Market Research Report
Enterprise Resource Planning Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||393741|
|Published||Content info||100 Pages
Delivery time: 2-3 business days
|Enterprise Resource Planning Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: April 1, 2019||Content info: 100 Pages||
The global enterprise resource planning market was valued at USD 36.49 billion in 2018, and is expected to reach a value of USD 60 billion by 2024, at a CAGR of 8.66% over the forecast period (2019-2024). With digitization and businesses becoming global, firms have to tackle multiple vendors from different regions, inventory, manufacturing, scheduling, resource planning, raw materials, semi-finished and finished goods, customers, retailers, and numerous other units.
ERP brings in seamless integration. Every industry's business process is different and unique, which makes different ERP solutions applicable to each of them.
The cloud-based ERP systems are gaining momentum in the market space, as they offer the benefits of simplicity and lower cost of ownership, over the conventional on-premise and hosted solutions.
Organizations increasingly rely on ERP to support a span of business processes, such as inventory management, manufacturing, financial planning, sales, logistics, payroll, and billing, among others.
Their very nature makes these ERP applications host sensitive information, including financial information, intellectual property, credit cards, and personally identifiable information (PII) from employees, suppliers, and customers. Thus, any downtime of the core ERP system of an enterprise can be catastrophic. Outages and theft, caused by hackers, caused by hardware or software failures have, thus, become a major concern.
Enterprise resource planning (ERP) is the integrated management of core business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business-management software, typically a suite of integrated applications that an organization can use to collect, store, manage, and interpret data from various business activities.
ERP provides an integrated and continuously updated view of core business processes using a common database maintained by a database management system. ERP systems track business resources, cash, raw material, production capacity, and the status of business commitments, orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside.
Hybrid Deployment Mode to Hold Significant Share
The increasing availability of Big Data, enabled through cloud computing, increasing demand for better end-user experience, and functional leaders gaining greater influence over IT investments are some of the major factors driving the growth of the hybrid model.
Hybrid ERP is also called a two-tier model, where a combination of core on-premise ERP capabilities are combined with cloud capabilities in areas, such as collaboration, customer relationship management (CRM), and sales.
Some industries, such as business services, professional services, and digital media, may not be served well by integrated, on-premise ERP solutions, as they tend to focus on asset and product-centric industries. Hybrid ERP solutions can better help these sectors. Also, when compared to strict cloud-based solutions, hybrid ERP systems boast of much less training costs.
The shift to hybrid ERP systems can be seen in the speed and degree of new business software investment in cloud-based SaaS applications. Net new license revenues for traditional ERP systems have been declining, since 2013. Even the traditional ERP vendors' SaaS revenues are expected to surpass their revenues from legacy ERP sales. That may ultimately cut back on revenues from maintenance and likely weaken their earnings as well, given the lower margins to be gained from SaaS sales.
North America Region to Hold Major Share
North America is one of the important markets for ERP vendors, mainly due to the early adoption and high rate of advanced developments in the regional ERP market. Furthermore, the high rate of ERP adoption among a wider range of industries in the region is also fueling the regional demand.
The rising need for internal process efficiency, primarily through digital methods, is one of the major driving forces for ERP adoption in the region. According to the IFS AB report, 41% of the companies in the United States invest in ERP solutions to mainly upgrade their internal process efficiency.
The regional end-user industries are also adopting advanced technologies. This is expected to fuel the demand for ERP software for better functionality.
In April 2018, PSA Airlines, the fastest-growing regional operator in North America, adopted IFS Maintenix to support its enterprise-wide fleet maintenance management needs, including complete lifecycle MRO functionality across several departments.
The enterprise resource planning market is highly fragmented with a large number of competitors. Some of the key players in the market are SAP, Microsoft, and Oracle. Some of the key recent developments in the market are as follows:
Oracle announced its new artificial intelligence updates for Oracle Enterprise Resource Planning (ERP) and Cloud and Enterprise Performance Management (EPM) Cloud. These innovations are meant to deliver quick access to data and insights for organizations based on machine learning technology
Albertsons Companies implemented Infor's CloudSuite Food and Beverage at its beverage plants and plans to roll out the solution across all its manufacturing plants in the United States. Infor's CloudSuite Food and Beverage is expected to provide Albertsons Companies a standard solution to support milk, bread, and grocery manufacturing plants across the company, while also integrating with the technology that the company has used to support sales, production, finance, and inventory operations.