ERP market to be worth more than $49.50 billion by 2020

The market for enterprise resource planning (ERP) is predicted to be worth more than $49.50 billion by 2020, according to a new report.

Market Research Engine, this week, published its latest industry report entitled “ERP (Enterprise Resource Planning) Software Market by Verticals (Manufacturing & Services, BFSI, Healthcare,

Aerospace & Defense and Telecom), by Deployment and by Function (Human Resource, Finance and Supply Chain) – Global Industry Analysis and Forecast 2015 - 2021”.

The research notes the wide gamut that ERP software covers for business management, from accounting and finances to project planning to human resources. It found that mobile, cloud, and social ERP solutions will have the biggest effect in the long term.

Market Research Engine determined that the major factors that were driving growth in the ERP market also included the need for greater operational efficiency and the growing demand from SMEs.

Learn more about why SMEs are implementing ERP and their key requirements with our 2016 ERP project report

Previously ERP software was mainly used by larger companies and enterprises. The use of ERP on a smaller scale has now created a higher demand for business management software that will contribute significantly to this market growth over the next three to four years.

On the flipside, the report points out that high rate and open source applications are factors that could also restrain the market for ERP in the future.

The report covered the global market but focused in on larger segments of that market such as the US, Canada, UK, Germany, China, Japan, India, Brazil, and GCC countries like Saudi Arabia and Kuwait. The study is broken down by different vertical (on-premises, cloud), function (finance, HR, etc.), and vertical analysis.