ERP Software Industry

Worldwide Market Size

$27 Billion in CY14

Growth Rates

6.4% in 2014

7.2% CAGR expected till 2020

Enterprise Software Segments

CRM Software

ERP Software

Business Intelligence

SCM Software

Web Conferencing

Top ERP Companies

SAP

Oracle

Sage

ERP Software

ERP Software Industry

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

Date

Acquirer

Target

Note on Target Company

Consideration

Feb 2015

Infosys

Panaya

Leader in ERP change analytics and cloud-based enterprise software testing.

USD 200 Mn[viii]

Sep 2015

Tricore Solution

Group Basis

SAP Certified - Support, administration, and optimization services

NA

Sep 2015

Infor

GT Nexus

Cloud platform used by world’s largest companies to monitor and orchestrate their global supply chains

USD 675 Mn[ix]

Dec 2014

SAP SE

Concur Technologies

Travel and expense management services company to businesses

NA

Sep 2014

Oracle Corporation

TOA Technologies

SaaS based field service management software and customer appointment scheduling solutions and services to enterprises worldwide.

NA

 

PRIVATE EQUITY INVESTMENTS IN ERP INDUSTRY

Date

Private Equity

Target

Note on Target Company

Consideration

Mar 2015

Technology Crossover

FinancialForce

ERP software for Salesforce: Cloud Accounting Software, PSA, Human Capital Management and Inventory.

USD 110 Mn[x]

Dec 2012

Accel Partners

Plex System

Leading manufacturing ERP software to improve ROI across your business.

USD 30 Mn[xi]

 

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]


[i]http://www.webopedia.com/TERM/E/ERP.html

[ii] https://www.gartner.com/doc/3046617?ref=SiteSearch&sthkw=erp%20software&fnl=search&srcId=1-3478922254

[iii]http://www.forbes.com/sites/louiscolumbus/2014/05/12/gartners-erp-market-share-update-shows-the-future-of-cloud-erp-is-now/

[iv]https://www.alliedmarketresearch.com/ERP-market

[v] http://blogs.globalteckz.com/difference-between-erp-enterprise-systems/

[vi]https://www.alliedmarketresearch.com/ERP-market

[vii] http://www.forbes.com/sites/louiscolumbus/2014/05/12/gartners-erp-market-share-update-shows-the-future-of-cloud-erp-is-now/

[viii] http://timesofindia.indiatimes.com/business/india-business/Infosys-buys-US-company-Panaya-for-200m/articleshow/46269368.cms

[ix] http://www.infor.com/company/news/pressroom/pressreleases/gt-nexus-cloud-commerce/

[x] http://www.financialforce.com/company/press-center/press-releases/financialforce-com-raises-110-million-to-capitalize-on-cloud-erp-growth/

[xi] http://techcrunch.com/2012/12/18/plex-systems-lands-30m-from-accel-to-help-global-manufacturing-transition-to-the-cloud/

[xii] http://www.lma-consultinggroup.com/7-hot-erp-systems-trends/