Enterprise Resource Planning (ERP) Market Expected to Reach $40.6 Billion by 2033

According to a new report published by Allied Market Research, titled, “Enterprise Resource Planning (ERP) Market," The ERP market size was valued at $16.3 billion in 2023, and is estimated to reach $40.6 billion by 2033, growing at a CAGR of 9.4% from 2024 to 2033. Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP refers to a category of business management software comprising a suite of integrated applications that organizations use to collect, store, manage, and analyze data across various business activities. ERP systems can be local-based or cloud-based. Cloud-based applications have grown in recent years due to the increased efficiencies arising from information being readily available from any location with Internet access.

Factors such as increase in need for operational efficiency and transparency in business processes and rise in demand for data-driven decision-making are expected to fuel the ERP market size. In addition, surge in adoption of cloud as well as mobile applications is expected to drive the growth of the ERP industry. However, availability of open-source applications and higher investment and maintenance costs are expected to hamper the growth of the enterprise resource planning (ERP) market. On the other hand, increase in demand for ERP among small & medium sized enterprises and technological advancements in enterprise resource planning software are expected to provide lucrative opportunities for the market growth in the coming years.

On the basis of deployment type, the on-premise segment dominated the global ERP market share in 2023 and is expected to maintain its dominance in the upcoming years, owing to enhanced data security, greater customization options, and control over infrastructure, making it a preferred choice for industries with stringent compliance requirements. However, the hybrid segment is expected to witness the highest CAGR during the forecast period, due to its flexibility, combining on-premise security with cloud accessibility, cost efficiency, and seamless scalability for growing business needs.

By region, North America dominated the ERP market share in 2023 for the enterprise resource planning market, owing to the region's advanced IT infrastructure, high adoption of cloud-based solutions, significant presence of key market players, and increase in demand for automation. However, LAMEA is expected to exhibit the highest CAGR during the ERP market forecast period. This is attributed to increasing digital transformation initiatives, rising investments in IT infrastructure, growing adoption of cloud-based ERP solutions, and government efforts to modernize industries across the region.

According to the Draft Guideline for Assistance in Enterprise Resource Planning (ERP) under the Aatmanirbhar Gujarat Scheme for Assistance to Micro, Small, and Medium Enterprises (MSMEs) outlines specific regulatory provisions for ERP implementation. It emphasizes the eligibility criteria, including the requirement for MSMEs to be registered with the Ministry of MSME or DPIIT. The scheme provides financial assistance of up to 65% of the capital cost, subject to a maximum of INR 1,00,000, for the installation of ERP systems during the operative period of the scheme (05/10/2022 to 04/10/2027). To qualify for assistance, ERP systems must cover essential business functions such as production, inventory control, sales, purchase, accounting, and human resource management. Verification of network linkage with servers and software is required to ensure smooth system integration. The cost of ERP systems includes installation charges, software costs, and annual service charges, but it excludes hardware-related expenses.

Key findings of the study 

• By component, the software segment held the largest share in the enterprise resource planning market for 2023.

• By deployment mode, the on-premises segment held the largest share in the enterprise resource planning market for 2023.

• By end user, the large enterprise segment held the largest share in the enterprise resource planning market for 2023.

• By business function, the finance segment held the largest share in the ERP industry for 2023

• By industry vertical, the manufacturing segment held the largest share in the enterprise resource planning (ERP) market for 2023

• Region-wise, North America held largest market share in 2023. However, LAMEA is expected to witness the highest CAGR during the forecast period.

The key players profiled in the ERP market analysis are SAP SE, Infor Inc., Oracle Corporation, Microsoft Corporation, Sage Software Solutions Pvt Ltd., SYSPRO, Unit4, IFS, Workday Inc., Acumatica, Inc., QAD Inc., Deltek, Inc., Priority Software, Ramco Systems Ltd., Odoo SA, Intact (Aptech Business Systems Ltd.), Epicor Software Corporation, Tally Solutions Private Limited, Zoho Corporation and MYOB Australia Pty Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the medical insurance industry.