The global ERP software market is expected to witness substantial growth in the coming years owing to increasing number of small and medium sized enterprises in sectors, such as retail, telecom, manufacturing, and information technology (IT) services. Enterprise resource planning (ERP) is a software that enables organizations to automate and manage their business operations. The software is used to manage back office activities and integrate business processes. Back office operations that are managed through ERP include inventory control production, order management, and accounting. Each ERP model is focused on a specific department in business, such as material purchasing, inventory control, marketing, financing, and human resource. Such modules can be customized according to an organization’s requirement.
Growing need for transparency within departments and operational efficiency in businesses can propel demand for the software in coming years. In addition, the software is expected to enhance productivity and reduce operational expenses. It can also be accessed from any demographic location owing to its integrated system architecture. Moreover, rising demand for software in aerospace and defense sector to control and monitor operational processes can augment market growth in future. Ability to maintain transparency on real-time basis is expected to fuel the software’s demand in these sectors. Growing adoption of advanced resource planning solutions in telecom sector to expand customer base and resolve their queries on real-time basis can further stimulate market growth. The software can support convergent billing and charging, sales and order management, and receivables management for telecom companies.
Availability of open source applications and high installation cost of ERP software can hamper market growth in the coming years. However, increasing number of small and medium scale enterprises implementing advanced business management software in developing countries can create lucrative opportunities in the market.
The market can be segregated on the basis of deployment, functions, verticals, and end-user. Cloud and on premise are the key deployment types in the market. Prominent functions associated with the market include Human resource, finance, and supply chain. Based on verticals, the market can be classified into BFSI, manufacturing and services, healthcare, retail, government utilities, aerospace and defense, and telecom. Major end users of ERP software include medium enterprises, large enterprises, and small enterprises.
North America is a leading region in the market due to growing adoption of software among enterprises to make financial transactions transparent. Countries, such as Canada and the United States are the key contributors to the market growth owing to presence of market players across providing advanced enterprise solutions to local companies.
Europe is anticipated to emerge as one of the promising regions in the market owing to presence of market players launching new and advanced products for local companies. For instance, Lloyd’s Register (LR) launched AllAssets, an asset performance management (APM) platform. The system is expected to support organization in maximizing their asset availability and reduce expenses. Its interoperability, configurability, and quick deployment can also support enterprises in making efficient maintenance optimization strategies.
Asia Pacific is likely to witness robust growth in forthcoming years owing to rising penetration of ERP in countries, such as Australia, Singapore, and New Zealand. Growing opportunities in untapped markets, such as China, India, and Thailand, can also impel growth of market in the coming years. In addition, supportive initiatives by the local government to promote use of technology can stimulate regional market growth. Moreover, increasing number of semiconductor and manufacturing companies in the region can fuel demand for ERP solutions in the coming years.
Latin America is likely to emerge highly lucrative in the coming years owing to growth of workplace automation and use of enterprise solutions. Finance, manufacturing, and tourism sectors are expected to boost demand for advanced business management solutions in the coming years. Flexible prices of connected devices and advent of cloud technologies can also impel regional market growth. In addition, constant development of manufacturing sector in Peru and Chile is likely to augment the product demand in the coming years. Manufacturing companies are expected to invest in corporate management solutions and adopt advanced IT services, such as customer relationship management services (CRM) and ERP software. This may, in turn, augment market expansion in the region during forthcoming years.
Some of the leading companies operating in the ERP software market are IBM Corporation, Oracle Corporation, Microsoft Corporation, SAP SE, and Syspro.
Research Support Specialist, USA