According to a recent report published by Allied Market Research, titled, “ERP Market by Component, Deployment Model, Enterprise Size, Business Function, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the ERP market size was valued at $43.72 billion in 2020, and is projected to reach $117.09 billion by 2030, growing at a CAGR of 10.0% from 2021 to 2030.
ERP software solutions are designed to help small and medium-sized enterprises to manage their business operations while improving collaboration, compliance, productivity, and risk management. Furthermore, ERP software solutions are often used by business organizations, as they provide businesses a more efficient tool for planning and streamlining their business processes all from a single platform. ERP software solutions assist businesses in reducing operational expenses, enhancing decision making process, thereby increasing overall sales and customer experience. Furthermore, key factors that drives the growth of the ERP market include rise in need for operational efficiency and transparency in business processes and increase in demand for ERP software from small and medium enterprises boost the growth of the global ERP industry. In addition, surge in adoption of cloud and mobile applications are positively impacting the growth of the ERP market. However, availability of open-source applications and high implementation cost of ERP software technology hamper in the growth of ERP software market. On the contrary, rise in application of ERP software in small and medium enterprises and rapid transformation of modern business models are expected to offer remunerative opportunities for expansion of the market during the forecast period.
On the basis of industry vertical, the manufacturing segment dominated the overall ERP market in 2020, and is expected to continue this trend during the forecast period. This is attributed to various manufacturing sector business functions such as monitoring and tracking day-to-day operational performances, collaborating with multiple departments to improve internal operational efficiencies, and customer services being more impactful with the help of ERP software solutions. However, the healthcare segment is expected to witness highest growth, as the demand for efficient management of medical and healthcare resources is on the rise in various developing and developed nations.
Region wise, the ERP software market was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to its high digital and cloud technology adoption rates, which is expected to drive the market for ERP software technology during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to ongoing economic transformation in the region and increasing cloud adoption trends.
The outbreak of COVID-19 is anticipated to have a positive impact on growth of the ERP industry. This is attributed to the rapid growth in demand for cloud-based ERP software, which helped many businesses to endure the disruption caused by the COVID-19 outbreak. The ERP software solutions were one of the critical components that were helping in keeping the overall business operations of an organization to run smoothly and efficiently during the period of a global pandemic. ERP software solutions provided capabilities such as real-time work floor control, remote resource monitoring, faster data sharing, and automated reporting. Furthermore, the growing remote working trends in many countries further aided in the growth of ERP software solutions market during the period.
Key Findings Of The Study
- By industry vertical, the manufacturing segment accounted for the largest ERP market share in 2020.
- Region wise, North America generated highest revenue in 2020.
- On the basis of deployment model, the on-premise segment generated the highest revenue in 2020.
The key players profiled in the ERP market analysis are IBM Corporation, Infor, Microsoft Corporation, NetSuite Inc., Oracle Corporation, Sage Group Plc., SAP SE, SYSPRO, TOTVS S.A., and Unit4. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.