Middle East & Africa Enterprise Resource Planning (ERP) Software Market Size, Share & Industry Analysis, By Enterprise Type (Small & Medium-sized Enterprises (SMEs) and Large Enterprises), By Deployment (Cloud & Hybrid and On-Premises), By Business Function (Financial Management, Human Capital Management, Supply Chain Management and Others), By End-User (Manufacturing, BFSI, IT and Telecommunications, Retail and Consumer Goods, Healthcare & Life Sciences, and Others), and Country Forecast, 2024-2032

The Middle East & Africa enterprise resource planning (ERP) software market size was valued at USD 5.12 billion in 2023. The market is projected to grow from USD 5.38 billion in 2024 to USD 10.20 billion by 2032, exhibiting a CAGR of 8.3% during the forecast period.

Enterprise resource planning (ERP) software is a complete business management software that integrates various functions of an organization into a single system. The primary purpose of ERP software is to streamline business processes, improve efficiency, and provide real-time data visibility across the entire organization. By integrating all these functions into a single system, ERP software eliminates data duplication, reduces manual errors, and enables better decision-making through access to accurate and timely information.

• According to research, 53.1% of enterprises have implemented cloud-based ERP solutions, whereas the remaining companies of different industry verticals are dependent on on-premise ERP systems, which help enhance the operational efficiency of business.

The market is witnessing the rising implementation of the government’s favorable policies for deploying IT software, the rapid evolution of software as a service (SaaS) and cloud-based applications, and increased demand for ERP software by product-centric companies across multiple industries. These factors are slated to drive the Middle East & Africa enterprise resource planning (ERP) software market growth over the forecast period.

The COVID-19 pandemic had a mixed impact on the market. Rising adoption of work-from-home culture and growing demand of digital services has affected the demand and supply chain operations of different industries. This factors has boost the adoption of ERP software to maintain the whole enterprise operations under management. Similarly, increasing digitalization of businesses and increasing government policies for digital technology software implementation have propelled the market growth.

• In July 2021, Microsoft Corporation launched advanced integrations of Dynamics 365 and Microsoft Teams that help seamlessly collaborate on customer records. It launched cloud-based solutions for the healthcare, financial services, manufacturing, and retail industries.

Such an increase in the adoption of digital technology platforms and government initiatives for digitalization during the COVID-19 pandemic has slightly increased the demand for ERP software solutions in the market.

IMPACT OF GENERATIVE AI

Integration of Gen AI with ERP Helps Deliver Improved User Experience, Fueling Market Growth

Generative AI is poised to have a profound impact on the market, transforming the way businesses operate and manage resources. The benefit of integrating generative AI into ERP systems is the enhancement of the decision-making processes. Generative AI can analyze vast amounts of data from various sources within an organization to generate insights and predictive analytics. It can predict future inventory needs based on historical sales data, seasonal trends, and market conditions, helping companies optimize their supply chain management and reduce costs associated with overstocking or stockouts.

• For instance, according to a research survey, it has been observed that 32% of businesses have integrated technologies like machine learning (ML) and AI to improve the performance of ERP systems in the year 2024.

The technology can automate tasks such as data entry, invoice processing, and report generation, freeing up human resources for more strategic activities. In financial management, generative AI can automatically generate financial reports, reconcile accounts, and detect anomalies or fraud, significantly improving efficiency and accuracy. This reduces the time and effort required for these tasks and minimizes the risk of human error, leading to more reliable and efficient operations. For instance, according to an analyst survey, it has been found that up to 70% of tasks in ERP-related processes, such as order-to-cash and procure-to-pay, can be automated using AI technologies, potentially saving businesses millions of dollars annually.

• Similarly, In September 2022, IBM showcased how a global consumer packaged goods company used generative AI to improve its demand forecasting accuracy by 20%, resulting in a 10% reduction in inventory costs and a 5% increase in sales.

Moreover, traditional ERP systems often require significant manual configuration to tailor them to a specific business's needs. However, generative AI can learn from user interactions and business processes to automatically adjust and optimize the ERP system's functionalities. These are the factors that boost the integration of generative AI into ERP systems, which significantly helps to deliver improved user experience.

