Enterprise Resource Planning (ERP) Market

Global Enterprise Resource Planning (ERP) Market:

The global enterprise resource planning (ERP) market size reached US$ 50.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 101.0 Billion by 2032, exhibiting a growth rate (CAGR) of 7.9% during 2024-2032. The growing demand for data-driven decisions, the rising integration of next-generation technologies, and the increasing employment of cloud and mobile applications represent some of the key factors driving the market.

Enterprise Resource Planning (ERP) Market Analysis:

• Major Market Drivers: At present, the demand for ERP in small and medium-sized enterprises (SMEs) for operational efficiency and transparency in business processes represents one of the key factors supporting the growth of the market. Besides this, there is a rise in the demand for data-driven decisions and implementation of resource planning by integrating all the processes.
• Key Market Trends: The elevating integration of next-generation technologies in cloud-based ERP, such as the Internet of Things (IoT), blockchain, artificial intelligence (AI), machine learning (ML), and digital assistants, is propelling the growth of the market. Additionally, the increasing adoption of ERP to manage accounting, investments, and assets is bolstering the enterprise resource planning (ERP) market growth.
• Competitive Landscape: Some of the prominent market companies include Epicor Software Corporation (KKR & Co. Inc.), International Business Machines Corporation, Kronos Incorporated (Hellman & Friedman LLC), Microsoft Corporation, Oracle Corporation, SAP SE, The Sage Group Plc, TOTVS S.A, Unit4 (Advent International), Workday Inc., and Yonyou Network Technology Co. Ltd., among many others.
• Geographical Trends: North America accounted for the largest market share. Many companies across the region are undertaking digital transformation projects to streamline business operations, enhance efficiency, and remain competitive. ERP systems are central to this transformation, integrating processes across finance, human resources, supply chain, and other core business areas.
• Challenges and Opportunities: The high implementation costs and data privacy concerns are hampering the enterprise resource planning (ERP) market share. However, emerging technologies like artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and blockchain are creating new functionalities for the market.
   

Enterprise Resource Planning (ERP) Market Trends:

Rising Digital Transformation

The increasing digital transformation is one of the key factors propelling the market's growth. For instance, according to IMARC, the global digital transformation market size reached USD 692 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 2,845 Billion by 2032, exhibiting a growth rate (CAGR) of 16.9% during 2024-2032. As businesses increasingly shift toward digital-first operations, ERP systems are critical to this transformation. They automate and integrate core business processes such as finance, HR, supply chain, and customer relationship management (CRM), providing a unified platform for business management. These factors are expected to propel the enterprise resource planning (ERP) market share in the coming years.

Increasing Remote Work Trends

The rise of remote work and mobile workforces has increased demand for ERP systems that provide mobile access and remote functionality. A rising number of employees across various regions are working remotely. For instance, according to CXOToday, by 2025, an estimated 60 to 90 million Indians will work remotely, accounting for nearly 10.12% to 15.17% of the Indian workforce. Mobile ERP solutions allow employees to access business-critical information and perform tasks from anywhere.  These factors further positively influence the enterprise resource planning (ERP) market size.

Technological Innovations

The integration of ERP systems with emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and blockchain is enhancing ERP capabilities. For instance, in September 2024, Eton Solutions, a wealth management enterprise resource planning system company, introduced EtonGPT, a generative artificial intelligence module for worldwide family offices. EtonGPT combines the transactional capabilities of Eton Solution's ERP platform with conversational AI functionality, thereby boosting the enterprise resource planning (ERP) market growth.

Global Enterprise Resource Planning (ERP) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, business segment, deployment type, organization size, and vertical.

Breakup by Component:

• Solutions
• Services
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions and services.

According to the market outlook, ERP solutions refer to the software platforms that provide businesses with the tools and modules to manage their operations. Moreover, ERP services encompass the implementation, customization, training, and ongoing support needed to operate an ERP solution effectively. These services ensure that ERP systems are tailored to meet the unique needs of a business.

Breakup by Business Segment:

• Sales and Marketing
• Finance and Accounting
• Order Management
• Others
   

The report has provided a detailed breakup and analysis of the market based on the business segment. This includes sales and marketing, finance and accounting, order management, and others. According to the report, finance and accounting represented the largest market segmentation.

