The Enterprise Resource Planning (ERP) Market is projected to reach $90.7 billion by 2030, at a CAGR of 14.4% from 2023 to 2030. The growth of this market is attributed to the growing need for operational efficiency and transparency in business processes, the increasing adoption of ERP software for data-driven decisions, and the rise in mobile and cloud applications. However, the growing availability of open-source applications and higher initial investment and maintenance costs restrain market growth. At the same time, the increasing demand for cloud-based ERP solutions in small and medium-sized businesses and increasing government initiatives for digitization are expected to create significant opportunities for this market. However, increasing security threats to cloud-based ERP systems pose challenges to market growth.
The global ERP market is segmented by module, enterprise size, deployment mode, sector, and geography. The study also evaluates industry competitors and analyses the regional and country-level markets.
Increasing Adoption of ERP Software for Data-driven Decisions Fuel the Growth of ERP Market
The increasing adoption of ERP software for data-driven decision-making is a response to the growing complexity of business operations across several industries, such as automotive, electric & semiconductor, supply chain, and warehousing energy & utility. As businesses grow, they must manage more data, processes, and labor count. ERP software provides a centralized platform for managing all of these elements, which helps businesses become more efficient and effective. The growing adoption has resulted in many ERP manufacturers investing in the market. For instance, in October 2022, the software manufacturer Katana Technologies OÜ (Estonia) raised USD 34 million in a Series B round of funding for an enterprise resource planning (ERP) platform for small- and medium-sized manufacturers.
ERP software makes businesses data-driven decisions by collecting and analyzing data from across the organization. ERP software can provide insights into key performance indicators, such as sales, inventory, and customer satisfaction. This can help businesses identify areas for improvement and make informed decisions about where to invest resources. ERP software automates business processes and reduces manual data entry by saving time and reducing the risk of errors. By streamlining workflows and automating routine tasks, ERP software frees employees to focus on more strategic activities, such as analyzing data and making decisions.
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Key Findings in the Global ERP Market Study:
In 2023, the Finance and Accounting Module Segment is Expected to Dominate the Global ERP Market
Based on module, the global ERP market is segmented into finance and accounting module, human capital management module, sourcing and procurement module, sales module, manufacturing module, logistics and supply chain management module, customer service module, R&D and engineering module, enterprise asset management module, and other modules. In 2023, the finance and accounting module segment accounted for the largest share of the global ERP market. The large market share of this segment is attributed to the growing need for rapid financial processes and auditable revenue management and expense management. This module enables enterprises to communicate financial information to external parties, including vendors and customers.
Based on Enterprise Size, the Small Enterprises Segment is Projected to Register the Highest CAGR During the Forecast Period
Among the enterprise sizes studied in the report, the small enterprises segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the need to improve communication across all the departments and optimize business processes by providing easy visibility of all operations. ERP software also helps small businesses integrate their financial and customer information into one system.
In 2023, the Cloud-based ERP Segment is Expected to Dominate the Global ERP Market
Based on deployment mode, the global ERP market is segmented into cloud-based ERP, on-premise ERP, and hybrid ERP. In 2023, the cloud-based ERP segment accounted for the largest share of the global ERP market. The large market share of this segment is attributed to low infrastructure costs and the ability to integrate with mobile and tablet devices. Cloud solutions enable businesses to store data over the Internet and provide tools to restore data in case of any data loss or breach.
Based on Sector, the Healthcare Segment is Projected to Register the Highest CAGR During the Forecast Period
Among the sectors studied in the report, the healthcare segment is expected to grow at the highest CAGR during the forecast period. ERP software is essential for healthcare providers to manage patient data and workflows more efficiently, which helps improve patient outcomes by providing real-time data and analytics. ERP software helps healthcare providers make more informed decisions about patient care. Also, healthcare costs are rising, and healthcare providers are under pressure to find ways to reduce costs while maintaining quality of care. ERP software helps healthcare providers manage costs more effectively by providing real-time data on expenses, inventory, and other key metrics. Furthermore, the healthcare industry is highly regulated, and healthcare providers must comply with a wide range of regulations and standards by managing their compliance efforts more effectively by providing real-time data on regulatory requirements and helping automate compliance processes.
