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ERP Software Market Report Scope & Overview:

The ERP Software Market size was valued at USD 59.49 Billion in 2023 and is expected to grow to USD 137.29 Billion By 2031 and grow at a CAGR of 11.02% over the forecast period of 2024-2031.

Enterprise Resource Planning (ERP) is a powerful business management software that empowers companies to make informed decisions based on data. These software programs are designed to automate various business processes and help organizations manage their human resources, finances, customer relationships, and supply chain.

ERP Software Market Revenue Analysis

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This means that ERP products can be seamlessly integrated into the four key operations of any organization. With ERP, companies can streamline their operations, reduce costs, and improve efficiency. By automating routine tasks, ERP frees up valuable time and resources that can be redirected toward more strategic initiatives. Additionally, ERP provides real-time visibility into key business metrics, enabling companies to make data-driven decisions that drive growth and profitability. In today's fast-paced business environment, ERP is no longer a luxury but a necessity. Companies that fail to adopt ERP risk falling behind their competitors and missing out on valuable opportunities. With its powerful capabilities and ease of use, ERP is the ultimate tool for companies looking to stay ahead of the curve and achieve long-term success.

Market Dynamics

Drivers

  • Growing Need for Enterprises to Improve Operational Efficiency and Streamline Business Processes to Drive Growth

The requirement for transparency and operational effectiveness in company operations has compelled multinational corporations to embrace a variety of business models. Technological advancements reduce the complexity of Enterprise Resource Planning software systems and enable third-party apps to more efficiently handle company procedures. Companies throughout the world are focusing on improving their business processes in order to boost operational productivity while keeping expenses under control. Organizations are searching for a unified solution to handle a variety of company processes such as sales and marketing, procurement, and supply chain management. The integration of ERP software has simplified and improved corporate processes. Manual data entry is no longer required, allowing businesses to view all data on a single, consistent platform. Complex operations, such as a multi-step manufacturing plan, may be made simple and painless by using cloud-based software.

Restrains

  • ERP Adoption Will Be Limited Due to Integration Issues with On-premises Deployment Models

Organizations are gradually integrating cloud enterprise resource planning tools and services. However, due to installation costs and system complexity, businesses continue to confront significant challenges in integrating new solutions with their existing systems. To be effective, existing legacy systems must be tightly integrated with the new cloud-based ERP. Due to a lack of resources, several businesses continue to rely on their current systems, which are based on obsolete technology. They include manual methods, which result in a longer turnaround time and a higher risk of error.

Opportunities

  • A surge in demand for cloud-based ERP systems from small and medium-sized firms is expected to provide multiple possibilities for market participants throughout the projected period.

Challenges

  • The lack of trained labor is a challenge to market expansion.

Impact of the Russia-Ukraine War

The ongoing conflict between Russia and Ukraine can create a sense of regional instability. Uncertainty and political tensions can have a negative impact on the business environment, leading to a slowdown in economic activities. This could result in reduced investments in ERP software by businesses in the affected regions. The war may disrupt supply chains, especially if the conflict escalates and trade routes are affected. ERP systems play a critical role in managing supply chain operations, such as inventory management, logistics, and procurement. Any disruption in the supply chains can impact the demand for ERP software, as companies may postpone or reduce their technology investments until the situation stabilizes. Armed conflicts often lead to economic contractions in the affected regions. The war can result in reduced consumer and business spending, which can have a trickle-down effect on the ERP software market. Companies may prioritize cost-cutting measures and delay or cancel IT projects, including ERP implementations or upgrades. In times of uncertainty, businesses often reassess their strategies and seek to optimize their operations. ERP software can play a crucial role in streamlining processes, improving efficiency, and reducing costs. As a result, companies may intensify their focus on ERP solutions to enhance their resilience and gain better visibility into their operations during challenging times.

The geopolitical implications of the Russia-Ukraine conflict may impact international trade and relationships. This can have indirect consequences on the ERP software market, as trade barriers, economic sanctions, or shifting alliances can affect business dynamics and investment decisions across borders.

