Southeast Asia ERP Software Market Highlights 2019-2024
The Southeast Asia ERP software market garnered a revenue of USD 1580.0 Million in 2019 and is further estimated to reach USD 2884.8 Million in 2024 by growing at a CAGR of 15.36% over the forecast period i.e., 2020-2024. The market is thriving on account of the increasing adoption of enterprise resource planning (ERP) software across industry verticals, along with the rising industrialization in the Asia Pacific region. ERP software help businesses to attain greater efficiency as the organization can run in its full capacity and overcome the complexities that are associated in its work processes. In the past decade, Southeast Asia has witnessed a surge in the adoption of ERP software across various industry verticals, including the banking & financial sector, government & defense, manufacturing, IT & telecommunication, and others. The major applications of ERP software include supply chain management, budgeting, human resource management, customer engagement management, payroll management, and others. The software assists SMEs and large organizations to function with increased productivity, transparency and enables decision making.
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Additionally, the increasing adoption of mobile applications and cloud-based software is further expected to boost the growth of the Southeast Asia ERP software market. Cloud-based ERP software reduces the IT computing expenditures of the organizations. As a result, the implementation of cloud-based technologies in businesses has surged significantly over the past few years. Additionally, the growing use of smart devices has become an essential part of the working culture. Organizations are investing in cloud-connected mobile applications to provide their employees with access to real-time data. Such factors are anticipated to drive the market growth.
Southeast Asia ERP Software Market Segmentation Regional Synopsis
Regionally, the Southeast Asia ERP software market is segmented into Singapore, Malaysia, Indonesia, Thailand, Philippines, Vietnam, and Myanmar. Among the markets in these regions, the Singapore ERP software market is estimated to hold leading share of 36.86% by the end of 2024 and attain a revenue of USD 1063.2 Million in the same year. The market in the region is further expected to grow with a CAGR of 16.33% during the forecast period. Singapore is one of the fastest-growing economies in the South East Asian region. According to the report titled “The Global Competitiveness Report 2020”, published by the World Economic Forum, Singapore ranked 6th in ICT adoption, 3rd on the digital legal framework, and 6th on Digital Skills ranking. Moreover, according to the statistics by the Department of Statistics, Singapore, foreign direct investments in the country grew from around USD 1.27 Million in 2018 to around USD 1.42 Million in 2019. The market in the country is also anticipated to grow on account of the growing ICT industry. In other statistics by the Department of Statistics, Singapore, total operating receipts from the ICT industry in the year 2019 recorded to USD 78.439 Million. Further, the various tax incentives of the government of the nation to investors looking to invest in multiple businesses in the country are expected to show a positive trend in the growth of the market in the coming years.
Growth Drivers and Challenges Impacting the Growth of the Southeast Asia ERP Software Market
Growth Drivers
- Amplifying Demand from Small and Medium Enterprises for Efficient Organization Management
- Increase in Adoption of Enterprise Resource Planning (ERP) Software Across Industry Verticals
Challenges
- Integration Issue with On-Premises Systems
- High Maintenance Cost
Southeast Asia ERP Software Market Segmentation Synopsis
The Southeast Asia ERP software market is segmented by component into software and services. Out of these, the services segment is expected to grow with the highest CAGR of 16.93% during the forecast period. Alternatively, the software segment is projected to hold the largest market share by the end of 2024. Based on deployment, the market is segmented into on-cloud, on-premise, and hybrid, out of which, the on-cloud segment is expected to hold the largest market share throughout the forecast period and further reach a revenue of USD 1397.1 Million by the end of 2024. The hybrid segment is although expected to grow with the highest CAGR of 20.21% during the forecast period. The market is also segmented on the basis of enterprise size into small & medium enterprises (SME) and large enterprises. Amongst these segments, the SME segment is anticipated to grow with the highest CAGR of 18.22% during the forecast period. On the basis of business models, the market is segmented into human resource model, manufacturing model, financing model, inventory management, customer management, supply chain, and others, out of which, the manufacturing model segment is expected to grab the largest market share over the forecast period and further reach a revenue of USD 846.4 Million by the end of 2024. The human resource model, on the other hand, is projected to grow massively by growing with the highest CAGR of 22.44% during the forecast period. Further, the market is also segmented on the basis of end user into automotive, healthcare, hospitality, aerospace & defense, electronics & technology, food & beverage, construction & home improvement, clothing, consumer goods & retail, agribusiness, industrial machinery & components, pharmaceuticals & life sciences, and others. Amongst these segments, the electronics & technology segment is expected to hold the largest revenue of USD 663.7 Million by the end of 2024.
Top Featured Companies Dominating the Market
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 industry leaders in the Southeast Asia ERP software market that are included in our report are MicroChannel Services, ERP Logic, JMC Technologies Pte Ltd, Accenture, Atos SE, Capgemini, ABEO Management Corporation, AFON Pte Ltd., Inecom Pte Ltd., Integrated Information Systems Pte Ltd, and others.
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