Market Trends of Enterprise Resource Planning Industry
The Small and Medium-sized Enterprises Segment is Expected to Witness Highest Growth in the Market
- SMEs are enterprises that have an employee size of fewer than 250 employees. ERP implementations have made it easier and less expensive for small and medium-sized businesses to use business process automation and integration. Scalable and flexible ERP software gives small and medium enterprises access to highly integrated applications. The ERP system for SMEs directly impacts cost savings and operational improvements, helping them achieve desired business outcomes.
- Small businesses rapidly shift to ERP automation, including digital scheduling and analysis. The emergence of ERP software and services over the last decade has made business operations easier. SMEs have been embracing ERP software to streamline and automate processes, eliminating the need for manual input.
- Benefits like ease of workflow, less turnaround time, and high production capability provide transparency, allowing managers to gain better insights and make effective decisions. It provides SMEs with real-time financial data that offers a competitive advantage and helps ensure cost savings.
- In May 2024, Forterro, a European ERP software provider for the industrial mid-market, announced the UK launch of Fortee, its entry-level cloud-based ERP solution. Designed as an out-of-the-box SaaS solution, Fortee targets organizations new to ERP adoption. Drawing from the foundation of Forterro's cloud ERP, Sylob, Fortee is tailored to focus on key functionalities for its intended audience, including procurement, production, CRM, and supply chain management.
- Small and medium enterprises across the world acknowledge the benefits of digital transformation, which drives the transition to cloud-based ERP solutions to meet their budget and business needs. The increasing demand to streamline complex processes and respond to customer demands more quickly would likely boost market adoption in the segment studied.
Understand The Key Trends Shaping This Market
Download PDF
North America is Expected to Hold the Largest Share in the Market
- The most popular ERP solutions in the United States include Oracle NetSuite, Oracle ERP Cloud, and Microsoft Dynamics 365. The increasing adoption of ERP software in the United States is attributed to large enterprises such as Oracle and Microsoft and the need for businesses to gain a competitive edge in the market by integrating business functions.
- Moreover, these companies provide ERP software solutions built for mid and large-sized companies to assist them in complex functions such as finance and operations. Many providers offer mature ERP solutions owing to their decades of expertise and industry knowledge, promoting demands for such solutions in the United States.
- ERP solutions such as Oracle Netsuite, Oracle ERP Cloud, Microsoft D365, and Acumatica target small and mid-market companies looking to upgrade their basic accounting system and evolve through digital transformation. Others have defined a prominent niche in the marketplace, focusing on manufacturing distribution organizations and offering cost-effective solutions with a very high return on investment (ROI).
- Moreover, in July 2023, San Francisco-based Evergreen Services Group, a private equity-backed family of managed IT solutions companies, acquired Western Computer, a Microsoft Gold Cloud partner and reseller of Microsoft’s ERP systems. The acquisition was part of Evergreen Services Group’s strategy to acquire B2B services companies across the United States.
- ERP software benefits Canadian organizations by reducing duplicated data entry by integrating business processes. Increasing customer demand to reduce time and increase the accuracy of business functionalities is driving the need for ERP solutions in Canada. Toronto and Montreal are rising as central hubs for business and tech advancements in Canada. These areas are witnessing many established and emerging players in the regional ERP market.
Get Analysis on Important Geographic Markets
Download PDF
