February 23, 2024

Growing Adoption Of Cloud-Based ERP Solutions To Drive Growth Of The Global Enterprise Resource Planning Market

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 6.2 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Enterprise resource planning (ERP) systems help organizations maximize productivity levels by integrating key departments such as finance, human resource, sales, procurement, supply chain and operations. ERP systems streamline business processes, reduce operational costs, improve inventory management and facilitate data-driven decision making. They have become essential tools for businesses across industries to gain real-time visibility into business operations and automate routine tasks. The rising demand from small and medium enterprises to optimize business operations and gain competitive advantage is a key factor driving ERP adoption globally.

Market key trends:
One of the major trends gaining traction in the enterprise resource planning market is the growing popularity of cloud-based ERP solutions. Cloud ERP systems are gaining acceptance due to benefits such as lower upfront costs, automatic software updates, scalability, mobility and collaboration features. Companies are increasingly shifting to cloud-based ERP as it eliminates the need for on-premise hardware and reduces IT infrastructure and maintenance costs. Furthermore, cloud ERP allows small businesses to implement advanced ERP functionalities without huge initial investments. The flexibility and ease of deployment offered by cloud-based ERP systems is expected to boost its adoption over the forecast period.

Porter’s Analysis
Threat of new entrants: The ERP market poses moderate threat of new entrants due to the presence of well-established players and requirement of high initial investment.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of numerous product options from various vendors in the market.
Bargaining power of suppliers: A few large vendors dominate the supply market, giving them significant bargaining power over customers.
Threat of new substitutes: There exists low threat from substitutes as ERP systems integrate various business functions leaving very less scope for alternatives.
Competitive rivalry: Intense competition exists among key players to capture more market share through product innovations and partnerships.

Key Takeaways
The global Enterprise Resource Planning Market Growth is expected to witness high, exhibiting CAGR of 6.2% over the forecast period 2023 to 2030, due to increasing digital transformation initiatives across industries.

Regional analysis
North America dominated the global ERP market in 2023 with a share of over 35%, due to the presence of major ERP vendors. Asia Pacific is anticipated to grow at the fastest rate over the forecast period, supported by growing adoption of ERP solutions among SMEs for efficient management in countries such as China and India.

Key players analysis
Key players operating in the Enterprise Resource Planning Market are Oracle Corporation (U.S.),IBM Corporation (U.S.),SAP SE (Germany),Workday, Inc. (U.S.), and Microsoft Corporation (U.S.). These leading players are focusing on new product innovations and partnerships to strengthen their market presence.

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