Asia-Pacific Enterprise Resource Planning (Erp) Market: Forecast Analysis 2024-2032

Asia-Pacific Enterprise Resource Planning (Erp) Market: Forecast Analysis 2024-2032

As per Triton’s research report, the Asia-Pacific enterprise resource planning (ERP) market is projected to advance in terms of revenue at a CAGR of 12.08% during the forecasting period 2024-2032.

Asia-Pacific is home to numerous manufacturing firms due to the accessibility of resources and low labor costs. Many enterprises in this region have adopted on-premise enterprise resource planning solutions to enhance productivity and business performance. Besides, advancements in IT infrastructure are expected to boost the demand for cloud-based ERP software. Further, small and medium-sized enterprises (SMEs) and start-ups in the region favor cloud-enabled ERP solutions due to their lower cost compared to on-premise alternatives. As per estimates, SMEs account for around 98% of all enterprises in the region, employing approximately 50% of the workforce. This growth significantly contributes to the ERP market’s expansion.

The countries analyzed in this region include China, India, ASEAN Countries, Japan, Australia & New Zealand, and Rest of Asia-Pacific.

China dominates the regional market share, recording around $5.25 billion in 2023

The Chinese government actively promotes industry digitization through policies and initiatives encouraging advanced technology adoption, including ERP systems. The ‘Made in China 2025’ initiative, for example, highlights IT integration in manufacturing to boost operational efficiency and competitiveness.

Small and medium-sized enterprises (SMEs) are increasingly implementing ERP systems to streamline operations, improve decision-making, and maintain competitiveness. As per the Chinese Ministry of Commerce, around 60% of Chinese SMEs have adopted some form of ERP system to improve their operational efficiency and decision-making processes.

Rapid technological advancements such as AI-powered analytics and hyper-automation facilitate efficient data processing, real-time insights, and customized user experiences, enhancing the appeal of ERP systems. A study by the China Academy of Information and Communications Technology (CAICT) found that approximately 30% of new ERP systems in China incorporate AI-powered analytics.

Market Forecast for Japan & India

The Japanese ERP software market is witnessing various innovations aimed at expanding new business areas and reforming indirect material procurement to reduce costs and enhance operational efficiency. In November 2021, Oracle Corporation Japan announced its collaboration with Honda Motor to improve procurement efficiency using Oracle Fusion Cloud Enterprise Resource Planning (ERP). Moreover, Honda and its subsidiaries now utilize Oracle Fusion Cloud Procurement, a component of Oracle Cloud ERP, to centralize indirect material purchases for their Japanese operations, which were previously managed independently by each company. Such developments by major companies create novel opportunities for other players in the enterprise resource planning market.

India is experiencing significant opportunities for digital transformation. Many companies are opting to manage enterprise computing in the cloud, facilitating transformation-as-a-service. This approach allows companies to streamline and expedite their digital advancements beyond mere technical upgrades. For example, SAP’s ‘RISE with SAP’ cloud ERP solution is being widely adopted by Indian businesses. Additionally, government support is another factor supporting the adoption of enterprise resource planning solutions. For instance, recently, The University of Jammu took a significant step towards enhancing transparency, efficiency, and accountability by implementing the Samarth ERP (Enterprise Resource Planning) system, aligning with the Government of India’s Digital India campaign.

The market is sectioned into enterprise size, application, deployment, and vertical. The enterprise size segment includes large, medium, and small enterprises.

Small enterprises, defined as those with up to 250 employees, have increasingly adopted ERP systems in recent years. ERP software provides these organizations with comprehensive access to integrated applications, streamlining various back-office activities. For small businesses, ERP software enhances sales, aids in setting manufacturing production goals, and helps produce high-quality components demanded by customers. Additionally, ERP systems are known to reduce operational costs by around 11%.

The major companies in the enterprise resource planning market include Epicor Software Corporation, IBM Corporation, IFS AB, Infor Inc, and Microsoft Corporation.

Epicor Software Corporation develops specialized business software tailored for manufacturing, distribution, retail, and services industries. Its comprehensive offerings encompass enterprise resource planning (ERP), supply chain management (SCM), manufacturing execution systems (MES), human capital management (HCM), financial management, and service management. Additionally, Epicor provides business process and systems consulting, implementation services, and custom solution development. With headquarters in the US, the company has operations across multiple regions, including Asia-Pacific.

Latest from the Company:

In May 2024, the company launched its new Epicor Grow Portfolio, which redefines the role of AI-powered ERP software in supporting supply chain industries and their employees.