ERP Software Market Size, Share & Trends Analysis Report By Deployment (On-premises, Cloud), By Function, By Enterprise Size, By Vertical, By Region, And Segment Forecasts, 2022 - 2030

ERP Software Market Growth & Trends

The global ERP software market size is anticipated to reach USD 123.41 billion by 2030, registering a CAGR of 10.7% during the forecast period, according to a new report by Grand View Research, Inc. The rising application of ERP software in banking, retail, government utility, and healthcare sectors is expected to drive market growth. The software benefits organizations by offering transparency in functions, increased productivity, and easy decision-making. Thus, the market is expected to grow significantly over the forecast period, thereby offering numerous opportunities to stakeholders.

The cloud deployment of ERP software accounted for maximum revenue in 2021 owing to the increased adoption of cloud-based ERP software during the COVID-19 pandemic. The rising number of sizeable data and increasing benefits provided by cloud technology in terms of data & remote accessibility, low maintenance, security, and efficiency are creating traction in the market. Additionally, this segment is expected to grow at a faster pace owing to benefits such as rapid implementation and low installation costs.

The finance function accounted for the largest share of the market in 2021 owing to the increased adoption of ERP solutions for several financial management activities, such as asset management, investment, cash flow management, and accounting. Furthermore, the increasing need to centrally manage customer data and keep track record of customer payments, revenues, and invoices promotes companies to deploy ERP software solutions, thereby contributing to the growth of the segment.

ERP software is widely used in the manufacturing and services segment. In this segment, the software is used in business activities such as inventory management, daily operations monitoring, customer services, day-to-day performance management, and production scheduling. With the rising adoption of IT infrastructure, verticals such as healthcare, aerospace & defense, and government utilities are expected to capture a significant market share.

The medium enterprises segment accounted for the largest share of over 35.0% of the global share in 2021. The growth of this segment is attributed to factors such as timely product delivery, increased operational efficiency, and minimized production costs. Additionally, the rising adoption of cloud ERP software by small- and medium-enterprise end-users is anticipated to fuel the market growth in the coming days.

ERP Software Market Report Highlights

• The cloud segment is expected to register the fastest CAGR owing to the growing awareness among businesses regarding the benefits provided by SaaS models for the business growth
• The supply chain segment is anticipated to witness significant growth over the forecast period owing to the growing adoption of ERP solutions to plan, manage, and maintain supply chain operations
• The small enterprises and medium enterprises segments are anticipated to witness significant growth owing to the growing number of start-ups and rising government support for the SME sector in implementing digital transformation solutions
• The government segment is expected to witness a high CAGR over the forecast period owing to the rising need to streamline operations and increasing dependency on data-driven decision making
• The Asia Pacific regional market is expected to witness significant growth over the forecast period owing to the rapid adoption of ERP software in local businesses