April 24, 2024
Enterprise Resource Planning Market

Rise Of Cloud-Based Computing Is Driving The Enterprise Resource Planning Market’s Transition Online

Enterprise Resource Planning Market Overview

Enterprise Resource Planning (ERP) systems are integrated applications that help manage core business functions such as production planning, purchasing, inventory management, sales, accounting, and human resources. Typically deployed as on-premise software solutions, ERP systems now leverage cloud computing and Software as a Service (SaaS) models to deliver cost savings, scalability, mobility and other benefits. Major advantages include real-time data availability, enhanced collaboration, automatic software upgrades, reduced IT maintenance costs and capital expenses. ERP addresses the diverse needs of various departments and streamlines critical processes across the entire organization.

The Global Enterprise Resource Planning Market 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 Global 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. Key players are focusing on product innovations and partnerships to strengthen their market presence. The growing digitization across industries has increased the demand for ERP systems to manage end-to-end business operations efficiently. North America holds a significant share in the global ERP market due to widespread adoption of advanced technologies. However, Asia Pacific is expected to offer lucrative opportunities with rapid industrialization in China and India.Cloud-based delivery is gaining immense popularity among small and medium enterprises due to scalable, pay-per-use pricing models that reduce upfront costs. Major companies are upgrading their portfolio to cater to changing business needs.

Market Key Trends

The shift towards cloud-based ERP is a major trend, enabling scalability, mobility and lower costs for businesses. Customization and integration capabilities are improving to support unique business processes. Adoption of AI and analytics is allowing ERP systems to offer predictive maintenance, demand forecasting, hyper-automation and other advanced features. Upgrades focus on enhancing user experience with intuitive interfaces, social collaboration and responsive design. There is rising demand for industry-specific ERP packages tailored for F&B, manufacturing, healthcare and other verticals. Strategic alliances between ERP developers and cloud platforms are helping expand customer base. Growing traction of ERP-as-a-service and software-led transformations in post-COVID era will further accelerate market revenues.

Porter’s Analysis

Threat of new entrants: The threat is moderate as initial investment is high in establishing an ERP system implementation.

Bargaining power of buyers: The bargaining power is high as there are numerous vendors providing ERP solutions.

Bargaining power of suppliers: There is moderate threat from suppliers as switching costs are moderately high.

Threat of new substitutes: Substitute threat is low as there are few alternatives available for ERP systems.

Competitive rivalry: The competition is high among existing vendors.

Geographical Regions

North America region is currently holding the major market share in terms of value owing to presence of numerous ERP vendors and availability of technical expertise. Asia Pacific region is expected to grow at the fastest CAGR during the forecast period attributed to growing adoption of ERP systems across industries for digitization and automation.

The Enterprise Resource Planning market is further expected to observe highest growth in countries including China, India and Japan due to rapid industrialization and modernization of business processes. Rapid digital transformation initiatives are fueling the demand for ERP solutions across small and medium enterprises in developing Asia Pacific economies.

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