Middle East & Africa Enterprise Resource Planning (ERP) Software Market Trends

Adoption of Advanced Technologies is a Key Trendsetter in the Market

The growing integration of artificial intelligence (AI) technology among different industrial sectors such as manufacturing, oil & gas, logistics, government, and much more across MEA aims to bring innovations and digital transformation in the ERP market during the forecast period. There is an extensive presence of small and medium business (SMB) enterprises in UAE, Saudi Arabia, Africa, and other countries across the Middle East region, which aim to invest in deploying cloud computing technologies to automate their business processes. For instance, according to a recent study in 2023, 82% of SMBs with less than USD 50 million annual revenue across the globe use ERP systems to deliver better visibility of business processes across all departments.

Increasing advancements in cloud-powered ERP application suites with minimal infrastructure expenses offer significant opportunities to SMEs present across Middle East countries. The availability of cost-efficient, subscription-model cloud ERP solutions helps bring advancements in overall business operations for better ROI. Companies such as Sage Software, Summit Solutions, Focus Softnet, Oracle Corporation, SAP SE, and many others are delivering enterprise resource planning (ERP) solutions for different industry verticals present across MEA to automate the inventory, financial, and procurement processes.

• In May 2023, Emirates Steel Arkan (ESA), a UAE-based steel and building material manufacturer, collaborated with SAP SE to manage all business operations using a single cloud-based enterprise resource planning (ERP) solution. This solution helps monitor all the operational activities by achieving real-time data and insights, which significantly helps optimize the business performance.

The rising adoption of AI-based and cloud computing-based ERP software and the surge in the investments by the leading players present in the MEA to adopt these technologies for automating business processes aids market growth. For instance, according to the researcher, in 2022, 65% of CIOs predicted that artificial intelligence (AI) would be integrated into ERP systems.

Thus, the increase in the adoption and development of AI-based and cloud computing-based ERP software by key players is poised to drive the enterprise resource planning (ERP) software market growth during the forecast period.

Middle East & Africa Enterprise Resource Planning (ERP) Software Market Growth Factors

Rising Digital Transformation and Surge in the Adoption of Enterprise Resource Planning (ERP) Applications Aid the Market Growth

Businesses are undergoing digital transformation by making active decisions and improving operational efficiency. Technologies such as the Internet of Things, artificial intelligence (AI), blockchain, machine learning (ML), and cloud, among others, are all contributing to this process.

ERP is essential to the digital transformation process, as ERP solutions automate all back-end procedures, including data analysis, inventory control, HR, and financial management. Enterprise resource planning (ERP) software plays a critical role in digital transformation by enabling organizations to streamline processes, leverage emerging technologies, drive innovation, and adapt to changing market dynamics. It acts as a catalyst for organizational growth and success in the digital age. For instance,

• In September 2023, Eton Solutions, a cloud-based enterprise resource platform (ERP) provider, expanded its global reach by launching a new office in the UAE. This new venture of Eton Solutions aims to serve innovative solutions to the customers present across the Middle East.

In addition, the integration of AI in ERP solutions automates tasks, forecasts demand, and enhances operational efficiency. With IoT, ERP enables real-time monitoring and optimization of supply chains and production processes. Furthermore, IT ensures transparency, traceability, and secure transactions. For instance,

• In April 2024, MultiChoice, Africa’s media and entertainment platform, in partnership with Accenture, integrated its ERP solutions with SAPS/4HANA to bring digital transformation across multiple business processes to enhance business value.


• In October 2023, NetSuite, an Oracle subsidiary, announced the implementation of generative AI with new applications and features to its cloud-based ERP suite to automate enterprise business developments in multiple domains such as supply chain, HR, finance, banking, and sales.

Thus, implementation and collaboration of such technologies create the full potential of digital transformation by driving the organization to a new level.

RESTRAINING FACTORS

High Implementation Costs of ERP Software and Threats of Cyberattacks May Hinder the Market Growth

The enterprise resource planning (ERP) software solution is secured with the help of only a username and password. The username and password credentials are subjected to phishing and cyberattacks. According to Cybrosys Technologies, countries such as, Qatar, Saudi Arabia, Kuwait, Bahrain, Lebanon, Oman, Syria, and UAE face multiple challenges while implementing ERP software due to lack of expertise and shortage of availability of latest digital technologies.

Enterprise resource planning (ERP) software requires high implementation and operating costs for automating and managing business processes. It also requires regular maintenance, which comes with associated maintenance costs. Thus, the high cost of ERP deployments and maintenance hinders market growth.

Increasing cyberattacks on ERP systems are mainly due to a lack of focus on advancing cybersecurity tools, which significantly results in reduced ERP system downtime. For instance, 31% of companies use cybersecurity tools to manage ERP applications. This factor also decreases the overall performance of the ERP system. Hence, the implementation cost and rising cyberattacks are the key factors that restrict the growth of the market.

