ERP Software Market Overview
The ERP Software market size is projected to grow from USD 64.2 billion in 2024 to USD 123.4 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.40% during the forecast period (2024 - 2032). Additionally, the market size for ERP Software was valued at USD 62.3 billion in 2023.
The demand for ERP software from small and medium-sized businesses is rising, which is the key market driver enhancing market growth. Additionally, the rapid uptake of cloud and mobile apps is helping the ERP software industry expand. During the projection period, it is anticipated that the growing adoption of ERP solutions in small and medium-sized businesses and the swift transition of contemporary company models would present lucrative prospects for the market expansion of enterprise resource planning.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industry News of ERP Software Market
January 2023 - The ERP programme "FusionHub Cloud ERP" has been introduced in the Indian market by RIPL (Rudrabhishek Infosystems Pvt. Ltd.), a fully owned subsidiary of REPL, in collaboration with ORGNN Technologies Pvt. Ltd. In India, RIPL will be the sole partner in sales, marketing, and implementation. An end-to-end business management tool called FusionHub Cloud ERP aids businesses in the Architecture, Engineering, and Construction (AEC) sectors in managing administrative tasks like project management and human resources. With this product, REPL Group may now participate in the lucrative and quickly expanding PropTech market.
The following modules, which are heavily focused on specific industries, are part of FusionHub
- Cloud ERP: FusionHub Finance: a dependable programme for accounting and financial management Software for managing your entire customer interaction, FusionHub CRM has an integrated customer portal and SMS/email connection.
- FusionHub HRMS: A comprehensive system for managing human resources that can handle everything from payroll to attendance to recruitment and has built-in support for workflows based on working from home.
- FusionHub Project Management: A powerful project management platform with market-leading assistance for construction and material management, vendor management, and word-done management.
- FusionHub Data Tools: An all-purpose tool for data analysis and visualization that supports predictive analytics, in-built spreadsheet functionality, and real-time analytics.
February 2023 - The enterprise resource planning software provider Drink-IT, which serves the needs of beverage companies like breweries, distilleries, bottlers, and wholesalers, Aptean, a global provider of mission-critical enterprise software solutions, announced that it has entered into a definitive agreement to acquire it. The NORRIQ Group's subsidiary Drink-IT belongs to it.
With additional applications and knowledge to support the beverage sector globally, the anticipated acquisition of Drink-IT will expand Aptean's Food & Beverage ERP portfolio. Drink-IT will profit from Aptean's complimentary personnel, products, and technological know-how.
The modular app-based solution from Drink-IT is made specifically for beverage businesses to implement standard processes in beverage production, quality management, tracking alcohol balances, sales and contracts management, compliance and tax management, warehouse management, logistics, and deposit management.
ERP Software Market Trends
Rising implementation of blockchain with ERP software to boost the market growth
Integrating blockchain technology with ERP is one of the most recent trends in the ERP software market. Integrating ERP with blockchain will create a safe platform for collaboration, allowing systems of records to be freely shared with reliable parties. One software business, SAP, is investigating how to integrate blockchain effectively into its current ERP. It attempts to connect blockchain technology with ERP to enhance digital manufacturing and 3D printing. Therefore, in recent years, the ongoing trend of blockchain technology to enhance the market CAGR
Figure 1: Estimated worldwide spending on blockchain technology from 2017 to 2024
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Business operations are now simpler and more effective thanks to the integration of ERP software. The absence of manual data entry enables businesses to view all the data on a single unified platform. For instance, Acumatica, Inc. introduced Acumatica 2021 R1 in March 2021, a cloud-based suite with best-in-class capability and a potent user interface. Such actions by important companies are anticipated to aid the market's expansion. Thus the continuous effort by various organizations for increased transparency and improved productivity will be another factor driving the growth of the ERP software market revenue.
ERP Software Market Segment Insights
ERP Software Deployment Insights
The ERP software market segmentation is based on deployment, on-premise and cloud. The on-premise segment accounted for the major share. The industry is anticipated to be driven by the on-premise deployment approach, which provides advantages like continuous control and strong data security in an enterprise. Additionally, the cloud deployment segment experienced the fastest growth rate in 2021. When ERP software is used on the cloud, a business can benefit from the speed, effectiveness, resource planning activity optimization, scalability, and accessibility.
