Enterprise Resource Planning (ERP) -   ERP market expects to deliver $41.69 billion by 2020

The enterprise resource planning (ERP) software is witnessing a robust growth, especially among the SME groups. Analysts believe that the global ERP software market is expected to deliver $41.69 billion by 2020, registering a CAGR of 7.2 per cent during the forecast period of 2014-2020. Gartner has also asserted in its 2016 report that the enterprise application spending in India (which includes spending on ERP) will grow to $2.39 billion in 2017, with an increase of about 17 per cent. Due to various factors like low operational and infrastructure cost, faster deployment, low IT manpower, data backup and agility, SMBs are adopting this software increasingly, thus making them the key drivers to deploy ERP. The adoption of cloud ERP is believed to grow at a CAGR of 27.6 per cent, while in SMEs it is expected to grow at a CAGR of 23.9 per cent by 2020.

Key Takeaways: Due to the rising demand from SMEs, the Indian market is expected to grow at a larger pace in the near future, which at present is not as strong as its counterparts. Analysts believe that competition and globalization are the main driving force behind the deployment of ERP among SMBs. As a result, the ERP vendors are aggressively focussing on SMBs. The deployment is expected to grow more dynamically due to the emerging trends of cloud and increased access via mobile devices. SMBs are also forecasted to drive the cloud ERP market, more than that of large enterprises.

Key Vendors: Microsoft, SAP, Tally, Oracle and others including Marg, Ramco, Infor, Ginesys, Deskera