Home > Technology > Enterprise Resource Planning (ERP) Market Size, Trends, Share, Report to 2030
Straits Research

Enterprise Resource Planning (ERP) Market

Enterprise Resource Planning (ERP) Market: Information by Component (Software, Service), Deployment Model (On-premise, Cloud), Business Function (Human Resource), and Region — Forecast till 2030

Table of Content Download Sample

Market Overview

The global enterprise resource planning market size was worth at USD 49,600 million in 2021. It is expected to be valued at USD 116,000 million by 2030, growing at a CAGR of 9.9% during the forecast period (2022–2030).

Enterprise resource planning (ERP) facilitates the management and automation of an organization’s business processes. This software is widely utilized for back-office operations, such as inventory control production, order management, accounting, and human resource management. Each ERP module focuses on a specific departmental function: inventory management, finance, material procurement, marketing, human resources, and accounting. These components can be tailored to the organization’s business needs. There has been a rise in the use of ERP systems because they offer effective planning and centralized data management on a single platform, which helps control operating costs, increase sales, and improve decision-making.

The primary function of an ERP system is to facilitate the management of all business processes. It is anticipated that the adoption of ERP software will increase in the coming years due to the increasing emphasis of modern SMBs on enhancing their operational and business efficiency levels. This is expected to stimulate the expansion of the ERP market. The market's upsurge is likely to be fueled by factors such as the rising demand for operational accountability and effectiveness in business processes and the requirement for data-driven decision-making. In addition to a rise in the adoption of cloud and mobile applications, the enterprise resource planning market is anticipated to expand.

Market Snapshot

market snapshot
Base Year
: 2021
Study Period
: 2020-2030
: 9.9 %
Fastest Growing Market
: Europe
Largest Market
: North America
Market Size
: USD 116,000 million by 2030
Get more information on this report Download Sample Report

Market Dynamics

Market Drivers

  • Need for Efficiency and Transparency in Business Processes to Foster Market Growth

Previously, most businesses spent significant amounts of time and resources communicating business information and making decisions. Successful organizations continually seek systems to help them better serve their customers and increase their profit margin. ERP systems have evolved into strategic platforms that provide a solid foundation and informational backbone for businesses in emerging nations.

A fully integrated ERP system facilitates the capture and creation of accurate, consistent, and timely relevant data and aids in the formation of more informed business decisions. Offering personalized services and ensuring customer satisfaction affects a company's profitability unless its operating efficiency is exceptional. As a result, businesses currently utilize ERP systems to increase efficiency and improve information integration. The ability of ERP systems to scale and deal with global competition while creating efficiency and transparency in operations is anticipated to drive market growth over the forecast period.

  • Increased Demand for Data-Driven Decision Making to Accelerate Market Growth

One of the most significant challenges organizations face is owning and adapting to their new business model. Businesses are undergoing rapid transformations to address the increase in customer demand, regulations, economic changes, and other business activities. Organizations need to provide a customer interaction platform to monitor demand fluctuations, which was made possible by implementing ERP software. Businesses plan to increase productivity to increase profits. In such a situation, ERP satisfies the needs of companies undergoing rapid change, thereby driving their adoption of ERP software.

Market Restraint

  • High Investment and Maintenance Cost to Restrict Market Growth

Most software vendors provide ERP software for industries, including manufacturing, healthcare, telecommunications, retail, and aerospace & defense. A high initial investment is required to acquire and implement an ERP system. Global software providers such as Microsoft, SAP, Oracle, and IBM Corp. charge a premium for their products.

The annual cost of maintaining and updating the ERP system involves internal costs and a maintenance and support fee paid annually to application vendors. Additionally, since software providers charge higher prices, businesses are unwilling to spend more on applications, limiting the adoption of ERP software. Due to the expense of these services, end-users are no longer willing to upgrade or renew, negatively impacting the market growth.

Market Opportunities

  • Growth of ERP Usage in Medium and Small Enterprises to Spur Market Opportunities

ERP applications have enabled businesses to achieve greater clarity and visibility. The majority of large organizations can benefit from ERP. Integrating ERP services currently affords small and medium-sized enterprises (SMEs) the same advantages, such as increased business efficiency and simplified business processes. ERP is an ideal option for SMBs due to its direct impact on operating margins. As SMEs have confined resources for the development and maintenance of ERP, there is expected to be an increase in the adoption of cloud-based ERP software, creating many opportunities over the forecast period.

A developing technology called cloud computing enables businesses to store and retrieve data online. One of the critical aspects of cloud technology that contributes to its appeal is its agility. Other fundamental properties include scalability, reliability, and flexibility. One of the service models of cloud computing based on the pay-per-use charge model is a software as a service (SaaS) or on-demand. Applications built on the cloud help businesses cut their IT infrastructure costs to some extent. This is the main factor driving business adoption of cloud-based applications. Since mobile devices have become an essential component of workplace culture, businesses are willing to invest in cloud-connected mobile applications since they provide anytime, everywhere access to information.

