The enterprise resource planning (ERP) software market is projected to grow at a CAGR of 5.96% during the forecast period to reach US$56.994 billion by 2027, up from US$38.001 billion in 2020. ERP software is an advanced computer technology that enables enterprises to manage their daily chores on digital and automated platforms. The rising adoption of technology for smoother operations, coupled with growing internet penetration and a significant surge in operations, particularly in small and medium enterprises, is projected to expand the market during the forecasted period. Robust growth in major end-user industries is projected to play a vital role in the market growth.
Based on region, the ERP software market has been distinguished as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. Due to wider technology prevalence and earlier adoption, the North American region is expected to hold a dominating share in the market. However, the Asia Pacific region is forecasted to grow at the fastest rate, owing to a surge in internet penetration and booming investments in small and medium-scale enterprises. China is expected to hold a dominating share in the Asia-Pacific ERP software market while India is projected to grow at the fastest CAGR. Due to economic uncertainties, lower internet penetration, and low technological adoption, South America and the Middle East and African regions are expected to grow at resilient growth rates.
A rise in small and medium enterprise investment with economic development and support to start-ups is projected to nudge growth in the market.
Surging investment and governmental support for small and medium enterprises (SMEs) are projected to support the market growth, creating scope for technology advancement and adoption, hence supporting the market demand for ERP software. . A report published by the World Bank shows that small and medium enterprises account for 90% of global business and 50% of global employment generation. The SME sector has witnessed promising growth over the years and has been notably investing in technological up-gradation and advancement. With the rise in computer technology inculcation to improve operations, the ERP software market is forecasted to witness promising growth. Based on enterprise size, the report segments the ERP software market into small and medium-sized, and large enterprises.
Cloud deployment is projected to hold a notable share of the market.
Based on deployment, the market has been segmented as cloud and on-premise. While the on-premise deployment of ERP software is expected to dominate the market, the cloud deployment of ERO software is expected to grow at a faster rate during the forecasted period. The surge in internet penetration is the key reason for such tremendous growth. The World Bank database shows that internet accessibility around the globe has significantly increased to over 60% in 2020, up from 28.876% in 2010. The adoption of cloud computing has increased, particularly in the SME sector, at a noteworthy rate. A survey conducted by Google in India reveals that 79% of SME businesses in the country are willing to adopt cloud services for better performance.
Exponential growth in the BFSI, IT, and telecom sectors will drive promising growth in the market.
The enterprise resource planning (ERP) software market, based on industry vertical, has been segmented as BFSI, healthcare, retail, manufacturing, IT and telecom, and others. The BFSI IT and telecom segments are projected to dominate the market, growing at the fastest CAGR during the forecasted period. Robust infrastructure development and investment in these sectors are projected to increase the adoption of the ERP software market. Retail and manufacturing sectors are also anticipated to experience a significant growth with a surge in technological adoption.
By function, finance dominates the market.
Based on the functions of ERP software, the financial segment dominates the market. ERP software enables smooth and hassle-free financial management and report maintenance, which increases enterprise productivity. Furthermore, the software enables ease in financial decision-making by presenting the required analysis to the users. However, marketing and sales management are projected to grow at a significant rate. Due to its ease in increasing the efficiency of operations, sales management also accounts for a noteworthy share of the market.
The COVID-19 pandemic didn’t act in favor of the ERP software market as it resulted in a reduction in the market potential growth. The exponential spread of the virus led to the implementation of a strict lockdown to halt human movement and hence contain the spread. The pandemic led to restrictions resulting in a halt in the business process, especially among SMEs, who ran out of business and had to temporarily or permanently shut down. Lower operations by SMEs resulted in lower demand for ERP software, and hence decreased the market potential for revenue generation. Data from the EU shows that around 70% of SMEs in the European regions were temporarily or permanently shut down owing to the pandemic. SAP, a market leader in ERP software, saw its revenue increase by 0.94% in 2020 to €23.228 billion.
|Market size value in 2020||US$38.001 billion|
|Market size value in 2027||US$56.994 billion|
|Growth Rate||CAGR of 5.96% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Deployment, Enterprise Size, Industry Vertical, Function, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||IBM, Microsoft, Oracle, SAP, Deskera, Infor, Sage Group plc, SYSPRO, Epicor Software Corporation, IFS World Operations AB|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the enterprise resource planning (ERP) software market size by 2027?
A1. The enterprise resource planning (ERP) software market is projected to reach a total market size of US$56.994 billion in 2027.
Q2. What are the growth prospects for the enterprise resource planning software market?
A2. The global enterprise resource planning software market is projected to grow at a CAGR of 5.96% during the forecast period.
Q3. What is the size of the global enterprise resource planning software market?
A3. Enterprise Resource Planning (ERP) Software Market is evaluated at US$38.001 billion for the year 2020.
Q4. What factors are anticipated to drive the enterprise resource planning software market growth?
A4. The rising adoption of technology for smoother operations, coupled with growing internet penetration and a significant surge in operations, particularly in small and medium enterprises, is projected to expand the enterprise resource planning software market.
Q5. Which region holds the largest market share in the enterprise resource planning software market?
A5. The North American region is expected to hold a dominating share in the enterprise resource planning software market owing to the wider technology prevalence and earlier adoption.
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE MARKET, BY DEPLOYMENT
6. ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE MARKET, BY ENTERPRISE SIZE
6.2. Small and Medium
7. ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE MARKET, BY INDUSTRY VERTICAL
7.5. IT and Telecom
8. ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE MARKET, BY FUNCTION
8.3. Marketing and Sales Management
8.4. Stock Management
9. ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE MARKET, BY GEOGRAPHY
9.2. North America
9.2.1. United States
9.3. South America
9.4.1. United Kingdom
9.5. The Middle East and Africa
9.5.1. Saudi Arabia
9.6. Asia Pacific
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. COMPANY PROFILES
11.7. Sage Group plc
11.9. Epicor Software Corporation
11.10. IFS World Operations AB
Sage Group plc
Epicor Software Corporation
IFS World Operations AB
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