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ERP Software Market Size, Share, Trend & Growth Report 2031
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ERP Software Market Size, Share, Trend & Growth Report 2031

Segments - ERP Software Market by Functions (Supply Chain, HR, Finance, and Others), Deployments (Cloud and On-premise), Enterprise Sizes (Small Enterprise, Medium Enterprise, and Large Enterprise), End-users (Telecom, Aerospace & Defense, Government, Retail, Healthcare, BFSI, and Manufacturing & Services), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

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Author : Raksha Sharma
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Fact-checked by : V. Chandola
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Editor : Shruti Bhat

Upcoming | Report ID :ICT-SE-4030 | 4.2 Rating | 66 Reviews | 175 Pages | Format : PDF Excel PPT

Report Description


The global ERP software market size was valued at USD 55.24 Billion in 2022 and is projected to reach USD 125.02 Billion by 2031 , expanding at a CAGR of around 9.5% during the forecast period, 2023 – 2031. The growth of the market is attributed to rising need for operational efficiency and transparency in company operations, as well as the increasing adoption of mobile and cloud apps.

ERP is a software system that aids in the management of complete organization, including supply chain, manufacturing, human resource, financial, procurement, services, and other activities. Enterprise Resource Planning (ERP) is a corporate management and integration process.

ERP Software Market Outlook

Several ERP software systems are useful for businesses, as they allow execution of resource planning by merging the activities needed to manage their businesses into a single system. ERP systems reduce duplicate data and ensure data integrity through a single source. Inventory expenses can be reduced by 25%–30% and raw material prices by roughly 15% when ERP software is used in an organization.

The emergence of COVID-19 pandemic is expected to provide lucrative prospects for market expansion during the forecast period, owing to growing trend of digital transformation in businesses, as well as increasing need for ERP solutions that are managed or hosted on the cloud.

Furthermore, following the pandemic, businesses focus on technologies that help in advanced preparation and limit the impact of future disasters. The software guarantees that cross-functional information flows smoothly, resulting in increased productivity and improved decision-making.

  • Increasing implementation of IT technology in emerging nations is estimated to drive the market during the forecast period.
  • ERP’s ability to integrate with mobile devices is projected to fuel the market during the projected period.
  • Low infrastructure cost associated with the system is expected to boost the market in the coming years.
  • Lack of skilled labor act as a major factor that hinders the market growth.
  • Rising demand for cloud-based ERP software, due to COVID-19, is expected to create immense opportunities for the market players during the forecast period.

Scope of ERP Software Market Report

The report on the global ERP software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

ERP Software Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023 – 2031

Segmentation

Functions (Supply Chain, HR, Finance, and Others), Deployments (Cloud and On-premise), Enterprise Sizes (Small Enterprise, Medium Enterprise, and Large Enterprise), and End-users (Telecom, Aerospace & Defense, Government, Retail, Healthcare, BFSI, and Manufacturing & Services)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

Sage Group, plc; Unit4; Oracle Corporation; SAP SE; Microsoft Corporation; IBM Corporation; NetSuite Inc.; Infor Inc.; International Business Machines Corporation; Epicor Software Corporation; Infor; and Hewlett-Packard Development Company, L.P.

ERP Software Market Segment Insights

Functions Segment Analysis

Based on functions, the market is segregated into supply chain, HR, finance, and others. The finance segment held around 28% of the total market share in 2021. ERP software helps manage several financial activities such as cash flow, asset management, investments, and accounting. As a result, increased use of ERP in financial management is projected to fuel the segment during the projected period.

The supply chain segment is anticipated to grow at a rapid pace during the forecast period. The supply chain ERP module increases customer satisfaction, speed, and efficiency by increasing visibility of several supply chain operations. Increasing usage of ERP software in distribution and sales automation is estimated to boost the market.

Moreover, the increasing ecommerce industry is forcing businesses to adopt modern technology for effectively managing supply chain operations, which is expected to propel the market. The HR segment held significant market share in 2021, owing to increasing expansion of companies that made it difficult to manage all operations. Additionally, increasing need for automation in HR process is anticipated to drive the segment during the projected period.

