Global Enterprise Resource Planning (ERP) Market Size, Share, and COVID-19 Impact Analysis, By Deployment (On-premise and Cloud), By Function (Finance, HR, Supply Chain, and Other), By Enterprise Size (Large Enterprise, Medium Enterprise, and Small Enterprise), By Vertical (Manufacturing & Services, BFSI, and Healthcare), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033.
Industry: Information & TechnologyGlobal Enterprise Resource Planning (ERP) Market Insights Forecasts to 2033
- The Global Enterprise Resource Planning (ERP) Market Size Was Estimated at USD 69.76 Billion in 2023
- The Market Size is Expected to Grow at a CAGR of around 9.69% from 2023 to 2033
- The Worldwide Enterprise Resource Planning (ERP) Market Size is Expected to Reach USD 175.87 Billion By 2033
- Asia Pacific is expected to grow the fastest during the forecast period.
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The Global Enterprise Resource Planning (ERP) Market size was worth around USD 69.76 Billion in 2023 and is predicted to Grow to around USD 175.87 Billion by 2033 with a compound annual growth rate (CAGR) of 9.69% between 2023 and 2033. The market is expanding because to the growing need for streamlined operations and data-driven decision-making in a variety of industries. Nowadays, businesses must oversee and coordinate intricate procedures across several divisions, such as supply chain, sales, inventory, finance, and human resources. By combining these processes into a single system, ERP software allows for real-time data analysis and sharing within the company.
Market Overview
The worldwide industry that offers ERP software solutions and services to companies in various industries is known as the global enterprise resource planning (ERP) market. ERP systems combine key business operations into one cohesive system, including supply chain management, finance, human resources, customer relationship management (CRM), and production. ERP solutions have continuously changed, moving from basic inventory management programs to the foundation of digital transformation for the entire company. These days, ERP cloud computing systems are transforming how companies handle everything from financial reports to inventory levels. They make it simpler to monitor inventories, handle purchase orders, and guarantee that their operations operate smoothly. ERP systems are becoming more and more popular, which is a sign that software solutions are becoming more adaptable and scalable. Furthermore, The ERP market is expanding significantly right now. HG's analysis indicates that 3.8 million businesses would invest in ERP solutions, bringing the ERP market size to USD 147.7 billion in the upcoming year. ERP applications are the largest software subcategory, accounting for roughly 13% of software market spending and 4% of global IT market spending. The sector that spends the most in the ERP market is finance and insurance, followed by manufacturing and public administration, which together account for about 60% of total costs.
Report Coverage
This research report categorizes the enterprise resource planning (ERP) market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the enterprise resource planning (ERP) market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the enterprise resource planning (ERP) market.
Global Enterprise Resource Planning (ERP) Market Report Coverage
Report Coverage | Details |
---|---|
Base Year: | 2023 |
Market Size in 2023: | USD 69.76 Billion |
Forecast Period: | 2023-2033 |
Forecast Period CAGR 2023-2033 : | 9.69% |
2033 Value Projection: | USD 175.87 Billion |
Historical Data for: | 2019-2022 |
No. of Pages: | 255 |
Tables, Charts & Figures: | 145 |
Segments covered: | By Deployment, By Function, By Enterprise Size, By Vertical, By Region |
Companies covered:: | IBM Corporation, Microsoft, NetSuite Inc., Oracle, Epicor Software Corporation, Sage Group, plc, SAP SE, Unit4, Hewlett-Packard Development Company, L.P., Infor Inc., and other key vendors. |
Pitfalls & Challenges: | COVID-19 Empact, Challenge, Future, Growth, & Analysis |
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Driving Factors
ERP software sector, as these technologies allow for hitherto unheard-of levels of scale, flexibility, and accessibility. Because they facilitate real-time decision-making and task management while on the go, mobile ERP apps greatly increase productivity by enabling employees to access vital data and complete activities from any location. Small and medium-sized organizations may now purchase and use ERP systems more easily thanks to cloud-based ERP solutions, which also offer flexible, subscription-based choices and lower infrastructure expenses. Cloud ERP also makes it possible for departments to share data easily, which promotes improved teamwork and enables companies to react swiftly to changes.
Restraining Factors
Businesses have begun incorporating cloud-based enterprise resource planning services and applications. However, because of the high implementation costs and complexity of the systems, businesses continue to encounter significant challenges when integrating these solutions with their current systems. For the new cloud-based ERP to be implemented successfully, the legacy systems that are currently in place must be closely connected. Some businesses still rely on their current systems, which are built on antiquated technology, since they lack the resources to upgrade. These include manual processes that have a higher chance of error and a lengthier turnaround time.
Market Segmentation
The enterprise resource planning (ERP) market share is classified into deployment, function, enterprise and vertical.
- The on-premise segment accounted for the highest share in 2023 and is projected to grow at a substantial CAGR during the forecast period.
Based on the deployment, the enterprise resource planning (ERP) market is divided into on-premise and cloud. Among these, the on-premise segment accounted for the highest share in 2023 and is projected to grow at a substantial CAGR during the forecast period. The growth can be attributed to the necessity of data control and security. Companies that deal with sensitive data, like the government, healthcare, and financial sectors, frequently favor on-premise ERP since it enables them to control data inside their infrastructure, allaying worries about access by third parties.
