ERP Market in China 2012 Market Research Report
The report begins with the definition of ERP and its key characteristics followed by its historical evolution and framework. The market overview section provides global market size with growth potential for the period 2009-15. It also presents the revenue of global ERP vendors from ERP software in 2010 and their market shares. Domestic ERP market overview provides details on market size in terms of revenue and its growth for the period 2010-16. This section further illustrates the average sales revenue per enterprise during 2008-10. Further, the report exhibits the market share of major ERP vendors in the high-end ERP segment in 2009 and the four distinct groups of ERP vendors existing in the market.
The report discusses the major aspects of ERP selection criteria, followed by the various cost components of ERP installation.
The report covers the benefits of ERP implementation followed by the factors influencing Chinese companies while during their decision making. It also lists the Critical Success Factors (CSF) in ERP implementation in China.
Key factors driving the growth of ERP market in China include wage inflation, increasing demand from SMBs, penetration of ERP in new industries, rising need for management effectiveness, rising automobile production, and opportunity from cloud computing.
The report finds that wage inflation will be a catalyst for expanding ERP usage in China. ERP is increasingly gaining popularity among the SMBs that account for nearly 99% of the total Chinese enterprises. With the major enterprises entering into new industries, usage of ERP will increase to enhance their management systems. China's enterprise management software market witnesses’ rapid growth owing to rising need for cost-effectiveness. Growing automobile sector in China at 10% CAGR during 2007-20 will drive software demands for automakers. Additionally, Chinese government had invested over USD 100 mn in five cities for cloud computing advancement in 2011.
Players operating in the market also face challenges which are impeding their development and growth. Major challenges identified in the report include high cost of ERP implementation, cultural issues, lack of ERP experience, communication barrier and profitability concerns for ERP vendors.
The report finds that lack of ERP adoption in China is primarily due to high cost of implementation. ERP strategic benefits in China tend to get restricted due to difference in management culture coupled with cultural fragmentation in the market. Lack of industry experience, relationships and technology is a major shortcoming for domestic players. Language barrier coupled with profitability concerns for ERP vendors pose major challenges to the sector.
The report also provides the role of the government in the country's software sector influencing ERP. It mentions the measures to be taken in the Beijing's 12th Five Year Plan (2011-2015) furthering development in the software market.
Key trends in the software market include emergence of Chinese ERP software vendors as dominant players, software localization, shift towards high-end large-scale clients, and shift in ERP focus to business processes and increasing mergers & acquisitions.
Key M&A deals taken place during 2010-12 in the domestic ERP industry is also included in the report.
The competition section outlays the competitive landscape of the ERP market in China briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of key players' revenues, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market with a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario.
Key takeaway section summarizes the entire market in terms of opportunities, trends and challenges persisting in the ERP market in China.
Some of the key statistics or factors impacting the ERP market in China covered in the report include global ERP sales and growth, global ERP market (SaaS), global ERP software revenues, global software revenue share, domestic ERP market size, domestic enterprise software market growth, average sales revenue per enterprise, market share of major ERP vendors in the high-end ERP segment, direct benefits from ERP implementation, share of factors influencing Chinese companies in ERP implementation, ratings for critical success factors (CSF) in ERP implementation in China, labor costs in Asian countries, growth in average monthly wage, share of SMEs in total Chinese enterprises, management software revenue growth, growth of automobile production, market share of major ERP vendors, China's ERP market client structure, etc.
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