during the forecast period. This is due to the numerous advantages offered by this on-premise deployment such as a high level of data security and safety this will create enterprise application market growth in future. However, the cloud segment is expected to witness the highest growth in the upcoming years. As a cloud deployment requires no investment in IT infrastructure as all data is stored on cloud server, which increases the demand for Enterprise application software in small and medium scale organizations.
The report focuses on the growth prospects, restraints, and enterprise application market analysis. The study uses Porter’s five forces analysis of the enterprise application industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and bargaining power of buyers on the enterprise application market trends.,
The enterprise application industry is segmented into by component, solutions type, deployment, organization size, industry vertical, and region. By component, it is divided into the solution and service. By solutions type, it is bifurcated into customer relation management, enterprise resource planning, supply chain management, business intelligence, business process management, content management system, enterprise asset management, web conferencing, and others. By deployment, it is segregated in to on premise and cloud. By organization size it is bifurcated into large enterprises and small and medium size enterprises. By industry vertical, it is segregated into manufacturing, BFSI, healthcare, retail and E-commerce, IT & telecom, government, aerospace and defense and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA
Service segment is projected as one of the most lucrative segments.
Impact of COVID-19
Rise in number of patients across the globe has led to a global lockdown, which forces public to stay at home for a long time. This has also increased the use of web-based platform to perform various tasks such as online banking and online shopping widely. This increased number of online customers makes it very difficult to manage enterprise data effectively. Enterprise application software helps to manage this data. This has significantly increased adoption of enterprise application software and preplanned investments, owing to closing of retail stores and malls. Moreover, owing to the outbreak of the COVID-19 pandemic, online banking services are witnessing highest growth rate across the globe, which results in increased adoption of enterprise application software for different applications such as customer retention and customer requirement optimization.
Furthermore, adoption of enterprise application software is expected to increase in a number of industry verticals such as healthcare & pharmaceutical industry and retail where its penetration was low before the COVID-19 situation. In addition, post COVID-19, it is expected that big data and cloud technology will be preferred by various healthcare companies to apply customer requirement analysis and to track customer orders in the pharmaceutical sector to fight against such pandemic situations in the future and to predict possible situations before it happens. This requires huge patient information and interest of doctors in prescription of drugs. The pharmaceutical company uses customer relationship management software to ease distribution process of vaccines in the global enterprise application market. Government initiatives to boost use of enterprise application software to track customer requirement in the healthcare industry across the globe is opportunistic for the market.
By Deployment Mode
Cloud segment is projected as one of the most lucrative segments.
Top Impacting Factors
Factors such as increasing adoption customer centric approach by organization and competitive advantages over other business software drives the market of enterprise application globally. Moreover, increasing adoption of cloud based mobile application boosts the growth of market globally. Furthermore, due to rapid changing business model, geographic expansion of businesses will create the lucrative opportunity for the rapid growth of enterprise application market. However, high cost and availability of open-source application are some of the main restraining factors which can hinder the growth of enterprise applications market.
Adoption of Cloud and Mobile Applications
Cloud computing is an emerging technology, which allows enterprises access and storage of data online. Agility, scalability, reliability and flexibility are some of the major characteristics associated with cloud technology. Software as a service (SaaS) or on-demand is are some of the cloud computing service model, wherein user pays as per their usage. Cloud based applications reduce IT infrastructure cost of the company to some extent. This is the prime reason behind the increased adoption of cloud-based applications among companies. With mobile becoming an integral part of individuals, enterprises are spending on cloud-connected mobile application for easy accessibility to information anytime and anywhere. In addition, cloud connected mobile applications allow individuals to synchronization, updates and control documents. Adoption of cloud and mobile enabled enterprise applications would rise in near future.
Asia-Pacific is projected as one of the most significant region.
This report gives an in-depth profile of some key market players in the enterprise application market are Epicor Software Corporation, Hewlett Packard Enterprise, IFS AB, Infor, Inc., International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, QAD Inc., Salesforce.com, Inc., and SAP SE.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the enterprise application market share along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the enterprise application market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the enterprise application market.
- The quantitative analysis of the enterprise application market share from 2020 to 2030 is provided to determine the enterprise application market potential.
Enterprise Application Market Report Highlights
By Solution Type
By Deployment Mode
By ORGANIZATION SIZE
By Industry Vertical
By KEY MARKET PLAYERS PROFILED IN THE REPORT OF ENTERPRISE APP MARKET
According to CXO, to boost efficiency and productivity, enterprises must integrate their business functions, resources, and important business processes. Enterprise applications are being implemented by businesses in order to boost their profitability and working capital. The use of enterprise applications enables businesses to integrate their operations with suppliers, channel partners, and customers. However, the selection of an ideal enterprise application varies depending on the company outfit and procedure. Further, cloud-based enterprise applications (SaaS model) are gaining popularity over traditional on-premise enterprise applications, which can provide the lucrative opportunities in the future. Because of the numerous advantages connected with cloud-based technology, it has gained widespread popularity among end users. CRM application will see more adoption and usage in the future, as it allows the organization to improve its performance and productivity.
Furthermore, smartphones and other mobile devices have altered the consumer technology environment. Mobile usage has exceeded desktop usage, and this trend will only increase in the future. The demand for mobile applications that provide education, enterprise platforms, and tools from a handheld device is increasing as the mobile market increases. Modern enterprise software development intends to minimize application development schedules while also being able to provide all components of web apps required by today's business. Standardization development workflows allows a company to deliver better experiences faster by successfully automating the process. Faster builds enable more releases and testing, ultimately increasing customer satisfaction.
Nevertheless, prominent market players are exploring new technologies and applications to meet the increase in customer demands. Product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. Emerging economies provide lucrative opportunities to market players for growth and expansion.