Market Overview:

The Global Enterprise Resource Planning (ERP) Software Market Was Valued At USD 45.82 Billion In 2022, And Is Projected To Reach USD 91.97 Billion By 2030, Growing At A CAGR Of 9.1% During The Forecast Period.

Enterprise Resource Planning (ERP) Software studies unstructured and structured databases to visualize and provide insights based on correlations, hidden patterns, market-changing trends, etc. For example, in July 2022, IFS, the global cloud enterprise software company, launched the IFS assist 11.5 automated cloud software solution. This automated cloud solution helps organizations better manage configuration management databases and provides complete control over IT infrastructure.

These ERP tools streamline business processes and automate core business operations, helping the organization operate with fewer employees during the pandemic. Some ERP software vendors, such as SAP SE and Oracle Corporations, have dedicated their ERP systems to various industries to perform various business operations such as warehouse management systems, human resources, product lifecycle management, logistics management, payroll, etc.

COVID-19 Impact:

• Increased Adoption of Digital Transformation Strategies in the Midst of the COVID-19 Pandemic Will Spur Market Expansion

Several small and medium-sized businesses have automated their business processes by implementing digital strategies. In the second quarter of 2020, for instance, MacKay & Sposito, a civil engineering firm, had trouble measuring its projects and business operations. As a result, the company implemented an ERP software system that increased its cash flows and profitability by administering multiple operations, including finance, project management, and material management.

In addition, the increasing digitalization of businesses and favorable government policies for the implementation of digital technology software have fueled market expansion. According to the IDC report for 2020, the global investment in digital transformation reached USD 1.5 trillion due to an increase in investments by SMBs and large organizations.

During the COVID-19 pandemic, the increased adoption of digital technology platforms and government initiatives for digitalization have led to a modest increase in demand for enterprise resource planning software.

Market Dynamics:

Latest Trends:

• Rising Adoption of Cutting-Edge Technologies Including Artificial Intelligence (AI), Machine Learning, and Cloud Computing to Drive Market Trends

The increasing adoption of AI-based and cloud-based enterprise resource planning software, as well as the increase in investments by the prominent players to adopt these technologies for automating business processes, will stimulate market expansion. To automate their businesses, approximately 63.0% of businesses in 2020 will implement cognitive technologies, such as AI, blockchain, and cloud-based solutions, according to a report by Accenture.

Market leaders invest in sophisticated software technologies such as artificial intelligence, cloud computing, machine learning, and others. Focus Softnet, an enterprise applications and software development company, introduced the next-generation Focus X ERP solution in October 2021. This enterprise solution is accessible on mobile and laptop devices. Focus X is designed with applications powered by artificial intelligence and machine learning for predictive analysis and forecasting in enterprises.

Driving Factors:

• Increasing Digitization and Automation Requirements Will Drive Market Demand

The global ERP software market is anticipated to expand due to the rising demand for digitization and automation of business operations in the commercial sector. For a business to operate proficiently, it must ensure that its available resources are utilized effectively. Digitization increases company productivity because automated processes are more rapid and efficient. They are less prone to errors, saving the business time and resources that can be applied to other crucial duties.

In addition, digitization improves decision-making because it enables the availability of information in real time, which aids in the identification of new future requirements and business trends. Since ERP software programs are highly customizable and utilize advanced technologies such as machine learning, artificial intelligence, and cloud systems to deliver results, they are designed to meet the specific requirements of businesses. Since businesses are seeking to improve operational efficiency, the global industry can anticipate increased revenue.

• Growing Need for Enterprises to Enhance Operational Efficiency and Streamline Business Procedures to Promote Growth

The need for transparency and operational efficiency in business processes has compelled companies to adopt diverse business models on a global scale. Technology advancements reduce the intricacy of enterprise resource planning software systems and enable third-party applications to more efficiently manage corporate processes. According to PwC's 22nd Annual Global CEO Survey, 80% of CEOs believe that product commercialization will have a significant impact on their organizations and business models in the coming years.