ERP Software Market Functions

Deployments Segment Analysis

On the basis of deployments, the market is bifurcated into cloud and on-premise. The cloud segment is projected to expand at a rapid pace during the forecast period. ERP software that is deployed in the cloud helps businesses gain accessibility, scalability, efficiency, resource planning, and task optimization. It also has advantages such as rapid implementation and low installment costs.

The on-premise segment held around 70% of the total market share in 2021. A significant advantage of this deployment is that it allows continuous data control and security in any company. The adoption of on-premises solutions in several growing countries is facilitated by lack of awareness about the benefits of cloud-based solutions in business.

Furthermore, growth of the segment is attributed to substantial use of traditional techniques to manage supply chain and other corporate processes with low automation and technological use.

Enterprise Size Segment Analysis

In terms of enterprise size, the market is fragmented into small enterprise, medium enterprise, and large enterprise. The large enterprise segment held around 40% of the total market share in 2021.

One of the major factors driving the segment is increasing need of the large enterprise to maintain and synchronize complex processes including shipping, order fulfilment, procurement, inventory management, and production planning. Furthermore, increasing spending capacity of large-scale organizations on the installation of technology and software solutions accelerates the adoption of cloud-based ERP software.

ERP Software Market Enterprise Size

End-users Segment Analysis

Based on end-users, the market is categorized into telecom, aerospace & defense, government, retail, healthcare, BFSI, and manufacturing & services. The manufacturing & services segment held a key market share in 2021.

ERP software aids in the monitoring & tracking of daily performance and management of customer services. Some features of the software are real-time data tracking, production scheduling, and inventory management. Manufacturers are increasingly turning to ERP technologies to help plan and run operations efficiently.

Regional Analysis

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2021 and is expected to continue its dominance during the forecast period.

Increasing adoption of ERP software by small and medium-sized businesses, increasing investments by ERP suppliers in the development of software with the latest technology, and existence of several market players this is expected to boost the market in the region. Increased accessibility to ERP services via smartphone applications is expected to fuel the market during the forecast period.

ERP Software Market Region

Segments

The global ERP software market has been segmented on the basis of

Functions

  • Supply Chain
  • HR
  • Finance
  • Others

Deployments

  • Cloud
  • On-premise

Enterprise Sizes

  • Small Enterprise
  • Medium Enterprise
  • Large Enterprise

End-users

  • Telecom
  • Aerospace & Defense
  • Government
  • Retail
  • Healthcare
  • BFSI
  • Manufacturing & Services

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

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

Competitive Landscape

Key players competing in the ERP software market include Sage Group, plc; Unit4; Oracle Corporation; SAP SE; Microsoft Corporation; IBM Corporation; NetSuite Inc.; Infor Inc.; International Business Machines Corporation; Epicor Software Corporation; Infor; and Hewlett-Packard Development Company, L.P.

Some of these players are using several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares, generate revenue, and raise their production line of the business in the coming years. For instance,

  • In September 2020, Embridge Consulting collaborated with Unit4. With this agreement, the companies hope to provide small and medium-sized businesses with SaaS-based ERP systems while benefiting from the services and technical business experience.
  • In October 2018, Sage Software expanded its Sage Intacct range with new features, aiming towards increasing its geographical presence.
ERP Software Market Key Players

Frequently Asked Questions

North America dominated the market in 2021 and is expected to continue its dominance during the forecast period.

Lack of skilled labor acts as a major factor that hinders the market growth.

The global ERP software market size was valued at USD 55.24 Billion in 2022.

The global ERP software market size is projected to reach USD 125.02 Billion by 2031.

The ERP software market is estimated to expand at a CAGR of around 9.5% during the forecast period, 2023 – 2031.

