China ERP Software Market to Grow at a CAGR of 11.6% until 2028
Published | 29 July 2022
China ERP Market is booming due to the increasing focus on improving operational efficiency, reducing production costs, centralizing data collection for wide distribution and modernized solutions...
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the China ERP Software Market is forecast to grow at a CAGR of 11.6% during 2022-2028.
Increasing Demand for Cloud-based ERP Solutions
The adoption of cloud-based ERP solutions is expected to be widespread. Market growth is likely to be fueled by rising demand for cloud-based solutions. Enterprises can store their data on shared computing resources using cloud-based solutions. Unlike traditional software, cloud-based solutions enable firms to share information across departments. Organizations can use the cloud to upload and access data in real time from any device with an internet connection, allowing for better departmental cooperation. Oracle and SAP, for example, offer cloud-based ERP solutions that include data backup and storage recovery plans for major company operations including accounting, inventory and order management, human resources, and customer relationship management (CRM). Businesses can save money on computing infrastructure such as hardware and data servers by using the cloud, and it is simple to set up. It provides businesses with the scalability and flexibility they require to streamline operations and boost productivity. Cloud-based ERP systems will enable firms to align their business strategy as cloud technology progresses.
Unit4 announced the wide availability of ERPx for people-centric enterprises and the mid-market in April 2021, in order to strengthen its global footprints and provide manufacturing companies with cost-cutting ERP technologies. Epicor's integrated flagship manufacturing ERP tool in its product line was released in June 2021. With a new UX framework update and a new feature called updated Epicor Commerce Connect, the newly announced solution delivers a modernized and future-proof platform.
China ERP Software Market Demand for ERP Software is Rising
Based on components, the industry is segmented into software and services. The software segment accounted for the highest share of revenue. Based on the size of the company, the market is segmented into SMEs and large corporations. The majority of ERP software market share was held by large organizations.
The market is segmented on the basis of offering which includes software and services. The large segment is captured by software having the maximum share. Furthermore, the services segment is likely to grow at a moving CAGR because of increasing investment and implementation of ERP solutions.
By Deployment Analysis
Deployment Analysis is a method of determining the effectiveness of a deployment. Market growth will be fueled by increased demand for ERP software with improved data storage. The market is divided into three categories based on deployment: cloud, on-premises, and hybrid.
During the predicted period, cloud-based ERP held the greatest market share. Over the forecast period, the market for Cloud ERP is expected to grow due to low infrastructure costs and the ability to interact with mobile and tablet devices. Cloud solutions allow businesses to store data over the internet and provide methods for data restoration in the event of data loss or intrusion.
Furthermore, during the projected period, the hybrid ERP is expected to grow at the fastest rate. The increasing availability of Big Data through cloud computing, the rising desire for better end-user experiences, and important companies investing in hybrid ERP solutions are all driving the expansion of the hybrid deployment paradigm.
By Business Functional Analysis (BFA)
To propel the market forward, ERP solutions are being used to automate business processes and strengthen financial transactions. The market is divided into financial management, human capital management, supply chain management, customer management, inventory and work order management, and others based on company function. Financial management dominated the market and is projected to continue to do so over the forecast period. The software's financial management features are the emphasis of this segment. Financial management elements from SAP SE's portfolio, for example, provide for streamlined financial procedures, planning, budgeting, and forecasting, among other things. To ensure compliance with government data, operations, and accountability standards, financial services firms today rely fully on new, scalable technologies.
By Size of Organization
The market is split down on the basis of organization size that is into SMEs and large organizations. Where on the one hand, SMEs are likely to rise with a steady CAGR. Along with cost-effective benefits to remain ahead in a competitive world. Large organizations still capture the largest share in the market due to the factors, such as rising operational efficiency, productivity, and availability of resources.
Impact of COVID-19 on China ERP Software Market
The COVID-19 outbreak has had an impact on how businesses operate, from customer behavior to corporate functionality. Manufacturers were forced to quickly shift gears as a result of the COVID-19 epidemic, from coping with work-from-home limitations to dealing with significant demand fluctuations and unpredictable supply chains. While various businesses have failed as a result of the crisis, those who are willing to adapt to change and implement new business models are more likely to succeed eventually. Businesses and organizations utilize ERP solutions to scale their manufacturing operations and boost corporate functionality. As a result, the market is gaining momentum.
Key players in the China ERP market include Infor, The Sage Group plc, Unit 4, Epicor Software Corporation, Workday, Inc., SYSPRO, Acumatica, Ramco Systems, and QAD Inc. They are focusing on different business strategies to expand their reach in the market.
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