ERP market to hit US$11.9 billion

The Enterprise Resource Planning (ERP) market within the manufacturing sector is forecasted to rebound over the next five years and grow from US$8.9 billion in 2002 to US$11.9 billion by 2007 for a CAGR of 5.8%, according to a newly updated study by ARC Advisory Group.

General market uncertainty and persistently weak global economic trends had a negative impact on the ERP applications market in 2002 as annual revenues declined -0.6% from 2001. Despite the slow, challenging market, many manufacturers regard the current business climate as a good opportunity to take decisive steps aimed at revamping their operations and making them more cost effective.

ERP solutions now have solid business knowledge management functionality to make it easier to track and model businesses parameters and improve ROI. ERP solutions are also addressing the extended enterprise with integration of the back-office with the front-office. This helps deliver value-added products and services over the full length of the value-chain, spanning customers, suppliers, manufacturers, distributors, financial institutions, and strategic end-users, according to the study.