Enterprise Resource Planning Software Market is growing, driven by cloud adoption, AI integration, and digital transformation
From GlobeNewswire: 2025-01-13 09:00:00
The Enterprise Resource Planning Software Market was valued at $62.49 billion in 2023, expected to reach $175.63 billion by 2032 with a CAGR of 12.23%. Cloud adoption and AI integration are driving growth, with over 55% of retail companies using hybrid ERP systems, and 69% of private organizations accelerating digital transformation due to the pandemic.
Real-time analytics and AI-driven insights are in demand, leading to increased automation and decision-making in ERP systems. Industries like manufacturing, retail, and healthcare are leveraging AI and machine learning, with 58% of healthcare developers integrating AI. Cloud-based ERP adoption is rising due to hybrid work models, while blockchain integration enhances data security.
On-premise ERP dominates the market with 58% share, favored by large organizations for data control and security. In contrast, cloud ERP is growing rapidly at a CAGR of 13.39%, offering scalability, lower costs, and agility. Factors like remote work adoption and reduced IT burden are fueling cloud ERP’s popularity.
The finance segment leads the ERP market with 33% revenue share in 2023, driven by financial management solutions like budgeting and reporting. HR ERP is expected to grow at the fastest CAGR of 14.51% from 2024 to 2032, meeting the demand for optimized workforce management and enhanced employee engagement.
North America dominates the ERP market with 39% of revenue in 2023, supported by established companies in manufacturing and finance. Asia Pacific is experiencing rapid growth, driven by the adoption of ERP systems in emerging markets. The market is segmented by deployment, function, enterprise size, and verticals like manufacturing, healthcare, and government. The Asia Pacific region’s focus on digital transformation and high cloud computing adoption are driving the demand for ERP systems, with a projected CAGR of 14.85% from 2024 to 2032. Recent developments include Epicor acquiring Smart Software and IBM partnering with KPMG to accelerate SAP S/4HANA adoption in the energy sector.
To meet the rising demand for ERP systems, businesses in the Asia Pacific region are investing in digital infrastructure and adopting ERP solutions to enhance operational efficiency, resource management, and supply chain optimization. The region’s advanced technological infrastructure and rapid industrialization are key drivers of this growth, with small and medium enterprises increasingly embracing ERP software.
In 2024, Epicor’s acquisition of Smart Software and IBM’s partnership with KPMG are notable developments in the ERP software market. These strategic moves aim to enhance supply chain management solutions, demand forecasting capabilities, and SAP S/4HANA adoption in the energy and utilities sector, catering to the region’s growing ERP needs.
Read more at GlobeNewswire: Enterprise Resource Planning Software Market to Reach USD