Discrete Manufacturing, Services, Process Manufacturing, and Government are the Leading Vertical Markets for ERP Use, IDC Reveals
FRAMINGHAM, MA – MAY 6, 2002 – Driven by ecommerce and mergers and acquisitions, the worldwide enterprise resource planning (ERP) market will grow to almost $117 billion by 2005, representing a compound annual growth rate (CAGR) of 10.5%, according to a new report published by IDC. This study, which provides a comprehensive overview of global ERP deployment in different vertical markets, reveals that companies that have already made big investments in building ERP systems and corporate Web portals will increasingly use these technologies to conduct business transactions online.
From the worldwide vertical market perspective, the leading industries that use ERP include discrete manufacturing, services, process manufacturing, and government. Resource industries, utilities, and communications and media will experience a growth rate higher than that of the overall market, IDC’s research shows.
"The communications and media sector is one that will experience the biggest change in terms of regional contribution," said Anne Lu, an senior analyst with IDC’s Vertical Markets research team. During the forecast the ERP market for this sector is expected to shift from North America to the rest of the world. The spending on ERP by Asia/Pacific, Latin America, and EMEA will be on the upward expectation."
Other key findings in this study include the following:
The market share of the construction sector in Western Europe will decrease, but the same sector is expected to expand its investment into ERP systems in Asia/Pacific.
For the Asia/Pacific market, the opportunity for ERP exists especially in the communications and media, banking, construction, and healthcare sectors.
In Latin America and EMEA, the biggest opportunity exists in the communications and media, banking, financial, and insurance markets.
This study, Worldwide ERP Spending by Vertical Markets Forecast and Analysis, 2001-2005 (IDC #26933) provides detailed insight into the dynamics and opportunities of different vertical markets for ERP investment. It overviews the markets for software, hardware, network equipment, and services that are designed to automate ERP in 16 industries in five worldwide regions, which include North America, Western Europe, Asia/Pacific, Latin America, and EMEA.
In-depth analysis about the drivers and trends on certain industries provides an overview for the dominance of specific sectors and high-growth sectors. The data is presented for 2000 through 2005 and includes five-year compound annual growth rates (CAGRs).
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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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