Enterprise Performance Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Enterprise Performance Management Market Analysis

The Enterprise Performance Management (EPM) market is estimated to grow at a CAGR of about 7.57% over the forecast period. The increasing need to have a transparent business strategy, growing focus on core business, overall improvement in performance, and rising data-driven decision-making in the organization are driving the growth of the EPM market.

• The increase in the adoption of cloud-based EPM worldwide is gaining market traction. For instance, in July 2022, JTEKT reported a 25% reduction in budgeting time, reduced project delivery time, and improved forecast and assertiveness, as the company utilized Oracle Cloud EPM software and its related features in areas like business, finance, information technology, and human resources.
• Integrating Robotic Process Automation (RPA) Tools in enterprise performance management is one of the critical EPM market trends influencing growth. Including RPA in the enterprise’s performance management processes will enable employees to focus more on core operations. In December 2021, Oracle Corporation announced significant investments under its Intelligent Performance Management (IPM) initiative for integrating new-age technologies like robotic process automation, artificial intelligence, and machine learning into EPM offerings.
• The increasing regulatory requirements owing to the rising volume and sensitive nature of data being generated across industries are prompting the deployment of EPM software. Moreover, the companies are adapting to various merger and acquisition strategies to develop new products and expand their product portfolio to different data analytics features in EPM ​products.
• However, enterprises are still unaware of the tremendous benefits of EPM software. The companies are yet to leverage the real-time benefits, coupled with the new technologies, to analyze their business metrics in advance and streamline their decision-making processes with added transparency. The EPM software providers can market the products among clients by introducing more affordable packages for the services.
• COVID-19 is expected to have a positive impact on the market studied. Since the financial disruption for some of the businesses is unprecedented, companies are expected to deploy EPM software for impact analysis. With many companies, like TCS, already planning to restructure business processes, remote performance management modules are also likely to be added to the existing EPM Tools.

Enterprise Performance Management Industry Segments

Enterprise Performance Management (EPM) is a software solution that helps analyze, understand, and report business requirements. It is the process designed to help organizations plan, budget, forecast, report on business performance, and consolidate financial results driven by the need to minimize operational expenses.

EPM solutions are majorly used by CFOs and the office of finance, while other functional areas, such as HR, sales, marketing, and IT, use EPM for operational planning, budgeting, and reporting.

The reports cover the emerging trends in enterprise performance management segmented by deployment, size of the enterprise, and end-user vertical across different regions studied. ​The market is segmented by deployment (on-premise and cloud), size of the enterprise (small and medium enterprise, large enterprise), end-user industry (BFSI, telecommunication, healthcare), and geography.

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Enterprise Performance Management Market Trends

This section covers the major market trends shaping the Enterprise Performance Management Market according to our research experts:

BFSI Sector is Expected to Account for Major Market Share

• Later the global financial crisis, the banks have become very conscious about the measure that helps them reduce risk on their balance sheet and are restructuring their cost bases leveraging economic prosperity and liquidity. However, many banks remain vulnerable to customers' financial circumstances, such as loan debts added with the commercialization of banks, giving rise to cut-throat competition.
• Thereby, companies in the BFSI sector are increasingly deploying EPM applications to streamline financial planning and budgeting processes. Industries such as the Swedish and Thai banking industries have started implementing progress management solutions into their core operations.
• Also, the introduction of cloud-based bespoke solutions has enabled the broader deployment of EPM solutions across the industry. For instance, according to the update issued by Oracle Corporation for SAP customers in July 2022, Oracle Exodata Database Machine consolidated SAP and non-SAP Databases into private Database Cloud form, handling the data almost ten times faster or more. This helps in the circulation and utilization of storing the data for further analytics in SAP and other Oracle tools for optimizing system performance.
• Similarly, Oracle offers SAP S/4HANA Finance, an ERP financial management, and accounting software solution that covers everything from business planning and analysis to treasury management and collaborative finance operations. The integration of the cloud helps access performance-related information remotely.
• Additionally, the global COVID-19 pandemic causing the disruption in business operations in the BFSI sector is expected to enable companies to deploy EPM software for business impact analysis. Moreover, with various companies working remotely, the EPM software provides much-needed support to maintain the business requirements. For instance, Oracle Hyperion EPM is evaluating the user environment and determining the needs to be tuned to optimize the experience of remote users.

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