Market Segmentation
Transfer of information within the organization is one of the major requirements for the proper functioning of any business. Usually, organizations use time-consuming and expensive processes for communication and decision-making. This highly affects the company's performance and efficiency, requiring systems to help them serve their clients and increase profit margins. ERP software is a tool that integrates various functions in the organization, thus facilitating proper communication and decision-making regarding the business. It acts as a strategic platform and information backbone for the company and helps capture and create accurate, consistent, and timely relevant data. With rapidly rising competition and changing technology, demand for ERP software is expected to increase over the forecast period.
ERP applications have helped many large-scale organizations to bring clarity and visibility to their business. With rapidly growing small and medium enterprises (SMEs) and the adoption of evolving technology, demand for ERP software in SMEs is expected to grow over the forecast period. SMEs have been facing various barriers in adopting this technology because of the software's expensive and less user-friendly nature. Many SMEs in Mexico, India, and Brazil still use old IT systems to operate their business. There is a growing need to adopt upcoming IT systems to sustain itself in the competitive market. ERP software helps the operation of core business processes, including sales & distribution, supply chain management, accounting, financial control, and HR, which is expected to propel demand from various SMEs. A SaaS (Software as a Service)-based software is the most preferred by SMEs as it facilitates organizations to purchase ERP solutions on a lease basis. In SaaS ERP software, the cloud is a host site where the ERP applications and data are stored, and the computing occurs on remote servers. As SMEs have limited resources to devote to the implementation and maintenance of ERP, SaaS-based ERP software is expected to gain a high market share in the forecast period. Analyzing the organization's requirements and choosing the right ERP software can lead to rapid development of the organization. Moreover, ERP software developers are increasingly trying to develop software that can cost-effectively meet the SME's requirements. Rising demand for ERP software for SMEs coupled with increasing development of ERP software is expected to augment the demand over the forecast period.
Most vendors offer ERP software for the manufacturing, healthcare, telecom, retail, aerospace, and defense industries. The initial investment to acquire and implement an ERP system is substantial. In addition, high fees for maintenance and support add to the overall cost of the ERP system, making it difficult to upgrade or customize the existing software. The total annual cost of maintaining and updating the ERP system includes internal costs (user training, salaries for IT, project management, etc.), external costs (IT vendors, contractors, etc.), and maintenance & support fees paid annually to the application vendor. In addition, the availability of low-cost substitutes, such as open-source applications, can challenge the market. The open application vendors charge less for the software and after-sales services to attract low-budget organizations. Although low-cost applications face a security threat, many organizations prefer them over licensed applications. The high price of ERP coupled with high maintenance & renewal costs leads to a lack of willingness among consumers, thus acting as a major restraint for the ERP software market.
This section will provide insights into the contents included in this Europe enterprise resource planning (ERP) software market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Industry overview
Industry trends
Market drivers and restraints
Market size
Growth prospects
Porter’s analysis
PESTEL analysis
Key market opportunities prioritized
Competitive landscape
Company overview
Financial performance
Product benchmarking
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance