ERP Software Market Size, Trends, Growth, Report 2022-2030 (2024)

Industry Insights

[233+ Pages Report] According to the report published by Facts and Factors, the global ERP software market size was worth around USD 53.77 billion in 2022 and is predicted to grow to around USD 123.42 billion by 2030 with a compound annual growth rate (CAGR) of roughly 11.1% between 2023 and 2030. The report analyzes the global ERP software market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the ERP software market.

Market Overview

Enterprise resource planning (ERP) is a business management software program that allows companies to make information-based, statistically-backed, and data-driven decisions for the betterment of the company. These software programs are designed to automate various types of business operations and help companies manage human resources (HR, finance, customer relationship, or supply chain. This means that all four main operations of any business can be synchronized with the offerings of an ERP program.

The global industry is rapidly growing with the addition of new market players driven by the growing end-user applications and comprises different types of vendors that come along with associated services. ERP software is meant for enterprises of all sizes including small and medium to large companies. It is one of the advanced tools that many companies are investing in since it can directly impact the final operational performance of the company. The product providers supply different ERP solutions that can be customized as per client requirements.

Key Insights

• As per the analysis shared by our research analyst, the global ERP software market is estimated to grow annually at a CAGR of around 11.1% over the forecast period (2022-2030)
• In terms of revenue, the global ERP software market size was valued at around USD 53.77 billion in 2022 and is projected to reach USD 123.42 billion, by 2030.
• The market is projected to grow at a significant rate due to the increasing need for digitization and automation
• Based on enterprise size segmentation, large was predicted to show maximum market share in the year 2022
• Based on deployment segmentation, the cloud was the leading deployment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Growth Drivers

• Increasing need for digitization and automation to propel market demand

The global ERP software market is projected to grow owing to the increasing demand in the commercial world for digitization and automation in business operations. For a company to operate smoothly, it needs to ensure that the resources available at its disposal are being used efficiently. Digitization helps in improving company productivity since automated processes are faster and more efficient. They are less prone to errors saving the business resources and time which can be put to use on other important tasks.

Furthermore, digitization allows improved decision-making since it enables real-time information availability assisting in the identification of new future needs and business trends. ERP software programs are designed to meet the specific needs of businesses since they are highly customizable and make use of advanced technologies like machine learning, artificial intelligence, and cloud systems to deliver results. Since businesses are looking for measures to better streamline the operational aspects, the global industry can expect higher revenue.

Restraints

• High associated cost to restrict market expansion

ERP software is extremely expensive in terms of installation, implementation, and maintenance. The cost can cause small or medium-sized companies to extend their allocated budget which may not be possible for all corporations. Furthermore, ERP software programs require external assistance in terms of understanding business functionality which is required for optimum utilization. This could again lead to added cost making the entire system cost-ineffective. In addition to this, lack of awareness, absence of qualified personnel to help companies navigate through change, and resistance from employees to adapt to new systems are other factors that could lead to expansion limitations.

Opportunities

• Emerging economies to deliver growth opportunities

The global ERP market can benefit from the growth opportunities held in emerging economies that are rapidly moving toward commercialization and industrialization. Modern-age entrepreneurs are willing to invest higher in technological systems that allow them more time in hand for important tasks and leave certain operations on technical systems like ERP software. Regions in Latin America and Asia-Pacific could offer higher revenue if existing or new players can achieve the confidence of rising entrepreneurs or businesses in these countries.

Challenges

• Growing competition poses a challenge to further growth

The global industry is highly competitive since there is a rapid rise in the number of players, especially from emerging economies like China and India. These countries are registering a high number of information technology (IT) professionals who are venturing out on their own to tap into the high-potential market. This could become the cause of intense competition amongst market players of all sizes making it difficult for vendors to stand out from the rest and attract more customers.

Segmentation Analysis

The global ERP software market is segmented based on deployment, function, enterprise size, industry vertical, and region

Based on deployment, the global market is segmented into cloud and on-premises

• Although the choice of deployment method is purely based on company goals and requirements, currently, there is massive growth in the cloud segment
• The segment is gaining high momentum owing to the cost-effectiveness, flexibility, and scalability offered by cloud-based deployment methods
• In such services, the software program is hosted by a third party and the tool can be accessed through the internet
• It can be a cost-saving step since companies do not need to install supportive infrastructure to run the tool
• As per official reports, almost 6 out of every 10 business has now moved to cloud technology

Based on function, the global market is segmented into supply chain, finance, HR, and others

Based on enterprise size, the global market is divided into small, medium, and large

• These systems can be customized to be used by enterprises of all sizes however, large corporations are most likely to use ERP software
• Since the business of large corporations are more intense in terms of data volume and organizational complexity, they can better benefit from using ERP systems
• Furthermore, these companies have higher budgets that allow them to leave room for experimentation with advanced tools as opposed to small or medium-sized firms
• Statistical reports confirmed that almost the share of large companies deploying ERP software was 62%

Based on industry vertical, the global market divisions are retail, healthcare, manufacturing, government, telecom, aerospace & defense, and others.

Recent Developments:

• In November 2022, SYSPRO, a leading ERP software provider, announced the launch of a new global platform thus expanding its existing Independent Software Vendor (ISV) service line. The new launch enables clients higher flexibility and choice allowing them to gain an upper hand over competitors
• In May 2022, thinking announced that it plans to launch complete ERP solutions by the year 2023. The company will be targeting mid-corporates, old-economy companies, and well-funded startups that need scaling up
• In February 2023, Lujatalo Oy, a Finnish building contractor, announced that it would start the implementation of IFS Cloud ERP to modernize the company’s infrastructure

Report Scope

Regional Analysis

• North America to continue dominance over the market

The global ERP software market is projected to register the highest CAGR in North America as it has in previous years. The regions of the US and Canada are likely to become the largest contributors to regional growth. The US is home to silicon valley which fosters technological growth including software programs. The companies in the US are well-funded to incorporate ERP solutions and other advanced technologies since they have an intense need to better manage organizational complexities.

Asia-Pacific is projected to become a lucrative market for global industry growth with main revenue coming from India, China, Japan, South Korea, and Singapore. These countries are registering several first-generation IT developers and entrepreneurs who may venture into the unexplored segments of ERP software and services. Furthermore, the regions are labeled as rapidly growing economies in need of faster digitization and automation.

Competitive Analysis

• Epicor Software Corporation
• International Business Machines Corporation
• Unit4
• Infor Inc
• Microsoft Corporation
• Hewlett-Packard Development Company, L.P
• Oracle Corporation
• NetSuite Inc.
• SAP SE
• IBM Corporation
• SYSPRO
• Infor

The global ERP software market is segmented as follows:

By Deployment Segment Analysis

• Cloud
• On-Premises

By Function Segment Analysis

• Supply Chain
• Finance
• HR
• Others

By Enterprise Size Segment Analysis

• Small
• Medium
• Large

By Industry Vertical Segment Analysis

• Retail
• Healthcare
• Manufacturing
• Government
• Telecom
• Aerospace & Defense
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America