Global ERP Market: Demand, Growth, Trend, Opportunity, and Forecast to 2026
The ERP software market has been around for over 40 years, and it continues to grow even today. For decades, the ERP market has grown in lockstep with the industries it serves, leveraging technological advancements and providing opportunities for business innovation — and this trend is expected to continue.
The global ERP market was worth $35.81 billion in 2018. This is the most recent data representing the ERP market size, but it was predicted that the market would exceed $49 billion by 2020. The COVID-19 pandemic, on the other hand, introduces a new variable that could result in a better response than experts had forecasted.
Perhaps the pandemic will spur more ERP sales in an attempt to develop more adaptable supply chains, which has become critical in the coronavirus response.
The ERP software market will reach $78.41 billion by 2026, growing at a CAGR of 10.2 percent, assuming no economic downturn, as per Allied Market Research.
Continue reading to learn more about the “who, what, where, and why” of the ERP market’s predicted growth.
What Brought Us Here?
You may be interested to know what the key drivers behind this 40-year-old software market are. The ERP market is boosted forward by its ability to continuously revolutionize business processes at companies across a broad range of industries. ERP vendors devote more resources to enhance companies’ profit margins year after year.
Another factor that contributes to the software’s success is its ability to incorporate modifications based on current trends. It’s critical for software engineers to provide customers with the system features they need to gain a competitive advantage in the modern business world, whether they’re building an ERP from the ground up or simply updating their existing systems. ERP is a highly flexible software that makes it possible to meet the custom needs of the company its serving.
Buyer Insights and Trends
According to a press release from Market Watch, the ERP market is experiencing an upward trend because of the following factors:
- The demand for operational efficiency and transparency in business processes is increasing
- Cloud and mobile application adoption is increasing
- Demand for data-driven decision-making is on the rise
- Demand for ERP software is increasing among small and medium-sized businesses
- Technology is advancing at a breakneck pace
Increasing maintenance and investment costs, on the other hand, are impeding ERP market growth. According to the press release, the ERP market is divided into two segments: software and services, with the service sector expected to grow at the fastest rate of 12.1 percent by 2026.
Who is purchasing an ERP System?
According to Market Research Future, several industries, including financial services, aerospace and defense, manufacturing, retail, and others, are investing in ERP. They forecast that businesses of all sizes will purchase ERP, with the financial services industry being the most common buyer.
Market Share of the Top Solutions
The research team conducted some research to determine which ERP solutions have the largest market share (in terms of total revenue). Here’s what we came up with:
1. Oracle Cloud ERP
Oracle ERP Cloud, which was founded in 1977, is one of the most well-known players in the ERP market today. Oracle ERP Cloud has a market share of 6.09 percent based on the installed base. According to some data, companies that have 1000-5000 employees and revenue of $10-50 million are the most likely to use the system. The market share by revenue is estimated to be $3,901 million (Gartner’s Market Share Analysis: ERP Software, Nationwide 2018). Also known as NetSuite, companies always prefer this cloud ERP as their first choice.
2. SAP Business One
The next item on our list is a product from SAP, a legacy ERP company that has dominated the market since 1972. SAP Business One has a 2.37 percent market share, and it is most commonly used by businesses with 10-50 employees and $1-10 million in revenue. According to the Gartner analysis pointed out earlier, SAP ERP’s market share by revenue is estimated to be $7,709 million.
3. Sage 100
Sage 100 Cloud is ranked third on our list, with 3.47 percent of the ERP software market share and a target market of companies with 10-50 employees and $1-10 million in revenue. According to Gartner’s market analysis, the market share by revenue is estimated to be $2,048 million.
4. SAP S/4HANA
With a market share of 1.41 percent, SAP S/4 HANA is most commonly used by large companies with over 1,000 employees and over $1 billion in revenue. Market share by revenue is estimated to be $7,709 million, according to Gartner’s Market Share Analysis: ERP Software, Worldwide 2018 Report.
5. Infor ERP
The final item on our list is another ERP behemoth. Infor ERP accounts for 0.43 percent of the ERP market and is most commonly used by businesses with 50 to 200 employees and revenues of $10 million to $50 million. According to some Market Share Analysis: ERP Software, Worldwide 2018, Infor ERP has a market share of $1,720 million in total revenues.
In brief, Oracle, SAP, Sage, and Infor are the top ERP companies that will dominate the market in 2021. Infor had the smallest market share and is the list’s youngest company founded in 2002. Meanwhile, SAP took two positions on our list this year, with AI and machine learning supporting both of their products – a major ERP trend.
Also read : How Much Does Salesforce Cost For A Small Business?