Impact of the Recession

During a recession, businesses may delay or scale back their investment in new technologies, including ERP software. Financial constraints and uncertainty about the future can lead to a slower adoption rate as companies prioritize cost-cutting measures and focus on immediate needs. Companies facing economic challenges tend to reduce their IT budgets. This can impact ERP software sales, as organizations may postpone or cancel software purchases or upgrades. They may also opt for more affordable alternatives, such as open-source solutions or cloud-based software-as-a-service (SaaS) offerings. During a recession, businesses prioritize cost savings and operational efficiency. ERP systems are designed to streamline processes, improve productivity, and reduce waste. As a result, companies may continue to invest in ERP software to optimize their operations and achieve cost savings in the long run. Different industries may experience varying impacts on the ERP software market during a recession. Some sectors, such as manufacturing or retail, might see a decline in software purchases due to reduced consumer demand and production slowdowns. However, other industries, like healthcare or government, may still invest in ERP systems to improve operational effectiveness and compliance. A recession can accelerate the adoption of cloud-based ERP solutions. Cloud-based software offers advantages such as lower upfront costs, scalability, and easier remote access. Businesses may prefer the subscription-based pricing model and the ability to avoid large upfront investments during uncertain economic times.

Key Market Segmentation

By Business Function

  • Financial Management

  • Human Capital Management

  • Supply Chain Management

  • Customer Management

  • Inventory & Work Order Management

  • Others

By Organization Type

  • Small & Medium Enterprises (SMEs)

  • Large Enterprises

By Deployment

  • Cloud

  • On-premise

  • Hybrid

By End-user

  • Manufacturing

  • BFSI

  • IT & Telecom

  • Retail & Consumer Goods

  • Healthcare & Life Sciences

  • Transportation & Logistics

  • Government

  • Others

Regional Analysis

Due to the increasing demand for digital technology to automate corporate functions, the North American market has taken the lead in the Enterprise Resource Planning (ERP) software market. This growth has been fueled by the investment of important regional firms in research and development operations to offer upgraded ERP solutions.

Asia Pacific region is expected to experience a remarkable compound annual growth rate (CAGR). This growth can be attributed to the constantly developing industrial verticals, including manufacturing, BFSI, and transportation and logistics. As businesses continue to seek ways to streamline their operations and increase efficiency, the demand for ERP software solutions will only continue to grow. With North America leading the way and the Asia Pacific poised for significant growth, the future of the ERP software market looks bright.

ERP-Software-Market-By-Region

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REGIONAL COVERAGE:

North America

  • USA

  • Canada

  • Mexico

Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

Asia-Pacific

  • Japan

  • South Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of the Middle East & Africa

Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

Key Players:

The major players are Epicor, Infor Inc., Hewlett-Packard Development Company, L.P., Unit4, International Business Machines Corporation, Deltek, Microsoft Corporation, SAP SE, Oracle Corporation, NetSuite Inc., Workday, Inc., and others in the final report.

International Business Machines Corporation-Company Financial Analysis

Company Landscape Analysis

Recent Developments:

In July 2022, Infor announced a partnership with Syntellis, a supplier of business resource solutions, to give healthcare customers with access to the Syntellis Axiom Healthcare Suite. This package includes EPM technologies that provide data-driven insights for improving the company's operations.

SAP SE and IBM Corporation collaborated in February 2022 to move their enterprise resource planning (ERP) to the cloud. With this collaboration, IBM provided SAP customers with SAP S/4HANA on the IBM cloud. SAP S/4HANA is an ERP system used by numerous businesses.

Oracle Corporation announced in November 2021 that it will assist Honda Motor in enhancing its procurement processes in Japan by using Oracle Fusion Cloud ERP. The Oracle Fusion cloud procurement platform is used by 4,000 vendors and 25,000 workers.

ERP Software Market Report Scope:
Report Attributes Details
Market Size in 2023  US$ 59.49 Bn
Market Size by 2031  US$ 137.29 Bn
CAGR   CAGR of 11.02% From 2024 to 2031
Base Year  2023
Forecast Period  2024-2031
Historical Data  2020-2022
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Business Function (Financial Management, Human Capital Management, Supply Chain Management, Customer Management, Inventory & Work Order Management, Others)
• By Organization Type (Small & Medium Enterprises (SMEs), Large Enterprises)
• By Deployment (Cloud, On-premise, Hybrid)
• By End-user (Manufacturing, BFSI, IT & Telecom, Retail & Consumer Goods, Healthcare & Life Sciences, Transportation & Logistics, Government, Others)
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles

Epicor, Infor Inc., Hewlett-Packard Development Company, L.P., Unit4, International Business Machines Corporation, Deltek, Microsoft Corporation, SAP SE, Oracle Corporation, NetSuite Inc., Workday, Inc.

