The ERP Market is Projected to Bring in Sales in the $25 Billion Dollar Range in 2012

The ERP market is projected to bring in sales in the $25 billion dollar range in 2012—a healthy market by almost any comparison. The ERP marketplace is stable and growing after a bit of a slow-down during the recent recession. Companies that postponed investment in enterprise systems during the difficult times are now beginning to invest again as business returns to a growth phase with the improving economy.

The ERP Market is Projected to Bring in Sales in the $25 Billion Dollar Range in 2012

The ERP market is projected to bring in sales in the $25 billion dollar range in 2012—a healthy market by almost any comparison. The ERP marketplace is stable and growing after a bit of a slow-down during the recent recession. Companies that postponed investment in enterprise systems during the difficult times are now beginning to invest again as business returns to a growth phase with the improving economy.

ERP market size, impressive as it is, isn’t really of much important to anyone except ERP software suppliers. Although there are quite a number of those suppliers, a small handful enjoy a majority of the ERP market share. 2011’s top two ERP suppliers were SAP and Oracle. Market leaders also include Microsoft and Infor. Between the four companies, they enjoy more than half of all ERP revenue over the last several years.

After the top four, there are a number of other established, successful ERP suppliers including Epcior, QAD, IFS, and others. Each of these companies has carved out a place in the ERP marketplace by offering alternatives to ‘big ERP’ that are affordable, quicker and easier to implement, and/or specially designed to address the unique needs of a specific market segment.

The ERP market has undergone a significant consolidation over the last ten years. Many of the independent ERP suppliers that evolved in the 1980s and 1990s merged or were acquired as companies sought out additional functionality, technology or market share.

Interestingly, the concept of a supply chain management market distinguishable from and ERP market has never really taken hold. Supply chain software evolved from advanced planning and scheduling (APS) and supply chain planning functionality has been absorbed by the ERP market, blurring the distinctions between the two segments. Generally speaking, supply chain software, in addition to planning and optimization, includes warehouse management, transportation management and supply chain event management systems.