ERP Market Share and Trends in 2020 and Beyond

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The ERP software market has been around for over 40 years and is still thriving today. By constantly leveraging technological developments and providing opportunities for business innovation, the ERP market has grown alongside the industries that it serves for decades — and is projected to continue this pattern. This article analyzes the ERP market in 2020 and beyond, including a list of the software vendors that are dominating the ERP market share today.

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ERP Market Share

ERP Market: An Overview

In 2018, the global ERP market was valued at $35.81 billion. This is the latest data available in terms of a concrete number that represents the ERP market size, but 2020 is expected to exceed $49 billion. However, the COVID-19 pandemic poses a new variable that could potentially lead to a different outcome than experts originally predicted.

Or perhaps the pandemic could lead to more ERP sales — in an attempt to develop more agile supply chains — something that has become integral to the coronavirus response.

Barring an economic downturn, the ERP software market is predicted to reach $78.41 billion by 2026, growing at a CAGR of 10.2%, according to Allied Market Research. Read on to find out the “who, what, where and why” behind this predicted growth for the ERP market.

How Did We Get Here?

At this point, you’re probably wondering: what are the driving forces behind this 40-something-year-old software market? And how do certain software vendors come to succeed in dominating the ERP software market share?

To answer the first question, the ERP market is propelled forward by its ability to continually revolutionize business processes at companies in a wide range of industries. Year after year, ERP vendors come up with new ways to improve companies’ bottom line.

As for our second question, in the most basic sense, the vendors that produce the best business results for their customers become the most popular. They often accomplish this by leveraging the newest technology available, to provide innovative solutions, as we mentioned earlier.

Another driver of success relates to incorporating current ERP buyer trends in their solutions. Whether software engineers are creating an ERP from scratch or simply generating updates for their current systems, it’s vital to provide customers with the system features they need to gain competitive advantage in the modern business world.

Buyer Trends and Insights

Following our last point, we’re going to outline some of the current ERP buyer trends. According to a Market Watch press release, the ERP market is experiencing:

  • Rise in need for operational efficiency and transparency in business processes
  • Increase in adoption of cloud and mobile applications
  • Surge in demand for data-driven decision-making
  • Increase in demand for ERP software among small and medium-sized businesses
  • Rapid technological advancements

While at the same time, higher maintenance and investment costs are impeding ERP market growth. The press release also noted that the ERP market is divided — by software and service – and the service sector is predicted to demonstrate the fastest CAGR of 12.1% by 2026.

You can read more about 2020 ERP trends here.

Who is Buying an ERP?

According to Market Research Future, several verticals are buying into ERP, such as aerospace and defense, financial services, retail, manufacturing and more. They predict that the financial services industry will be the most frequent buyer of ERP and businesses of all sizes will buy ERP.

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Top ERP by Market Share

The SelectHub research team did some investigating to identify ERP solutions with the most market share (in terms of total revenue). Here’s our list:

Oracle ERP Cloud

Founded in 1977, it comes at no surprise that Oracle ERP Cloud is one of the most prominent players in the ERP market today. This full-featured system is powered by cutting edge technology such as artificial intelligence and machine learning, which help to automate routine tasks and provide guided actions for users.

Based on the install base, the market share of Oracle ERP Cloud is ~6.09%. As per the data provided by Enlyft, the system is most often used by companies with 1000-5000 employees and $10-50 million in revenue. According to Gartner’s Market Share Analysis: ERP Software, Worldwide 2018 report, the market share by revenue is estimated to be $3,901 million.

Our research team found that the Oracle Adaptive Intelligence apps as well as Oracle Blockchain were the most stand-out features within the system. The Adaptive Intelligence apps support finance and procurement teams by automating routine tasks, such as payables and receivables, and offering fresh insights that can help optimize their cash flow. Oracle Blockchain provides a range of APIs, developer frameworks and plug-and-play components for developing and hosting applications.

Oracle ERP Cloud

Oracle ERP Cloud Dashboard

Users have reviewed the system as not user-friendly due to the complexity of its features. Reviewers also commented that the implementation cycle is very long. However, the analytics and reporting feature has been rated as very useful, with visualizations that can be used company-wide. The system has been especially celebrated for its financial capabilities.

Price: $$$$$
Deployment:
Platform:

Company Size Suitability: S M L

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SAP Business One

The next product on our list is by another legacy ERP company, SAP, which has been dominating the market since 1972. The market share of SAP Business One is ~2.37% and the system is most often used by companies with 10-50 employees and $1-10 million in revenue. Market share by revenue for SAP ERP is estimated to be $7,709 million, according to the Gartner analysis mentioned in the previous section.

Similar to Oracle ERP Cloud, SAP Business One is a complex and full-featured system. The software has been applauded for its extensive customization options as well as the ability to generate sophisticated business analytics. With that being said, the system is very capable but can be difficult for less tech-savvy individuals to use.

