Enterprise Resource Planning Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The market is segmented by Deployment (On-premise, Cloud, Hybrid), End-user Industry (Retail, Manufacturing, BFSI, Government, Telecom, Military and Defense, Healthcare), Organization Size (Small and Medium Enterprises, Large Enterprises), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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Enterprise Resource Planning Industry Overview

Global Enterprise Resource Planning Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 7.92 %

Major Players

Enterprise Resource Planning Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Enterprise Resource Planning Market Analysis

Enterprise resource planning market was valued at USD 45.11 billion in the current year and is expected to reach USD 71.97 billion over the next five years, registering a CAGR of 7.92% during the forecast period. Enterprise resource planning (ERP) is the integrated administration of key business activities, frequently mediated by software and technological advancements that occur in real time. An organization can use ERP to gather, store, organize, and evaluate data from numerous business activities. It is commonly referred to as business-management software.

  • ERP software also aids in planning, budgeting, forecasting, and reporting an organization's financial results. The rising need for supplier-relationship management and customer-relationship management, due to a steep surge in the number of businesses worldwide and the requirement for cloud-based ERP platforms, is augmenting the market's growth rate.
  • The increasing adoption of innovative and advancing technologies, broadening the value of existing ERP systems, minimizing third-party dependencies, more highly secured resources, advancing financial systems, and other Notable factors are driving up the demand for ERP software, especially cloud-based.
  • Real-time analytics bring immediacy to all enterprise activities, including identifying growth markets and products. With the most up-to-date information available, real-time analytics improve analytical insights, and reducing costs through scalable models that are also centralized by creating a center of excellence is a way to go for improved profitability, which drives the Global Enterprise Resource Planning Market over the forecast period.
  • The global ERP market is constrained by the implementation issues caused by ERP customization. 93% of organizations customized their ERP software based on the intended use, according to an ERP survey report. Many organizations are persuaded to adopt a range of functions without considering whether they need these features, which leads to over-customization and can further raise the complexity of an ERP system, causing implementation failures.
  • COVID-19 altered the essence of life and business, facing limitations like falling demand, supply inconsistency, limited production, etc. However, ERP acted as a survival kit for companies as it solved challenges such as cost analysis, supply chain, finance planning, procurement, and other aspects of the business and billing models. The expansion of enterprises post-COVID pandemic and their reliance on ERP software have contributed to the market's overall growth.

Enterprise Resource Planning Industry Segments

ERP provides an integrated and continuously updated view of core business processes using a common database maintained by a database management system. ERP systems track business resources, cash, raw materials, production capacity, and the status of business commitments, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside.

The market is segmented by Deployment (On-premise, Cloud, Hybrid), End-user Industry (Retail, Manufacturing, BFSI, Government, Telecom, Military and Defense, Healthcare), Organization Size (Small and Medium Enterprises, Large Enterprises), and Geography.

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Deployment
On-premise
Hybrid
By End-user Industry
Retail
Manufacturing
BFSI
Government
Telecom
Military and Defense
Healthcare
Other End-user Industries
By Organization Size
Small and Medium Enterprises
Large Enterprises
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia Pacific
China
India
Japan
Australia
Rest of Asia Pacific
Latin America
Middle East and Africa

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Enterprise Resource Planning Market Trends