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. ERP Software Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. ERP Software Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. ERP Software Market - Supply Chain
  4.5. Global ERP Software Market Forecast
     4.5.1. ERP Software Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. ERP Software Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. ERP Software Market Absolute $ Opportunity
5. Global ERP Software Market Analysis and Forecast by End Users
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by End Users
     5.2.2. Y-o-Y Growth Projections by End Users
  5.3. ERP Software Market Size and Volume Forecast by End Users
     5.3.1. Telecom
     5.3.2. Aerospace & Defense
     5.3.3. Government
     5.3.4. Retail
     5.3.5. Healthcare
     5.3.6. BFSI
     5.3.7. Manufacturing & Services
     5.3.8. Regions
  5.4. Absolute $ Opportunity Assessment by End Users
  5.5. Market Attractiveness/Growth Potential Analysis by End Users
6. Global ERP Software Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. ERP Software Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global ERP Software Demand Share Forecast, 2019-2026
7. North America ERP Software Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America ERP Software Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America ERP Software Market Size and Volume Forecast by End Users
     7.4.1. Telecom
     7.4.2. Aerospace & Defense
     7.4.3. Government
     7.4.4. Retail
     7.4.5. Healthcare
     7.4.6. BFSI
     7.4.7. Manufacturing & Services
     7.4.8. Regions
  7.5. Basis Point Share (BPS) Analysis by End Users
  7.6. Y-o-Y Growth Projections by End Users
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America ERP Software Demand Share Forecast, 2019-2026
8. Latin America ERP Software Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America ERP Software Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America ERP Software Market Size and Volume Forecast by End Users
     8.4.1. Telecom
     8.4.2. Aerospace & Defense
     8.4.3. Government
     8.4.4. Retail
     8.4.5. Healthcare
     8.4.6. BFSI
     8.4.7. Manufacturing & Services
     8.4.8. Regions
  8.5. Basis Point Share (BPS) Analysis by End Users
  8.6. Y-o-Y Growth Projections by End Users
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America ERP Software Demand Share Forecast, 2019-2026
9. Europe ERP Software Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe ERP Software Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe ERP Software Market Size and Volume Forecast by End Users
     9.4.1. Telecom
     9.4.2. Aerospace & Defense
     9.4.3. Government
     9.4.4. Retail
     9.4.5. Healthcare
     9.4.6. BFSI
     9.4.7. Manufacturing & Services
     9.4.8. Regions
  9.5. Basis Point Share (BPS) Analysis by End Users
  9.6. Y-o-Y Growth Projections by End Users
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe ERP Software Demand Share Forecast, 2019-2026
10. Asia Pacific ERP Software Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific ERP Software Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific ERP Software Market Size and Volume Forecast by End Users
     10.4.1. Telecom
     10.4.2. Aerospace & Defense
     10.4.3. Government
     10.4.4. Retail
     10.4.5. Healthcare
     10.4.6. BFSI
     10.4.7. Manufacturing & Services
     10.4.8. Regions
  10.5. Basis Point Share (BPS) Analysis by End Users
  10.6. Y-o-Y Growth Projections by End Users
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific ERP Software Demand Share Forecast, 2019-2026
11. Middle East & Africa ERP Software Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa ERP Software Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa ERP Software Market Size and Volume Forecast by End Users
     11.4.1. Telecom
     11.4.2. Aerospace & Defense
     11.4.3. Government
     11.4.4. Retail
     11.4.5. Healthcare
     11.4.6. BFSI
     11.4.7. Manufacturing & Services
     11.4.8. Regions
  11.5. Basis Point Share (BPS) Analysis by End Users
  11.6. Y-o-Y Growth Projections by End Users
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa ERP Software Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global ERP Software Market: Market Share Analysis
  12.2. ERP Software Distributors and Customers
  12.3. ERP Software Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Sage Group, plc
     12.4.2. Unit4
     12.4.3. Oracle Corporation
     12.4.4. SAP SE
     12.4.5. Microsoft Corporation
     12.4.6. IBM Corporation
     12.4.7. NetSuite Inc.
     12.4.8. Infor Inc.

Methodology

Our Clients

Microsoft
General Electric
Deloitte
General Mills
Nestle SA
Honda Motor Co. Ltd.
Pfizer
Dassault Aviation