SAP Business One

SAP Business One Sales Dashboard

The system is designed for small- and medium-sized businesses and caters to multiple industries, including accounting, manufacturing, retail and distribution. SAP Business One runs on both the SAP HANA and Microsoft SQL server platforms.

Price: $$$$$
Deployment:
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Company Size Suitability: S M L

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Sage 100 Cloud

Third on our list is Sage 100 Cloud, which claims ~3.47% of the ERP software market and is most often used by companies with 10-50 employees and $1-10 million in revenue. The market share by revenue is estimated to be $2,048 million, according to Gartner’s market analysis.

This system comes with features such as automatic data capture, Microsoft Outlook integration and an inventory advisor which can provide inventory health checks, quality forecasts and more. These smart capabilities come on top of all of the standard ERP functions. This system isn’t as advanced or complex as the last two, making it a good option for those who are seeking a more straightforward and simple system.

Sage 100 Cloud

Sage 100 Cloud Business Intelligence Dashboard

Our research team did identify some system limitations: it doesn’t support any language outside of English, and there is no mobile application available from Sage 100 Cloud. There are partner applications available, but they’re not free of cost and they don’t support all of the system features.

Price: $$$$$
Deployment:
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Company Size Suitability: S M L

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SAP S/4HANA

SAP claims a second spot on our list with another one of their ERP products: SAP S/4 HANA, with a market share of 1.41%, is most often used by large companies with over 1,000 employees and over $1000 million in revenue. Per Gartner’s Market Share Analysis: ERP Software, Worldwide 2018 Report, market share by revenue is estimated to be $7,709 million.

Similar to SAP Business One, SAP S/4 HANA is an ERP that leverages AI and machine learning, but the two systems certainly have their differences. SAP S/4 HANA is designed specifically for large enterprises and includes the SAP Fiori user experience (UX). The SAP Fiori UX provides users with easy-to-use applications that are accessible from any device, as well as the ability for developers to build their own apps using the Fiori framework. Users have reviewed the system to have a nice balance between complexity and user-friendliness — this is likely thanks to the Fiori UX.

SAP S/4HANA

SAP S/4 HANA Procurement Module

Aside from Fiori UX, the system has plenty of other modern capabilities, such as the situation handling feature. This feature notifies the user when particular circumstances arise, such as change in demand for a product or an approaching due date, and proposes a guided solution for the user. However, our researchers found that SAP S/4 HANA has long implementation cycles in comparison to other ERPs.

Price: $$$$$
Deployment:
Platform:

Company Size Suitability: S M L

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Infor ERP

The last item on our list is another ERP giant — but this time we’re going to include a total of five products instead of just one. Infor ERP represents ~0.43% of the ERP market, and is most often used by companies with 50-200 employees and $10 million to $50 million in revenue. According to Gartner’s Market Share Analysis: ERP Software, Worldwide 2018 report, market share by revenue for Infor ERP is estimated at $1,720 million.

The five industry-specific solutions include Infor CloudSuite Financials, Infor LN, Infor M3, InforCloudsuite Industrial and Infor Distribution S.X.e. These versatile ERP solutions can be deployed in the cloud or as a self-hosted solution, and can work for small, medium and large businesses. They cater to the financial, supply chain, distribution and manufacturing verticals. Infor ERP cloud solutions are all hosted through Amazon Web Services (AWS).

Infor ERP

Infor ERP Production Module

Our research team found that Infor ERP has an impressive business intelligence (BI) and analytics platform, Infor Birst, which provides insights related to financial and operational processes, as well as performance management. Another perk is the mobile accessibility; Infor ERP offers multiple native applications for Android and iOS devices. However, our researchers did note that Infor customer references rank contract flexibility associated with financial reporting as low.

Price: $$$$$
Deployment:
Platform:

Company Size Suitability: S M L

Compare ERP Pricing & Costs with our Pricing Guide

Wrap-Up

In summary, we have four ERP companies that are dominating the market in 2020: Oracle, SAP, Sage and Infor. Infor had the least amount of market shares and, established in 2002, they’re the youngest company on this list. Meanwhile, SAP claimed two spots on our list this year, with both of their products being supported by AI and machine learning – a major ERP trend.

Do you have any predictions for 2021? Do you think there’s any “rising star” ERP software companies that will break into the top of the market in the coming years? If so, let us know by leaving a comment below.

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Madeline ReinboltERP Market Share and Trends in 2020 and Beyond

4 comments

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  • Nityananda Rao - February 27, 2020 reply

    Excellent Article and good insights into ERP market. What is interesting is, the ERP market segment and its underlying eco-system is changing. The old style of sales will not work anymore.

    Madeline Reinbolt

    Madeline Reinbolt - March 4, 2020 reply

    Thanks for reading, Nityananda!

  • T. SATISH KUMAR - August 2, 2020 reply

    Information covered really Glance of Technicalities, Market oreintation, Functional angle. really good the insights useful for my class on ERP. THANK YOU.

    Madeline Reinbolt

    Madeline Reinbolt - August 3, 2020 reply

    Thank you for reading! We’re so glad the article was helpful to you.

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