Report Overview

China ERP Software Market - Industry Trends & Forecast Report 2028

China ERP Software Market is projected to witness a CAGR of 11.6% over the forecast period 2022 - 2028. The overall expansion of the China ERP Software Market is aided by factors such as the growing requirement to build competitive strategies and make real-time decisions, as well as rising efficiency demand. Furthermore, the growing demand for ERP solutions, as well as its integration with big data and IoT, is likely to open up new growth avenues for the market under consideration.

China Enterprise Resource Planning (ERP) Software Market - Industry Trends and Forecast Report

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 infrastructures 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.

Growth Drivers

Increased Focus on Operational Efficiency and Easy to Implement Cloud-based ERP Solutions

Advancements in sophisticated technology have made ERP systems less complex, allowing third-party apps to better support business procedures. Businesses are focusing on improving their business processes to enhance operational efficiency while keeping track of operating costs. Finance and accounting, sales and marketing, procurement, and supply chain management are just some of the business functions that companies are searching for a centralized solution to handle. Business processes have been simplified and made more efficient thanks to the integration of ERP software. Complex procedures, such as a multi-step manufacturing plan, can also be made simple and painless using cloud-based software. Strategic measures are being taken by key market players to increase their portfolios.

Operational Effectiveness and Transparency are Required in Business Processes

Businesses typically put a lot of time and attention into communicating company information and making choices with the use of in-house ERP applications. Successful organizations are always on the lookout for new solutions that will improve their ability to serve customers and boost profits. Currently, ERP systems are strategic platforms that give firms a strong foundation and informational backbone. A fully integrated ERP system aids in the creation of timely, accurate, and relevant data and helps users make better business decisions. Customer satisfaction and providing personalized services have little bearing on an organization's capacity to remain profitable unless its operational efficiency is extraordinary. Companies are currently considering ERP solutions to increase productivity and guarantee greater information integration.

Growing Governments and Key Players Initiatives

The "Made in China 2025" strategy, which the Chinese government unveiled in 2015, aims to build a robust manufacturing industry. Since that time, the manufacturing industry has been implementing digitalized solutions to redesign the workflow and procedures to boost output and efficiency. Moreover, the need for ERP is a result of China's goal of developing a manufacturing industry that leads the globe. The industry is currently large but not developed. Additionally, due to the rising demand for cloud-deployed ERP systems in the manufacturing sector as a result of the development of the digital economy, the leading suppliers are hastening their cloud transformation. Furthermore,  important market players and significant industrial companies also demand that ERP satisfy the following criteria: it must fulfill individualized needs, provide data security, and coordinate internal organizations. Large manufacturing organizations, in particular, have longer industrial chains and abundant resources, and they typically do not focus on growing one region. As a result, they place a premium on ERP systems and solutions that meet their specific requirements.

Restraints

High Cost Associated with Implementation of ERP Software

ERP software is a costly solution, and its implementation for SMEs and startups can be costly as well. Businesses find it difficult to run efficiently and smoothly, thus proper planning, trained personnel, and experienced teams are required. Employees may misunderstand technology due to a lack of training, resulting in the loss of critical information.

In addition, the implementation of solutions necessitates the purchase of computer hardware, updated network equipment, and security software, all of which add to the cost. These considerations could be major restraints on the China ERP industry. ERP Adoption is limited by integration issues with on-premises deployment models. Cloud ERP solutions and services are rapidly being integrated by businesses. However, due to system complexity and implementation costs, businesses continue to have significant difficulties integrating new solutions with their existing systems. For cloud ERP to be effective, existing legacy systems must be intimately coupled with new ones. Few firms continue to rely on their current systems, which are built on old technology and feature manual operations, resulting in a high rate of errors. Furthermore, as most legacy systems are on-premises, connecting them to new cloud-based systems could be a roadblock to the adoption of digital process automation solutions and services.

Impact of COVID-19 on the China Enterprise Resource Planning (ERP) Software Market

Businesses in China are successfully embracing the cloud to construct robust and disaster-resistant systems that can handle a remote workforce while maintaining data and business application integrity. The IT consulting and professional services sector has been hurt by travel restrictions and project delays. These developments are expected to increase demand for public cloud services, particularly SaaS-based industry-specific apps such as collaboration and other productivity and business continuity solutions. Businesses and organizations across the country are using ERP technologies to scale their manufacturing processes and increase company functionality during the pandemic, which can have a significant impact on the China ERP Software Market.

Segmental Information

China Enterprise Resource Planning (ERP) Market - By  Offering

Based on offering, the market is segmented into solutions and services. The solution segment accounted for a higher market share.  The automation and technological deployments in the supply chain management process have expanded, and the demand for ERP solutions has increased, leading to market growth. All these factors boost the growth of China ERP Software Market.

China Enterprise Resource Planning (ERP) Software Market - By  Deployment

Based on deployment, the market is segmented into Cloud, On-Premises, and Hybrid. Among these, the on-premises category accounts to hold the largest market share. One of the primary advantages of this deployment approach is that it provides continuous control and strong data security in any company. Moreover, the cloud segment is expected to dominate the market share during the forecast period (2022-2028). This is owing to its increasing popularity. The cloud-based implementation of ERP software enables businesses to gain immediacy, efficiency, resource planning activity optimization, scalability, and accessibility. It also has advantages like faster implementation and reduced initial investments.

China Enterprise Resource Planning (ERP) Software Market - By Organization Size

ERP Solutions are being implemented by large corporations for resource planning and business expansion. The market is divided into SMEs and large enterprises based on the organization size. Large businesses accounted for the majority of the market share. Over the forecast period, greater operational efficiency, lower manufacturing costs, and central data collecting for wide distribution could boost the demand for the product among large organizations. Stringent government regulations have spurred product adoption in a variety of industries, allowing for increased efficiency and the reduction of operational difficulties.

