According to the Market Statsville Group (MSG), the global enterprise performance management market size is expected to grow from USD 5,593.0 million in 2021 to USD 10,110.9 million by 2030, at a CAGR of 6.8% from 2022 to 2030. Enterprise Performance Management (EPM) is a technique that helps organizations such as governments, businesses, and non-profits integrate their strategy, plans, and execution throughout the organization hierarchy. It also covers the consolidation of results and the creation of yearly reports. Furthermore, it analyses performance and aids in making educated decisions. Furthermore, EPM software simplifies reporting outcomes to internal and external stakeholders. Some primary drivers of corporate growth are the growing need for business transparency for all workers, more emphasis on core business, and enhanced performance. Furthermore, the global adoption of cloud-based EPM is likely to present significant potential for this industry. The difficulties in migrating and deploying data from on-premise to the cloud are projected to limit market growth during the forecast period.
The Global Enterprise Performance Management Industry is increasing rapidly as a result of various factors such as automation of industrial management and its processes, increase in digital transformation, less maintenance, and lower costs associated with cloud-based enterprise performance management. Markets are evolving as a result of numerous causes such as new business trends, shifting customer tastes and behaviors, technology improvements, and so on. Thus, businesses want more adaptable and mobile solutions to keep up with changes in the global market, industries, and technology, among other things. Cloud-based corporate performance management solutions give additional flexibility and mobility to businesses.
However, the complexity associated with integrating EPM technologies and toolsets, the impact of adopting digitalization and automated performance parameters, and the rest of the other issues may stifle worldwide market growth throughout the anticipated period. Furthermore, technical breakthroughs such as AI and IoT, increased demand from small and medium organizations, the thriving global IT & telecom sector, and other reasons are generating new potential for the Global Enterprise Performance Management Market to grow rapidly.
Many businesses have had to change their rules, laws, compliance, and policies to keep their employees safe during COVID-19. The inability of the staff to move and coordinate with HR was the primary cause of the business interruption. The causes of this include the travel and border restrictions enforced by the federal and state governments. To preserve operational efficiency, firms have been pushed to adapt their operating methods and reevaluate operational choices due to social alienation. Governments throughout the world are collaborating with cloud providers to combat the effects of the COVID-19 pandemic.
Organizations use EPM systems to monitor their financial performance on a daily basis. A well-equipped EPM system helps the firm to retain team efficiency and avoid manual activities. Using EPM technology to enable critical parts of multiple business processes fosters organizational development, profitability, and responsibility. EPM gives insight across all business segments and measures each business segment's cost and profitability. This feature may be used to foresee and forecast company requirements as well as adapt to changing economic demands in a competitive market. As a result, implementing EPM provides improved returns and margins and identifies opportunities to improve profitability and business performance.
EPM, for instance, provides insurance businesses with a cost management and profitability analysis tool that runs extensive calculations to determine profit potential. EPM provides manufacturers with exact cost and analysis tools in real-time, allowing them to increase profitability while safeguarding margins.
The risk factors associated with the effective adoption of EPM systems include a lack of technical skills and technological infrastructure. EPM deployment necessitates technological advances such as installing new software and hardware. The project scope determines the application size, the number of end users, and the team size. Because most firms lack a well-equipped infrastructure to install the EPM system to match the business processes as per the application need, functional and technical competence is required to determine the business requirements and build the application appropriately. However, tailoring the EPM system to the current business processes may be costly and time-consuming.
EPM software has progressed from mainframe to client-server, internet, and browser-based applications. Cloud-based software is in high demand, and the industry is increasingly changing toward cloud-based EPM software. Because there is no demand for well-equipped infrastructure, cloud-based software makes EPM more accessible to more enterprises, lowering the cost of installing the EPM software. Implementing cloud-based EPM software is one-fourth of the entire cost of on-premises application software deployment. Furthermore, the cloud enables finance to assist and oversee the initial setup as well as the continuous maintenance of the EPM solution. Many businesses use cloud-based EPM software to serve numerous business tasks.
The study categorizes the enterprise performance management market based on application, component, business function, deployment model, verticals, and organization size at regional and global levels.
Based on the deployment model, the enterprise performance management market is divided into cloud, and on-Premises. The growth of EPM solutions has been fueled by the growth of cloud services, which is expected to be fueled by government-funded infrastructure development projects, eGovernment initiatives, transformations in the BFSI, IT, and ITeS verticals, and diversification strategies adopted by other verticals. Because of its scalability and flexibility, cloud-based EPM systems are becoming more popular. More firms are using this software to improve their financial procedures. Cloud deployment is becoming more popular since it employs contemporary, sophisticated analytics provides real-time information, and allows for the integration of corporate operations. The cloud deployment model allows for simple maintenance and upgrades and 24/7 access for users. As a result, the need for EPM software solutions is increasing.
Based on the regions, the global enterprise performance management market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. The Asia Pacific enterprise performance management market is expected to grow at the fastest CAGR during the forecast period due to increased acceptance of modern technology, economic improvements, an increasing rate of digitization, and large expenditures by EPM solution providers. Moreover, numerous corporate companies that provide EPM solutions and services are increasing their reach in the Asia Pacific in order to provide customized products to local clientele. Various sectors in India, Japan, China, Australia, and Singapore use EPM systems to obtain benefits, including cost-efficiency, transparency, visibility, and operational excellence. Malaysia Airlines and Singapore Post were assisted in implementing EPM solutions by Hypercube Consulting, an EPM consultant solution and service provider.
The global enterprise performance management market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
Major players in the global enterprise performance management market are:
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