Global Enterprise Performance Management Market Size, Share & Trends Analysis Report By Deployment (On-premise and Cloud), By Offering (Solution and Services), By Function, By Enterprise Size, By Vertical, By Regional Outlook and Forecast, 2024 - 2031

Global Enterprise Performance Management Market Size, Share & Trends Analysis Report By Deployment (On-premise and Cloud), By Offering (Solution and Services), By Function, By Enterprise Size, By Vertical, By Regional Outlook and Forecast, 2024 - 2031

The Global Enterprise Performance Management Market size is expected to reach $11.30 billion by 2031, rising at a market growth of 8.3% CAGR during the forecast period.

The IT and telecom industries have experienced a substantial demand for sophisticated tools to monitor and optimize operational performance as a result of the rapid tempo of digital transformation. EPM solutions enable IT and telecom companies to manage complex operations, streamline financial planning, and track key performance indicators (KPIs) such as network uptime, service delivery efficiency, and customer satisfaction. Hence, the IT & telecom segment recorded nearly 1/4th revenue share in the market in 2023. Additionally, the sector's reliance on real-time data for decision-making and resource management has driven the adoption of EPM tools to enhance agility, reduce operational costs, and improve service quality.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, July, 2024, Workday, Inc. expanded its partnership with Amazon Web Services (AWS), an American cloud computing company, to enhance HR and financial management through AI-driven solutions. Utilizing AWS technologies like Amazon Bedrock and SageMaker JumpStart, Workday aims to streamline processes such as job description creation and contract analysis, accelerating value delivery and improving decision-making across business functions. Additionally, In May, 2024, Workiva, Inc. joined hands with ERM, the largest global sustainability consultancy, to provide cloud-based technology solutions for sustainability reporting. The collaboration combines ERM's expertise in sustainability and climate change with Workiva’s platform, helping businesses manage and report ESG data in real-time.

Based on the Analysis presented in the KBV Cardinal matrix; Oracle Corporation, IBM Corporation and SAP SE are the forerunners in the Enterprise Performance Management Market. In September, 2024, Oracle Corporation collaborated with Amazon Web Services, Inc. (AWS), a leading cloud services provider, to offer Oracle Database@AWS, enabling customers to access Oracle Autonomous Database and Exadata Database Service within AWS. This move simplifies the migration and deployment of enterprise workloads to the cloud, enhancing agility, flexibility, and security, while providing seamless integration with AWS services such as Amazon EC2, AWS Analytics, and AI/ML tools like Amazon Bedrock. Companies such as Workday, Inc., Wolters Kluwer N.V. and Anaplan, Inc. are some of the key innovators in Enterprise Performance Management Market.

Market Growth Factors

AI and ML are supercharging EPM tools, enabling them to process large volumes of data, learn from it, predict future trends, and offer actionable insights. This predictive capacity is invaluable for forward-looking strategic planning, helping businesses anticipate market dynamics and align their resources accordingly. This capability is critical for maintaining competitiveness and adapting to market or internal changes. Thus, as these technologies advance, they will unveil new dimensions of performance management, further embedding EPM systems as central components in organizational strategy and operational excellence.

Integrating real-time analytics with EPM solutions allows for a more dynamic approach to performance management. It facilitates a proactive management style, where decision-makers can anticipate problems before they escalate and identify opportunities more swiftly. This immediacy helps businesses adjust their strategies to market fluctuations, operational challenges, or financial forecasts, ensuring that the most current data always informs their actions. Therefore, the demand for real-time analytics drives the evolution of EPM solutions, making them indispensable tools for modern enterprises committed to data-driven decision-making.

Market Restraining Factors

The growing emphasis on developmental rather than purely evaluative assessments in performance management poses a challenge to traditional enterprise performance management (EPM) solutions. This shift towards a developmental approach requires EPM solutions to support continuous feedback and learning, which is not typically the focus of traditional systems. This limitation can result in decreased employee engagement and satisfaction, as modern workforces increasingly expect their employers to invest in their continuous professional growth and not just assess their past contributions. Thus, as companies increasingly recognize the benefits of nurturing talent from within and focusing on employee growth as a catalyst for organizational success, traditional EPM solutions may become obsolete.

Offering Outlook

Based on offering, the market is bifurcated into solution and services. The services segment procured 39% revenue share in the market in 2023. As businesses adopt EPM tools, they rely on professional and managed services to customize solutions to meet their unique requirements, ensuring seamless alignment with existing systems. Consulting services play a key role in helping organizations identify gaps, develop strategic roadmaps, and optimize workflows. Additionally, the demand for ongoing support, training, and system upgrades is rising as businesses seek to maximize the value of their EPM investments.

