The global cloud-based enterprise resource planning (ERP) market is expected to more than double by 2023, giving partners ample opportunity to cash in.
That’s according to a new report by Allied Market Research. Sales are expected to jump from $13.2 billion in 2016 to nearly $32.2 billion — a compound annual growth rate (CAGR) of 13.6 percent.
Key players in the market include Oracle, IBM, Microsoft, SAP SE, Sage Group, Aptean, Epicor Software, Infor, Syspro, Unit4 and others. All have adopted competitive strategies, such as geographical expansions, M&A, new product launches, and partnerships and collaborations, to help the market grow.
By component, ERP is broken down by software and services — and services includes managed and professional services. The software segment accounted for $8.2 billion in 2016 and is expected to grow at a CAGR of 12.8 percent through 2023, according to the report. A 14.8 percent CAGR is expected for managed services, while professional services is expected to boast a 16.8 percent CAGR.
Among industries, finance is expected to have the highest CAGR of 17.7 percent, followed by retail.
Among regions, North America generated the highest share of revenue in 2016, due to technological advancements and a rise in applications in manufacturing, government and retail. Asia Pacific is expected to grow at the highest rate through 2023, fueled by the need for transparent and modernized manufacturing processes in diverse industries.