The global ERP market will reach $45.5bn in 2011, and to $50.3bn by 2015, according to a new report.
The ERP market size has been grping steadily over the couple of years with $43bn in 2010 and $40.6bn in 2009.
The new Forrester forecast, "The State Of ERP In 2011: Customers Have More Options In Spite Of Market Consolidation", says that as the global economy gradually recovers, IT budgets will start to free up, enabling organisations to begin thinking about significantly re-investing in their administrative and operational apps.
A co-author of the report Forrester Analyst China Martens said that with the growth, now is the time to for organisation’s to revisit current ERP application commitments and future ERP plans.
The report said that companies will face a wider choice of ERP offerings than previously available in terms of deployment models, where there is an uptick in the number of Software-as-a-Service (SaaS) options and managed cloud offerings.
The report stated that after the midrecession activity levels of 2009, the ERP market recovered fairly well in 2010. It added that the market will continue to grow in 2011, but will gradually shift from a licensed to a subscription model over the next five years, as SaaS ERP gains momentum, growing by about 21% annually through 2015.
Vendor consolidation, industry specialisation, and the introduction of newer technologies that improve business process flexibility will further change the vendor landscape, said the authors in the report.