Increase in the adoption of cloud-based EPM software to support business functions
The global Enterprise Performance Management (EPM) Market size is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.0% during the forecast period, to reach USD 8.3 billion by 2027 from USD 6.0 billion in 2022. EPM software has gradually developed from a mainframe system to the internet, web browser-based systems, and client-server. Currently, the demand for cloud-based solutions is significantly rising in the market, as the organizations are rapidly adopting cloud-based EPM. Cloud-based EPM solutions are facilitating the improved accessibility to more small and medium organizations as they do not require high-end infrastructure, thereby reducing the cost of deployment the cloud-based EPM software. This cost is around one-fourth of the total cost of implementation of on-premises application software. Moreover, cloud empowers finance to support and control both the initial implementation and the ongoing maintenance of the EPM solution. Many organizations are adopting cloud-based EPM software to extend support to various business functions. Though the spending on software applications is low, spending on SaaS software products is rapidly growing. Thus, cloud-based EPM software is gaining traction in the market.
The financial consolidation segment is expected to to perform efficiently during the forecast period.
Financial organizations use legacy tools for the financial consolidation process. This process is complex, time-consuming, and loaded with risks of data integrity errors. Financial consolidation is a process that enterprises conduct on a monthly or quarterly basis to reconcile, translate, eliminate, consolidate, and report financial information. The financial consolidation application is designed to help organizations manage and streamline their financial close process. This close process includes the closing of sub-ledgers and General Ledger (GLs), collection and consolidation of financial results, management, and financial reporting, as well as regulatory filings. Consolidation aims to collect and transform data into financial presentations. EPM solutions offer decision-makers complete visibility into the entire close, consolidation, data collection, and reporting activities. Additionally, they offer robust automation, process-driven workflow, stringent controls, and detailed audit logs to modernize the legacy approaches.
The IT vertical expected to grow with steady CAGR during the forecast period
The IT department needs to align IT plans with strategic business goals to ensure a proper service level for business operations. EPM solutions combine data from different sources, analyze and process data at the granular level, and provide actionable insights for better decision-making. Anaplan and BOARD are some of the vendors offering EPM solutions for these IT business functions. The demand for EPM solutions has increased among enterprises due to the rising demand to make business strategies transparent to all employees in the organization. In times of increasing economic uncertainties and disruptive technology evolution, organizations need to quickly adopt new digital business models without overlooking their daily operational efficiency and cost control.
Europe to hold the second largest market size during the forecast period
Europe is projected to account for the second-largest market size in the global EPM market by 2027. Countries, such as the UK, Germany, and France, are the major adopters of EPM solutions in Europe. These countries have been the frontrunners in terms of EPM adoption. Robust economic infrastructure and high internet penetration make Europe one of the top markets for solutions. However, technology adoption is low in Europe compared to the US. European brands are adopting digital transformation through migration from legacy systems to virtual environments slowly. According to the data of the EIB Investment Survey, digital adoption rates are lower in Europe than in the US. Only 66% of manufacturing firms in the EU, compared to 78% in the US, have adopted at least one digital technology. As digital transformation is becoming a key to achieving future growth, the European government is investing in digital technologies. Thus, European organizations take several steps to achieve economic development and growth. For instance, the European Commission continuously invests in its Digitizing European Industry (DEI) initiative to help European businesses across industries and regions benefit from digital innovations. In addition to the above developments, enterprises in verticals across Europe have started realizing the benefits of deploying EPM solutions into their operations to enhance decision-making.
In the process of determining and verifying the market size for several segments and sub segments gathered through secondary research, extensive primary interviews were conducted with the key people. The breakup of the profiles of the primary participants as follows:
- By Company Type: Tier I:34%, Tier II: 28%, and Tier III:38%
- By Designation: C-Level:23%, D-Level:36%,and Others:41%
- By Region: North America:45%, Europe:23%, Asia Pacific: 19%, and RoW: 13%
The report profiles the following key vendors:
- Oracle (US)
- IBM (US)
- Infor (US)
- SAP (Germany)
- Anaplan (US)
- Workday (US)
- Planful (US)
- Epicor Software (US)
- Unicom Systems (US)
- Workiva (US)
- Unit4 (Netherlands)
- OneStream (US)
- BearingPoint (Netherlands)
- Broadcom (US)
- Board International (Switzerland)
- LucaNet (Germany)
- Prophix (Canada)
- Vena Solutions (Canada)
- Solver (US)
- Kepion (US)
- Jedox (Germany)
- Corporater (Norway)
- Wolters Kluwer (Netherlands)
- insight software (US)
- SAS (US)
- Longview (Canada)
- Bright Analytics (UK)
- Centage (US)
- InPhase (UK)
- Datarails (Israel)
- IDU (South Africa)
- Calumo (Australia)
- deFacto Global (US)
- Syntellis (US)
- Achieveit (US).
Research Coverage
The report segments the global enterprise performance management market by component, Solutions and Services. By the deployment model, the enterprise performance management market has been segmented into cloud andon-premises. Based on application, the market has been classified into Enterprise Planning and Budgeting, Financial Consolidation, Reporting and Compliance, Integrated Performance Management System, and others. Based on business function, the enterprise performance management market has been classified into Finance, Human Resources, Supply Chain, Sales and Marketing, and IT. Based on organization size, the market has been classified into Small and Medium-sized Enterprises (SMEs) and large enterprises. By vertical, the enterprise performance management market has been classified into BFSI; Manufacturing; Healthcare and Lifesciences; IT and ITeS; Government and Public Sector; Telecommunications; Retail and Consumer Goods; Media and Entertainment and others. By region, the market has been segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Key Benefits of Buying the Report
The EPM market report will help the market leaders/new entrants in the enterprise performance management market with information on the closest approximations of the revenue numbers for the overall enterprise performance management market and the sub segments. The report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
