he Global ERP Software Market size was valued at USD 37.53 billion in 2019 and is predicted to reach USD 68.34 billion by 2030 with a CAGR of 5.6% from 2020-2030.
Enterprise Resource Planning (ERP) software integrates and automates the entire business ecosystem, by providing quality business management, enhanced traceability, increased production capacity, and greater tax support.
ERP software proficiently handles Human Resource (HR) management, inventory management, customer management, product planning, manufacturing, sales, and marketing. ERP software assists in monitoring the entire supply chain from a single user interface, with reduced errors and higher operational efficiency.
Market Dynamics and Trends
The global ERP software market is proliferating due to growing demand from manufacturing industry, small & medium scale enterprises, and corporate sector. Moreover, increasing demand for Human Resource module, is projected to create ample opportunities for the growth of ERP software market.
Furthermore, factors such as increasing penetration of AI, API, IoT, automation, and robotics technologies, growing preferences to digitize entire business ecosystem, and upsurge in cloud computing, are anticipated to supplement the growth of ERP software market in coming future.
However, availability of open source applications and high maintenance cost are expected to negatively impact the growth of ERP software market.
Moreover, emergence of large enterprises and proliferating BFSI sector raises the demand for efficient ERP solutions, thereby propelling the growth of ERP software market throughout the forecast period.
North America dominated the global ERP software market in the past and is expected to maintain this trend throughout the forecast period, owing to presence of ERP software traders in large numbers. Moreover, factors such as higher adoption of cloud computing for business orientation, higher economic standards, and increased penetration of new markets, are projected to propel the growth of ERP software market throughout the forecast period.
Asia Pacific is expected to witness a substantial market growth accounting for the highest CAGR values in the global ERP software market, throughout the forecast period. This is attributed to presence of emerging economies especially India and China, evolution of small business enterprises, and growing awareness regarding the benefits offered by ERP software in managing the overall business ecosystem.
The ERP software market is highly competitive and consists of various market players. Some of the major market players include Oracle Corporation, SAP SE, Sage Software Solutions Pvt. Ltd., Infor, Workday, Inc., Epicor Software Corporation, Microsoft Corporation, SYSPRO, Deskera, and IFS among others.
The key players are employing strategies such as product launches, technical collaboration, and acquisition in-order to gain stronger position in the ERP software market.
For instance, in September 2019, Oracle Corporation, one of the major players in the ERP software market, announced the availability of Oracle Analytics, a Fusion ERP product. This is the first-ever application umbrella service, delivered under Oracle Analytics Cloud, that consolidates more than 18 Oracle BI and analytics products under a single brand value.
In April 2020, SYSPRO, the pioneer in industrial-built ERP software, announced its latest ERP product with enhanced features, that enables the manufacturers and distributors to securely integrate and automate the entire business ecosystem.
In June 2020, Infor, a leading business cloud software specialized industry in the ERP software market, announced that De Menken Keuken has chosen the Infor M3 ERP solution, to enhance its operational efficacy, assist in providing business continuity, and support its business growth. Along with this, Infor M3 ERP solution promises to enhance the quality management, increase tracing capabilities, and ensure quality business management of the entire manufacturing, warehousing, distribution, and supply chain.