Cloud Deployments to Witness Highest Market Growth

  • Cloud-based ERP solutions are comparatively cheaper, benefiting both SMEs and large enterprise organizations. The cloud-based ERP software is installed in the vendor’s remote servers instead of the company’s hardware. Some of the solutions are provided based on services and are also called SaaS ERP solutions. The SaaS ERPs incorporate multi-tenant software architecture that allows multiple customers to use the same software platform hosted by the vendor. Some advantages include faster deployment, lower upfront costs for software implementation, easy customization of single-tenant SaaS applications, easy configuration, and maintenance process, automatic data back and disaster recovery, and easy integration and migration.
  • Cloud ERP’sare generally classified as single-tenant and multi-tenant. In the case of the former, the solution is considered a separate instance of ERP used by just one company that does not have shared server space. The setup gives the customers greater control over the software and allows more room for customization. In the case of multi-tenant solutions, a number of organizations use the same software platform and hardware where the vendor handles all the updates and upgrades the ERP solutions to the latest versions that automatically provide access to the customers with the latest versions. Therefore, this reduces the burden on in-house IT teams to ensure that customers always have access to the most updated and secure ERPs.
  • Further, with growing digital transformation, various end-users like education firms, advertising and media platforms, IT services, manufacturing department, healthcare sectors, retail, transportation and logistics, and wholesale distributors, among others, have started incorporating cloud ERPs. Vendors are also introducing new solutions to the market. For instance, this year, thinksynq has begun to build a full-fledged enterprise resource planning (ERP) solution that would enable businesses to manage their end-to-end operations ranging from sales operations to customer management to human resources management to finance and accounting. The full-fledged ERP solution would be developed by 2024.
  • Similarly, in October 2022, AWS and BMW group entered into a strategic collaboration to develop customizable cloud ERP software that would simplify the distribution and management of data from millions of connected vehicles. Also, Xero partnered with global sustainability fintech, Cogo, to help small businesses take the next step in their sustainability journey. Xero and Cogo would help small businesses with the tools to understand their carbon footprint better and take action to reduce it. Such collaborations and partnerships build strong relationships in the global ERP market and raise demand during the forecast period.
  • Further, the need for automation, standardization, simplification and innovation is imperative for customers across industries and geographies, driving the market study. Therefore, vendors are also investing in significant research and development to introduce a new upgrade to the existing cloud ERPS. For instance, later this year, Epicor will update Kinetic ERP for manufacturers with global operations. The update includes enterprise cloud, product-quote, and e-commerce capabilities for large manufacturers, while its Prophet 21 ERP software for distributors gets similar enhancements.
Enterprise Resource Planning Market - ERP Software Market Revenue from 2019 to 2025, Global, In USD Billions,

North America to Hold Major Market Share

  • North America seized the most considerable Enterprise Resource Planning (ERP) software market owing to the increasing necessity to automate business functionalities through digital approaches, the rapid shift to cloud computing for business orientation, higher economic standards, and increased penetration of new markets is driving the growth of the need for cloud enterprise resource planning (ERP) in this region.
  • This region is highly developed, and many prominent players in the market are constantly launching new products by partnering with other companies to extend their reach to end users. Such developments in this region propel the demand for the ERP Market. According to Epicor Software's Annual Insights Report, 94% of mid-sized essential businesses in the United States are adopting the cloud. In addition, 94% believed the cloud would help future-proof their businesses. Cloud ERP is one of the central investment strategies for manufacturers operating in the region. The adoption of an ERP warehouse management system (WMS), among others, is in line with cloud adoption.
  • The digital transformation across various end-user industries in the region also leads to the adoption of ERP solutions. In June 2022, WinMan LLC, a UK-based company, started its operations in North America, specifically in the manufacturing and distribution sectors. Further, MHN partnered with Infor and Chartis Group to drive digital transformation across its delivery system. The project links MHN's Cerner EHR with Infor ERP for a single, integrated platform that will provide real-time data to support decision-making, quality patient care, and affordability.
  • Additionally, Canada has implemented ERP software solutions in various industries for a decade. It has successfully digitized the hospitality, Manufacturing industry, and corporate landscape, increasing the industries' productivity and collaborative output. The accelerated adoption of new technologies in small and medium enterprises in the region due to the pandemic is also leading to the growth of the market for ERP in the region.
Global Enterprise Resource Planning Market - Growth Rate by Region

Enterprise Resource Planning Market Competitor Analysis

The global enterprise resource planning market is highly fragmented, with many competitors like SAP SE, Microsoft Corporation, FinancialForce.com Inc., IBM Corporation, Oracle Corporation, etc. Players in the market adopt strategic activities such as partnerships, product development, mergers, and acquisitions to capture the market share. Some of the critical stories in the market are:

In October 2022, Kooks Headers & Exhaust, a manufacturer of high-quality auto racing headers and exhaust systems, chose SYSPRO Cloud ERP to provide the technology and information foundation for the company's growth.

