The global ERP software market is expected to witness a strong growth rate of more than 9% during the forecast period 2022-2028. Enterprise resources planning (ERP) refers to a type of software that organizations use to manage their day-to-day business tasks including accounting, procurement, project management, risk management, and supply chain management among others.
This software helps plan, budget, predict, and report on an organization’s financial results. Consumer shift from offline to online particularly to mobile, increased need for personalized and targeted marketing messages, driving digital marketing activities by retailers due to increased competitive landscape, and rising popularity of ERP software to increase operational efficiency are some of the key factors helping the global market to grow significantly during the forecast period.
However, the increasing availability of open-source applications and higher initial investment and maintenance costs are some of the factors expected to hamper the growth of the global market in the upcoming years.
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Finance & Accounting is dominating the global market
On the basis of business function, the finance & accounting segment is dominating the global market and is expected to dominate in the next couple of years as well. Finance & Accounting is recognized as one of the most important business procedures in any organization. Business entities handle financial data with extreme caution.
For global businesses in a wide range of industries, cloud ERP for finance and accounting is created to be comprehensive, integrated, and highly scalable. It contains capabilities like a ledger, analytics, payables, and assets. It centrally manages customer data, generates customer invoices, accepts and submits customer payments, keeps track of customer balances, recognizes revenues and bills, submits payments from customers, and locates and tracks bankrupt clients. Reports including ledgers, trail balance data, overall balance sheets, and quarterly financial statements are produced by cloud ERP by gathering financial data.
The presence of market leaders in the region leads North America to dominate the global market
Geographically, the global ERP software market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, and Middle East & Africa. North America is leading the global ERP software market due to the presence of leading ERP software providers such as Microsoft Corporation, Oracle Corporation, and Epicor in the region.
Moreover, the ERP software market of North America is also growing owing to the increased adoption of ERP solutions across various end use industries. The growing automotive industry in the region is demanding digital means and driving ERP expansion. The Asia Pacific is anticipated to grow at the fastest growth rate over the forecast period. Growing manufacturing, transportation & logistics, and BFSI industries in the Asia Pacific augments the growth of the regional ERP software market. Moreover, in the Middle East and Africa, the market is forecasted to grow at a moderate rate, South Africa dominates the MEA ERP software market.
Market Structure and Competitive Landscape
The global ERP software market is characterized by the presence of several players. Some of the prominent players that contribute significantly to the global ERP software market include Microsoft Corporation, Oracle Corporation, Sage Group plc, Infor Inc., Deltek Vision, SYSPRO, Hewlett-Packard Development Company, L.P., Epicor Software Corporation, NetSuite Inc, SAP SE, and Unit4 among others. Furthermore, Microsoft Corporation and Oracle Corporation are among some of the market leaders and together hold more than 50% of the market share in 2020.
These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and acquisitions, Partnerships, and collaborations are some of the strategies followed by industry players. Some of the key developments in the global ERP software market include,
- In March 2022, Partners Group announced its acquisition of Forterro, a leading pan-European software services provider. Forterro has a portfolio of 11 software brands serving over 10000 customers.
- In April 2021, Unit4, one of the leaders in enterprise cloud applications, announced the general availability of ERPx, its flagship ERP designed for people-centric organizations and the mid-market, to expand its global footprint and provide its cost-cutting ERP tool to manufacturing companies.
Key Market Segmentation
RationalStat has segmented the global ERP software market on the basis of deployment mode, business function, end user, and region.
- By Deployment Mode
- On-premise ERP
- Cloud-based ERP
- Hybrid ERP
- By Business Function
- Finance & Accounting
- Human Resource (HR)
- Supply Chain Management
- Customer Management
- Inventory Management
- Others (Manufacturing Module)
- By End User
- IT & Telecom
- Aerospace and Defense
- Others (Retail and Distribution)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for ERP software providers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global ERP Software market is expected to grow at a CAGR of over 9% during the forecast period 2022-2028.
North America is dominating the global ERP Software market in 2021.
The global ERP Software market is estimated at US$ 52 billion in 2021.
Consumer shift from offline to online particularly to mobile is the key driver of the global ERP Software market.
Major companies operating in the global ERP Software market include Microsoft Corporation, Oracle Corporation, Sage Group, plc, Infor Inc., Deltek Vision, and SYSPRO etc.