The global enterprise application market size was valued at USD 144.18 billion in 2014 owing increasing demand to streamline business process. Solutions such as SCM, BPM helps companies in managing inventory and track production from procurement to delivery to the customers. These solutions enable real-time and accurate information flow among departments in an organization.
Enterprise application offer benefits such as better customer engagement, quality management, and efficient utilization of available resources and industry insight, which enables catering needs of both internal and external customers. Increasing preference for remote access in employees, and growing mobile penetration is expected to boost the enterprise application industry over the forecast period. Changing business model and growing penetration of cloud computing technology will open new growth opportunities for industry players over the next seven years.
Increasing large business scenario with growing startups and small & medium companies are expected to contribute to revenue generation. These companies have limited funding; as a result, they prefer solutions that do not require large technology and infrastructure investment and therefore opt for cloud-based services. Availability of open source solution is expected to hinder industry growth over the forecast period. Few available open source solutions include FriFinans, ProcessMaker, Magnolia, and CitrusDB.
Customer Relationship Management (CRM) and ERP are expected to be the primary product segments over the forecast period. CRM accounted for over 15% of the global revenue share in 2014. The solution enables automated back office operation and allows the real-time flow of information through various connected departments.
Content Management System (CMS) is estimated to grow at a CAGR of over 13% over the forecast period. The solution helps in converting unstructured data into structured information and allows easy management of website content. Industry players witness high intersegment rivalry owing to the presence of a large number of players offering only a particular product.
Business Intelligence (BI) solution offers benefits such as customer behavior insight, identifies cross-selling and up-selling opportunities, and improve efficiency. The solution was worth USD 15.91 billion in 2014 and is estimated to grow at a CAGR of more than 8% from 2015 to 2022.
North America enterprise application market by end-use, 2012 – 2022 (USD Billion)
These solutions are increasingly being used in BFSI, healthcare, manufacturing services, retail, government, aerospace and defense, telecom & IT, oil and gas, media and entertainment, chemicals, travel, and hospitality sector. Healthcare solution is estimated to grow at a CAGR of above 8.5% over the forecast period.
Healthcare solutions in collaboration with a changing business model provide a patient-centric-healthcare system. The solutions used in healthcare sector handles digitized data from multiple sources. This enables health care organizations to gain a data transparency. Software vendors such as SAP, Oracle, Infor, etc. provides solutions, which improve patient safety, cost efficiency, quality of care and overall performance.
On-promise enterprise application market accounted for over 68% of the revenue in 2014 and is expected to lose share to cloud owing to the latter’s increasing popularity and benefits.
Cloud-based solutions offer benefits such as scalability, ubiquitous access, economies of scale and reduced technology infrastructure cost. Small and medium organizations are expected to adopt cloud-based solution owing to low cost and pay per use model.
North America enterprise application market is estimated to show substantial growth over the forecast period due to customer centric approach of the companies and increased focus to reduce operational cost. Changing organizational structure is expected to offer new growth opportunities over the forecast period.
Europe enterprise application market accounted for over 30% of revenue share in 2014 and is anticipated to grow at a CAGR of more than 6% from 2015 to 2022. Asia Pacific enterprise application market is expected to show growth owing to rising demand for a cloud-based solution among small and medium companies.
Competitive Market Share Insights
Key players include IBM Corporation, Oracle, Microsoft Corporation, SAP, HEWLETT PACKARD (HP), QAD Inc., IFS AB, Epicor Software Corp., and Infor.
In November 2015, Oracle introduced a series of innovations in Oracle Marketing Cloud to help marketers deliver a consistent customer experience. In September 2014, the company announced the acquisition of Front Porch Digital, which offers content storage management solutions.
In December 2014, SAP AG announced a partnership agreement with aviation equipment provider RT-Inform to deploy ERP systems. In December 2014, the company announced the acquisition of Concur Technologies a spend management solutions provider.
IBM Corporation witnessed 60% increase in revenue in 2014, from cloud services owing to increasing demand for a high-end cloud-based solution. The company has invested over USD 8 billion to acquire 18 companies offering cloud solution to enhance its offering and technological capability.
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