EUROPE ENTERPRISE RESOURCE PLANNING (ERP) MARKET FORECAST 2024-2032

The Europe enterprise resource planning (ERP) market growth evaluation entails the assessment of the United Kingdom, Germany, France, Italy, Spain, Finland, Sweden, and Rest of Europe.

Owing to factors such as avoiding infrastructure investments, on-premise upgrades, reducing total costs of ownership, and rapid access to new ERP products, the United Kingdom has witnessed strong growth in ERP adoption, with a substantial shift towards cloud-based ERP solutions. Consequently, companies such as Sage Group, Priority Software, and Agilix in the United Kingdom have begun developing and providing cloud-based ERP, thus stimulating market growth in the country.

Additionally, many organizations in the United Kingdom are investing in digital transformation by evolving their core systems alongside their customer-facing systems, thereby eliminating boundaries. According to Accenture’s ERP Survey of CIOs across the United Kingdom, there is a clear consensus that core inflexibility should not impede holistic digital transformation. 

In Europe, organizations are empowered to be future-aligned and core-nimble to pursue business ambitions, thereby driving the adoption of ERP solutions. Aligning with this, the banking sector in the United Kingdom has significant potential for ERP applications due to its vast data-oriented nature. It offers extensive integration among various modules, integrating information, users, and processes for enhanced productivity. As a result, United Kingdom banks are increasingly employing cloud-based ERP solutions. 

On the other hand, in Germany, the adoption of Industry 4.0, IoT, and AI has risen significantly since the government introduced the concept of Industry 4.0 in 2011. Due to the early adoption of automation and the increasing need to manage production processes effectively, major organizations in Germany are widely utilizing ERP solutions, thereby increasing market demand. Accordingly, the Industry 4.0 initiative, a national strategy initiated by the Ministry for Economic Affairs and Energy (BMWI) and the Ministry of Education and Research (BMBF), focuses on driving digital manufacturing by boosting digitization and interconnecting products, value chains, and business models. It also supports research, industry partner networking, and standardization. 

Modern ERP software systems can collect more data as smart devices become integrated into organizations and businesses. The ability of an ERP system to fetch real-time data from these devices will be a key differentiator in the forecast period. Consequently, ERP software industry leaders such as SAP have invested in technology (e.g., SAP HANA) and innovation to incorporate new technologies, including AI, machine learning, cloud deployment, and predictive analytics, into their ERP software ecosystems. Consequently, these factors are set to bolster the ERP market growth in Europe during the forecast period.

The Europe enterprise resource planning (ERP) market segmentation includes deployment, enterprise size, business function, and end-user. The deployment segment is further categorized into on-premise, cloud, and hybrid. 

While a vast majority of companies still use on-premises ERP software, the demand for cloud-based deployments significantly outpaces on-premises solutions, accounting for a larger proportion of IT spending. Companies are increasingly opting for cloud-based ERP software to replace their systems, avoiding new capital investments in ERP hardware and software for their data centers. Instead, they pay for the cloud vendor’s ERP hardware and software through a monthly subscription.

Cloud collaboration allows these systems to test the structure and stability of applications and collect and consolidate data critical for the security and coordination of business processes. The customization of products to meet changing consumer demands further increases the complexity of production. With the increased interconnectedness of smart manufacturing businesses, the use of ERPs could extend across the entire supply chain, thereby improving manufacturing efficiency.

Some of the leading players in the Europe enterprise resource planning (ERP) market include Industrial and Financial Systems (IFS) AB, Microsoft Corporation, QAD Inc, etc.

QAD Inc (QAD), headquartered in the United States, is a provider of enterprise software solutions catering to manufacturing, financials, analytics, integration, demand and supply chain, and customer management needs. The company also offers services for implementing, optimizing, and customizing solutions, as well as integrating cloud services. 

QAD’s cloud platforms encompass cloud ERP, Channel Islands, enterprise platforms, advanced technologies, and best practice processes. Its applications are designed for manufacturing companies in the automotive, consumer products, life sciences, food & beverage, high technology, and industrial products. The company predominantly operates in Europe, Asia, Africa, and North America.