China Enterprise Resource Planning (ERP) Software Market - By Function

For market growth, 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 a company function. The financial management segment dominated the market and is projected to continue to do so over the forecast period. The ERP financial management platform enables firms to collect financial data and generate reports based on vendor and customer requirements.

China Enterprise Resource Planning (ERP) Software Market - By End-User Analysis

It is a system of determining the effectiveness of a product. ERP software is increasing in popularity to improve operational efficiency and increase market share. Manufacturing, BFSI, IT and telecommunications, retail and consumer products, healthcare, transportation and logistics, and government are some of the end-user segments. In the China market, the industrial/manufacturing segment has the highest market share.

Competitive Landscapes

Key players concentrate on product offerings to launch a variety of ERP solutions. Kingdee International Software, NuclearSoft, Yony, SAP SE, Oracle Corporation, Hejia Software Technology Limited, Microsoft Corporation, Sage Group plc, Epicor Software Corporation, and IFS AB are major players in China ERP Software Market.

Recent Developments

To expand its global footprint and provide manufacturing enterprises with a cost-cutting ERP solution, Unit4, a global pioneer in corporate cloud applications, launched the general release of ERPx, its flagship ERP package for people-centric organizations and the mid-market.

Acumatica, Inc. announced the addition of region-specific localization to its Acumatica cloud ERP in October 2020 to provide its customers with access and download free localization and language packs to conduct business in the country. It is also possible to acquire language packs that are not available in the customer's home country.

Scope of the Report

By Offering

• Solutions
• Services

By Deployment

• Cloud
• On-Premises
• Hybrid

By Organization Size

• SMEs
• Large Enterprises

By End User

• Industrial/Manufacturing
• BFSI
• Retail
• Consumer Goods
• Transportation
• Government
• IT/ITeS
• Healthcare
• Hospitality
• Others

By Function

• Financial Management
• Human Capital Management
• Supply Chain Management
• Customer Management
• Inventory Order Management
• Work Order Management
• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. China Enterprise Resource Planning (ERP) Software Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. PESTEL Analysis
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. China ERP Software Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Offering
         1. Solutions
         2. Services
      2. By Deployment
         1. Cloud
         2. On-Premise
         3. Hybrid
      3. By Organization Size
         1. SMEs
         2. Large Enterprises
      4. By End-User
         1. Industrial/Manufacturing
         2. BFSI
         3. Retail
         4. Consumer Goods
         5. Transportation
         6. Government
         7. IT/ITeS
         8. Healthcare
         9. Hospitality
         10. Others
      5. By Function
         1. Financial Management
         2. Human Capital Management
         3. Supply Chain Management
         4. Customer Management
         5. Inventory Order Management
         6. Work Order Management
         7. Others
6. Competitive Landscape
   1. List of Key Players and their Offerings
   2. Players’ Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Business Expansion, Agreement, Partnership and Product Launch)
7. Impact of COVID-19 on China ERP Software Industry
8. China ERP Software Industry Opportunity and Assessment
9. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. Kingdee International Software
   2. NuclearSoft
   3. Yonyou
   4. SAP SE
   5. Oracle Corporation
   6. Hejia Software Technology Limited
   7. Microsoft Corporation
   8. Sage Group plc
   9. Epicor Software Corporation
   10. IFS AB
   11. Other Prominent Players
10. Key Strategic Recommendations

Note:

• Financial Information of non-listed companies will be provided as per the availability
• The segmentation and the companies are subjected to modification based on in-depth secondary for the final deliverable.

List of Figures

Figure 1    China ERP Software Segmentation

Figure 2    China ERP Software Market Value Chain Analysis

Figure 3    Company Market Share Analysis, 2021

Figure 4    China ERP Software Market Size, By Value (USD Million), 2018-2028

Figure 5    China ERP Software Market Share, By Offering, By Value, 2018-2028

Figure 6    China ERP Software Market Share, By Deployment, By Value, 2018-2028

Figure 7    China ERP Software Market Share, By Organization Size, By Value, 2018-2028

Figure 8    China ERP Software Market Share, By End-User, By Value, 2018-2028

Figure 9   China ERP Software Market Share, By Function, By Value, 2018-2028

List of Tables

Table 1     China ERP Software Market Size, By Offering, By Value, 2018-2028

Table 3     China ERP Software Market Size, By Deployment, By Value, 2018-2028

Table 4     China ERP Software Market Size, By Organization Size, By Value, 2018-2028

Table 5     China ERP Software Market Size, By End-User, By Value, 2018-2028

Table 6     China ERP Software Market Size, By Function, By Value, 2018-2028

Table 7     Kingdee International Software Company Overview

Table 8     Kingdee International Software Financial Overview

Table 9     NuclearSoft Company Overview

Table 10   NuclearSoft Financial Overview

Table 11  Yonyou Company Overview

Table 12  Yonyou Financial Overview

Table 13  SAP SE Company Overview

Table 14  SAP SE Financial Overview

Table 15  Oracle Corporation Company Overview

Table 16  Oracle Corporation Financial Overview

Table 17  Hejia Software Technology Limited Company Overview

Table 18  Hejia Software Technology Limited Financial Overview

Table 19  Microsoft Corporation Company Overview

Table 20  Microsoft Corporation Financial Overview

Table 21  Sage Group plc Company Overview

Table 22  Sage Group plc Financial Overview

Table 23  Epicor Software Corporation Company Overview

Table 24  Epicor Software Corporation Financial Overview

Table 25  IFS AB Company Overview

Table 26  IFS AB Financial Overview