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ERP Solutions Market Expecting Substantial Growth Through 2030

2 Min Read

By Stephanie Merchant - Client Services Manager

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Need for Customizable, Niche ERP Systems Driving Demand 

Enterprise Resource Planning (ERP) software is a suite of applications that businesses use to manage their core processes, from finance and accounting to supply chain and human resources. The ERP software market was worth $54.76 billion in 2022 and is predicted to grow at a CAGR of 11% through 2030.1    

Interest in ERP solutions is growing because of the complexity and cost of knitting modern software systems together with legacy platforms and data. The complexity often requires companies to hire consulting firms or integrators to implement the software and meet specific needs. This leaves white space for more specialized, flexible ERP solutions.2 In addition, a surge in the adoption of cloud and mobile applications is positively impacting the growth of the ERP market as useful upgrades are developed and implemented. 

Technology Investment Insights 

Sectors Driving Market Growth 

  • Finance, Human Resources, and Supply Chain Departments: These specific departments within companies are driving the growth of the ERP market, holding the largest market shares. Though finance carries the largest segment of implemented ERPs, innovations and automation in the supply chain have created a demand for upgrades in that sector. Organizations have seen ERP implementation reduce inventory costs by 25% to 30% and raw material costs by around 15%.3  
  • Manufacturing Industry: Manufacturing companies are the top users of ERP software and also represented the largest portion of companies looking to purchase ERP software, at 47%. 4 Manufacturers rely on ERP systems to prevent bottlenecks and shortages that can hinder production efficiency.5 
  • Healthcare Industry: Solid, reliable data is paramount in healthcare, a highly-regulated industry that maintains detailed, confidential records across the enterprise. The global healthcare ERP market size is projected to grow at a CAGR of 6.71% between 2023 and 2033. 

Industry Landscape and Challenges

  • Key Players: The current ERP market is dominated by large vendors, benefiting from economies of scale. They offer wide-ranging solutions but not always specialized options. Tier 1 solution providers include SAP, Oracle, Microsoft, Infor, and Sage. Key players are growing through partnerships, strategic agreements and collaborations, M&A, and new product development. ​​​​One example of this growth through partnerships is ERP client IBM, who extended its partnership with SAP SE in May 2022 to serve more than 120 countries, 1000 legal entities, and numerous IBM business units.6 
  • Risks and Restraints: ERP software providers are challenged to keep up with the demand for platforms customized by industry and innovations that enable AI and cloud-based systems.7  

ERP customers are demanding seamless integration between different digital platforms as well as new programs and legacy software. ERP providers have struggled to offer solutions to those complex problems, which has opened the door to smaller companies offering solutions tailored to specific industries.8 In July 2024, manufacturing ERP provider Aptean secured a strategic investment by Clearlake Capital Group to accelerate innovation and global expansion.9 

Finding Investment Success 

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Resources:
1 Grandview: Enterprise Resource Planning (ERP) Software Market Analysis
2 Ibid.
3 Ibid.
4 Netsuite.com: 60 Critical ERP Statistics: Market Trends, Data and Analysis
5 Priority: What is Manufacturing ERP?
6 Grandview: Enterprise Resource Planning (ERP) Software Market Analysis
7 Forbes: ERP And SCM — What To Expect In 2024, Part 1
8 Ibid.
9 https://www.pehub.com/clearlake-capital-group-invests-in-aptean/