Middle East & Africa Enterprise Resource Planning (ERP) Software Market Segmentation Analysis

By Enterprise Type Analysis

Adoption of ERP Software in SMEs to Reduce the Upfront Costs of Developed IT Infrastructure Boost the Segment Growth

Based on enterprise type, the market is divided into small & medium-sized enterprises (SMEs) and large enterprises.

Among these, the small & medium-sized enterprises (SMEs) segment held the largest Middle East & Africa enterprise resource planning (ERP) software market share in 2023 and is also projected to grow with the highest CAGR during the forecast period. This is due to the increasing implementation of cloud-based ERP systems among small & medium-sized enterprises (SMEs) to operate management tools without the need for substantial upfront costs or extensive IT infrastructure. The adoption of cloud-ERP systems in SMEs helps bring faster deployment and more effortless scalability, which is slated to boost the demand for ERP software in these enterprises during the forecast period.

In addition, large companies are increasingly adopting the software to obtain constant access to integrated business operations. The increasing need to improve employee productivity and demand for improved business management has expanded the adoption of ERP software along with different other software’s among large companies. Thus, due to this factor the large enterprise segment holds minimum share of the market in year 2023.

By Deployment Analysis

Surge in Demand for Deploying Cloud & Hybrid ERP Models to Streamline Business Functions to Drive Segment Expansion

Based on deployment, the market is segregated into cloud & hybrid and on-premises.

Among these, the cloud & hybrid segment is projected to grow with the highest CAGR during the forecast period and also held the largest share of the Middle East & Africa enterprise resource planning (ERP) software market in 2023. Cloud deployment has emerged with private, public, and hybrid models which significantly help fulfill the business needs of the customers by reducing the reliance on internal IT sources. For instance, according to a researcher’s survey, 60% of corporate data is stored on cloud platforms, and it has been observed that 67% of the company’s infrastructure is now cloud-based. This results in an increase in the demand for the adoption of cloud & hybrid ERP models to streamline business functions into accessible applications via internet-enabled devices from anywhere at any time.

The on-premise segment is estimated to grow with significantly low growth rate as compared to cloud & hybrid segment. It is due to the demand for on-premise enterprise resource planning (ERP) software is low as compared to cloud & hybrid ERP platforms as these software are not easily accessible from any locations like cloud-based ERP systems. This led to boost in the demand for cloud & hybrid ERP software as compared to on-premise ERP software over the forecast period.

By Business Function Analysis

Financial Management Segment Led Due to Integration of ERP Solutions Among Financial Institutions

On the basis of business function, the Middle East & Africa enterprise resource planning (ERP) software market is segregated into financial management, human capital management, supply chain management, customer management, inventory and work order management, and others.

Among these, the financial management segment held the largest market share in 2023. This is due to the increasing need to enhance employee productivity and demand for improved business management has expanded the adoption of ERP software among large and financial companies present across the region. Moreover, the rise of cloud computing allows SMEs in the region to adopt ERP solutions more efficiently, as they offer lower upfront costs, faster deployment, and more effortless scalability.

On the other hand, the inventory and work order management segment is projected to grow with the highest CAGR during the forecast period. This is due to increased demand for ERP solutions in retail, manufacturing, and healthcare sectors to manage inventory efficiently and streamline business operations.

By End-User Analysis

Manufacturing Segment Held a Leading Position Due to Rising Focus on Improving Operational Efficiencies

Based on end-user, the Middle East & Africa market for enterprise resource planning (ERP) software is divided into manufacturing, BFSI, IT and telecommunications, retail and consumer goods, healthcare & life sciences, transportation and logistics, government, and others.

Among these, the manufacturing segment held the largest share in 2023 due to the growing emphasis on improving operational efficiencies across the manufacturing sector. This factor is contributing to the increased demand for ERP solutions to optimize supply chain operations, manage inventory, and streamline business processes. Similarly, the retail sector is transforming with the rise of e-commerce and omnichannel strategies, necessitating robust ERP systems to manage complex operations seamlessly in the region.

The IT and telecommunications segment is estimated to grow with the highest CAGR during the forecast period. Integration of advanced technologies such as AI and ML with ERP systems helps streamline and automate complex workflows by improving communication across various channels. This is the key factor that is expected to help boost the adoption of ERP software in the IT & telecom sector over the forecast period.

