by Enterprise resource planning (ERP) is an integrated software that allows an organization to use a system of integrated applications to manage business functions, including product planning, development, manufacturing or service delivery, marketing and sales, and support activities like finance and human resource management. The global ERP market includes software, deployment and support offered for ERP solutions. ERP allows a company to view its various operations across different departments and geographies under a single software. With ERP, organizations are able to gain real-time visibility into business processes, availability of resources, inventory levels, and overall financial performance.
The global Enterprise Resource Planning Market is estimated to be valued at US$ 46.86 Bn in 2023 and is expected to exhibit a CAGR of 15 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The growing adoption of cloud ERP systems is expected to drive the growth of the global enterprise resource planning market during the forecast period. Cloud-based ERP is gaining immense popularity among small and medium enterprises due to advantages such as low upfront investment, pay-per-use pricing, automatic system updates, and easy scalability. Cloud ERP also provides advanced features like built-in collaboration tools, real-time analytics, and mobility which is attracting enterprises from both public and private sectors. According to a report published by the ERP software company Plex Systems, over a 10-year span, cloud ERP solutions were found to cost 30% less than on-premise ERP installations. This cost advantage along with other associated benefits is fueling the adoption of cloud ERP which in turn is propelling the global ERP market growth.
Another driver for the ERP market is increasing demand for business automation and integration across various departments. ERP systems allow effective integration of sales, marketing, finance, human resource, supply chain, and other operations on a single platform. It eliminates data duplication and improves overall operational efficiency by streamlining processes and automating workflows. With growing need to optimize productivity and enhance business agility, demand for automated and integrated ERP solutions is rising which supports the market outlook.
Segment Analysis
The global enterprise resource planning market is dominated by the on-premise segment. The on-premise deployment model allows complete control over customization, maintenance, and upgrades. It provides enhanced security and reduces the risks of data theft. However, the cloud-based segment is expected to witness the fastest growth during the forecast period. Adoption of cloud-based ERP is increasing owing to benefits such as scalability, lower upfront costs, and easy deployment and maintenance.
PEST Analysis
Political: Governments across nations are promoting digitalization of businesses through initiatives and schemes. This is encouraging adoption of enterprise resource planning solutions. Economic: Organizations are increasingly investing in ERP systems to enhance operational efficiency, manage costs, and streamline business processes. Social: Growing digitalization and awareness about benefits of ERP systems is prompting more businesses to adopt these solutions. Technological: Advancements in cloud, artificial intelligence, predictive analytics are allowing development of next-gen ERP solutions with enhanced capabilities.
Key Takeaways
The global Enterprise Resource Planning Market is expected to witness high growth during the forecast period supported by increasing digital transformation across industries.
North America dominates the market currently due to presence of major ERP vendors and early adoption by enterprises in the region.
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. Increasing focus on cloud-based offerings and integration of new technologies are some of the key strategies being adopted by major players to strengthening their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