Deployment Outlook

On the basis of deployment, the market is classified into on-premise and cloud. The on-premise segment acquired 52% revenue share in the market in 2023. This dominance is primarily driven by organizations prioritizing data security, control, and compliance, particularly in financial services, healthcare, and government sectors. On-premise EPM solutions provide businesses with complete ownership over their systems and sensitive data, ensuring adherence to stringent regulatory requirements.

Enterprise Size Outlook

By enterprise size, the market is divided into small & medium enterprise and large enterprise. The small & medium enterprise segment garnered 35% revenue share in the market in 2023. SMEs are adopting cloud-based EPM platforms to improve financial visibility, enhance decision-making, and streamline resource allocation without significant upfront investments. The growing availability of affordable subscription-based models has made EPM tools more accessible to smaller businesses, allowing them to compete effectively with larger organizations.

Function Outlook

Based on function, the market is segmented into finance, human resources, supply chain, sales & marketing, and others. The supply chain segment procured 27% revenue share in the market in 2023. This growth is driven by the increasing need for organizations to optimize their supply chain processes, reduce operational costs, and improve inventory management in response to global supply chain disruptions. EPM solutions empower businesses to monitor supplier performance, forecast demand, and streamline logistics through real-time analytics and scenario planning.

Vertical Outlook

On the basis of vertical, the market is divided into BFSI, retail & consumer, healthcare, IT & telecom, government, manufacturing, and others. The retail & consumer segment garnered 14% revenue share in the market in 2023. Retailers leverage EPM solutions to monitor sales performance, optimize inventory management, and align supply chain operations with consumer demand. Businesses gain actionable insights into purchasing behavior, market trends, and promotional campaign effectiveness by integrating EPM tools with point-of-sale systems and customer relationship management (CRM) platforms.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 37% revenue share in the market in 2023. The region's dominance is a result of its early adoption of advanced analytics solutions, an increased focus on technological innovation, and a well-established IT infrastructure. EPM tools are extensively utilized by businesses in North America, including those in the financial services, manufacturing, and healthcare sectors, to facilitate data-driven decision-making, ensure regulatory compliance, and optimize performance.

Recent Strategies Deployed in the Market

• Sep-2024: IBM Corporation took over Accelalpha, a global Oracle services provider, enhancing its Oracle consulting capabilities in areas including enterprise performance management (EPM). This acquisition strengthens IBM Consulting's ability to assist clients in implementing and managing Oracle Cloud Applications, offering expertise in Oracle’s EPM suite. Accelalpha, headquartered in Bellevue, Washington, brings extensive experience in Oracle Cloud EPM, along with other services, to further support businesses in achieving digital transformation and competitive advantage.
• Jun-2024: SAP SE announced its acquisition of WalkMe Ltd., a leader in digital adoption platforms, aiming to enhance its business transformation capabilities. By integrating WalkMe’s advanced guidance and automation tools with SAP’s Business Transformation Management portfolio, SAP will help businesses accelerate adoption of new technologies, ensuring greater value realization from IT investments.
• May-2024: IBM Corporation announced updates to its watsonx platform at its annual THINK conference, introducing new AI capabilities for businesses. IBM released open-source Granite models for code generation and application modernization, and launched InstructLab with Red Hat, enabling businesses to build AI models specific to their domains. These advancements aim to make AI more accessible, flexible, and cost-effective for enterprises, enhancing application modernization, code generation, and data management.
• May-2024: Workday, Inc. acquired HiredScore, an AI-based talent orchestration provider, to enhance its HR technology capabilities. The acquisition strengthens Workday’s AI platform strategy, improving talent intelligence tools such as Workday Skills Cloud and Talent Marketplace. HiredScore's expertise in candidate matching and internal mobility will accelerate Workday's HR offerings, positioning the company to lead in the competitive HR tech market, while benefiting its existing ATS customers.
• May-2024: Anaplan, Inc. completed the acquisition of Fluence Technologies, a provider of cloud-based financial consolidation solutions, to enhance its Connected Planning platform. This integration allows Anaplan customers to streamline financial consolidation, close, and disclosure management with greater speed, efficiency, and reduced complexity. By unifying these functions on a single platform, businesses can improve financial decision-making, reduce costs, and accelerate digital transformation across finance operations.

List of Key Companies Profiled

• IBM Corporation
• SAP SE
• Oracle Corporation
• Workday, Inc.
• Anaplan, Inc. (Thoma Bravo, L.P.)
• Wolters Kluwer N.V.
• Infor, Inc.
• Board International S.A.
• Workiva, Inc.
• Prophix Software Inc.

Global Enterprise Performance Management Market Report Segmentation

By Deployment

• On-premise
• Cloud

By Offering

• Solution
• Services

By Function

• Supply Chain
• Sales & Marketing
• Finance
• Human Resources
• Other Function

By Enterprise Size

• Large Enterprise
• Small & Medium Enterprise

By Vertical

• IT & Telecom
• BFSI
• Retail & Consumer
• Government
• Healthcare
• Manufacturing
• Other Vertical

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA