Discrete ERP Market Size (2023 - 2030)

Global Discrete ERP Market is estimated to be worth USD 5.93 Billion in 2022 and is projected to reach a value of USD 13.18 Billion by 2030, growing at a CAGR of 10.5% during the outlook period 2023-2030.

Discrete ERP software for manufacturing provides manufacturers with thorough authority and visibility throughout their entire processes. This software efficiently handles an extensive variety of operational and administrative tasks for manufacturing companies specializing in unique or distinct products. It streamlines production planning, management, and tracking, along with vital processes, including inventory management, sales, purchasing, and accounting. By leveraging discrete ERP software, manufacturers gain the ability to precisely assess demand, determine necessary raw materials, and execute effective production plans. Furthermore, discrete ERP software provides critical support in monitoring product quality and guaranteeing expedited customer deliveries.

Discrete manufacturing ERP software offers critical features to support manufacturing processes. These include managing bill of materials (BOM), automating procurement processes for efficient fulfillment, coordinating production planning to optimize resources, enabling effective inventory management, assuring accurate production recording and tracking, integrating quality control processes, and streamlining fulfillment by tracking work orders and facilitating invoicing. These features refine operational efficiency, mitigate scheduling risks, and ensure compliance with specifications and customer requirements. Discrete manufacturing ERP software is devised to synchronize various aspects of manufacturing operations, from materials procurement to final product delivery, thereby resulting in improved productivity and customer satisfaction.

Global Discrete ERP Market Drivers:

The streamlined management of production across multiple locations is fueling the growth of the Global Discrete ERP Market.

In today's business landscape, managing production across multiple locations poses significant challenges, even for small manufacturers. Due to factors like mergers, acquisitions, or inconsistent IT strategies, many manufacturers resort to using separate solutions in each location. However, adopting an integrated ERP solution that can be utilized at any location can greatly enrich information sharing and collaboration among teams, regardless of their geographical dispersion. Having a discrete ERP solution that spans multiple locations also enables manufacturers to optimize resource and equipment management. Surplus raw materials, for example, can be efficiently transferred from one location to another that is lacking adequate resources to meet its requirements. Furthermore, diverse production operations can be carried out simultaneously in multiple locations, which streamlines the production cycle. Therefore, this factor propels the demand for discrete ERP solutions.

The advantages of cost reduction and improved profitability are other factors contributing to the growth of the Global Discrete ERP Market.

Discrete ERP systems offer manufacturers the opportunity to elevate their ROI by declining costs and increasing profitability. This is achieved through boosted employee productivity, lower production costs, and minimized back-office expenses. Manufacturers can also shun losing business to competitors by effectively meeting customer expectations in terms of timeline and quality standards. Inadequate production capacity or planning can contribute to the loss of important clients or contracts. Adopting a discrete ERP system helps address these challenges and ultimately improves overall profitability for manufacturers. Therefore, this factor also propels the demand for discrete ERP solutions.

Global Discrete ERP Market Challenges:

The Global Discrete ERP Market is encountering challenges, primarily in terms of high licensing and development costs. Building ERP software is a challenging and expensive task due to its complexity. It necessitates an experienced and skilled team with a high level of competence to devise customized enterprise resource planning solutions based on customer requirements. The expertise of such professionals comes at a cost, often with higher hourly rates, which results in relatively high expenses for tailored ERP solutions. Alternatively, pre-built ERP systems can provide faster implementation, but they come with higher license fees. Off-the-shelf solutions, though more affordable, may lack flexibility, require longer customization times, and present potential maintenance and security concerns. Moreover, they may not align perfectly with specific business requirements and company operations. Thus, these challenges inhibit the growth of the Global Discrete ERP Market.

Global Discrete ERP Market Opportunities:

The Global Discrete ERP Market is projected to offer profitable prospects for businesses operating in the enterprise resource planning (ERP) domain, fostering partnerships, mergers, collaborations, and agreements during the forecasted period. Furthermore, there is a potential to make technological advancements and upgrades with novel business ideas for a competitive edge in the market by tapping into a profitable outcome. 

COVID-19 Impact on the Global Discrete ERP Market:

The COVID-19 pandemic is anticipated to propel advantageous prospects for the growth of the Global Discrete ERP market in the future. This can be ascribed to the rising trend of digital transformation in businesses, the augmenting demand for cloud-based discrete ERP solutions, and the challenges faced by the manufacturing sector owing to supply chain disruptions. Post-pandemic, companies will prioritize advanced planning solutions to mitigate future impacts. Consequently, companies are anticipated to substantially invest in discrete ERP software.

Global Discrete ERP Market Recent Developments:

• In January 2023, the Root Group, the official customer user group for Rootstock Software's Manufacturing Cloud ERP on the Salesforce Platform, unveiled its new brand, mission, charter, advisory board, and website.
• In March 2022, Sage launched Sage Intacct Manufacturing in France as part of their new cloud-based product line. This integrated solution, closely tied to other offerings within the Sage Business Cloud, will soon expand to other regions beyond France, according to Rob Sinfield, VP of Product at Sage.
• In September 2021, ECI Software Solutions Inc., a US-based company specializing in cloud-based ERP systems for SMBs in manufacturing and construction, broadened its ERP system portfolio by acquiring Deacom Inc.

DISCRETE ERP MARKET REPORT COVERAGE:

Global Discrete ERP Market Segmentation:

Global Discrete ERP Market Segmentation: By Deployment Model

• Cloud-Based
• On-Premises

The On-Premises segment occupied the highest market share in the year 2022. The growth can be ascribed to the advantages the on-premises deployment model offers, including continuous control and robust data security within organizations, which are anticipated to propel its growth in the future. The need for greater awareness regarding the benefits of cloud-based solutions in business is fostering the adoption of on-premises solutions in several emerging nations. Additionally, in some emerging markets, where conventional approaches to supply chain management and other business operations are still prevalent with limited automation and technological utilization, the on-premises segment is also projected to experience growth.

Global Discrete ERP Market Segmentation: By Organization Size

• Small and Medium-sized Enterprises
• Large Enterprises

The Large Enterprises segment occupied the highest market share in the year 2022. The growth can be ascribed to the augmenting demand for discrete ERP solutions among large enterprises to effectively manage and synchronize complex processes like production planning, inventory management, procurement, order fulfillment, and shipping, among others. Additionally, the substantial spending capacity of large-sized enterprises on adopting advanced technology and software solutions further fuels the adoption of cloud-based discrete ERP software in the market.

Global Discrete ERP Market Segmentation: By Industry Vertical

• Automotive
• Aerospace and Defense
• Construction
• Consumer Goods
• Electronics and Electrical Components
• Manufacturing
• Metal Casting
• Textiles
• Others

The Manufacturing segment occupied the highest market share in the year 2022. The growth can be ascribed to the benefits offered by ERP software in managing various operational aspects. ERP solutions effectively monitor daily operations, track performance metrics, and enhance customer service, which is anticipated to propel demand in the future. The ease of inventory management, production scheduling, and real-time data tracking provided by ERP software are also vital factors contributing to the segment's growth. Furthermore, manufacturers recognize the importance of tracking vendor performance and improving supply chain visibility, which leads them to adopt ERP solutions for more efficient operations planning and management.

Global Discrete ERP Market Segmentation: By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

The region of North America dominated the Global Discrete ERP Market in the year 2022. The rising adoption of discrete ERP software by small and medium-sized businesses (SMBs) and the increasing investments by ERP vendors in software development with cutting-edge technologies are some of the pivotal factors propelling the region's growth. Furthermore, North America is home to several prominent market players, including Oracle Corporation, Microsoft Corporation, Acumatica, Inc., Infor, Inc., and Epicor Software Corporation.

The region of Asia-Pacific is anticipated to expand at the quickest rate over the forecast period 2023-2030 owing to the flourishing manufacturing sector, the rising number of small and medium enterprises to boost productivity and overall performance, the increasing government initiatives and support for the implementation of IT infrastructure, and the strong presence of significant market players, including Tally Solutions Pvt. Ltd., 3i Infotech Ltd., and ACTouch Technologies Pvt. Ltd.

Global Discrete ERP Market Key Players:

1. SAP SE
2. Oracle Corporation
3. Microsoft Corporation
4. IFS AB
5. Acumatica, Inc.
6. Infor Inc.
7. Tally Solutions Pvt. Ltd.
8. 3i Infotech Ltd.
9. Odoo S.A.
10. Epicor Software Corporation