The global ERP software market size is set to reach USD 71.63 billion by 2026, exhibiting a CAGR of 8.5% during the forecast period. Integration of Internet of Things (IoT) with business processes is expected to emerge as the central growth driver for this market, finds Fortune Business Insights™ in its new report, titled “Enterprise Resource Planning (ERP) Software Market Size, Share Industry Analysis, By Component (Software, Services), By Business Function (Financial Management, Human Capital Management, Supply Chain Management, Customer Management, Inventory and Work Order Management, Others); By Enterprise Size (SMEs, Large Enterprises), By Deployment (Cloud, On-Premises, Hybrid); By End-use (Manufacturing, BFSI, IT and Telecommunications, Retail and Consumer Goods, Healthcare, Transportation and Logistics, Government, Others), and Region Forecast, 2019-2026”.
IoT is a form Artificial Intelligence-based technology that allows inanimate objects to get interconnected with each other and transmit data over the internet. When embedded in ERP solutions, IoT facilitates data collection, collation, analysis, and processing for businesses, empowering them to take informed decisions and strategize. For example, IoT makes possible the origination of orders from multiple sources for the Quote to Cash (Q2C) process. Moreover, one of the important ERP software market trends is the improvement in communication between vendors, suppliers, and end-consumers, which is boosting the uptake of ERP solutions in organizations.
List of Companies Covered in the ERP Software Market Report:
PLEX SYSTEMS (United States) Acumatica, Inc. (United States) Epicor Software Corporation (United States) Unit4 (Netherlands) Oracle Corporation (United States) Rootstock Software (United States) QAD, Inc. (United States) Sage Group plc (United Kingdom) SAP SE (Germany) SYSPRO (South Africa)
Regional Analysis
Rapid Adoption of ERP Solutions to Drive the Market in North America
The market size in North America in 2018 stood at USD 14.36 billion and the region is poised to dominate the ERP software market share in the coming years. One of the major reasons for this is the high adoption rate of AI-based technologies such as IoT, Machine Learning, and cloud computing among organizations in the region. Furthermore, many companies are implementing ERP solutions to streamline their processes in a bid to elevate efficiency through advanced automation of routine tasks, which is augmenting the enterprise resource planning software market growth.
Expansion of the BFSI, logistics, and manufacturing sectors will be the major factor accelerating this market in Asia-Pacific, as per the ERP software market analysis. In addition to this, growth in the IT industry will further propel the market in this region.
Industry Developments:
November 2019: Michigan-based software company Plex Systems launched its shop floor-specific designed product, Plex Manufacturing Execution Suite (Plex MES). The offering is a cloud-based suite made up of packages to deliver smart manufacturing solutions to industries. October 2019: SYSPRO, a South African software development firm, collaborated with Clean Energy Smart Manufacturing Innovation Institute (CESMII) to provide smart manufacturing software and solutions to manufacturing companies across the US. The partnership is part of a community-driven project that brings together academia, governments, and industry to promote sustainable manufacturing and RD practices.