April 15, 2024
Enterprise Resource Planning Market

Enterprise Resource Planning Market is Estimated to Witness High Growth Owing to Cloud Adoption

The Enterprise Resource Planning market provides centralized data storage that allows organizations to streamline and digitize business processes which includes inventory, order processing, manufacturing, finance, procurement, and human resource management. ERP systems integrate many business functions into one system with a shared database that capture transactions, store business data, generate reports to help management make decisions.

The global ERP market size is estimated to be valued at US$ 53.99 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Enterprise Resource Planning market are WuXi AppTec, Inc., Lineage Cell Therapeutics, Inc., HEALIOS K.K., Lonza, Merck KGaA., Takara Bio Inc., Sumitomo Dainippon Pharma Co., LTD, Fujifilm Holdings Corporation, Thermo Fisher Scientific, Inc., Astellas Pharma Inc. The growing cloud adoption is expected to provide opportunities for ERP vendors to penetrate new customer segments and offer innovative solutions at affordable costs. Technological advancements like artificial intelligence, machine learning, and blockchain are being integrated with ERP solutions to provide predictive analytics capabilities and increase workflow efficiency.

Market drivers

The key driver for the Global Enterprise Resource Planning Market is the increasing awareness about the benefits of ERP systems like flexibility, scalability, real-time visibility and collaboration. Organizations across industries are adopting cloud-based ERP solutions to improve operational efficiency, lower costs and gain access to latest features and security updates. Other factors such as growing digital transformation initiatives and need for integrated business processes are also contributing to the growth of the enterprise resource planning market.

Current Challenges in Enterprise Resource Planning Market

Adoption of ERP requires considerable time and capital investment which poses challenges for small and medium scale enterprises. High implementation and maintenance cost associated with ERP systems discourage many players from investing in such solutions. Lack of technical expertise to manage and integrate ERP with other systems is another issue faced in smooth implementation of ERP. Customization of ERP software as per business needs of organizations also remains a challenge area. Security issues and risks of data breaches from cloud based ERP solutions is another concern for many enterprises.

SWOT Analysis

Strength: ERP helps in streamlining business processes and operations. Centralized database in ERP enables improved reporting, data analysis and informed decision making.

Weakness: ERP implementations require huge upfront costs and time commitment. Many legacy systems needs to be replaced or integrated which is challenging.

Opportunity: Growing demand for cloud based ERP and SaaS delivery model. Increasing focus on digitization and automation across industries boosts ERP adoption.

Threats: Stiff competition among ERP vendors increases pricing pressure. Changing business needs force frequent system upgrades and customizations.

Geographical Regions

North America holds the major share of the global ERP market currently due to wide presence of major ERP vendors and early technology adoption among enterprises. Large number of ERP installations in manufacturing, retail and other sectors across US and Canada contribute to North America’s leading position.

Asia Pacific region is expected to witness the fastest growth during the forecast period owing to ongoing digital transformation projects, expansion of corporate sector and government support for IT investments in countries like China, India and Japan. Growing economies, increase in disposable incomes and emergence of small businesses in Asia augurs well for future ERP demand.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it