August 2022: SAP introduced SAP S/4HANA Cloud, intending to automate SAP's customers' business operations wherever possible. This change is supported by robotic process automation. SAP S/4 HANA Cloud 2208 already supports 15 cloud studio bot templates, such as producing Product Master data or automatically constructing Sales Orders from unstructured data, which eventually leverages ML. “This introduction has further broadened the growth opportunity for the ERP software industry.
ERP Software Function Insights
The ERP software market segmentation is based on function, supply chain and product management, sales and marketing, accounting & finance and human resource. In 2021, the finance sector accounted for the greatest market share. The management of numerous financial tasks, such as accounting, investments, assets, and cash flow management, is made simple by the ERP software.
Figure 2: ERP Software Market, by Function, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the ERP software industry is the supply chain segment. It is projected that the growing use of ERP software in automated sales and distribution will accelerate market growth.
ERP Software Vertical Insights
The ERP software market data has been bifurcated by verticals into manufacturing, retail, BFSI, IT & telecom, aerospace & defense, and education. In 2021, the manufacturing & services sector accounted for a major market share. Additionally, it is anticipated that the simplicity of inventory management, production scheduling, and real-time data tracking would spur expansion. However, the banking sector also witnessed significant growth with respect to ERP software revenue. ERP integration in banking is an excellent first step for growing organizations because it improves profitability and customer satisfaction. Hence, rising ERP software applications in the banking sector positively impact market growth.
ERP Software Size Insights
Based on the size, the ERP software industry has been segmented into small and medium enterprises and large enterprises. In 2021, the big enterprise sector held the largest market share. One of the main factors influencing the segment's growth is the increasing demand for large organizations to maintain and align complex processes, including inventory management, order fulfillment, production planning, procurement, and shipping. By 2030, the medium-sized business segment will experience rapid expansion. Demand is anticipated to increase over the projected period due to cloud-based ERP, improved operational efficiency, lower production costs, and on-time product delivery.
ERP Software Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America ERP Software market accounted for USD 22.6 billion in 2021 and is expected to exhibit a significant CAGR of 42.1 percent growth during the study period. The growing need for cloud enterprise resource planning (ERP) in North America is driven by higher economic standards, increased penetration of new markets, and the growing necessity to automate business functionalities through digital approaches. The UK-based company WinMan LLC began operating in North America in June 2022, focusing on the manufacturing and distribution industries. MHN also teamed with Infor and Chartis Group to accelerate digital transformation throughout its delivery system.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: ERP SOFTWARE SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia Pacific’s ERP software market accounts for the second-largest market share. It is projected that the growing number of start-ups and their increased demand for cloud-based solutions will accelerate market expansion. 80,152 startups had received official recognition from Department for Promotion of Industry and Internal Trade (DPIIT) as of 2022. Moreover, the China ERP software market held the largest market share, and the India ERP software market was the fastest-growing market in the Asia-Pacific region.
Europe’s ERP Software Market is expected to grow at the fastest CAGR from 2022 to 2030. Rising technological progress and the expansion of local manufacturing firms are the key drivers of European market growth. According to the European Commission, enterprise resource planning technologies were employed by 30% of small enterprises and 80% of major corporations in 2020. Further, the German ERP software market held the largest market share, and the UK ERP software market was the fastest-growing market in the European region.
ERP Software Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the ERP software market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the ERP software industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the ERP software industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the ERP software industry has provided medicine with some of the most significant benefits. The ERP software industry major players such as Workday Inc, NetSuite Inc, Yonyou, Microsoft Corporation, and others are working on expanding the market demand by investing in research and development activities.
Exact is a software company that provides small and medium-sized businesses with accounting, enterprise resource planning (ERP), and other applications. It creates industry-specific software solutions for various industries as on-premises, software-as-a-service, and multi-tenant platforms. In September 2022, Exact, a prominent business and accounting software provider, agreed to buy 3U Holding, a German holding company, for weclapp, a leading provider of cloud ERP (enterprise resource planning) software in the DACH region. Weclapp management will continue to invest and drive the business ahead.