In August 2022, Ramco Systems planned to implement its highly advanced and technically sophisticated Logistics-ERP software, resulting in a 1% increase in the organization's stock price. This ERP software implementation at Freight Specialists would effectively automate its corporate functions and services. Freight Specialists is a renowned Australia-based provider of freight and distribution services.

Enterprise Resource Planning Market Top Players

  1. Microsoft Corporation

  2. IBM Corporation

  3. Oracle Corporation

  4. SAP SE

  5. Infor Inc.

*Disclaimer: Major Players sorted in no particular order

Enterprise Resource Planning Market Concentration

Enterprise Resource Planning Market Recent Developments

  • September 2022 - Exact acquired weclapp, a leading provider of cloud ERP software in the DACH region, from 3U Holding, a German holding company. weclapp management would remain invested and would drive the business in the future.
  • August 2022 - T.D. bank incorporated NetSuite's Cloud-based ERP software to provide its customers with a comprehensive digital banking experience. T.D. Bank Incorporated cloud-based ERP software to create a one-stop shop to provide a much better experience for its clients.
  • July 2022 - Infor, a cloud-based software firm, collaborated with Syntellis data and intelligence, a performance solutions player in software solutions for enterprise performance management. Healthcare consumers can now contact Syntellis Axiom Healthcare Suite for solutions for intelligent planning and performance owing to this collaboration.

Enterprise Resource Planning Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Adoption of ERP Solutions for Better Management

      2. 5.1.2 Real-time Data Analytics

    2. 5.2 Market Challenges

      1. 5.2.1 Difficulties in Customization According to Business Needs

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment

      1. 6.1.1 On-premise

      2. 6.1.2 Hybrid

    2. 6.2 By End-user Industry

      1. 6.2.1 Retail

      2. 6.2.2 Manufacturing

      3. 6.2.3 BFSI

      4. 6.2.4 Government

      5. 6.2.5 Telecom

      6. 6.2.6 Military and Defense

      7. 6.2.7 Healthcare

      8. 6.2.8 Other End-user Industries

    3. 6.3 By Organization Size

      1. 6.3.1 Small and Medium Enterprises

      2. 6.3.2 Large Enterprises

    4. 6.4 By Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 Germany

        3. 6.4.2.3 France

        4. 6.4.2.4 Rest of Europe

      3. 6.4.3 Asia Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 India

        3. 6.4.3.3 Japan

        4. 6.4.3.4 Australia

        5. 6.4.3.5 Rest of Asia Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 SAP SE

      2. 7.1.2 Oracle Corporation

      3. 7.1.3 Microsoft Corporation

      4. 7.1.4 Deacom Inc.

      5. 7.1.5 SYSPRO (Pty) Ltd

      6. 7.1.6 Plex Systems Inc. (Rockwell Automation Inc.)

      7. 7.1.7 FinancialForce.com Inc.

      8. 7.1.8 Infor Inc. (Koch Industries)

      9. 7.1.9 Epicor Software Corporation

      10. 7.1.10 IBM Corporation

      11. 7.1.11 The Sage Group PLC

      12. 7.1.12 Dassault Systemes SE

      13. 7.1.13 Deltek Inc.

      2. *List Not Exhaustive

  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Enterprise Resource Planning Market Research FAQs

The Enterprise Resource Planning Market is studied from 2018 - 2028.

The Enterprise Resource Planning Market is growing at a CAGR of 7.92% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Microsoft Corporation, IBM Corporation, Oracle Corporation, SAP SE, Infor Inc. are the major companies operating in Enterprise Resource Planning Market.

Enterprise Resource Planning Industry Report

In-depth industry statistics and market share insights of the Enterprise Resource Planning Market sector for 2020, 2021, and 2022. The Enterprise Resource Planning Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Enterprise Resource Planning Market report PDF.

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