GLOBAL ERP SOFTWARE INDUSTRY 2015

Enterprise resource planning (ERP) software is business process management software that allows an organization to manage the business and automate core functions such as planning, operations, product development, manufacturing, accounting, human resources, sales and marketing.[i]

ERP market is a multibillion-dollar industry that produces components that support a variety of business functions. ERP Investments have become the largest category of capital expenditure in United States-based businesses over the past decade. Initial ERP systems focused only on large enterprises. Smaller enterprises, Governments and non–profit organizations increasingly use ERP systems today.

ERP SOFTWARE MARKET SIZE AND GROWTH

The worldwide ERP software grew by 6.4%[ii] in 2014 to reach $27B market size.[iii]  The segment is anticipated to garner $41 billion in sales by 2020 with a CAGR of 7.2% during 2014-2020.[iv]

ERP software is second fastest growing segments within Enterprise Software after CRM. Other segments in Enterprise software include Business Intelligence, SCM and Web Conferencing software. Enterprise Resource Planning Software is implemented to enhance the internal functions of business; whereas other Enterprise Software like CRM, SCM, etc are implemented for the external functions, and for suppliers, customers.[v]

Year	Growth	ERP Market (In $ Billion)
2011		23.9
2012	2.20%	24.4
2013	3.80%	25.4
2014	6.40%	27.0
2015 P	7.20%	29.0
2016 P	7.20%	31.1
2017 P	7.20%	33.3
2018 P	7.20%	35.7
2019 P	7.20%	38.3
2020 P	7.20%	41.0

 

ERP SOFTWARE MARKET SEGMENTATION

 

By Deployment 

• On-premise deployment
• Cloud deployment

By Functions

• Finance
• Human resource (HR)
• Supply chain
• Others

 

By Verticals

• Manufacturing & Services
• BFSI
• Healthcare
• Retail
• Government Utilities
• Aerospace and defense
• Telecom
• Others

 

By End User 

• Large enterprises
• Medium enterprises
• Small enterprises

 

By Geography 

• North America 
• Europe 
• APAC 
• LAMEA[vi]

 

 

TOP ERP COMPANIES AND MARKET SHARE

ERP Vendors	Worldwide ERP Market share [vii]
SAP	24%
Oracle	12%
Sage	6%
Infor	6%
Microsoft	5%
Kronos	3%
Totvs	2%
Concur	2%
IBM	2%
YonYou	1%
Others	37%

 

MERGERS AND ACQUISITIONS IN ERP INDUSTRY

 

PRIVATE EQUITY INVESTMENTS IN ERP INDUSTRY

 

ERP SOFTWARE TRENDS

• ERP is emerging as a “must-have” for e-Commerce companies. Customers will want to order, understand their order status and provide feedback at any time, any day of the week.
• ERP is no longer just for medium to large size companies. Competitive costs, Automation and speed advantages it offers making it a worthy investment even for small businesses.
• Businesses are more comfortable with the idea of ERP in the cloud. Cloud ERPs are less complex, less work, require less skill to setup, is more cost effective with increased accessibility and data safety.[xii]