• In December 2021 Supertech Group, a UAE-based industrial products & services provider to the petrochemical, steel, oil & gas, automotive, power, food & beverage, and marine & shipping industries, integrates Infor LN ERP solutions to fulfill the rising demands of customers for industrial products across various industrial sectors. The implemented Infor LN ERP solution mainly helps to increase business efficiency by evaluating the value-added services.

COUNTRY INSIGHTS

The market is studied across the Middle East & Africa region, which is further studied across countries such as, Turkey, Israel, GCC, North Africa, South Africa, and rest of Middle East & Africa.

The GCC market for enterprise resource planning (ERP) software holds largest market share in 2023 and is estimated to experience significant growth during the forecast period. This is due to increasing government initiatives and supportive policies are playing a crucial role in driving the growth of the market across various countries present in the region. Governments are recognizing the importance of digital infrastructure for economic development and are implementing policies to encourage technology adoption. For instance,

• The Dubai government's "Dubai Paperless Strategy" aims to digitize all government operations, which encourages businesses to adopt ERP solutions to integrate with digital government services.

These are the factors that are poised to help fuel the demand for the adoption of ERP software in the GCC over the forecast period.

Turkey market is estimated to grow with highest CAGR over the forecast period. This is due to the growing adoption of ERP platforms among enterprises due to increased internet connectivity and rising R&D activities to bring automation in the advanced IT infrastructure of different industry verticals present across Turkey.

KEY INDUSTRY PLAYERS

Technological Developments by Leading Companies to Aid Market Proliferation

Companies operating in the market mainly include SAP SE, Oracle Corporation, Microsoft Corporation, Odoo SA, Sage Group plc, Infor. These firms are focusing on bringing innovations in enhancing the features of ERP software. To enhance their operations throughout the world, the market players are using various strategic methods, such as partnerships, collaborations, acquisitions, and mergers.

List of Top Enterprise Resource Planning (ERP) Software Companies in Middle East & Africa/List of Top Enterprise Resource Planning (ERP) Software Companies:

• SAP SE (Germany)


• Oracle Corporation (U.S.)


• Microsoft Corporation (U.S.)


• Odoo SA (Belgium)


• Sage Group plc (U.K.)


• Infor (U.S.)


• SYSPRO Proprietary Limited (South Africa)


• Focus Softnet Pvt Ltd (India)


• Epicor Software Corporation (U.S.)


• Priority Software (Israel)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Gulftainer, a UAE-based operator of regional ports and terminals and provider of supply chain and logistics solutions, switched its core ERP operations to the cloud. The company selected RISE with SAP S/4HANA to enhance its global and regional operations with improved digital capabilities.


• November 2023: Priority Software Ltd., a cloud-based business management applications provider, partnered with Canadian Retail Solutions Inc. (CRS) to deliver advanced retail management solutions to CRS's clients. This retail management solution encompasses multiple ERP capabilities with Point-of-Sale and retail management capabilities to improve business efficiency.


• April 2023: 4iApps Solutions Private Limited implemented Oracle Fusion Cloud ERP to transform the existing systems of the ground handling services company in Oman. The Oracle cloud-based ERP solution will help streamline business operations and improve process integration efficiency.


• June 2022: Odoo SA, an open-source business software provider, expanded its global footprint in Egypt. The company delivers OdooERP software to the Egyptian tax authority to carry out the e-invoicing process effectively and seamlessly.


• June 2021: Abu Dhabi Precast declared that it has chosen the Epicor Cloud-ERP solution to resolve different operational challenges of various industry verticals. The company selected the ERP solution generated by UAE-based Epicor partner Index InfoTech to deliver rich quality products.

REPORT COVERAGE

The study on the market includes prominent areas globally to offer enhanced knowledge of the industry verticals. Moreover, the research offers insights into the most recent endeavors and industry developments and an analysis of high-tech solutions being adopted increasingly across the globe. It also highlights some of the growth-stimulating factors and elements, allowing the reader to obtain a comprehensive understanding of the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 8.3% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Enterprise Type Small & Medium-sized Enterprises (SMEs) Large Enterprises By Deployment Cloud & Hybrid On-Premises By Business Function Financial Management Human Capital Management Supply Chain Management Customer Management Inventory and Work Order Management Others (Sourcing and Procurement) By End-User Manufacturing Banking, Financial Services, and Insurance (BFSI) IT and Telecommunications Retail and Consumer Goods Healthcare & Life Sciences Transportation and Logistics Government Others (Aerospace and Defense) By Country Turkey By Business Function Israel By Business Function GCC By Business Function North Africa By Business Function South Africa By Business Function Rest of the Middle East & Africa By Business Function