Singapore ERP Software Market size is estimated to reach USD 2,642.4 Million by the end of 2033, growing at a CAGR of 12.4% during the forecast period, i.e., 2023-2033. In the year 2019, the industry size of Singapore ERP software was USD 547.2 Million. Additionally, the revenue for the market in 2022 was USD 739.2 Million. The growth of the market can be attributed to rise in ICT industries owing to the growing investment and advancement of IT and allied industries. In 2022, the Singapore government was anticipated to spend up to USD 2.7 billion, which would be equal to 2021's spending but an increase of roughly 10% from 2020. About 70% (USD 2 billion) of the government's projected 2022 ICT spending was estimated to go towards application development to build new applications and upgrade existing ones. The money was used to transform the government's digital infrastructure and services for its citizens, businesses, and public officers. Hence, with the growth in ICT industries the requirement for ERP solution is estimated to increase.
Further, there has been growing digitalization of organizations in this region which is also estimated to drive the growth of the market. Additionally, the growing government initiatives in order to boost the digital transformation is also driving the adoption of ERP software. For instance, using the agile methodology, GDS (Government Digital Services) created myResponder, an app that promises to offer quick assistance to heart attack patients, in six months. To guarantee a user-centric experience, it was built iteratively through a series of workshops with defence force officials and civilians. Also, medium scale businesses are expected to shift towards digitalization, hence the adoption of ERP software is anticipated to boost in these organization, in order to increase productivity and efficiency.
Growth Drivers
Growing Penetration of Mobile Phones
The number of smartphone users in Singapore was anticipated to reach about 4 million in 2020, with approximately 92 percent of the population expected to use the device by 2025. This growing penetration of mobile phones is further estimated to boost the demand for ERP software. A mobile ERP is a software program that users may access from anywhere using special mobile devices. It encourages user mobility, in-the-moment communication, and productivity. Hence, owing to this many organization is also planning to invest in mobile ERP software.
Rise in Number of Small & Medium Enterprises
According to government figures, Singapore was having approximately 300,000 SMEs by the end of 2020.
Surge in IT Workforce in Singapore
According to the Ministry of Manpower, Singapore has roughly 90,000 IT and software professionals, or about 3% of the overall employment.
Growth in Adoption of Digital Technology
In response to the COVID-19 outbreak, the Ramco Innovation Lab in Singapore unveiled the RamcoGEEK, an advanced facial recognition-based Time & Attendance System that is embedded with Temperature recording and Internet of Things sensor doors.
Growing Use of Internet
The number of internet users in Singapore in 2020 was about 4 million. In the ensuing several years, this number is anticipated to increase much further.
Challenges
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Base Year |
2019 |
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Forecast Year |
2023-2033 |
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CAGR |
12.4% |
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Base Year Market Size (2019) |
USD 547.2 Million |
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Forecast Year Market Size (2033) |
USD 2,642.4 Million |
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Regional Scope |
Singapore |
By Enterprise Size (Small Enterprise, Medium Enterprise, Large Enterprise)
The Singapore ERP software market is segmented and analyzed for demand and supply by enterprise size into small enterprise, medium enterprise, and large enterprise. Out of which, the medium enterprise segment is estimated to garner the highest revenue of USD 1,490.3 Million by the end of 2033, growing at a CAGR of 12.7% over the forecast period. Further, the segment generated revenue of USD 404.3 Million in the year 2022. The growth of this segment can be attributed to growing investment in cloud ERP software owing to the growing cases of cyberattacks and frauds. According to research, ransomware affects one in three SMEs in Singapore. According to the survey, about 19% of these impacted businesses even had to shut down as a result. Hence, protecting businesses for various cyber-attacks has become necessity. Also, cybersecurity precautions become even more important as more people preferred working from home on their phones and tablets.
Deployment Model (Cloud-Based, On-Premises, Hybrid)
The Singapore ERP software market is also segmented and analyzed for demand and supply by deployment model into cloud-based, on premise, and hybrid, amongst which the cloud-based segment is anticipated to generate the highest revenue of USD 1,265.7 Million by the end of 2033, up from a revenue of USD 349.6 Million in the year 2022. This growth can be attributed to the growing adoption of cloud ERP by various organization. According to estimates, businesses that lack the most current editions of their ERP software are about 2% less likely to experience increases in profitability. Hence, with a cloud-based ERP, the burden of updates and upgrades falls on the supplier. Minor updates are released without interfering with one’s daily activities, whereas significant changes are disclosed beforehand and frequently involve end-user training and a sandbox-training environment. This would ensure that the company could always take advantage of cutting-edge technologies. However, the hybrid segment is anticipated to grow at a highest CAGR of 13.0% over the forecast period.
Our in-depth analysis of the global market includes the following segments:
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By Component |
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By Deployment Model |
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By Enterprise Size |
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By Business Models |
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By End User |
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SAP SE provided the intelligent ERP solution through the private edition of SAP S/4HANA Cloud, which was introduced as part of the RISE with SAP offering. For fast-paced, continuous innovation and digital advancement, customers could benefit from a subscription price plan for SAP S/4HANA and cloud services, as well as a combination of fit-to-standard architecture and extension options. Additionally, they could develop the intelligence they want on their terms and at their own time.
Author Credits: Abhishek Verma
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