Analysis by Component [Services {Professional Services (Implementation Services, and Maintenance & Support Services), and Managed Services}, and Software]; by Deployment (On-Premises, Cloud, and Hybrid); by Enterprise Size (Small, Medium, and Large Enterprises); by Business Function; and by End Users – Global Supply & Demand Analysis & Opportunity Outlook 2022-2035
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The Singapore and Indonesia ERP implementation market is estimated to garner a revenue of USD 3,455.2 Million and USD 2,197.2 Million respectively by the end of 2035 by growing at a CAGR of 12.71% and 15.35% respectively over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 739.2 Million and USD 345.2 Million respectively in the year 2022. The growth of the market can be attributed to rise in investment by organization to develop their allied sectors, including IT. Hence, owing to this the adoption of ERP system is estimated to boost in different sectors with an aim of satisfying organization and customers need. For instance, the Government of Singapore were expected to spend up to USD 2.7 billion on ICT procurement in 2022, which is similar to 2021 but represents a rise of roughly 10% from 2020. About 70% (USD 2 billion) of the government's anticipated ICT spending for 2022 were anticipated to be allocated to application development, which would be used to create new applications and improve existing ones. The money would be used to transform the government's digital infrastructure and services for its citizens, businesses, and public officers.
Additionally, government are implementing various favorable policies on a large scale in order to encourage adoption of digital technology software. Also, they have taken various initiatives to encourage digital education which further anticipated to boost the adoption of ERP system in education institutions. The management of daily tasks, internal and external resources, control procedures, student enrollment and management, courses and curriculum, tests and results, teacher and other employee management, lectures, and more are all made easier by the use of ERP software in schools and colleges. Hence, the preference for ERP software is expected to grow among these institutions. Additionally, lockdown was the another major factor which boosted the adoption of digital technologies not only for education but also various other industries. Owing to the lockdown working from home became new normal in which ERP software played an efficient role. However, it is estimated that still large number of people prefer working from home. Hence, the growth of ERP implementation market in these regions is expected to boost further.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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Singapore CAGR |
12.71% |
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Indonesia CAGR |
15.35% |
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Singapore Base Year Market Size (2022) |
USD 739.2 Million |
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Indonesia Base Year Market Size (2022) |
USD 345.2 Million |
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Singapore Forecast Year Market Size (2035) |
USD 3,455.2 Million |
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Indonesia Forecast Year Market Size (2035) |
USD 2,197.2 Million |
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Regional Scope |
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Growth Drivers
Surge in Penetration of Smartphones- In Indonesia, about 75 percent of people used smartphones in 2021. By 2028, there would probably be 270 million smartphone users in the country. Implementing ERP is possible on smartphones. The way firms perform their daily operations is being impacted by mobility. Hence, mobile ERPs improve mobility inside an organization's structure, boosting productivity. Instead of using a stationary computer, users in a mobile ERP configuration could comfortably access their ERP system through mobile devices such as smartphones and tablets. Users of mobile ERP could effortlessly produce, access, and share company information via handheld mobile devices. Without making a substantial investment in equipment or setup, this guarantees instant access to data. Hence owing to growing penetration of smart phones, the market is estimated to boost.
Growing Demand for Cloud Services- Around 19% of Singaporean enterprises were estimated to be utilizing cloud computing services in 2020.
Surge in Number of Small and Medium Enterprises - Over 60 million SMEs (Small and Medium-sized Enterprises) were operating in Indonesia as of 2021, or one SME for every five citizens. About 59 million of them, or approximately 97%, were microbusinesses.
Growing Use of Internet - Around 4 million people used the internet in Singapore in 2020. This figure is expected to rise significantly further during the next few years.
Surge in IT Workforce - Around 90,000 IT and software experts, or around 3% of all employees, work in Singapore, according the Ministry of Manpower.
Challenges
The Singapore and Indonesia ERP implementation market is segmented and analyzed for demand and supply by deployment into on-premises, cloud, and hybrid. Out of these, the cloud segment is anticipated to garner the largest revenue of USD 1,665.4 Million and USD 1,208.5 Million respectively by the end of 2035. Further in the year 2022, the segment is this region generated revenue of USD 349.6 Million and USD 180.6 Million. This growth of segment in terms of revenue can be attributed to growing deployment of cloud services in organization. In Indonesia, about 76% of firms used cloud-based IT solutions in 2021, and approximately 82% of those same organizations felt that cloud-based tools helped them handle their business needs in COVID-19. Hence the adoption of cloud based ERP software is estimated to increase. With cloud-based ERP, an organization could access and save data on any device with an internet connection, typically with the purchase of a subscription. Further, with cloud-based ERP, businesses can run SaaS enterprise applications, which is also expected to contribute to the growth of the segment during the forecast period. Additionally, since large number of people prefer working from home the preference for cloud-based ERP is further expected to boost. Further, the cloud segment in Indonesia is anticipated to grow at the highest CAGR 15.80% over the forecast period. However, in Singapore, the hybrid segment is expected to grow at a highest CAGR of 13.29% over the forecast period.
The Singapore and Indonesia ERP implementation market is also segmented and analyzed for demand and supply by enterprise size into small enterprise, medium enterprise, and large enterprise. Amongst these segment, the large enterprise segment is anticipated to hold the largest revenue of USD 1,634.3 Million and USD 1,285.4 Million respectively by the end of 2035, up from a revenue of USD 355.6 Million and USD 211.6 Million respectively, in the year 2022. The growth of the segment can be attributed to growing adoption of ERP software since they have bigger infrastructure and a bigger income stream. Additionally, the demand for enterprise resource management in the Singapore and Indonesian markets is anticipated to increase owing to the urgent requirement for securing key company assets and managing operational processes and technology. Large businesses have multiple locations; thus they need a system that could integrate numerous company functions on a large scale. However, the medium enterprise is anticipated to grow at the highest CAGR of 13.22% and 16.69% over the forecast period respectively.
Our in-depth analysis of the Singapore and Indonesia ERP implementation market includes the following segments:
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By Component |
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By Deployment |
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By Enterprise Size |
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By Business Function |
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By End Users |
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Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent ERP software vendors in the Singapore and Indonesia ERP implementation market that are included in our report are, IBM Corporation, Infor, Epicor Software Corporation, Microsoft Corporation, Oracle, SAP SE, Focus Softnet Pvt Ltd., Dassault Systèmes., Workday Inc., IFS Solutions Asia Pacific Pte. Ltd., and others. Further, prominent ERP implementers in the Singapore and Indonesia ERP implementation market included in the report are, HAND Global Solutions Pte Ltd., NaviWorld Singapore Pte. Ltd., Axxis Consulting, Sage Group plc, SYSPRO, Unit4, IDS Indonesia, Nano ERP Indonesia, and others.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving the growth of the market are surge in penetration of smartphones, growing demand for cloud services, surge in number of small and medium enterprises, and others.
Ans: The market is anticipated to attain a CAGR of 12.71% and 15.35% respectively over the forecast period, i.e., 2023 – 2035.
Ans: Issues of integration with on-premises deployment model, hidden cost of ERP implementation, and lack of highly technically sound employees are estimated to be the growth hindering factors for the market expansion.
Ans: The major players in the market are IBM Corporation, Infor, Epicor Software Corporation, Microsoft Corporation, Oracle, SAP SE, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component, deployment, enterprise size, business function, and by end users.
Ans: The cloud segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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