Companies throughout the world are concentrating on enhancing their business processes in order to increase operational productivity while keeping track of operating expenses. Organizations seek an integrated solution to manage a variety of business operations, such as sales and marketing, procurement, and supply chain management. The integration of ERP software has simplified and increased the efficiency of corporate operations. No longer is manual data entry required, allowing businesses to view all data on a single, uniform platform. This cloud-based software could make complicated processes, such as a multistep production plan, simple and straightforward.

Restraining Factors:

• Integration Challenges with On-Premises Deployment Models Will Restrain ERP Adoption

Organizations have gradually begun to integrate cloud-based enterprise resource planning (ERP) services and solutions. Due to implementation costs and system complexity, however, businesses continue to confront significant challenges integrating these solutions with existing systems. Existing legacy systems must be tightly integrated with the new cloud-based ERP for a successful implementation. Due to a lack of resources, a few businesses continue to rely on systems that are founded on obsolete technology. There are manual procedures involved, resulting in a lengthier turnaround time and a high error rate.

• Integration Problems with On-Premises Deployment Models Will Keep ERP from Being Widely Used.

Cloud enterprise resource planning solutions and services are becoming more and more common in organizations. But companies still have a hard time integrating these solutions with their existing systems because of the costs of implementation and the complexity of the systems. For the new cloud-based ERP to work well, it must be tightly connected to the old systems. Some companies still use systems that are based on old technology because they don't have enough money to switch. They involve manual steps that take longer and make it more likely that mistakes will happen.

Opportunities:

• Emerging Economies Will Provide Growth Chances

The growth opportunities in emerging economies that are moving quickly toward commercialization and industrialization can help the global ERP market. Entrepreneurs in the 21st century are willing to spend more money on technology systems that give them more time for important tasks and let them leave some tasks to systems like ERP software. If new or existing players can gain the trust of new entrepreneurs or businesses in Latin America and Asia-Pacific, they could make more money in these areas.

Challenges:

• More Competition Makes It Hard to Keep Growing.

The global industry is very competitive because the number of players, especially from China and India, is growing quickly. These countries are registering a lot of IT professionals who are going out on their own to take advantage of a market with a lot of potential. This could make market players of all sizes compete very hard with each other, making it hard for vendors to stand out from the crowd and get more customers.

Strategic Development:

• In November 2022 - SYSPRO, a leading provider of ERP software, announced that it would launch a new global platform, which would add to the services it already offered to Independent Software Vendors (ISVs). The new launch gives customers more freedom and options, giving them an edge over their competitors.
• In May 2022 - Thinking said that it plans to release full ERP solutions by the end of the year 2023. The company will focus on mid-sized businesses, companies from the old economy, and well-funded startups that need to grow.
• In February 2023 - A Finnish building company called Lujatalo Oy said that it would start using IFS Cloud ERP to update the infrastructure of the company.
• In July 2022 - Infor, a company that makes cloud-based software, teamed up with Syntellis data and intelligence, a company that makes enterprise performance management software solutions, to make a partnership. Through this partnership, customers in the healthcare industry can use the Syntellis Axiom Healthcare Suite for smart planning and performance solutions. It gives people who use EPM tools insights that are based on data and can be used to lower the cost of care and operations.
• In February 2022 - IBM Corporation and SAP SE will announce a hybrid cloud partnership to move their enterprise resource planning to the cloud. IBM is putting SAP S/4HANA on the IBM Cloud so that SAP's customers can use it. SAP S/4HANA is an ERP service for big companies.
• In November 2021- Oracle Corporation announced that it will help Honda Motor in Japan improve its purchasing operations with Oracle Fusion Cloud Enterprise Resource Planning (ERP). Oracle Fusion is a cloud-based platform for buying things that 4,000 suppliers and 25,000 employees use.

Key Vendors:

Top market players includes

• Oracle

Oracle Corp. sells and provides services and products that cover all aspects of IT environments in businesses. Its business is split into three parts: Cloud and License, Hardware, and Services.

