Firm Predicts ERP Market will Reach $52 Billion by 2002
AMR Research Inc., a leading industry and market analysis firm specializing in enterprise applications and enabling technologies, predicts that the enterprise resource planning (ERP) software market will grow at a compound annual growth rate of 37 percent over the next five years. According to the firm`s Enterprise Resource Planning Software Report, 1997-2002, the ERP market will reach $14.8 billion in total company revenue in 1998 and will top $52 billion by the year 2002.
AMR Research attributes the continued growth to three primary factors:
ERP vendors are continuing to expand market presence by offering new applications.
To sustain their rapid growth, ERP vendors will look to sell more licenses into their installed base.
While ERP originated in the manufacturing market, ERP usage has spread to nearly every type of enterprise, including utilities. Many utilities, along with the public sector, and retail and healthcare organizations, will purchase new ERP systems over the next five years, often for the first time.
The report lists the top five ERP vendors–SAP AG, Oracle-Applications, PeopleSoft, Bann and J.D. Edwards. These companies accounted for 64 percent of the ERP market revenue over the past year, according to the report.