Some of the recent developments in this market space are as follows:
- In June 2023, Fresenius SE & Co. KGaA (Germany), a global healthcare company, migrated its SAP software systems to the cloud with the RISE with SAP offering, which includes ERP systems for core business processes in finance, manufacturing, and supply chain and a CRM system to help the company transform into intelligent enterprises.
- In March 2023, eVitalRx (India) launched cloud-based ERP software for pharmacies and integrated the ERP system into the ONDC network, a Government of India initiative.
Asia-Pacific is Slated to Register the Highest CAGR During the Forecast Period
Based on geography, the global ERP market is segmented into Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. Asia-Pacific is projected to register the highest CAGR during the forecast period. The growth of this market is driven by the thriving manufacturing industry, expanding small and medium-sized businesses, the rising number of start-ups, and their increased demand for cloud-based solutions. The increased demand for ERP software is expected to result from government support for IT infrastructure deployment in the region. Cloud-based ERP solutions have gained popularity in Asia, offering scalability, flexibility, and cost-effectiveness. Cloud-based ERP systems allow companies to access their data and applications from anywhere, enabling better collaboration and remote work capabilities.
Key Players:
The key players profiled in the global ERP market study include SAP SE (Germany), Oracle Corporation (U.S.), Microsoft Corporation (U.S.), Sage Group plc (U.K.), Infor Equity Holdings LLC (U.S.), Microsoft Corporation (U.S.), Hewlett Packard Enterprise (HPE) Company (U.S.), Epicor Software Corporation (U.S.), NetSuite, Inc. (U.S.), International Business Machines Corporation (U.S.), Tyler Technologies (U.S.), Ramco Systems. (India), Acumatica, Inc. (U.S.), Workday, Inc. (U.S.), and Deltek, Inc. (U.S.).
Report Summary:
Particular
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Details
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Number of Pages
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250
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Format
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PDF
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Forecast Period
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2023-2030
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Base Year
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2022
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CAGR
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14.4%
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Estimated Market Size (Value)
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$90.7 billion by 2030
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Segments Covered
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By Module
- Finance and Accounting Module
- Human Capital Management
- Sourcing and Procurement Module
- Sales Module
- Manufacturing Module
- Logistics and Supply Chain Management Module
- Customer Service Module
- R&D and Engineering Module
- Enterprise Asset Management Module
- Other Modules
By Enterprise Size
- Large Enterprises
- Medium Enterprises
- Small Enterprises
By Deployment Mode
- Cloud-based ERP
- On-premise ERP
- Hybrid ERP
By Sector
- BFSI
- Energy & Utilities
- Telecommunications
- Education
- Healthcare
- HORECA
- Pharmaceuticals
- Consumer Electronics
- Automotive
- Aerospace & Defense
- Life Sciences
- Professional Services
- Oil and Gas
- Other Sectors
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Countries Covered
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North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, RoE), Asia-Pacific (China, Japan, India, South Korea, Taiwan, RoAPAC), Latin America, and the Middle East & Africa.
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Key Companies
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SAP SE (Germany), Oracle Corporation (U.S.), Microsoft Corporation (U.S.), Sage Group plc (U.K.), Infor Equity Holdings LLC (U.S.), Microsoft Corporation (U.S.), Hewlett Packard Enterprise (HPE) Company (U.S.), Epicor Software Corporation (U.S.), NetSuite, Inc. (U.S.), International Business Machines Corporation (U.S.), Tyler Technologies (U.S.), Ramco Systems. (India), Acumatica, Inc. (U.S.), Workday, Inc. (U.S.), and Deltek, Inc. (U.S.)
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Key questions answered in the report: