May 27, 2024
Enterprise Resource Planning Market
Ict

Enterprise Resource Planning Systems Are Driving Increased Operational Efficiency

Enterprise resource planning (ERP) systems help organizations manage their daily business activities such as accounting, procurement, project management, risk management, and compliance. ERP systems provide organizations with capabilities to integrate internal and external management of information across the entire business enterprise through a unified system. ERP systems centralize key business functions like finance, human resources, supply chain and production in a single software system, allowing companies to gain a competitive advantage through increased visibility and control of their operations.

The global ERP 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 key trends

One of the key trends driving growth in the global ERP market is the shift towards cloud-based ERP systems. Cloud ERP provides organizations flexibility and scalability at lower upfront costs compared to on-premise ERP. Hosted on cloud infrastructure, cloud ERP eliminates the need for expensive on-premise hardware and related IT expenses. Transitioning to cloud ERP also allows organizations to access the system using any internet-enabled device. This facilitates workforce mobility and remote working. Furthermore, cloud ERP receives continuous software updates automatically, eliminating costly and disruptive on-premise upgrades. As more organizations recognize these advantages, adoption of cloud-based ERP solutions is increasing significantly.

Porter’s Analysis

Threat of new entrants: High upfront costs of implementing ERP systems, requirement of specialized technical skills, and established players in market make threat of new entrants low.

Bargaining power of buyers: Large enterprises have strong bargaining power due to volume purchases and ability to use multiple ERP vendors. Smaller firms have less bargaining power.

Bargaining power of suppliers: Major ERP vendors like SAP and Oracle face low bargaining power of suppliers due to availability of alternate module developers and consultants.

Threat of new substitutes: Alternatives like cloud-based services pose threat, but switching costs and customized ERP solutions restrict wide adoption of substitutes.

Competitive rivalry: Intense competition among major ERP vendors to gain market share through product innovations, partnerships, pricing etc.

Key Takeaways

The global Enterprise Resource Planning Market is expected to witness high growth over the forecast period.

Regional analysis shows North America dominates currently due to strong technology adoption. However, Asia Pacific is expected to grow at fastest pace due to digitalization initiatives across industries in major countries.

Key players operating in the Enterprise Resource Planning market include 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.

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