Additionally, cloud-connected mobile applications enable user-specific document syncing, changes, and control. This would aid businesses in preserving a healthy work-life balance for their staff members and boost output. In the upcoming years, demand for cloud and mobile applications is anticipated to be driven by these advantages.

Segmental Analysis

The global enterprise resource planning market is segmented by components, deployment model, business function, industry vertical, and end-use.

By Component

By component, the global ERP market is divided into Software and Services.

The Software segment is the largest shareholder and is expected to grow at a CAGR of 9.5% during the forecast period. Implementing ERP software in a company's business processes is driven by the top management's desire to meet a variety of essential business imperatives, including creating an effective distribution system, enhancing customer service, and reducing operating expenses. ERP software provides an integrated and constantly updated view of business operations through shared databases managed by a database management system. This view can be accessed through the software.

ERP monitors the status of business commitments like purchase orders, edicts, payroll, and business resources like raw materials, cash, and production capacity. In the past, the vast majority of enterprise resource planning (ERP) software was designed for larger companies due to the high costs associated with the ERP system implementation process. The development of low-cost ERP systems, such as resource ERP, has led to an increase in the adoption of ERP software by smaller businesses, an opportunity for the market as a whole.

By Deployment Model

By deployment model, the global ERP market is divided into On-premise, Cloud, and Hybrid.

The On-premise segment is the largest shareholder and is expected to grow at a CAGR of 8.1% during the forecast period. Instead of utilizing server space or the cloud, the on-premise methodology for ERP solutions allows software installation and application execution on systems present on the premises of an organization. This ERP solution offers advanced security measures, which drives their adoption in large financial institutions and other organizations that prioritize security. The on-premise deployment model for ERP solutions facilitates the installation of the software and enables applications to run on systems present on the organization’s premises instead of a remote location such as server space or the cloud. In addition, better data security than cloud-based solutions encourages organizations to adopt it.

Throughout the projected period, the hybrid sector is anticipated to grow at the highest CAGR. The growing availability of Big Data via cloud computing, the rising need for improved end-user experiences, and significant players investing in hybrid ERP systems are the main reasons propelling the hybrid deployment market's growth.

By Business Function

By business function, the global ERP market is divided into Finance, Human Resources (HR), Supply Chain, Customer Management, Inventory Management, Manufacturing Module, and Others.

The Finance segment is the largest shareholder and is expected to grow at a CAGR of 7.3% during the forecast period. One of the most critical ERP system modules is finance, which facilitates the management of cash outflows and inflows and other accounting functions, including bank reconciliation and ledger management. Accounting modules incorporated into ERP systems can provide core accounting capabilities, such as accounts payable, accounts receivable, general ledger, bank reconciliation, fixed asset tracking, and expense management.

In most organizations, the finance team has adopted ERP software to ensure the department's accuracy and reliability. The Finance module assists the organization in making crucial financial decisions, including cash inflow and outflow. Additionally, it facilitates uniform data tracking, providing two users to work in various entries within the same accounting software. The adoption of financial modules is primarily driven by the growing need to maintain financial data standardized and the desire to simplify finance operations.

Over the projection period, the inventory management segment is anticipated to develop at the highest CAGR. The demand for ERP solutions to precisely prioritize and efficiently organize work orders is primarily responsible for the growth. Employing an interactive work order management feature from an ERP program, businesses may control the process of locating and carrying out planned and emergency maintenance tasks across a company.

By Industry Vertical

By industry vertical, the global ERP market is divided into Manufacturing, BFSI, Healthcare, Retail & Distribution, Government & Utilities, IT & Telecom, Construction, Aerospace & Defense, and Others.

The Manufacturing sector is the largest shareholder and is expected to grow at a CAGR of ~7.7% during the forecast period. In the manufacturing industry, ERP software automates and integrates all business-related aspects, such as materials & inventory, production, operations & sales, and accounting & finance, to simplify database maintenance for the entire organization. This database provides manufacturers with accurate, real-time data vital for their operations. In addition, an increase in the adoption of cloud solutions and an emphasis on collecting customer data to assist in the decision-making phase fuel the market's expansion.

By End-Use

By end-use, the global ERP market is divided into Large, Medium, and Small Enterprises.

The Large Enterprises segment is the largest shareholder and is expected to grow at a CAGR of 8.6% during the forecast period. Large enterprises in various industries, including BFSI, IT & telecom, and healthcare, are anticipated to experience substantial growth due to the growing trend for rapid product development and delivery. In addition, the need to improve employee productivity and the demand for better business management are driving the adoption of ERP software in these large organizations. This assists the organization in increasing its agility, sustaining operational efficiency, and enhancing its financial management and connectivity with all stakeholders.

