ERP Software Market Intelligence


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  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)


*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

Are you looking for answers on ERP Software category?

Are you looking for answers on ERP Software category?

  • What are the key trends in ERP Software category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in ERP Software industry?
  • How is ERP Software industry performing?

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Report Coverage

  • Global Capacity–Demand Analysis
  • Global Trade Dynamics
  • Regional Market Snapshot-North America, Europe, Asia
  • Cost Structure Analysis

Market Size

Global Market Size

$35 Bn


8 Percent

The global market for ERP software is expected to reach $42 billion by 2020 while growing at a continuous CAGR of 7-7.3 percent. The cloud ERP market is estimated to reach approximately $27 billion by 2020 while growing at a CAGR of 10 percent. Latin America and APAC are also expected to drive growth in the future, and the supply will be consolidated to the top four suppliers holding over 60 percent of the global market share. In addition to this, the SMBs in these countries are also witnessing increasing adoption rates due to the efforts of large global buyers to consolidate the supply base.

SAP is the pioneer in the ERP software industry and is estimated to have a 25 percent share of the global supplier market, followed by Oracle and Infor, having 17 percent share respectively. The report also explores the drivers and constraints of the global ERP industry, followed by Porter's five forces analysis . It also provides a detailed supplier analysis and gives an overview of the market share of suppliers like SAP, Oracle, Infor, and Microsoft Dynamics. 

Global ERP companies are less dependent on the implementation partners. The globalERP market is mature enough that competition turns from features to price. The threat of substitution is low. Open-source ERPs can be substitutes, but they cannot compete with global suppliers offering a wide range of service capabilities. The global ERP supplier market is consolidated, with the top four players holding over 60 percent of ERP software market share. The cost of outsourcing product development has significantly raised the abilities of software companies to negotiate, in terms of setting up their operations, and has hence reduced the supplier power. There is an intense rivalry among country-specific ERP suites, which is better adapted to local, legal and tax conditions. Risks in the ERP software market are divided, and so are the shortcomings and improvements. SAP, as the pioneer in the ERP software industry, is estimated to be leading in terms of global supplier market share with 22 percent.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Table of Contents

  1. ERP Software Executive Summary
  2. Brexit - Impact on Software
  3. Global ERP Industry Outlook
  4. Global Suppliers & Cloud Deployment Outlook
  5. Supply Trends and Insights
  1. ERP Software Core Modules & Adoption Trends
  2. Core Modules and Functionalities
  3. Adoption Trends
  1. ERP Software Market Analysis
  2. Global ERP Market Maturity
  3. Global ERP Drivers and Constraints
  4. Porter's Five Forces Analysis for Global ERP Market
  1. ERP Software Supply Analysis
  2. Market Share of Global Suppliers
  1. ERP Software Tier - I and Tier - II Suppliers: Software Offerings
  2. Service Capabilities of Key Global ERP Suppliers
  3. Most Preferred Global Suppliers by Industry
  4. Frequently Shortlisted Suppliers Ranking
  5. Key Supplier Profiling and SWOT
  1. ERP Software TCO & Deployment Models
  2. TCO for On - premise and SaaS Offerings
  3. ERP Deployment Adoption Rate
  1. ERP Software Contract
  2. Contract Bidding Process
  3. Project and Payment Milestones
  4. SLAs and KPIs
  1. ERP Software Pricing Models
  2. Types of Pricing Models
  3. Pricing: Licence Types 08 Cost Saving Opportunities: Risks & Challenges
  4. Cost Saving Opportunities: ERP Licence
  5. Cost Saving Opportunities: ERP Implementation
  6. Risks/Challenges in ERP
  7. ERP Software End - User Industry Update
  8. Retail

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Global ERP Software Market Outlook

  • The global ERP market was valued at $31.9 billion in 2016. The market is forecasted to grow at a CAGR of 7–7.3 percent to reach $42 billion by 2020
  • APAC and Latin America are expected to be the growth driving markets in the future. Supply is more consolidated, with the top four suppliers holding over 60 percent of market share globally
  • The types of pricing in ERP market: Fixed pricing, time and material-based pricing
  • The KPIs in the ERP software market are business operations, system response time, maintenance and support.
  • The ERP software market share by region: North America - 58%, Europe - 20%, APAC - 16%, LATAM - 4%, and MEA - 2%.
  • The ERP software market share according to adoption of enterprises: Manufacturing - 21%, BFSI - 16%, Telecom - 13%, Government -12%, Healthcare - 11%, Retail - 11%, Aerospace and Defence - 9%, Others - 7%.

