ERP market set to be worth $56.8bn by 2025, report says
The ERP market will be worth around $56.8bn in sales by 2025, according to a new report.
Global ERP Software Market – Opportunity Analysis and Industry Forecast, 2016 – 2025 forecasts the industry will grow by an annual rate of nearly 6.9% over the next eight years.
Research found that on-premise ERP systems will continue to be the deployment option of choice for users. However, the report noted that cloud-based applications are continuing to “support new business models” and this has “paved the way” for hybrid solutions to meet new demands.
It is the finance functions which will continue to drive the popularity of ERP solutions, the report found. Mid-sized organisations will be the biggest adopters of new technology as they search for lower operational costs and competitive edge over rivals with the latest software.
SAP, alongside Microsoft and Oracle, was listed in the report as one the world’s most prominent vendors across the globe.
The aerospace and defence industry was the sector forecasted to drive the most demand with an annual growth rate of 8.5% expected between 2017 and 2025. Researchers highlight such expansion due to a need to maintain data transparency.
Across the globe, adoption rates will continue to be high across North American and Europe. In these regions, the report says, that demand is no longer down to powerful financial tools with customers preferring smarter data integration.
However, the most lucrative regions in terms of growth will be the across Asia, the Pacific and Japan. Until 2025, the APJ region will generate sales of around $13.2bn.
Finally, the report adds that with ERP providers launching new products that are accessible by smartphones or other mobile devices, the global ERP market will see users shift towards adopting a Software as a Service (SaaS) model.
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