In today's digital age, businesses of all sizes are relying on Enterprise Resource Planning (ERP) systems to streamline their operations and boost their bottom line. ERP systems are software solutions that integrate various business functions such as finance, human resources, supply chain management, and customer relationship management into one centralized system. This integration enables businesses to optimize their processes, reduce costs, and increase efficiency by providing a real-time overview of their operations. The ERP systems market has been growing rapidly in recent years, and it is expected to continue doing so in the coming years. According to a report by Markets and Markets, the global ERP software market is expected to reach $47 billion by 2022, up from $35 billion in 2016. This growth can be attributed to various factors such as the increasing use of cloud-based ERP systems, the need for real-time data analytics, and the rising demand for mobile ERP solutions.
Market Share of ERP System Providers
The ERP systems market is highly competitive, with many vendors offering a wide range of ERP solutions. However, some vendors have gained more market share than others. According to a report by Gartner, the top five ERP vendors in terms of market share are:
1. SAP - SAP is the market leader in ERP systems, with a 22.5% share of the market.
The company offers a wide range of ERP solutions for various industries and business sizes, including SAP S/4HANA, SAP Business One, and SAP ERP.
2. Oracle - Oracle holds a 13.9% share of the ERP systems market.
The company offers a range of ERP solutions, including Oracle ERP Cloud, Oracle E-Business Suite, and Oracle JD Edwards EnterpriseOne.
3. Microsoft - Microsoft holds a 8.8% share of the ERP systems market.
The company offers various ERP solutions, such as Dynamics 365, Dynamics GP, and Dynamics NAV.
4. Infor - Infor holds a 6.1% share of the ERP systems market.
5. IFS - IFS holds a 1.9% share of the ERP systems market.
The company offers a range of ERP solutions for various industries, such as IFS Applications, IFS Field Service Management, and IFS Enterprise Asset Management.
Buyer Trends in ERP Systems
ERP systems are no longer just a tool for large corporations; they are becoming more accessible to small and medium-sized businesses (SMBs). According to a report by SelectHub, the top ERP buying trends for SMBs are:
1. Cloud-Based ERP -
Cloud-based ERP systems are becoming increasingly popular among SMBs due to their flexibility, scalability, and lower upfront costs. Cloud-based ERP solutions also provide real-time updates and analytics, making it easier for businesses to make informed decisions.
2. Mobile ERP -
The ability to access ERP systems on mobile devices has become a necessity for many businesses. Mobile ERP solutions enable employees to access real-time data and make informed decisions on the go, increasing efficiency and productivity.
3. AI-Powered ERP -
Artificial Intelligence (AI) is becoming an integral part of ERP systems, providing businesses with smarter and more efficient ways of managing their operations. AI-powered ERP solutions can automate repetitive tasks, provide predictive analytics, and enhance decision-making processes.
4. Industry-Specific ERP -
Many SMBs are opting for industry-specific ERP solutions that are tailored to their unique needs. These solutions provide businesses with a more focused approach to managing their operations, increasing efficiency and reducing costs.
Conclusion
The market for ERP systems is growing rapidly, and vendors are offering various solutions to meet the demands of businesses of all sizes and industries. As SMBs become more reliant on ERP systems, buying trends are shifting towards cloud-based, mobile, and AI-powered solutions that are tailored to their unique needs. As we move towards 2023, we can expect the ERP systems market to continue growing and evolving to meet the changing needs of businesses.