• IBM

International Business Machines Corp. is a company that works with information technology. It offers integrated solutions that use information technology and knowledge of how businesses work. It works through the following business segments: Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing.

• Microsoft

Microsoft sells more software than any other company in the world. It is also a top provider of cloud computing services, video games, computer and gaming hardware, search, and other online services. Microsoft's main office is in Redmond, Washington, and the company has offices in more than 60 other countries.

• SAP

SAP SE sells enterprise application software and services that are related to software. It runs through three groups: Applications, Technology, and Services, Intelligent Spend Group, and Qualtrics.

• Infor

As the world's leader in business software for the cloud that is tailored to each industry. Infor creates complete solutions for its focus industries, which include industrial manufacturing, distribution, healthcare, food and beverage, automotive, aerospace and defense, hospitality, and high tech. Infor's mission-critical enterprise applications and services are made to give long-term operational advantages with security and faster time to value.

• Sage

As the world's leader in business software for the cloud that is tailored to each industry. Infor creates complete solutions for its focus industries, which include industrial manufacturing, distribution, healthcare, food and beverage, automotive, aerospace and defense, hospitality, and high tech. Infor's mission-critical enterprise applications and services are made to give long-term operational advantages with security and faster time to value.

• Netsuite

Oracle NetSuite is the first company in the world to use the cloud. It was started in 1998. NetSuite has been helping businesses build and grow for more than 20 years by giving them the visibility, control, and flexibility they need to be successful.

• Totvs

TOTVS Labs creates new and different technologies for businesses that help them grow faster and become more competitive in a global economy. TOTVS Labs engineers work on research and development projects that are kept secret. Their goal is to bring products to market that drive innovation and grow to a global level.

• Unit4

Unit4 Student Management is the next generation of student information systems for colleges and universities. It combines the latest technology with 30 years of experience working with educational institutions. As a part of Unit4's fully integrated Education solutions, it makes your system support easier and cheaper, gives your students an easy-to-use mobile experience, and helps your strategic initiatives by giving you actionable data from its built-in analytics. In short, it makes your return on investment (ROI) much higher when you replace your old student information system.

• Syspro

SYSPRO is the world's leading provider of Enterprise Resource Planning (ERP) software for key manufacturing and distribution industries. SYSPRO continues to care about how well its partners and customers do. Our solutions are always changing to keep up with industry trends and take advantage of new technologies that will help our partners and customers prepare for a digital future.

Market Segmentation:

The Enetrprise Resource Planning Market is segmented on the basis of deployment, business function, end-user and region.

By Deployment:

The market is split into cloud, on-premise, and hybrid based on how it is used.

During the time frame of the forecast, the cloud segment will have the largest market share. The cloud segment is expected to get a bigger share of the market over the next few years because it has low infrastructure costs and can work with mobile and tablet devices. Cloud solutions let businesses store data on the internet and give them tools to get their data back if they lose it or it gets stolen.

Also, the hybrid segment is expected to grow at the fastest rate over the next few years. The hybrid deployment model is growing because more Big Data is becoming available through cloud computing, more end users want better experiences, and big players are investing in hybrid ERP solutions.

• Cloud
• On-premise
• Hybrid

By Organization Size:

The market is split into two groups: small and medium-sized businesses (SME) and large businesses. The most market share was taken by the segment of large enterprises. Over the next few years, large businesses are likely to buy more of the product due to factors like improved operational efficiency, lower production costs, and centralized data collection for wide distribution. For example, SYSPRO software helps large businesses manage their global operations and many subsidiaries with tools that can be changed. In addition, many industries have started using products because they have to follow strict government rules. This has made operations more efficient and less complicated.

Also, the SME segment is expected to grow at the fastest rate over the next five years. Cloud ERPs were made to help small and medium-sized businesses stay competitive in the market by making business processes easier and saving money. Also, SMEs that are growing need good database management, which is a service that is expected to be in high demand.

• Small & Medium Size Enterprise
• Large Enterprise

By Business Function:

Based on the business function, the market is divided into financial management, human capital management, supply chain management, customer management, inventory and work order management, and others.

The financial management segment got the biggest share of the market and is expected to keep its lead over the next few years. The segment focuses on the software's features for managing money. For example, SAP SE's suite has features for financial management such as streamlined financial processes, planning, budgeting, and forecasting, among other things. Financial services companies now have to rely solely on new, scalable systems to make sure they follow government rules about data, operations, and accountability.

Over the next few years, the inventory and work order management segment is expected to grow at the fastest rate. The main reason for the growth is the growing need for enterprise resource planning tools to help prioritize and coordinate work orders in a way that is accurate and efficient. Using an ERP application's interactive work order management function, companies can keep track of and handle both planned and urgent maintenance tasks across the whole organization.

• Financial Management
• Human Capital Management
• Supply Chain Management
• Customer Management
• Inventory and Work Order Management
• Others (Sourcing and Procurement, Work Order Management)

By End-User:

By end-user, the market is divided into manufacturing, BFSI, IT & telecom, retail & consumer goods, healthcare & life sciences, transportation & logistics, government, and others (aerospace & defense).

During the forecast period, the healthcare segment is expected to grow at the fastest rate and add the most to the global Enterprise Resource Planning software market share. Hospitals and healthcare companies need to be able to manage patient records well above all else. This is likely to increase the demand for software in the industry.

A big part of the global market was also controlled by the manufacturing segment. The goal of these solutions for manufacturing companies is to use advanced features and functions to improve all parts of the manufacturing process, from sourcing and acquisition to development, storage, quality testing, and distribution. So, this kind of production solution can make production more efficient, cut costs, and boost sales and profits.

• Manufacturing
• BFSI
• IT & Telecom
• Retail and Consumer Goods
• Healthcare & Life Sciences
• Transportation & Logistics
• Government
• Others (Aerospace and Defence)

Regional Insights:

North America had the biggest market share, which led to the growth of the enterprise resource planning (ERP) software market in North America. This was due to the growing need to automate business functions through digital means, which drove the growth of the ERP software market in North America. Organizations in the U.S. and Canada are using ERP solutions to make their business processes more efficient and to streamline how they do business. For example, Loblaw Companies Limited, a Canadian leader in the food and drug industries, used SAP solutions to improve the way business functions work. Key players in the region are also investing in research and development (R&D) to come up with new solutions. For example, in December 2017, SYSPRO, a company that makes software for businesses around the world, joined forces with Shift Group, a company based in Quebec, to strengthen its presence in eastern Canada.

During the forecast period, Asia-Pacific is expected to grow at a very fast rate. Most of the growth in the region comes from industries that are growing, like manufacturing, BFSI, transportation, and logistics. Several major regional vendors are focusing on making and deploying advanced ERP solutions to meet the growing demand for ERP solutions in these vertical industries. Many small businesses in the area are using cloud-based solutions to make their businesses more productive and easier to run. Aside from this, the growth of the market in this region is also likely to be driven by government rules that support IT infrastructure.

The growth of the European market is mostly due to rising technological advances and the growth of local manufacturing companies. In 2019, 30% of SMEs and 80% of large businesses used enterprise resource planning tools, according to the European Commission. This growth is also caused by the fact that many small and medium-sized businesses (SMEs) in countries like Germany, Italy, and France are turning to hosted ERP systems to better run their businesses.

The global Enterprise Resource Planning (ERP) Software market has been looked at in different parts of the world, including North America, Europe, Asia-Pacific, Latin America, the Middle East, and India. In the near future, this market will be dominated by the Global region.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The research report looks at important places around the world to learn more about the market.
• It also gives information about the latest industry and market trends, as well as an analysis of technologies that are being used more and more quickly around the world.
• It also talks about some of the rules, which helps the reader get a complete picture of the market.