Rise in need of operational efficiency & transparency in business processes and surge in adoption of cloud & mobile applications are the major factors that fuel the growth of the Asia-Pacific ERP software market. In addition, an increase in demand for data-driven decision-making is one of the crucial drivers of the market.
However, higher investment and maintenance costs are expected to hinder the Asia-Pacific ERP software market growth. On the contrary, an increase in demand for ERP among small & medium enterprises and technological advancements in ERP is expected to provide lucrative opportunities for the market growth in the coming years.
Based on the deployment model, the on-premise segment dominated the overall Asia-Pacific ERP software market size in 2018 and is expected to continue this trend during the forecast period. This is attributed to the wide adoption of on-premise deployment mode in large enterprises, as it involves a significant investment to implement, and organizations need to purchase interconnected servers as well as software to manage the system. However, the cloud segment is expected to witness the highest CAGR during the Asia-Pacific ERP software market forecast period, due to a paradigm shift in the deployment methods from on-premise to cloud-based models among end-users.
The finance business function was the highest contributor to the Asia-Pacific ERP software market share in 2018 and is projected to remain dominant during the forecast period, due to high adoption of finance modules in most of the organizations to reduce complexity in financial function and to achieve overall competency in business. However, the human resource (HR) module is expected to witness the highest growth, owing to ongoing business expansion in Asia-Pacific, which compels businesses to adopt ERP HR modules for easy integration and management of all the required information of the present and additional workforce.
The manufacturing industry dominated the Asia-Pacific ERP software market analysis in 2018 and is expected to continue this trend during the forecast period. This is attributed to a rise in the number of entrants in a pharmaceutical, automotive, garment, and consumer electronics manufacturing markets.
However, the aerospace & defense industry is expected to witness the highest CAGR during the Asia-Pacific ERP software market analysis over the forecast period. This is attributed to the surge in adoption of ERP software, due to development in business process, need to reduce IT complexity, and improvement in business agility. Furthermore, the adoption of cloud-enabled deployment model in high-tech sectors such as aerospace & defense sector is growing at a significant rate, which is opportunistic for the Asia-Pacific ERP software market.
India dominated the Asia-Pacific ERP software market size in 2018 and is projected to remain dominant during the forecast period. This is attributed to increased adoption of ERP among traditional end-users such as manufacturing firms and retail companies, which have deployed ERP solutions. Moreover, developing industries, such as IT & telecom, education, and healthcare, have adopted ERP software for different business functions, such as HR, finance & accounting, and others, which has fueled the market growth in India.