Asia Pacific ERP Software Market

Rapidly expanding information technology services to accelerate market growth

Rapidly expanding information technology services to accelerate market growth Infrastructure for information technology (I.T.) has been expanding quickly in wealthy nations since the middle of the 1980s, and during the last 20 years, adoption of I.T. has accelerated in developing nations. China and India, two developing nations with a combined population of over 1.6 billion internet users, account for the greatest user bases. China declared in 2021 that over USD 1.2 trillion would be invested in IT infrastructure in the ensuing years. More than USD 9 billion will be spent by India in FY23.

The Digital Europe Programme, according to the European Commission, intends to boost its digital infrastructure by investing Euro 1.38 billion over the next few years. Furthermore, the demand for product data management, ERP systems for data mining, and product life cycle management would rise significantly as a result of nearly every region's heavy investment in developing its I.T. and related businesses. This would further solidify the expansion of ERP software market CAGR.

Moreover, even though the pandemic caused a large number of business closures, the number of new firms that opened after the initial COVID wave almost exactly balanced each other out. About 4.4 million company applications were received in 2020, and that number increased to 5.4 million in 2021, according to the U.S. Census Bureau. In Europe, more than 100,000 new businesses were registered in 2020 and 2021. In 2020, China had approximately 1.2 million new business registrations. In FY21, more than 350,000 business submissions came from Australia. In India, in Q1 2021, close to 36,000 new companies were incorporated.

Therefore, the need for ERP software, including supplier relationship management and customer relationship management, will increase in tandem with the startling increase in the number of newly registered enterprises. Thus, driving the ERP software market revenue.

The expanding small and medium-sized businesses and the burgeoning industrial sector are projected to fuel growth in the Asia-Pacific market. To increase efficiency and performance, numerous businesses in the area have already put in place on-premise ERP systems. Furthermore, it is projected that the growing number of start-ups and their escalating need for cloud-based solutions will fuel market expansion. Moreover, demand is anticipated to increase during the projection period due to government support for the implementation of IT infrastructure. However, due to its robust economic growth and the continuous advancements in inventory management and enterprise resource planning, 

China is anticipated to grow at the fastest rate during the forecast period. This encourages businesses to make significant investments in the Asia-Pacific ERP market in order to maintain growth and boost productivity. In addition, the market growth is significantly influenced by factors like the significant trend toward digital transformation, the use of cloud computing and other technical advancements by small and medium-sized organizations, and the ongoing modernization of work force management strategies in emerging economies.

In order to maintain their competitiveness in the market, major players in China are also concentrating on improving their operations and overall efficiency, which is anticipated to present profitable prospects for the market's growth over the forecast period.

Figure 2: ASIA PACIFIC ERP SOFTWARE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the ERP software market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, ERP software industry must offer cost-effective items.