As the economy recovers, the market for enterprise resource planning (ERP) software will also, returning to year-over-year growth in 2010, according to a recent Market Sizing report from AMR Research.
Surprisingly, according to the report, the ERP market managed to grow 9% in 2008 compared with 2007 as many larger customers continued to spend on consolidation and standardization projects and some smaller customers did not constrain ERP spending until late in the year as the economy worsened. The research company, however, expects ERP spending to dip about 4% in 2009, reflecting customer budget lockdowns and capital preservation efforts early in the year.
Overall, AMR estimates, ERP spending in 2008 increased 9% over the previous year to $37.5 billion. Spending on ERP licenses (excluding maintenance and other spending) was up 11% during 2008, the study estimates.
AMR predicts ERP spending will fall to $36 billion in 2009 before rising 5% in 2010 to $37.8 billion. New ERP license sales in 2009 could fall 15% to 25% during the 2009, AMR says. The company predicts a 9% increase in ERP spending in 2011. Overall, AMR predicts a five-year compound annual growth rate of 6% for the ERP market during the period from 2008 through 2013.