Key Drivers • Growing Need for Enterprises to Improve Operational Efficiency and Streamline Business Processes to Drive Growth
Market Opportunities • A surge in demand for cloud-based ERP systems from small and medium-sized firms is expected to provide multiple possibilities for market participants throughout the projected period.

 

Frequently Asked Questions

Ans: The ERP Software Market is growing at a CAGR of 11.03% Over the forecast period 2023-2030.

Ans: The ERP Software Market size was valued at USD 54.12 Bn in 2022.

Ans. The major players are Epicor, Infor Inc., Hewlett-Packard Development Company, L.P., Unit4, International Business Machines Corporation, Deltek, Microsoft Corporation, SAP SE, Oracle Corporation, NetSuite Inc., Workday, Inc., and others in the final report.

Ans: The North American region is dominating the ERP Software Market.

Ans. The forecast period for the ERP Software Market is 2023-2030.

Table of Contents

1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions

2. Research Methodology

3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges

4. Impact Analysis
4.1 Impact of Russia-Ukraine War
4.2 Impact of Ongoing Recession
4.2.1 Introduction
4.2.2 Impact on major economies
4.2.2.1 US
4.2.2.2 Canada
4.2.2.3 Germany
4.2.2.4 France
4.2.2.5 United Kingdom
4.2.2.6 China
4.2.2.7 japan
4.2.2.8 South Korea
4.2.2.9 Rest of the World

5. Value Chain Analysis

6. Porter’s 5 forces model

7. PEST Analysis

8. ERP Software Market Segmentation, By Business Function
8.1 Financial Management
8.2 Human Capital Management
8.3 Supply Chain Management
8.4 Customer Management
8.5 Inventory & Work Order Management
8.6 Others

9. ERP Software Market Segmentation, By Organization Type
9.1 Large enterprises
9.2 Small and medium enterprises

10. ERP Software Market Segmentation, By Deployment
10.1 Cloud
10.2 On-premise
10.3 Hybrid

11. ERP Software Market Segmentation, By End-user
11.1 Manufacturing
11.2 BFSI
11.3 IT & Telecom
11.4 Retail & Consumer Goods
11.5 Healthcare & Life Sciences
11.6 Transportation & Logistics
11.7 Government
11.8 Others

