Enterprise Resource Planning (ERP) software is in great demand because it provides companies with a comprehensive set of pre-integrated information management functions that tie together the information from across the enterprise. But it’s difficult to address the ERP software market because there are actually many different software markets under that umbrella.
Most people might think of ERP in terms of manufacturing because that is where the term originated. But many other industries can also take advantage of the comprehensive and integrated nature of ERP. There are ERP systems for retailers, distributors, service providers, financial institutions, and just about any other business category you can think of. You can also think of subsets of application functionality as being their own markets like, for example a CRM software market for companies that are focused on customer resource management of an accounting software market. Some observers might even consider individual vendor ecosystems to be sub-markets, or other specific sub-sets like hosted ERP software to be their own market segments.
Defining ERP software market size is equally difficult for the same reasons; it depends on whether you are talking about all business software or some defined sub-set. That said, billions of dollars are spent each year on ERP software, no matter how you define it. The majority of companies in the world have some form of ERP
Each segment of the market has its ERP market leaders, companies that have the largest installed base or the highest sales revenue. In the general ERP market, the top 10 ERP applications providers would include SAP and Oracle with the largest market share and revenue. Next on the list, you’ll find Microsoft and Infor. After that, it gets a bit confusing or controversial. Depending on what numbers you use and where you get your information, the rest of the top 10 will include Epicor, IFS, QAD, Syspro, Sage, Glovia, and others.
Some of these vendors offer multiple solutions, so a list of the top 10 ERP solutions might be a bit difference in sequence but would include most of the same vendors. There has been considerable consolidation in the ERP market over the last 10 years, and some companies offer solutions aimed at specific market segments. Aptean, for example, has Made2Manage ERP for a broad range of manufacturing environments, Intuitive ERP for make-to-stock companies, Encompix for engineer-to-order manufacturers, AXIS for metal wire and cable manufacturers, Cimnet for printed circuit board makers, DTR for plastics companies, and Relevant for the special needs of companies doing business for the U.S. Department of Defense.