U.S. Markets closed
  • S&P 500

    4,532.76
    -44.35 (-0.97%)
     
  • Dow 30

    35,028.65
    -339.82 (-0.96%)
     
  • Nasdaq

    14,340.25
    -166.64 (-1.15%)
     
  • Russell 2000

    2,062.78
    -33.44 (-1.60%)
     
  • Crude Oil

    86.60
    +1.17 (+1.37%)
     
  • Gold

    1,841.20
    +28.80 (+1.59%)
     
  • Silver

    24.22
    +0.73 (+3.10%)
     
  • EUR/USD

    1.1349
    +0.0019 (+0.1702%)
     
  • 10-Yr Bond

    1.8270
    -0.0380 (-2.04%)
     
  • Vix

    23.85
    +1.06 (+4.65%)
     
  • GBP/USD

    1.3615
    +0.0017 (+0.1225%)
     
  • USD/JPY

    114.2960
    -0.2890 (-0.2522%)
     
  • BTC-USD

    41,774.68
    -535.62 (-1.27%)
     
  • CMC Crypto 200

    992.07
    -2.68 (-0.27%)
     
  • FTSE 100

    7,589.66
    +26.11 (+0.35%)
     
  • Nikkei 225

    27,467.23
    -790.02 (-2.80%)
     

Global Enterprise Resource Planning Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·9 min read

The global enterprise resource planning market was valued at 39. 11 billion in 2020, and it is expected to reach USD 61. 97 billion by 2026, registering a CAGR of 7. 52% during the forecast period, 2021-2026.

New York, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Enterprise Resource Planning Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06187389/?utm_source=GNW
Enterprise resource planning (ERP) is the integrated management of core business processes, which are often in real-time and are 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

Key Highlights
According to Computer Weekly, enterprise resource planning (ERP) and customer relationship management (CRM) remain the most vital categories for packaged business applications, with 53% of respondents naming these as priority areas for investment, reflecting a modest 3% growth for ERP in Europe, the Middle East, and Africa. Moreover, interpreting the data is crucial for decision making; however, Oracle survey data suggests that current ERP systems are not delivering the meaningful insights needed. Further, according to Oracle, although 60% of people used their ERP system to generate reports directly, nearly half (49%) used spreadsheets with data pulled from the record system (survey on 400 finance and technology leaders).
The fact that businesses feel compelled to take their data further with ad-hoc spreadsheet reports shows ERP systems do not provide the insights businesses require. The problems with managing reports via. Spreadsheets are well-known, so it should, therefore, come as no surprise that companies have begun or are planning to move ERP to the cloud. Cloud is the future of most business applications, including ERP. Accenture’s CIO (Chief Information Officer) survey finds that 78% of the UK CIOs believe that cloud is critical to their IT strategy and corporate strategy, and 50% say they are already running a hybrid cloud ERP and reaping its rewards of the total cost of ownership (TCO) reduction and increased agility.
Also, during cloud adoption, some organizations may prioritize by separating and migrating modules or functions to cloud-first (such as human capital management). At the same time, the remainder continues to stay on the on-premise. Other organizations may move the critical mass of their business applications to the cloud, finding little sense in retaining core systems on-premise. Additionally, 61% of the UK CIOs from Accenture’s survey report that they already have more than half of their data and applications in the cloud. Still, only 6% plan to be exclusively cloud-based in the next three to five years.
The rapid shift to the cloud in North America is driving the studied market’s growth for cloud enterprise resource planning (ERP). According to Epicor Software’s 2021 Annual Insights Report, 94% of mid-sized essential businesses in the United States are adopting cloud in 2021, up from 25% that declared cloud a strategic priority in 2020. In addition, 94% believed the cloud would help future-proof their businesses. Cloud ERP is one of the central investment strategies for the manufacturers operating in the region. Adopting an ERP warehouse management system (WMS), among others, is in line with cloud adoption. According to a 2020 survey by NiceLabel, 21% of the manufacturing IT directors suggested that their organization’s IT infrastructure was entirely cloud-based. In addition, 80% of IT directors surveyed expected their organization to increase its investment in IT systems like ERP, MES, and WMS by more than 25% over the next three years.
The digital transformation across various end-user industries in the region also leads to the adoption of ERP solutions. In March 2021, Mountain Health Network (MHN), a West Virginia-based not-for-profit health system with nearly 700 beds at two teaching hospitals, announced the selection of Avaap, an Infor partner specializing in healthcare solution delivery. MHN partnered with Infor and Chartis Group for driving digital transformation across its delivery system. The project links MHN’s Cerner EHR with Infor ERP for a single, integrated platform that will provide real-time data to support decision-making, quality patient care, and affordability.