12. Regional Analysis
12.1 Introduction
12.2 North America
12.2.1 North America ERP Software Market By Country
12.2.2 North America ERP Software Market By Business Function
12.2.3 North America ERP Software Market By Organization Type
12.2.4 North America ERP Software Market By Deployment
12.2.5 North America ERP Software Market By End-user
12.2.6 USA
12.2.6.1 USA ERP Software Market By Business Function
12.2.6.2 USA ERP Software Market By Organization Type
12.2.6.3 USA ERP Software Market By Deployment
12.2.6.4 USA ERP Software Market By End-user
12.2.7 Canada
12.2.7.1 Canada ERP Software Market By Business Function
12.2.7.2 Canada ERP Software Market By Organization Type
12.2.7.3 Canada ERP Software Market By Deployment
12.2.7.4 Canada ERP Software Market By End-user
12.2.8 Mexico
12.2.8.1 Mexico ERP Software Market By Business Function
12.2.8.2 Mexico ERP Software Market By Organization Type
12.2.8.3 Mexico ERP Software Market By Deployment
12.2.8.4 Mexico ERP Software Market By End-user
12.3 Europe
12.3.1 Europe ERP Software Market By Country
12.3.2 Europe ERP Software Market By Business Function
12.3.3 Europe ERP Software Market By Organization Type
12.3.4 Europe ERP Software Market By Deployment
12.3.5 Europe ERP Software Market By End-user
12.3.6 Germany
12.3.6.1 Germany ERP Software Market By Business Function
12.3.6.2 Germany ERP Software Market By Organization Type
12.3.6.3 Germany ERP Software Market By Deployment
12.3.6.4 Germany ERP Software Market By End-user
12.3.7 UK
12.3.7.1 UK ERP Software Market By Business Function
12.3.7.2 UK ERP Software Market By Organization Type
12.3.7.3 UK ERP Software Market By Deployment
12.3.7.4 UK ERP Software Market By End-user
12.3.8 France
12.3.8.1 France ERP Software Market By Business Function
12.3.8.2 France ERP Software Market By Organization Type
12.3.8.3 France ERP Software Market By Deployment
12.3.8.4 France ERP Software Market By End-user
12.3.9 Italy
12.3.9.1 Italy ERP Software Market By Business Function
12.3.9.2 Italy ERP Software Market By Organization Type
12.3.9.3 Italy ERP Software Market By Deployment
12.3.9.4 Italy ERP Software Market By End-user
12.3.10 Spain
12.3.10.1 Spain ERP Software Market By Business Function
12.3.10.2 Spain ERP Software Market By Organization Type
12.3.10.3 Spain ERP Software Market By Deployment
12.3.10.4 Spain ERP Software Market By End-user
12.3.11 The Netherlands
12.3.11.1 Netherlands ERP Software Market By Business Function
12.3.11.2 Netherlands ERP Software Market By Organization Type
12.3.11.3 Netherlands ERP Software Market By Deployment
12.3.11.4 Netherlands ERP Software Market By End-user
12.3.12 Rest of Europe
12.3.12.1 Rest of Europe ERP Software Market By Business Function
12.3.12.2 Rest of Europe ERP Software Market By Organization Type
12.3.12.3 Rest of Europe ERP Software Market By Deployment
12.3.12.4 Rest of Europe ERP Software Market By End-user
12.4 Asia-Pacific
12.4.1 Asia Pacific ERP Software Market By Country
12.4.2 Asia Pacific ERP Software Market By Business Function
12.4.3 Asia Pacific ERP Software Market By Organization Type
12.4.4Asia Pacific ERP Software Market By Deployment
12.4.5Asia Pacific ERP Software Market By End-user
12.4.6 Japan
12.4.6.1 Japan ERP Software Market By Business Function
12.4.6.2 Japan ERP Software Market By Organization Type
12.4.6.3 Japan ERP Software Market By Deployment
12.4.6.4 Japan ERP Software Market By End-user
12.4.7 South Korea
12.4.7.1 South Korea ERP Software Market By Business Function
12.4.7.2 South Korea ERP Software Market By Organization Type
12.4.7.3 South Korea ERP Software Market By Deployment
12.4.7.4 South Korea ERP Software Market By End-user
12.4.8 China
12.4.8.1 China ERP Software Market By Business Function
12.4.8.2 China ERP Software Market By Organization Type
12.4.8.3 China ERP Software Market By Deployment
12.4.8.4 China ERP Software Market By End-user
12.4.9 India
12.4.9.1 India ERP Software Market By Business Function
12.4.9.2 India ERP Software Market By Organization Type
12.4.9.3 India ERP Software Market By Deployment
12.4.9.4 India ERP Software Market By End-user
12.4.11 Australia
12.4.10.1 Australia ERP Software Market By Business Function
12.4.10.2 Australia ERP Software Market By Organization Type
12.4.10.3 Australia ERP Software Market By Deployment
12.4.10.4 Australia ERP Software Market By End-user
12.4.11 Rest of Asia-Pacific
12.4.11.1 APAC ERP Software Market By Business Function
12.4.11.2 APAC ERP Software Market By Organization Type
12.4.11.3 APAC ERP Software Market By Deployment
12.4.11.4 APAC ERP Software Market By End-user
12.5 The Middle East & Africa
12.5.1 The Middle East & Africa ERP Software Market By Country
12.5.2 The Middle East & Africa ERP Software Market By Business Function
12.5.3 The Middle East & Africa ERP Software Market By Organization Type
12.5.4The Middle East & Africa ERP Software Market By Deployment
12.5.5 The Middle East & Africa ERP Software Market By End-user
12.5.6 Israel
12.5.6.1 Israel ERP Software Market By Business Function
12.5.6.2 Israel ERP Software Market By Organization Type
12.5.6.3 Israel ERP Software Market By Deployment
12.5.6.4 Israel ERP Software Market By End-user
12.5.7 UAE
12.5.7.1 UAE ERP Software Market By Business Function
12.5.7.2 UAE ERP Software Market By Organization Type
12.5.7.3 UAE ERP Software Market By Deployment
12.5.7.4 UAE ERP Software Market By End-user
12.5.8South Africa
12.5.8.1 South Africa ERP Software Market By Business Function
12.5.8.2 South Africa ERP Software Market By Organization Type
12.5.8.3 South Africa ERP Software Market By Deployment
12.5.8.4 South Africa ERP Software Market By End-user
12.5.9 Rest of Middle East & Africa
12.5.9.1 Rest of Middle East & Asia ERP Software Market By Business Function
12.5.9.2 Rest of Middle East & Asia ERP Software Market By Organization Type
12.5.9.3 Rest of Middle East & Asia ERP Software Market By Deployment
12.5.9.4 Rest of Middle East & Asia ERP Software Market By End-user
12.6 Latin America
12.6.1 Latin America ERP Software Market By Country
12.6.2 Latin America ERP Software Market By Business Function
12.6.3 Latin America ERP Software Market By Organization Type
12.6.4 Latin America ERP Software Market By Deployment
12.6.5 Latin America ERP Software Market By End-user
12.6.6 Brazil
12.6.6.1 Brazil ERP Software Market By Business Function
12.6.6.2 Brazil Africa ERP Software Market By Organization Type
12.6.6.3 Brazil ERP Software Market By Deployment
12.6.6.4 Brazil ERP Software Market By End-user
12.6.7 Argentina
12.6.7.1 Argentina ERP Software Market By Business Function
12.6.7.2 Argentina ERP Software Market By Organization Type
12.6.7.3 Argentina ERP Software Market By Deployment
12.6.7.4 Argentina ERP Software Market By End-user
12.6.8 Rest of Latin America
12.6.8.1 Rest of Latin America ERP Software Market By Business Function
12.6.8.2 Rest of Latin America ERP Software Market By Organization Type
12.6.8.3 Rest of Latin America ERP Software Market By Deployment
12.6.8.4Rest of Latin America ERP Software Market By End-user

