The global ERP software market size was US$ 42.1 billion in 2021. The global ERP software market is forecast to grow to US$ 110.41 billion by 2030, registering a compound annual growth rate (CAGR) of 12.1% during the forecast period from 2022 to 2030.

Enterprise resource planning or ERP software allows organizations to automate business processes. ERP software incorporates many parts of a business into a single database, including marketing, sales, product development, production, and product planning.

Factors Influencing the Market

The growing adoption of cloud-based ERP in the automotive, consumer electronics, manufacturing, pharmaceuticals, and textiles industries is forecast to fuel the growth of the ERP software market.

Rising demand for cloud-based ERP software will benefit the market in the coming years. The deployment of cloud-based technology is increasing. Moreover, cloud-based ERP solutions help organizations efficiently store massive data and share them with multiple resources. Furthermore, companies can also access information through any system and at any time. As a result, it will surge the growth of the global ERP software market during the study period.

Key vendors, including SAP and Oracle, provide cloud-based ERP to deliver storage recovery plans and data backup to manage primary business functions like CRM, HR, inventory and order management, and accounting. Further, cloud-based ERP enables organizations to minimize upfront costs for computing infrastructure like easy installation, hardware, and data servers. Moreover, it offers better data security, which will further drive the growth of the ERP software in the upcoming years.

The rising number of partnerships and acquisitions are forecast to benefit the ERP software market. For instance, Salesforce purchased MuleSoft in 2018 for around $6.5 billion. This acquisition aims to incorporate Salesforce's cloud-based applications with MuleSoft's SAAS integration platform. Moreover, SAP acquired Qualtrics with the aim to raise its foothold in the experience management category.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a favorable impact on the ERP Software market due to the government-mandated lockdowns. Furthermore, shutdown regulations increased the number of smartphone users. Moreover, companies also started operating on virtual mode. Thus, the global ERP software market witnessed significant growth due to the COVID-19 pandemic.

Advertising companies would benefit from this rise because they will be able to show more adverts on this platform to attract interested customers. In addition, consumers are now aware of real and fake commercials because they spend the majority of their time on smartphones, which has provided them with relevant knowledge regarding adverts. As a result, the global ERP software market witnessed significant growth due to the pandemic.

Regional Analysis

North America is forecast to dominate the global ERP software market during the forecast period. The presence of a large number of cloud ERP software vendors across Canada and the United States will drive the market forward in the coming years. Moreover, increasing penetration of new technologies will contribute to the region's ERP software market's rapid growth. Furthermore, businesses in North America are migrating from on-premises to cloud-based ERP due to lower maintenance expenses and lower implementation costs. As a result, it will propel the ERP software market forward.

Competitors in the Market

Deskera
Epicor Software Corporation
Ifs Ab
Infor
Microsoft Corporation
Oracle Corporation
Sage Group Plc
Sap Se
Syspro
Workday, Inc.
Other Prominent Players
Market Segmentation

Based on the deployment type, the ERP software market is segmented into-

On-premises
Cloud
Based on function type, the ERP software market is segmented into-

CRM
Sales
Accounting
Others
Based on organization size, the ERP software market is segmented into-

SMEs
Large Enterprises
Based on industry vertical, the ERP software market is segmented into-

Retail
Manufacturing
Banking & Financial Institutes
Aerospace & Defense
Others
Based on region, the ERP software market is segmented into-

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America