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The Global Enterprise Resource Planning (ERP) Software Market size is estimated to grow at a CAGR of 9.93% between 2022 and 2027. The size of the market is forecast to increase by USD 29,213.61 million. The growth of the market depends on several factors, including the increased operational efficiency associated with ERP software, the increasing demand for ERP software from SMEs, and the increasing demand for cloud-based applications. Increasing number of cyberattacks on ERP software is a major factor hindering the market growth.
This report extensively covers market segmentation by type (cloud-based and on-premise), end-user (manufacturing, BFSI, healthcare, IT and telecom, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for ERP software from SMEs is notably driving the enterprise resource planning (ERP) software market growth. ERP software is essential for enterprises across all end-user organizations that focus on improving their operational and business process efficiency. SMEs, which used standalone applications for each of their business functions, have started switching to ERP software that allows the integration of multiple functions into a single integrated application. They are majorly adopting ERP for its advantages, such as better planning and resource management, streamlining of data under one platform, regulating their operational costs, enhanced decision-making, and increased sales. SMEs are migrating from paper-based operations to system-based ERP automation software for business analysis and their operations.
ERP is being implemented across SMEs for better management of their business operations through a centralized management system, along with improved collaboration, productivity, simplified compliance, and risk management. These factors are significantly driving the adoption of ERP among SMEs which, in turn, will propel the growth of the market during the forecast period.
Embedded data analytics features are the primary trend driving the enterprise resource planning (ERP) software market growth. The architecture and design of ERP software are also evolving to support the real-time generation of data. Modern ERP systems leverage transactional ERP data and in-memory computing to enable advanced reporting and analytics of data. These capabilities are being incorporated within the ERP software's architecture, allowing ERP end-users to execute/run simulation, planning, modeling, and forecasting without the need for standalone analytics applications.
These extended analytical capabilities embedded within the ERP software can help enterprises improve their response time to the market demand for their products. For instance, the supply chain of a manufacturer, which sources raw materials from different parts of the world, can become more efficient using the analytical features of the ERP software. Real-time analytics can help the manufacturer to start manufacturing as soon as the order is received, without the need to store excess inventory and stop accepting orders that could not be completed within the timelines. Such factors will propel the growth of the market during the forecast period.
The increasing number of cyberattacks on ERP software may impede the enterprise resource planning (ERP) software market growth. ERP software provides a direct and critical link to all aspects of a business. Hence, cybercriminals have started hacking ERP platforms used by their target companies to damage their business operations. End-users of ERP software are increasingly becoming the target of cyber attackers and criminals and are facing major issues in maintaining production efficiency. The lack of proper IT security infrastructure is making enterprise systems vulnerable to threats, thus resulting in cyberattacks such as distributed denial-of-service (DDoS), which are aimed at disrupting business operations.
ERP systems contain a company's sensitive information and business-critical data, which is highly attractive to hackers. Hence, the increase in the number of cyberattacks can hamper the growth of the global ERP software market during the forecast period.
The market share growth by the cloud-based segment will be significant during the forecast period. The global ERP software market is undergoing a technological shift driven by the advent of cloud computing. The revenues from the cloud-based ERP segment have grown at a rapid rate over the last five years, and the trend is expected to continue during the forecast period. The cloud-based ERP segment is expected to dominate the market and account for a major contribution to the incremental growth of the global ERP software market during the forecast period.
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The cloud-based segment showed a gradual increase in market share from USD 16,334.84 million in 2017 and continued to grow by 2021. Cloud-based ERP software is typically hosted in remote data centers, allowing users to access the software through the Internet. The low upfront costs of cloud-based ERP are driving its adoption across organizations, especially among SMEs that have limited IT budgets and resources. Cloud-based ERP software offers several benefits, such as real-time application performance analytics, regular security updates, global accessibility from any location, and scalability. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.The growth of this segment is primarily attributed to the increasing adoption of enterprise resource planning (ERP) software, which is driven by an increase in the global demand for the enterprise resource planning (ERP) software industry.
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North America is projected to contribute 42% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
ERP software is one of the major segments of the enterprise software market in North America. The US and Canada are the major revenue contributors to the ERP software market in this region. Enterprises in the region are early adopters of ERP applications. However, future investments by enterprises in ERP software in this region will be driven by their need to integrate existing ERP platforms with advanced technologies such as blockchain, AI, and the Internet of things (IoT)-enabled applications and data analytics. Vendors that offer in-built application programming interfaces (APIs) for these advanced technologies will have the opportunity to generate additional revenues through product upgrades and maintenance fees. Furthermore, an increase in the need for business process efficiency and transparency through digital transformation is also driving the adoption of ERP software in this region. The advantages of ERP software are expected to drive the growth of the market in North America during the forecast period.
In 2020, the ERP software market in North America witnessed a decline in its growth rate owing to the outbreak of the COVID-19 pandemic. However, in the second half of 2020, owing to the increased adoption of the work-from-home ecosystem across numerous industry verticals, the demand for cloud-based ERP software increased for operational procedures, helping the market to gain traction further in 2020. Moreover, increasing investments by governments across industries in infrastructure development will drive the growth of the market during the forecast period.
Enterprise Resource Planning (ERP) Software Market Market Customer Landscape
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Canada, Mexico, China, Japan, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Enterprise Resource Planning (ERP) Software Market Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
IFS World Operations AB - The company operates as a single operating and reportable segment that includes sales and revenues generated through various products and services offered by the company. Its major products include the Now Platform and pre-packaged applications specifically designed for automating IT, Employee, and Customer workflows.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Enterprise Resource Planning (ERP) Software Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.93% |
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Market growth 2023-2027 |
USD 29,213.61 million |
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Market structure |
Fragmented |
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YoY growth (%) |
8.54 |
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Regional analysis |
North America, Europe, APAC, the Middle East and Africa, and South America |
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Performing market contribution |
North America at 42% |
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Key consumer countries |
US, Canada, Mexico, China, Japan, and Germany |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Acumatica Inc., Computer Generated Solutions Inc., Dassault Systemes SE, Ellucian Co. LP, Epicor Software Corp., Koch Industries Inc., Microsoft Corp., Odoo SA, Oracle Corp., Roper Technologies Inc., Sage Group Plc, Salesforce.com Inc., SAP SE, SYSPRO Pty. Ltd., TOTVS SA, UKG Inc., Unit4 NV, Workday Inc., IFS World Operations AB, and ServiceNow Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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