According to the Market Statesville Group (MSG), the global Open Source ERP Software Market size is expected to grow at a CAGR of 4.5% from 2023 to 2030.

Enterprises resource planning (ERP) is a software system whose source code is publicly available. Companies can customize the ERP system using an open-source (ERP) model with their own IT department instead of paying for vendor licensing and customization services. Particularly, open-source ERP provides an option for small and medium-sized businesses that want to upgrade their ERP systems without paying a lot of licensing and support costs. There are several advantages of open source ERP as it offers a high degree of flexibility that increases the adaptability of the source code to individual requirements and processes. Here is some example of open source ERP-:GNU/Linux, Mozilla Firefox, VLC media player, SugarCRM, and GIMP. Open source ERP can be harder to use and adopt due to difficulty setting it up and the lack of friendly user interfaces, and it can pose compatibility issues also. When attempting to program proprietary hardware with OSS, there is often a need for specialized drivers that are typically available from the hardware manufacturer.

COVID-19 Impact on the Global Open source ERP software Market

During the COVID-19 pandemic, cloud-based ERP programming called for a surge to support organizations. ERP programming arrangement assumed a crucial part in keeping the whole business measures effectively working through different highlights like far-off access, computerized information trade, robotized detailing, and constant work floor control. These pandemics also constrain organizations worldwide from moving their real workplaces to distant workplaces. This factor caused the high adoption of ERP programming and subsequently met the development of the ERP market.

Global Open-Source ERP Software Market Dynamics

Drivers: Diverse Platform and No Need for Installation

The business can take advantage of more open and interconnected platforms. This is especially useful for smaller businesses that don't need a highly customized commercial ERP solution. A platform that is interconnected to company hardware or other applications provides a solution that is compatible with them. Although, there’s no need for licensing the software or lengthy installations. High licensing costs can accompany vendor-licensed products; an open-source ERP system removes this initial cost by making it a more convenient and appealing solution for many businesses.

Restraints: Less Connectivity Support and Inconsistency of Data

One of the biggest downsides of this software is that the quality and accessibility of support are very limited. Although community support is available, some companies still face the problem of not receiving troubleshooting help and other types of intermediaries support. This is very rare to find an open-source ERP that provides you to reach via telephone, that is why vendor licensed their products to access the 24/7 support they provide through specific channels. The open-source ERP software has several complex data solutions, including troubleshooting and bugging issues. Thereby, large and small organizations will need IT professionals to tackle such issues. However, constraint budgets and limited capital of small organizations may hamper the market’s growth over the forecast period.

Opportunities: Growth in Defense and Aerospace Industries

The aerospace industry has witnessed significant growth in the past decade. The Aerospace industry is like a coin with two heads. In addition, the commercial aviation segment is expanding rapidly, as is the budget-conscious defense sector. It creates lucrative opportunities for the ERP systems in the commercial sector, the next-gen commercial airliners such as Boeing 737 and the surge in demand for private jets have lifted the production of aircraft. Further, the key market players are investing in better solution offerings and grabbing the geographical presence in the open-source ERP software market. In the defense segment, the U.S. military budget restraints place pressure on the manufacturers to reduce costs while maintaining an optimum level of quality at the same time. In this scenario, ERP software plays a vital role in helping manufacturers remain competitive in the market. ERP software vendors are having difficulty keeping up with the need for installation support. Ed Tale Rico, aerospace and defense director, Infor, said that the demand had grown faster than the growth of the company’s consulting services.

Scope of the Global Open-source ERP software Market

The study categorizes the open-source ERP software market based on deployment, organization size, and end-user at the regional and global levels.

By Deployment Mode Outlook (Sales, USD Million, 2017-2030)

• Cloud
• On-Premises

By Organizational Size Outlook (Sales, USD Million, 2017-2030)

• Small and Medium-Sized Companies
• Large Companies

By End-User Outlook (Sales, USD Million, 2017-2030)

• Information Technology
• BFSI
• Telecommunication
• Healthcare
• Retail
• Education

By Region Outlook (Sales, USD Million, 2017-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Cloud deployment accounts for the largest market share worldwide

Cloud-based open source ERP solutions are comparatively cheaper, benefiting small and large enterprise organizations. The vendor installs cloud-based ERP software on its servers instead of the companies. Some of the solutions are provided based on services and are also called SaaS ERP solutions. Further, with growing digital transformation, various end-users like education firms, advertising and media platforms, IT services, manufacturing department, healthcare sectors, retail, transportation and logistics, and wholesale distributors, among others, have started incorporating open-source cloud ERPs. Apart from this, COVID-19 also plays a vital role in the growth of cloud-based ERP.

North America accounts for the highest market revenue

The ERP market in North America is projected to grow at a subsequent growth rate and present strong opportunities for ERP developers in the region. An increase in the demand among the organizations to improve operational efficiency and streamline business processes are the major factors that help the market grow in the ERP field. The majority of the manufacturing companies have deployed ERP in the North American region.

Competitive Landscape - Global Open-source ERP software Market

Major players in the global open-source ERP software market are:

• Odoo
• Metasfresh
• ADempiere
• Samsung
• Apache OFBiz
• Dolibarr
• Tryton
• Axelor ERP
• xTuple PostBooks
• NetSuite
• INOERP

Recent Developments

• In August, 2021, Odoo, an open-source, all-in-one business software, announced that it had raised $ 215 million from Summit Partners as a growth of equity investor.
• In April 2021, Samsung Electronics launched its N-ERP (Next Generation – Enterprises Resource Planning) system in Southwest Asia, Southeast Asia, and China. The newly launched product N-ERP is the upgraded version of the current G-ERP (Global ERP) that manages the company’s global operation throughout manufacturing sites and sales offices worldwide. Thus, with the introduction of the new solution, Samsung had expanded its product portfolio and geographic presence in the ERP software.

Key Issues Addressed

• What is the market size by various segmentation of the open source ERP software by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the open source ERP software market?
• What are the key opportunities and trends for manufacturers involved in the open-source ERP software supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of open source ERP software in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.