Also, Think Tribe Technologies is a Microsoft-certified company situated in Dubai. ThinkTribe provides powerful cloud ERP solutions that can help you revolutionize your entire business. It also deals in non-Microsoft technologies and platforms such as Codeless BPAplatform, Easyrewardz CRM suite, xPayroll, and others. In February 2021, Think Tribe Technologies created a new ERP system for the food and beverage industry. The company aims to assist F&B businesses in streamlining their processes and increasing profitability by increasing sales and decreasing costs. It can alter the food-production cycle by assisting users (resellers, manufacturers, and distributors) in maintaining rigorous control over varied F&B recipes to ensure quality, traceability, and consistency.
Key Companies in the ERP software market include
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Microsoft Corporation
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IBM Corporation
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Epicor Software Corporation
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Yonyou
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Infor
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Plex Systems Inc. (United States)
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NetSuite Inc
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Intuit Inc
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TOTVS
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Workday Inc
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Kingdee International Software Group (HK) Ltd
ERP Software Industry Developments
On Apr. 05, 2023, ERP Research, a technology company, announced that it has dubbed the most comprehensive database of ERP modules & software for consultants, partners, and vendors. The company helps organizations prepare their ERP projects, compare ERP software, and find suitable ERP partners based on their needs. ERP Research aims to uncover the best ERP systems in 2023, evaluate popular ERP solutions, and deliver detailed ERP comparisons for organizations and enterprises.
On Jan. 05, 2023, RIPL launched Cloud ERP software, FusionHub, in India to help companies operating in the AEC (Architecture, Engineering, and Construction) industries. The new Cloud ERP is end-to-end business management software that helps AEC companies to manage business functions, including project management and human resources. FusionHub Cloud ERP software will enable the REPL group to enter into the lucrative and fast-growing PropTech market.
On Mar. 24, 2022, SoftTech Engineers Limited (India) launched an exclusive Cloud-powered and AI-driven Construction ERP based on the SaaS Model to drive digital transformation in the AEC industry across the country. The new cloud-based and AI-powered CivitBUILD Construction ERP is a one-stop solution to manage all the functions of the construction lifecycle cost-effectively and profitably.
On Apr.01, 2022, Rimini Street, Inc., a leading global provider of enterprise software products and services, announced a partnership with International Container Terminal Services, Inc. (ICTSI) to deliver reliability, stability, and efficiency to its ERP system and enable business growth. ICTSI has switched to Rimini Street's software support services. Under this contract, Rimini Street would support business-critical functions such as treasury & financials, asset tracking, equipment maintenance & repair, and powering the entire sea freight business for the Philippines and other ICTSI-operated terminals.
ERP Software Market Segmentation
ERP Software Deployment Outlook
ERP Software Function Outlook
ERP Software Vertical Outlook
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Manufacturing
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Retail
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BFSI
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IT & Telecom
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Aerospace & Defence
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Education
ERP Software Size Outlook
ERP Software Regional Outlook
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North America
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 62.3 billion |
| Market Size 2024 |
USD 64.2 billion |
| Market Size 2032 |
USD 123.4 billion |
| Compound Annual Growth Rate (CAGR) |
9.40% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018 & 2020 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Deployment, Function, Vertical and Size |
| Geographies Covered |
Europe, North America, Asia Pacific, and Rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Workday Inc, NetSuite Inc, Yonyou, and Microsoft Corporation. |
| Key Market Opportunities |
Rapid technological advancements |
| Key Market Dynamics |
Surging demand for data-driven decision-making Increase in the adoption of ERP software to boost transparency and operational efficiency |
ERP Software Market Highlights:
Frequently Asked Questions (FAQ) :
The ERP software market size was valued at USD 62.3 Billion in 2023.
The market is estimated to grow at a CAGR of 9.40% during the forecast period 2024-2032.
By 2032, the ERP market is anticipated to reach USD 123.4 billion.
The major market players are Workday Inc, NetSuite Inc, Yonyou, and Microsoft Corporation.
The on-premises ERP software deployment dominated the market in 2023.
The manufacturing vertical had the largest share of the market.
The market largest share was held by North America
