Published Date : 13 Feb 2023
The global enterprise application market size was exhibited at USD 263.85 billion in 2022 and is predicted to touch around USD 530.41 billion by 2030 with a noteworthy CAGR of 9.12% between 2022 and 2030.
Enterprise Applications integrate all the computer systems that run all operations of an organization. Nowadays Digital Transformation is important for businesses and enterprise applications are becoming the baby step for this procedure. It has become an essential tool for any organization as it can process large amount of data, improve the management system and minimize the use of paperwork.
Organization uses enterprise application software providing various applications like Customer Relationship Management, Business Intelligence, Supply Chain Management and E-Commerce system. It can also be customized according to customer requirement and can be placed on corporate networks on a variety of platforms.
Report Highlights
Enterprise Application Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 287.92 Billion |
| Market Size in 2030 | USD 530.41 Billion |
| Growth Rate | CAGR of 9.12% |
| cloud Segment Revenue Share In 2021 | 57.00% |
| On-premise Segment Revenue Share In 2021 | 43.00% |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2022 To 2030 |
| Segments Covered | By Component, By Solution Type, By Deployment Mode, By Organization Size, By Industry Vertical |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Regional Snapshot
North America holds the dominant position and will also witness market growth during the forecast period. The growing need of enterprises to have one single solution to handle all business problems is one of the biggest reasons behind the growth in this market. The US market is the major evidence to show a huge spike in market growth which is enabling them to adopt advance business tools.
Countries such as the United States and Canada are considered to experience the highest growth during the forecast period. The presence of key market players and their efforts to launch new products according to market dynamics are the major driving factors for this market. The presence of advanced infrastructure development in the region and the adoption of cloud-based enterprise applications is moving at a fast pace. All these aforementioned factors are likely to augment the growth of the market.
Market Dynamics
Drivers
The adaptation of smartphones and other mobile devices have made companies to pay attention to the benefits of mobile applications, which eventually gave life to enterprise application. Employees and customers can easily access it through their mobile devices. It is a valuable asset for small and medium-sized enterprises as they lack proper infrastructure. It benefits organizations with the reduction of unnecessary work through process optimization even with the low cost.
Through Enterprise Application software companies can have full control of the company as it offers a complete overall vision of the day-to-day happenings of the business. It also participates in the simplification of business processes and reduces cost and investment. It also encourages information exchange by linking and synchronizing all the information, so that duplication of information can be prevented.
The different software integration lowers the time and effort allowing the large-scale task to be accomplished in less time. Enterprise application technology has enhanced the competitive advantage for companies in taking the lead.
Enterprises from industries such as BFSI, healthcare, retail, telecom, and aerospace & defense are investing heavily to enhance their customer service. Enterprise application is known for its user-friendly interface. Enterprises need to interact with their clients to understand their requirements.
They are focusing on providing better user experience to their customers besides back-end services. In addition, companies are increasing their IT expenditure to enhance their consumer interaction network. Adoption of customer-centric approach drive demand for an enterprise application to cater to more consumers.
Adoption of enterprise applications such as CRM, ERP, and SCM enables easy flow of information between organizations within or outside. Centralization of information is possible through the implementation of enterprise applications.
Data collection and storage from various sources such as social media is possible by the use of appropriate enterprise solutions. Organizations prefer cloud-based enterprise applications, owing to its low cost and efficiency offered to the business. Enterprise applications are designed to enhance an enterprise’s productivity and efficiency by integrating with complex business functions.
Efficient use of enterprise application solutions requires high investments by end users. In addition, initial investments for enterprise applications are very high for small to medium-sized organizations in industry verticals such as healthcare. However, the manufacturing sector finds it difficult to afford such systems as they have limited budgets and cannot justify long payback periods.
In addition, the implementation and installation efforts and time of this software can take as long as several months, which is a major concern as some of organizations cannot operate for such long periods.
In addition, support, maintenance, and further customization in software costs are high, which restrains the adoption of enterprise application software as the costs of these services can be more than the price of the software. In addition, lack of internal IT expertise in some industries require training for end users to maximize the efficiency of various solution, thus adding to the cost of ownership of the systems
Restraints
Efficient use of enterprise application solutions requires high investments by end users. In addition, initial investments for enterprise applications are very high for small to medium-sized organizations in industry verticals such as healthcare. However, the manufacturing sector finds it difficult to afford such systems as they have limited budgets and cannot justify long payback periods. In addition, the implementation and installation efforts and time of this software can take as long as several months, which is a major concern as some of organizations cannot operate for such long periods.
Opportunity
The rapid change in business models or geographical expansions have created a tempting opportunity for the players of the Enterprise Application Market. The increased establishment of small and medium-scale startups who lack a physical infrastructure find the use of cloud base Enterprise application software a reliable solution. The boom of mobile base applications have increased the customer base. It provides a customer-centric approach that match with changing scenario of the business environment. North America holds a lot of opportunity because of their advancement of technologies and the Asia Pacific have high rate of rising startups and SMEs who require cloud base enterprise application.
In addition, support, maintenance and further customization in software costs high, which restrains the adoption of enterprise application software as the costs of these services can be more than the price of the software. In addition, lack of internal IT expertise in some industries requires training for end users to maximize the efficiency of various solutions, thus adding to the cost of ownership of the systems.
Companies are shifting from licensed to open-source applications, owing to low cost associated with them. Regional vendors operating in the market provide support for open-source applications. Apart from support, these vendors modify open-source codes and customize them as per requirement of end-user industries. Vendor’s charge affordable price for their services. Generally, SMEs are the major end user industries for open-source applications, owing to their limited budget for IT department.
Cloud computing is an emerging technology for data storage and online access facility for enterprises. The adoption of cloud technology helps companies to reduce their expenditure on IT infrastructure. The cloud-based model offers a pay-per-use option for companies implementing the same. Therefore, price flexibility associated with cloud-based model help them to gain more popularity among end-user industries. Furthermore, the adoption of cloud technology enables end-users to centralize their core businesses. It is expected that number of cloud-based enterprise application users would increase in the future.
Challenges
With the rise of cloud-based enterprise application software, new concerns around security have also increased. As a number of companies are shifting toward the cloud, instances of security attacks is also increasing. These cyber security attacks can come in a range of forms and can lead to a range of losses such as intellectual property or customer data. As businesses are growing longer and include more information-sharing, risks about data security are also increasing. In addition, factors such as digital transformation of global businesses network and rise in complexity of globally functioning supply chains together hinder the growth of the market.
Recent Developments
To bring out the digital transformation during the pandemic and after it has accelerated the changes in It product to have more flexibility and better data management. The AI-augmented software to understand visual interfaces, IOT platforms, Digital twin using big data and many more contributions in the recent developments of enterprise applications market.
Wipro collaborated with HERE technologies in order to deliver location-based asset management solutions for the array of industry verticals.
Major Key Players
Market Segmentation
By Component
By Solution Type
By Deployment Mode
By Organization Size
By Industry Vertical
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