Throughout the projected period, the SME segment is anticipated to grow at the most significant CAGR. ERPs on the cloud are being offered to assist SMEs in streamlining business processes and gaining cost advantages to stay competitive in the market. Additionally, growing SMEs require proper database management, which will drive demand.

Regional Analysis

Region-wise, the global enterprise resource planning market is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

How is the Enterprise Resource Planning Industry Performing a Geographically?

North America holds the highest market share and is expected to grow at a CAGR of 8% during the forecast period. It is anticipated that technological advancements in operational management and an increase in ERP software implementation in the finance function in North America will fuel the market demand. This increase in adoption aims to achieve transparency in financial transactions. For businesses in North America to maintain their position as industry leaders, they have begun implementing ERP software. On-premise ERP software has experienced significant growth in the North American region and is anticipated to reach its full potential shortly. The market is partly driven by businesses shifting from on-premise ERP software to cloud-enabled ERP software due to the lower costs associated with its implementation and maintenance.

Europe holds the second-largest market share and is expected to be valued at USD 32,941 million by 2030, growing at a CAGR of 9.7%. Even though Europe has a high rate of on-premise ERP deployment, the increasing popularity of cloud computing and its accessibility to large users may present significant opportunities for expanding the enterprise resource planning market. It is anticipated that the low operational costs associated with cloud-based ERP software will encourage a variety of medium and small-sized enterprises to implement cloud-enabled ERP software and extend support to the growth of ERP software, which in the years to come will be made accessible via devices such as smartphones and tablets. In addition, the presence of influential ERP vendors in the region is a driving force behind the market expansion. For instance, Unit4, a prominent software supplier in the UK, offers cloud-based enterprise resource planning (ERP) software.

Enterprise Resource Planning (ERP) Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Enterprise Resource Planning (ERP) Market

List of Top Key Companies Profiled in Enterprise Resource Planning Market

  1. Deskera
  2. Epicor Software Corporation
  3. IFS AB
  4. Infor
  5. Microsoft Corporation
  6. Oracle Corporation

Report Scope

Report Metric Details
CAGR 9.9%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Component
    1. Software
    2. Services
  2. By Deployment Model
    1. On-premise
    2. Cloud
    3. Hybrid
  3. By Business Function
    1. Finance
    2. Human Resource
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  4. By Industry Vertical
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. others
  5. By End-Use
    1. Large Enterprises
    2. Medium Enterprise
    3. Small Enterprises
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa

Recent Developments

  • In January 2023, At the company's 2023 Middle East ReConnect Customer Day, Epicor—a global leader in sector-specific enterprise software to support business growth—discussed key developments in its Middle East growth strategy, including plans to open a new regional data center motivated by rising customer cloud adoption.
  • In November 2022, Industrial automation expert Insta Group upgraded to IFS Cloud to spur growth and safeguard digitalization.
  • In February 2023, HAVI Benefits from the Infor Cloud's Advanced Warehouse Operations Capabilities and Efficiencies

Enterprise Resource Planning (ERP) Market Segmentation

By Component

  • Software
  • Services

By Deployment Model

  • On-premise
  • Cloud
  • Hybrid

By Business Function

  • Finance
  • Human Resource
  • Supply Chain
  • Customer Management
  • Inventory Management
  • Manufacturing Module
  • Others

By Industry Vertical

  • Manufacturing
  • BFSI
  • Healthcare
  • Retail & Distribution
  • Government & Utilities
  • IT & Telecom
  • Construction
  • Aerospace & Defense
  • others

By End-Use

  • Large Enterprises
  • Medium Enterprise
  • Small Enterprises

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Enterprise Resource Planning (ERP) Market?
Enterprise Resource Planning (ERP) Market size will grow at approx. CAGR of 9.9% during the forecast period.
Some of the top prominent players in Enterprise Resource Planning (ERP) Market are, Deskera, Epicor Software Corporation, IFS AB, Infor, Microsoft Corporation, Oracle Corporation, etc.
North America has been dominating the Enterprise Resource Planning (ERP) Market, accounting for the largest share of the market.
The Europe region is projected to exhibit the highest rate of growth in the Enterprise Resource Planning (ERP) Market.
The global Enterprise Resource Planning (ERP) Market report is segmented as follows: By Component, By Deployment Model, By Business Function, By Industry Vertical, By End-Use
Price Starts From
USD 995

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
Samsung Electronics
Need Assistance?
+1 646 905 0080 (U.S.)
+44 203 695 0070 (U.K.)

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Report Snapshot
Looking For Custom Report ?
Check Our License Options :

As featured on :

Trusted by Fortune 500
Over 30000+ subscribers