ERP Software Market Overview
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.
ERP Software Market Trends
Category Intelligence on ERP Software covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
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 Supply Trends and Insights
Global/Regional Supplier
Tier-II/Local Supplier
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, techtarget.com, cio.com
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
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
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.