ERP Software Market

ERP Supply Trends and Insights

Global/Regional Supplier

  • Global suppliers are developing user-friendly interfaces and functionalities, moving away from the existing high degree of complexity in software

  • Upward trend, portraying increase in cloud deployment of ERP over on-premise solution, owing to cost savings and ease of access to applications through cloud and mobile devices
  • ERP vendors are investing heavily in increasing business intelligence, big data and analytics capabilities, where ERPs will not only be used for data reporting, but also enable the customers in robust and intelligent decision-making
  • Enabling flexibility in deployment options. Hybrid cloud model in which an organization combines on-premise applications with cloud applications in its broader ERP package
  • Global suppliers are enhancing their service capabilities inorganically through M&A in order to secure ERP contracts from large buyers

Tier-II/Local Supplier

  • Vendors are highly fragmented in the mid-market segment

  • Tier-II market players follow a vertical strategy, in which they limit their expertise to focus only on a few specific industries.
  • Increased trend towards globalization, where suppliers are building a greater amount of international presence, either directly or through channel partners
  • The mid-market segment has seen growth in increasing the number of SaaS ERP, due to reduced implementation and operational costs
  • Open-source ERP vendors are evolving with a focus to reduce TCO and also enable customization without access to source code Engagement Trends

Engagement Trends

Most adopted model (globally): Multi-vendor engagement is being practiced to achieve spend visibility, cost savings and risk minimization.
Contract length: 1.5 – 3 years

  • Preferred Phase (Support and Maintenance)
  • Pricing strategy (Fixed pricing)
  • Preferred Phase (Implementation)
  • Benefit (High knowledge retention)
  • Pricing strategy (Time and Material)
  • Benefit (Achieve greater spend visibility)

Sources: Beroe analysis, Primary Expert 1,,

Global ERP Market Analysis

  • ERP penetration for large organizations is medium outside Europe and North America
  • SMBs in APAC and Latin America are witnessing increasing adoption due to the efforts of large global buyers to consolidate the supply base

Global ERP Drivers and Constraints Drivers Constraints

Hybrid ERP

  • A hybrid ERP system is a perfect combination of in-house ERP supplemented by cloud-based ERP application. It is becoming popular among organizations who want to improve ERP functionality but do not want to change or add the in-house legacy system

  • Hybrid ERP allows organizations to have a smaller section of functionalities of on-premise solutions, such as financial and manufacturing, and the rest of the applications on the cloud. Gartner predicts that at least one-third of service-centric organizations will move the bulk of their ERP applications to the cloud

SaaS adoption in ERP

  • SaaS-based ERP solutions are gaining popularity in the mid-market segment, where it proves to be cost effective in terms of implementation, reduced operational cost, increased business agility and the ease of start-up and maintenance

  • Revenues, generated out of selling traditional ERP systems, have been declining since 2013 to a level which has already been surpassed by the total revenue from cloud-based SaaS solutions. It is predicted that traditional ERP vendors' SaaS revenue will soon surpass their revenue from the legacy ERP sales

IoT and ERP

  • It has been estimated that by 2018, over 30 percent of data will be machine-generated, with 15–35 billion devices fueling this growth

  • The ERP system will be integrated with the real-time unstructured data (produced from machines) to the structured data from business operations. The legacy ERP, compounded with its business intelligence skills, will be empowered with real-time data through IoT, in order for the organizations to make actionable decision
  • Lack of feature and function fits between the customers and ERP providers is the predominant constraint faced by ERP buyers .In several cases, customers do not find the ERP packages that will solve their business requirements
  • Availability of alternatives for increasing the level of systems integration
  • High switching cost and process integration involved, making it tough for the organizations to switch suppliers
  • Enterprises that follow decentralized decision-making find it difficult to implement, as ERP systems are not easy to change once they are configured and installed
  • Lower ROI and high ERP failure rates
  • Large enterprises' resistance to OCM

Market Share of Key Global Suppliers

  • SAP, as the pioneer in the ERP software industry, is estimated to be leading in terms of global supplier market share with 25 percent, followed by Oracle and Infor, each with 17 percent, respectively
  • Tier-III and Tier-II solutions, comprised of regional and country-level suppliers, hold 22 percent and 9 percent, respectively

Why You Should Buy This Report

The report gives you, insight into the supply trends, core modules and functionalities, global ERP market industry drivers and constraints and Porter’s five force analysis of the global ERP software market.
It gives you ranking and information of key supplier along with SWOT analysis of SAP, Oracle, Microsoft, etc. The report gives the best pricing and delivery models and cost-effective opportunities in the ERP market.

ERP Software Market Frequently Asked Questions

  1. At what CAGR is the global ERP software market expected to grow through 2020?
  2. As per Beroe’s industry reports, in 2016, the global ERP software market was worth $31.9 billion. The market will continue to follow an upward trajectory to reach a valuation of $42 billion at a CAGR of 7-7.3 percent by 2020.
  1. Which regions are expected to drive the growth for the ERP market?
  2. The APAC and Latin American regions are expected to be driving the ERP software market growth in the near future.
  1. What are the pricing models followed in the ERP market?
  2. The pricing models followed in the ERP software market are fixed pricing, time, and material-based pricing.
  1. What are the KPIs in the ERP software market?
  2. Business operations, system response time, maintenance, and support are the KPIs in the ERP software market.
  1. How is the region-wise share of the ERP software market?
  2. As per the ERP software market report by Beroe, North America leads the market with a 58% market share, followed by Europe at 20%, APAC at 16%, LATAM at 4%, and MEA at 2%.
  1. What is the ERP software market share in terms of enterprise adoptions?
  2. The ERP software market share according to its adoption by enterprises are manufacturing (21%), BFSI (16%), Telecom (13%), Government (12%), Healthcare (11%), Retail (11%), Aerospace, and Defense (9%), Others (7%).

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