Enterprise Resource Planning (ERP) software is a business management software, used by organizations to combine, organize & maintain the data necessary for operations. ERP software is widely used for back office operations, which include inventory control production, order management, and accounting, etc. It comprises several software modules which are focused on a particular departmental area for instance inventory control, finance, material purchasing, marketing, HR, and accounting. These modules can be modified according to the requirement of the organization.
The key benefits are included fewer errors, shorten throughput times, improved speed & efficiency, improving integration & flexibility, shorten throughput times, more complete access to information, sustained involvement & commitment of top management, enlarge product assortment, reduce stock to a minimum and improve product quality etc. Apart from benefits, some of the limitations are high cost, complex software, implementation timelines, resistance to change, lack of trained people, availability of internal technical knowledge & resources and flexibility of software system upgrades etc.
According to study, “World ERP Software Market Research Report 2024(Covering USA, EU, China, South East Asia, Japan and etc)” the key companies operating in the world ERP software market are SAP SE, Infor Inc., Tally, Oracle Corp., Microsoft Corp., Kronos Inc., Epicor Software Corp., Concur(SAP) Technologies, IFS AB, Totvs S.A., Plex Systems Inc., International Business Machine (IBM) Corporation, The Sage Group Plc., YonYou, Consona Corporation, UNIT4 N.V., NetSuite Inc., Workday, Kingdee, Digiwin, Syspro (Pty) Ltd., IQMS Inc., Software Systems Associate Inc., JD Edwards, Focus Softnet, QAD Corp., Cornerstone. The vendors are directing on providing better integration architecture modules due to the rise in adoption of customized ERP software.
Based on product type, ERP software market is segmented into professional type ERP and universal type ERP. Based on functions, market is segmented into human resource (HR), finance, supply chain and others. Based on deployment, market is segmented into cloud deployment and on-premise deployment. Cloud deployment is projected to grow dynamically in near future as a result of the low IT infrastructure cost associated with it. Based on size of industry, market is segmented into lower mid-market companies and upper mid-market companies. Based on vertical, market is segmented into healthcare, BFSI, retail, manufacturing & services, aerospace & defense, government utilities, telecom and others. In addition, based on end-user, market is segmented into medium enterprises, large enterprises and small enterprises.
The ERP software market is driven by increase in adoption of cloud & mobile applications, followed by rise in need for operational efficiency & transparency in business processes, growth in technological advancements and increase in demand of ERP from small & medium enterprises. However, availability of open source applications and higher cost of implementation may impact the market. Moreover, small & medium enterprises an emerging market, geographic expansion of business and rapid changes in business model are key opportunities for market.
Based on geography, the USA country holds major share, followed by EU in ERP software market owing to presence of large number of cloud ERP solution vendors in the country. China country is expected to witness higher growth rate due to growth in industrialization over the forecast period. The demand for ERP software is expected to grow quickly in the estimate period on account of its importance in supplementing & synchronizing a company’s business processes.
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Ankur Gupta, Head Marketing & Communications