Enterprise Resource Planning (ERP) Market size was valued at USD 59.25 billion in 2023 and is likely to cross USD 195.09 billion by the end of 2036, expanding at more than 9.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of ERP is estimated at USD 63.8 billion.
With the increase in innovations in technologies like AR, IoT, AI, predictive maintenance, digital twin, and telematics and global digitalization across various levels are embracing new opportunities for the organizations to optimize their relationships with customers are expected to fuel the growth of this market. Ministry of Corporate Affairs Of India, (MCA), stated that around 10,954 companies were registered in June 2020. Out of which 3,399 companies belonged to business service segment, followed by 2,360 in manufacturing, 1,499 in trading, 1,411 in community, personal & social services and 644 in construction.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
9.6% |
Base Year Market Size (2023) |
USD 59.25 billion |
Forecast Year Market Size (2036) |
USD 195.09 billion |
Regional Scope |
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On the basis of deployment type, enterprise resource planning (ERP) market is segmented into on-cloud and on-premise. On-premise is highly adopted by an organization that requires control over the security of information about companies and customers. This deployment is installed and hosted on organizations’ IT infrastructure and is managed by their internal IT staff. Unlike cloud deployment, on-premises deployment of enterprise resource planning (ERP) solutions requires high initial investment by organizations, but does not require incremental costs throughout the ownership.
On the basis of application, enterprise resource planning (ERP) market is segmented into asset life management, inventory management, work order management, labor management, predictive maintenance, facility management, and others. Out of all these, asset lifecycle management adopts the highest share of the market as it comprises a few inter-management processes like comprehensive asset portfolio management, rigorous project execution, and effective and efficient asset management practices, which helps to provide desired outcomes. It is basically the process of optimizing profits generated throughout their life cycle. It reduces maintenance costs and improves the quality of IT services.
On the basis of industry size, enterprise resource planning (ERP) market is segmented into small and medium scale industry and large scale industry. Where large scale holds a higher share in the market as they require global functionality and large scalability.
On the basis of vertical, enterprise resource planning (ERP) market is segmented into manufacturing, retail, ITs and telecoms, military and defence, healthcare, government and others. Out of all these, manufacturing and retail hold the highest share, followed by defense and healthcare. Within these verticals, Enterprise resource planning (ERP) implementation may be used for supply chain management, product configuration, web-based ordering, financial accounting, human resource planning, project management, order processing, and others.
Our in-depth analysis of the global enterprise resource planning (ERP) market includes the following segments
By Deployment Type |
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By Industry Size Type |
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By Application Type
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By Vertical Type
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APAC Market Statistics
Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific and the Middle East & Africa region. Asia Pacific industry is anticipated to account for largest revenue share by 2036, owing to increase in technology adoption in the region. Digital India is a flagship program of the Government of India, visions to transform India into a digitally empowered society and knowledge economy. Industries in countries like Japan, China, India, and Korea are increasing, leading to the increased complexity of managing data, workload, and applications, which would act as a significant factor driving the adoption of enterprise resource planning (ERP) among enterprises in this region.
The enterprise resource planning (ERP) market in North America and Europe is evaluated to occupy the largest share in terms of revenue due to the presence of top vendors in that region.
Author Credits: Abhishek Verma
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