13. Company Profile
13.1 Epicor.
13.1.1 Market Overview
13.1.2 Financials
13.1.3 Product/Services/Offerings
13.1.4 SWOT Analysis
13.1.5 The SNS View
13.2 Infor Inc.
13.2.1 Market Overview
13.2.2 Financials
13.2.3 Product/Services/Offerings
13.2.4 SWOT Analysis
13.2.5 The SNS View
13.3 Hewlett-Packard Development Company, L.P.
13.3.1 Market Overview
13.3.2 Financials
13.3.3 Product/Services/Offerings
13.3.4 SWOT Analysis
13.3.5 The SNS View
13.4 International Business Machines Corporation.
13.4.1 Market Overview
13.4.2 Financials
13.4.3 Product/Services/Offerings
13.4.4 SWOT Analysis
13.4.5 The SNS View
13.5 Deltek.
13.5.1 Market Overview
13.5.2 Financials
13.5.3 Product/Services/Offerings
13.5.4 SWOT Analysis
13.5.5 The SNS View
13.6 Microsoft Corporation.
13.6.1 Market Overview
13.6.2 Financials
13.6.3 Product/Services/Offerings
13.6.4 SWOT Analysis
13.6.5 The SNS View
13.7 SAP SE.
13.7.1 Market Overview
13.7.2 Financials
13.7.3 Product/Services/Offerings
13.7.4 SWOT Analysis
13.7.5 The SNS View
13.8 Oracle Corporation.
13.8.1 Market Overview
13.8.2 Financials
13.8.3 Product/Services/Offerings
13.8.4 SWOT Analysis
13.8.5 The SNS View
13.9 NetSuite Inc.
13.9.1 Market Overview
13.9.2 Financials
13.9.3 Product/Services/Offerings
13.9.4 SWOT Analysis
13.9.5 The SNS View
13.10 Workday, Inc.
13.10.1 Market Overview
13.10.2 Financials
13.10.3 Product/Services/Offerings
13.10.4 SWOT Analysis
13.10.5 The SNS View

14. Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments

15. USE Cases and Best Practices

16. Conclusion

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of good and accurate research report and selecting the best methodology to compete the research is the toughest part. Since the research reports we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach at a stage wherein we can provide our clients best and accurate investment to output ratio.

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The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research is as the name suggests is a research process wherein, we collect data through the readily available information. In this process we use various paid and unpaid databases which our team has access to and gather data through the same. This includes examining of listed companies’ annual reports, Journals, SEC filling etc. Apart from this our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various university as well as individual libraries.

Secondary Research

Step 2: Primary Research

When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data.  This type of research is focused on gaining content specific facts that can be sued to solve specific problems. Since the collected data is fresh and first hand therefore it makes the study more accurate and genuine.

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This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.

Primary Research

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Data Bank Validation

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