According to the market overview, the finance industry is subject to ever-changing and complex regulations (e.g., Sarbanes-Oxley Act, IFRS, GAAP). ERP systems help organizations ensure compliance by automating processes related to financial reporting, auditing, and data integrity. Moreover, organizations need to make faster and more informed decisions. ERP systems offer real-time financial reporting, dashboards, and analytics that provide a holistic view of the company’s financial health, leading to better decision-making. This is positively influencing the enterprise resource planning (ERP) market share.

Breakup by Deployment Type:

• On-premises
• Cloud-based
   

On-premises accounted for the largest market share

The report has provided a detailed breakup and analysis of the market based on the deployment type. This includes on-premises and cloud-based. According to the report, on-premises represented the largest market segmentation.

Many organizations prefer on-premises ERP systems due to the higher level of control they provide over sensitive business and customer data. For industries dealing with highly confidential information, such as banking, healthcare, or defense, keeping data within the organization’s IT infrastructure ensures tighter control. Moreover, on-premises solutions allow companies to deploy and manage their security protocols according to specific requirements, which is particularly crucial for businesses with strict security guidelines and compliance needs.

Breakup by Organization Size:

• Large Organizations
• Small and Medium-Sized Organizations
   

Large organizations accounted for the largest market share

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes large organizations and small and medium-sized organizations. According to the report, large organizations represented the largest market segmentation.

Large enterprises often operate with multiple business units, subsidiaries, or divisions. An ERP system provides a centralized platform to manage and streamline diverse functions across the entire organization. Moreover, large organizations have complex workflows involving various departments like finance, supply chain, HR, procurement, and production. This is expanding the enterprise resource planning (ERP) market share across the segmentation.

Breakup by Vertical:

• BFSI
• Manufacturing
• Healthcare
• Education
• Government
• Automotive
• Others
   

Manufacturing accounted for the largest market share

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes BFSI, manufacturing, healthcare, education, government, automotive, and others. According to the report, manufacturing represented the largest market segmentation.

Manufacturing companies need to optimize the use of raw materials, machinery, and labor to maximize productivity. ERP systems provide advanced planning and scheduling tools to allocate resources efficiently, reducing downtime and production costs. Moreover, ERP solutions help manufacturers manage production capacity, ensuring that machinery, workforce, and other resources are aligned with production demands.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America holds the largest market for enterprise resource planning (ERP)

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America has the largest market share, including the growing adoption of ERP software by small and medium-sized companies, increasing investments by ERP vendors in software development, the presence of numerous market players, etc. Besides this, companies across North America are investing heavily in digital transformation initiatives. This push is driving the adoption of ERP solutions to streamline business processes, integrate data, and improve overall efficiency. The need for real-time data analysis and automation of operations is pushing enterprises towards modern ERP systems.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• Epicor Software Corporation (KKR & Co. Inc.)
• International Business Machines Corporation
• Kronos Incorporated (Hellman & Friedman LLC)
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• The Sage Group Plc
• TOTVS S.A
• Unit4 (Advent International)
• Workday Inc.
• Yonyou Network Technology Co. Ltd.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Enterprise Resource Planning (ERP) Market Recent Developments:

• September 2024: Eton Solutions, one of the wealth management enterprise resource planning system companies, introduced EtonGPT, a generative artificial intelligence module for worldwide family offices. It combines the transactional capabilities of Eton Solution's ERP platform with conversational AI functionality.
• July 2024: SAP and Indigi Consulting & Solutions Pvt Ltd introduced a flagship Cloud enterprise resource planning (ERP) service named 'GROW with SAP,' aimed at small and mid-sized enterprises.
• July 2024: Imexpharm Pharmaceuticals JSC and Deloitte Vietnam launched a project to improve its enterprise resource planning system using the flagship SAP S/4HANA solution at Imexpharm's headquarters in Dong Thap province.

Enterprise Resource Planning (ERP) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the enterprise resource planning (ERP) market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global enterprise resource planning (ERP) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the enterprise resource planning (ERP) industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.