Article Dated: 5/16/2006
BOSTON—The global market for Enterprise Resource Planning (ERP) solutions continues to grow with numerous acquisitions and is expected to grow at a Compounded Annual Growth Rate (CAGR) of 4.8 percent over the next five years, says Steve Clouther, senior analyst at ARC Advisory Group in a recent report.
The market was $16.67 billion in 2005 and is forecasted to be more than $21 billion in 2010.
China is the emerging market for many ERP solutions, Clouther says. China is starting to dominate global manufacturing—already producing 50 percent of the world’s cameras, 30 percent of air conditioners and televisions, 25 percent of washing machines, and 20 percent of refrigerators.
China is adding state-of-the-art production capacity in cars, specialty steel, petrochemicals, and microchips.These plants are initially aimed at meeting Chinese domestic demand, however when growth stalls, the surplus will turn into an export surge.
Historically, ERP was exclusive to the manufacturing domain, but for the past decade, major portions of ERP solutions (such as financials and human resources, and, supply chain management applications) found their way into other sectors like government, banking/finance, health, retail, and education. In India, ERP is now being sold into the real estate and construction markets.