Key Market Trends

Cloud Deployments to Witness Highest Market Growth

Cloud-based ERP solutions are comparatively cheaper that benefit both SMEs and large enterprise organizations. The cloud-based ERP software is installed in the vendor’s remote serves instead of the company’s hardware. Some of the solutions are provided based on services, and therefore they are also called SaaS ERP solutions. The SaaS ERPs incorporate multi-tenant software architecture that allows multiple customers to use the same software platform hosted by the vendor. Some of the advantages include faster deployment, lower upfront costs for software implementation, easy customization of single-tenant SaaS applications, easy configuration and maintenance process, automatic data back and disaster recovery, and lastly, easy integration and migration.
Cloud ERP’sare generally classified as single-tenant and multi-tenant. In the case of the former, the solution is considered as a separate instance of ERP, used by just one company that does not have shared server space. The setup gives the customers greater control over the software and allows more room for customization. In the case of multi-tenant solutions, a number of organizations use the same software platform and hardware where the vendor handles all the updates and upgrades the ERP solutions to the latest versions that automatically provide access to the customers with the latest versions. Therefore, this reduces the burden on in-house IT teams to ensure that customers always have access to the most updated and secure ERPs.
Further, with growing digital transformation, various end-users like education firms, advertising and media platforms, IT services, manufacturing department, healthcare sectors, retail, transportation and logistics, and wholesale distributors, among others, have started incorporating cloud ERPs. Vendors are also introducing new solutions to the market. For instance, in February 2021, Aptean announced the release of the Aptean industrial manufacturing ERP cloud to offer discrete manufacturers full functionality in a flexible, secure, and cost-effective solution.
Similarly, in October 2021, NetSuite announced a new cloud ERP called the SuiteBanking solution to help customers with the automatic financial process with complete visibility into the cash flows. The solution is primarily designed for Fintech. The software is designed to be embedded into the ERP systems that allow users to access the pay bills, send invoices, accounts receivable processes, and automated accounts payable processes.
Further, the need for automation, standardization, simplification and innovation is imperative for the customers across industries and geographies, driving the market study. Therefore, vendors are also investing in significant research and development to introduce a new upgrade to the existing cloud ERPS. For instance, in September 2021, Oracle added intelligent document recognition and intelligent performance management insights procurement spend classification, among other features, to Oracle Fusion Cloud Enterprise Resource Planning.

North America to Hold Major Market Share

The rapid shift to the cloud in the region is driving the growth of the market for cloud enterprise resource planning (ERP). According to Epicor Software’s 2021 Annual Insights Report, 94% of mid-sized essential businesses in the United States are adopting cloud in 2021, up from 25% that declared cloud a strategic priority in 2020. In addition, 94% believed the cloud would help future-proof their businesses. Cloud ERP is one of the central investment strategies for the manufacturers operating in the region. The adoption of an ERP warehouse management system (WMS), among others, is in line with cloud adoption.
According to a 2020 survey by NiceLabel, 21% of the manufacturing IT directors suggested that their organization’s IT infrastructure was entirely cloud-based. In addition, 80% of IT directors surveyed expected their organization to increase its investment in IT systems like ERP, MES, and WMS by more than 25% over the next three years.
The digital transformation across various end-user industries in the region also leads to the adoption of ERP solutions. In March 2021, Mountain Health Network (MHN), a West Virginia-based not-for-profit health system with nearly 700 beds at two teaching hospitals, announced the selection of Avaap, an Infor partner specializing in healthcare solution delivery. Further, MHN partnered with Infor and Chartis Group for driving digital transformation across its delivery system. The project links MHN’s Cerner EHR with Infor ERP for a single, integrated platform that will provide real-time data to support decision-making, quality patient care, and affordability.
The need to deliver personalized and relevant experiences to the customers leads to ERP systems that can accommodate those needs with features like highly customizable dashboards. According to a survey by Movable Ink’s Audience of One Report 2021, 61% of consumers suggested that they were likely to buy goods or services when a company created a personalized experience in their branded content. (n=1,000 US consumers).
Additionally, Canada has been implementing ERP software solutions in various industries for a decade now. It has successfully digitized hospitality, Manufacturing industry, and corporate landscape that has increased the productivity and collaborative output of the industries. The accelerated adoption of new technologies in small and medium enterprises in the region due to the pandemic is also leading to the growth of the market for ERP in the region. According to the 2020 Small Business Digital Maturity Study by Cisco, 70% of the survey respondents representing Canadian small businesses surveyed were accelerating the digitization of their business because of the pandemic, while 97% said their business became more technology-dependent due to the pandemic.

Competitive Landscape

The enterprise resource planning market is highly fragmented, with a large number of competitors like SAP SE, Microsoft Corporation, FinancialForce.com Inc., IBM Corporation, Oracle Corporation, etc. Players in the market adopt strategic activities such as partnerships, product development, mergers, and acquisitions to capture the market share. Some of the key developments in the market are:

October 2021 - FinancialForce announced the general availability of its Fall 2021 Release. The new capabilities include Advanced Resource Management for the Professional Services Cloud, which creates a more efficient staffing process and results in higher margins and greater employee satisfaction, and new ERP enhancements that make it easier for customers to run their business digitally.
September 2021 - Deltek Inc. announced a new offering for the US-based businesses, Deltek Payments, a new offering to help the ERP customers digitally transform and modernize their payment processes.
May 2021 - Managed services provider Nexon Asia-Pacific secured a multi-year deal to implement a Microsoft Dynamics 365 platform for food franchising services company IPC Asia Pacific. The platform will include deployment and management of Microsoft Dynamics 365 customer service, Microsoft Portals, Business Central, Power BI, and Power Apps.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06187389/?utm_source=GNW

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

__________________________

CONTACT: Clare: clare@reportlinker.com US: (339)-368-6001 Intl: +1 339-368-6001