- The finance segment accounted for the majority share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period.
Based on the function, the enterprise resource planning (ERP) market is divided into finance, HR, supply chain, and other. Among these, the finance segment accounted for the majority share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period. ERP adoption is fueled by the growing need for improved cybersecurity and data security in financial operations. As cyber dangers increase, finance departments give software that safeguards sensitive financial data a top priority. To allay these worries, ERP providers are turning more and more to sophisticated security features like data encryption, multi-factor authentication, and frequent security updates.
- The large enterprise segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period.
Based on the enterprise size, the enterprise resource planning (ERP) market is divided into large enterprise, medium enterprise, and small enterprise. Among these, the large enterprise segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. The growth can be attributed by the growing complexity of organizational procedures that necessitate effective data management and improved integration in the ERP software sector. Big businesses usually run many divisions, operate in several different areas, and supervise extensive supply chains, each of which has unique requirements and duties. ERP systems give these businesses the means to combine many systems into a single, cohesive platform, giving them complete operational visibility.
- The manufacturing & services segment led the highest share in 2023 and is expected to grow at a notable CAGR during forecast period.
Based on the vertical, the enterprise resource planning (ERP) market is divided into manufacturing & services, BFSI, and healthcare. Among these, the manufacturing & services segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. The growth can be attributed to ERP solutions enable the smooth integration of production floor machinery and systems in smart manufacturing. The expansion of the ERP software sector is also greatly aided by cloud-based ERP solutions, which are perfect for manufacturers with numerous facilities or geographically scattered activities due to their scalability, flexibility, and remote accessibility.
Regional Segment Analysis of the Global Enterprise Resource Planning (ERP) Market
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan, India, Rest of APAC)
- South America (Brazil and the Rest of South America)
- The Middle East and Africa (UAE, South Africa, Rest of MEA)
North America is anticipated to hold the largest share of the enterprise resource planning (ERP) market over the predicted timeframe.
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North America is anticipated to hold the largest share of the enterprise resource planning (ERP) market over the predicted timeframe. The growth can be attributed machine learning and artificial intelligence (AI) are increasingly being included into ERP systems. Tools with AI capabilities are being included to analyse massive data sets, automate repetitive operations, and produce useful insights. Businesses are using these capabilities to improve consumer experiences, forecast market trends, and streamline operations. Furthermore, predictive maintenance, inventory control, and financial forecasting are all increasingly dependent on AI and machine learning.
Asia Pacific is expected to grow at a rapid CAGR in the enterprise resource planning (ERP) market during the forecast period. ERP systems are essential to the digital transformation that is taking place in many regional enterprises. ERPs facilitate increased operational efficiency and corporate agility by offering integrated platforms that assist data management and process automation. In the upcoming years, the Japanese ERP software market is anticipated to expand quickly. Because of Japan's aging population and declining labor force, businesses are concentrating on HR management solutions that are connected with ERP systems. The need to better manage a smaller labor pool has led to a growing importance for ERP solutions that support talent retention, employee engagement, and workforce optimization.
Competitive Analysis:
The report offers the appropriate analysis of the key organizations/companies involved within the enterprise resource planning (ERP) market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Companies
- IBM Corporation
- Microsoft
- NetSuite Inc.
- Oracle
- Epicor Software Corporation
- Sage Group, plc
- SAP SE
- Unit4
- Hewlett-Packard Development Company, L.P.
- Infor Inc.
- Other
Key Target Audience
- Market Players
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
Recent Development
- In June 2024, Epicor Software Corporation acquired KYKLO, a U.S.-based Product Information Management (PIM) provider, and content-driven lead generation solutions to enhance sales for manufacturers and distributors. The acquisition is set to strengthen Epicor's AI-driven cognitive ERP strategy. This acquisition aims to enable Epicor to evolve its ERP offerings from traditional record systems to advanced platforms that provide actionable insights and drive business outcomes. Integrating practical, responsible AI aims to keep employees at the forefront, ensuring these tools are easy to use and focused on results.
Market Segment
This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the enterprise resource planning (ERP) market based on the below-mentioned segments:
Global Enterprise Resource Planning (ERP) Market, By Deployment
- On-premise
- Cloud
Global Enterprise Resource Planning (ERP) Market, By Function
- Finance
- HR
- Supply Chain
- Other
Global Enterprise Resource Planning (ERP) Market, By Enterprise Size
- Large Enterprise
- Medium Enterprise
- Small Enterprise
Global Enterprise Resource Planning (ERP) Market, By Vertical
- Manufacturing & Services
- BFSI
- Healthcare
Global Enterprise Resource Planning (ERP) Market, By Regional Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa
Frequently Asked Questions (FAQ)
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1. What is the CAGR of the Enterprise Resource Planning (ERP) market over the forecast period?The Global Enterprise Resource Planning (ERP) Market is projected to expand at a CAGR of 9.69% during the forecast period.
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2. What is the market size of the Enterprise Resource Planning (ERP) market?The Global Enterprise Resource Planning (ERP) Market size is expected to grow from USD 69.76 billion in 2023 to USD 175.87 billion by 2033, at a CAGR of 9.69% during the forecast period 2023-2033.
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