Enterprise Resource Planning Software Market Forecasts to 2028 – Global Analysis By Enterprise size (Small Enterprises, Medium Enterprises and Large Enterprises), Deployment (Cloud and On-premises), Function (Supply Chain Management, Customer Management,

Enterprise Resource Planning Software Market Forecasts to 2028 – Global Analysis By Enterprise size (Small Enterprises, Medium Enterprises and Large Enterprises), Deployment (Cloud and On-premises), Function (Supply Chain Management, Customer Management, Financial Management, Inventory & Work Order Management, Human Capital Management and Other Functions), End Userand By Geography

According to Stratistics MRC, the Global Enterprise Resource Planning Software Market is accounted for $54.76 billion in 2022 and is expected to reach $114.01 billion by 2028 growing at a CAGR of 13.0% during the forecast period. Enterprise resource planning (ERP) software is used by enterprises to manage daily business activities such as procurement, risk management, accounting, supply chain operations, and project management. It is an integrated platform that provides a variety of company tasks such as financial management, human resource management, supply chain management, customer management, inventory and work order management, and others. ERP software incorporates enterprise performance management, which assists firms in planning, predicting, budgeting, and reporting their annual/financial results.

According to the IDC report for 2020, the global digital transformation investment reached USD 1.5 trillion owing to a surge in investments by SMEs and large-scale organizations.

Market Dynamics:

Driver:

Increasing need for digitization and automation

The global ERP software market is expected to expand due to the increasing commercial need for digitization and automation in corporate operations. A company's resources must be employed efficiently in order for it to run successfully. Digitization increases firm productivity because automated procedures are faster and more efficient. They are less prone to errors, saving the company resources and time that can be used on other vital activities.

Restraint:

High cost

ERP software is quite expensive in terms of installation, implementation, and maintenance. The expense may force small and medium-sized businesses to stretch their authorised budget, which may not be feasible for all businesses. Furthermore, ERP software programmes want outside aid in order to fully comprehend corporate functions. This could result in additional costs, rendering the entire system ineffective. In addition, a lack of understanding, a lack of experienced staff to assist organisations in navigating change, and employee unwillingness to adapt to new processes are all problems that could impede expansion.

Opportunity:

Emerging economies

The global ERP market might benefit from the growth potential offered by emerging nations that are quickly commercialising and industrialising. Modern-day entrepreneurs are willing to invest more in technological systems that provide them more time to focus on vital activities and allow them to delegate certain operations to technical systems such as ERP software. If existing or new companies can gain the trust of rising entrepreneurs or firms in Latin America and Asia-Pacific, these regions could yield more revenue.

Threat:

Growing competition

The global sector is highly competitive due to the rapid increase in the number of companies, particularly from growing economies like China and India. These countries are registering a large number of information technology (IT) specialists who are branching out on their own to tap into the high-potential sector. This might lead to fierce competition among market players of all sizes, making it harder for merchants to separate out from the crowd and attract more customers.

Covid-19 Impact

The COVID-19 pandemic has resulted in a succession of lockdowns and self-quarantine restrictions, which have resulted in closures, supply chain problems, and worker unavailability. Such variables had a significant impact on different corporate sectors around the world, ranging from electronics to automobile manufacturing. However, ERP software solutions enabled businesses to operate remotely during the pandemic, which will boost the global ERP industry's growth in the next years.

The large enterprises segment is expected to be the largest during the forecast period

The large enterprises segment is estimated to have a lucrative growth. One of the primary drivers driving the segment's growth is the increasing necessity of large organisations to maintain and align complex operations such as production planning, inventory management, procurement, order fulfilment, and shipping, among others. Furthermore, the considerable spending capacity of large-sized organisations for integrating current technology and software solutions accelerates market acceptance of cloud-based ERP software.

The cloud segment is expected to have the highest CAGR during the forecast period

The cloud segment is anticipated to witness the highest CAGR growth during the forecast period. The cloud implementation of ERP software allows a corporation to benefit from immediacy, efficiency, optimisation of resource planning activities, scalability, and accessibility. Cloud systems assist organisations by enabling speedier implementation and lower initial investments. Furthermore, increasing the usage of connected devices that effectively manage business operations and provide real-time insights allows business owners to choose for cloud-based ERP solutions to process abundant data efficiently is expected to fuel segment expansion.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. The substantial share of this region is primarily due to the increasing adoption of ERP software by small and medium-sized businesses, increased investments by ERP providers in software development with cutting-edge technology, and the existence of several market competitors. Furthermore, the use of ERP software with mobile devices is likely to drive demand during the projection period.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period due to the booming manufacturing sector and growing small and medium enterprises. Many businesses in the region have already deployed on-premise ERP solutions to increase their efficiency and performance. Furthermore, the growing number of start-ups and their increasing demand for cloud-based solutions is expected to drive market growth. Furthermore, government support for constructing IT infrastructure is likely to boost demand over the forecast period.

Key players in the market

Some of the key players profiled in the Enterprise Resource Planning Software Market include SAP SE, Microsoft Corporation, Epicor Software Corporation, International Business Machines Corporation, Hewlett-Packard Development Company, L.P., Sage Group, plc, Infor Inc., Unit4, NetSuite Inc., Oracle Corporation, Deltek, Workday, Inc., NetSuite Inc. and Acumatica, Inc.

Key Developments:

In July 2022, Infor collaborated with Syntellis, a supplier of enterprise resource solutions, to assist healthcare consumers in accessing Syntellis Axiom Healthcare Suite. This suite offers EPM tools with data-driven insights for enhancing the company’s operations.

In February 2022, SAP SE and IBM Corporation partnered to shift their enterprise resource planning (ERP) to the cloud. With this partnership, IBM offered SAP consumers SAP S/4HANA on the IBM cloud. SAP S/4HANA is an ERP solution for many organizations.

In November 2021, Oracle Corporation declared to aid Honda Motor in improving its procurement operations with Oracle Fusion Cloud ERP, in Japan. Four thousand suppliers and 25,000 employees utilize the Oracle Fusion cloud procurement platform.

In October 2021, Microsoft Corporation purchased Clear Software Business Process Solutions to enhance ERP software for automating business workflows.

In January 2021, SAP SE purchased Signavio GmbH, a process management and business intelligence provider. This acquisition of Signavio by SAP business process intelligence unit aids in improving and transforming the organization's business processes at scale.

Enterprise sizes Covered:
• Small Enterprises
• Medium Enterprises
• Large Enterprises

Deployments Covered:
• Cloud
• On-premises

Functions Covered:
• Supply Chain Management
• Customer Management
• Financial Management
• Inventory & Work Order Management
• Human Capital Management
• Other Functions

End Users Covered:
• Aerospace & Defense
• Healthcare
• Telecom
• Manufacturing
• Government
• Retail
• BFSI
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements