15-Mar-2023 | Facts and Factors
According to Facts and Factors, the global ERP software market size was worth around USD 53.77 billion in 2022 and is predicted to grow to around USD 123.42 billion by 2030 with a compound annual growth rate (CAGR) of roughly 11.1% between 2023 and 2030.
Enterprise resource planning (ERP) software are technological program used by businesses to handle, manage, and navigate through day-to-day business operations like procurement, accounting, human resource, compliance, risk management, and supply chain activities. The highly advanced version or suite of ERP includes enterprise performance management that allows companies to predict, budget, plan, and report the company’s financial status.
Browse the full “ERP Software Market Size, Share, Growth Analysis Report By Deployment (Cloud and On-Premises), By Function (Supply Chain, Finance, HR, and Others), By Enterprise Size (Small, Medium, and Large), By Industry Vertical (Retail, Healthcare, Manufacturing, Government, Telecom, Aerospace & Defense, and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2023 – 2030" report at https://www.fnfresearch.com/erp-software-market
ERP software is responsible for integrating different types of business processes and allows the transparent, unadulterated flow of information between the systems. By collecting information from the lot of transactional data that occurs within a company, it is possible to reduce any requirement of data duplication providing a high level of data integrity. In the modern digital world, EPR software programs are key to data-driven and critical decision-making for businesses from across size groups.
The global ERP software market is projected to grow owing to the growing investments in developing business-friendly, scalable, and flexible cloud-based ERP solutions. Companies do not require to spend heavily on setting up infrastructure to supply ERP deployment in case of enrolling for cloud-based services. This allows them more resources in hand to be deployed for other critical factors whereas the digitization of systems can allow repetitive tasks to be conducted by ERP systems.
Furthermore, in the ever-evolving industrial and commercial world, there is an important need for real-time data analysis and access since quick and accurate decision-making is essential to business survival. ERP systems are designed to allow business leaders real-time access to transparent information that has statistical backup. The changing business conditions can be better managed when companies take data-driven decisions. Moreover, a growing emphasis on developing or improving customer experience could assist in global market growth. Customer-facing operations are an essential part of business operations and ERP systems provide essential tools to businesses to improve customer service and retention rates.
However, the complexities associated with the implementation of ERP software could act as a hindrance to the growth trajectory. They may require a significant investment of time and resources in terms of money and personnel which not all companies may be equipped to provide.
Additionally, if a company already has an existing technical system in place, the integration of legacy systems along with ERP systems is complicated and could act as a significant expansion barrier. Cybersecurity risks are another critical factor to be considered since digital crime rates are on a rise.
Emerging economies may deliver growth opportunities whereas the growing competition could pose a challenge to further growth
The global ERP software market is segmented based on deployment, function, enterprise size, industry vertical, and region
Based on deployment, the global market is segmented into cloud and on-premises
Based on function, the global market is segmented into supply chain, finance, HR, and others
- The system is used across all important facets of a business
- In finance, ERP systems allow better management of data forecasting, accounting, budgeting, and delivering a financial report
- In supply chain management, they are used to manage inventory, procurement, logistics, manufacturing, and the complete movement of associated products
- For the HR segment, ERP software play important role in managing HR-related information including appraisal and payroll
- Datix Inc., claims that companies can expect a return on investment of 264% with the use of ERP software
Based on enterprise size, the global market is divided into small, medium, and large
Based on industry vertical, the global market divisions are retail, healthcare, manufacturing, government, telecom, aerospace & defense, and others.
- 2022 marked the highest growth in the manufacturing segment and it may continue the growth trend in the coming years
- Since these industrial units have extremely complex organizational processes and integrated supply chains, ERP systems can help them improve the overall delivery and operational performance
- Other industries like healthcare, construction, and retail are also important customers for the global industry.
North America is anticipated to lead the global ERP software market with the US leading the regional growth. The reason for the high CAGR is the rising investment in technological innovation. The country boasts of a strong culture that promotes technical growth.
Furthermore, the country also has one of the strongest information technology (IT) infrastructures worldwide with highly advanced cloud computing services, high-speed internet, and personnel availability. Asia-Pacific and Europe are expected to grow with exceptional revenue rates due to the growing production adoption and innovation rate along with rising infrastructure development projects in the countries of India, China, and Japan. Industry diversity in Asia-Pacific is really high which acts in the favor of regional growth.
Market Size in 2022
USD 53.77 Billion
Projected Market Size in 2030
USD 123.42 Billion
CAGR Growth Rate
Key Market Players
Epicor Software Corporation, International Business Machines Corporation, Unit4, Infor Inc, Microsoft Corporation, Hewlett-Packard Development Company, L.P, Oracle Corporation, NetSuite Inc., SAP SE, IBM Corporation, SYSPRO, Infor., and others.
By Deployment, Function, Enterprise Size, Industry Vertical, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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The global ERP software market is led by players like Epicor Software Corporation, International Business Machines Corporation, Unit4, Infor Inc, Microsoft Corporation, Hewlett-Packard Development Company, L.P, Oracle Corporation, NetSuite Inc., SAP SE, IBM Corporation, SYSPRO, and Infor.
- In May 2022, SAP SE and International Business Machine (IBM) Corporation announced the extension of the business partnership. In this move, IBM will be migrating to SAP S/4HANA across 120 countries
- In October 2020, Designpro Automation announced the launch of a new ERP system that is powered by Global Shop Solutions (GSS). The product offers lean scheduling and will focus on manufacturers who provide customized products
The global ERP software market is segmented as follows:
- Supply Chain
By Enterprise Size
By Industry Vertical
- Aerospace & Defense
- North America
- The UK
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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