Global Enterprise Performance Management Market analysis - 2016 to 2025

What is EPM?

Enterprise Performance Management (EPM) is a process designed to support organizations such as companies, government entities, and nonprofits link their strategies to their plans and execution. EPM includes management processes such as budgeting, planning forecasting, and modeling. In addition, it includes consolidating results and closing books. Moreover, it analyses the performance and helps in making informed decisions. Furthermore, EPM software enables reporting the results to internal as well as external stakeholders. 

Enterprise Performance Management Outlook - 2016 to 2025

After following various surveys and due diligence, we have come up with these interesting figures and analysis. The global enterprise performance management market was valued at $4,738 million in 2016, and is projected to reach $12,562 million by 2025, growing at a CAGR of 11.70% from 2016 to 2025.

Rise in need for making business strategy transparent to all employees, increase in focus on core business, and improvement in performance are some of the major factors that propel the growth of the enterprise performance management market. Furthermore, the rise in adoption of cloud-based EPM across the globe is expected to provide promising opportunities for this market. However, risks in implementation and shifting of the workload from on-premise to cloud hamper the growth of this market.

The global enterprise performance management market is divided on the basis of various factors. It is segmented based on component, deployment, function, industry vertical, and geography. 

By component, the market is divided into software and services. On the basis of deployment, it is categorized into on-premise and cloud. Depending on the function, it is fragmented into finance, human resource (HR), supply chain, and others. According to industry vertical, it is classified into BFSI, IT & telecom, retail, manufacturing, healthcare, energy & utilities, and others. Geographically, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.

The global enterprise performance management market is dominated by key players such as Adaptive Insights Inc., Anaplan, Inc., BOARD International S.A., Host Analytics Inc., IBM Corporation, Infor Inc., Oracle, SAP SE, CCH Tagetik (Wolters Kluwer NV), and Workiva.

 

1) By Component:

It seems EPM software has set of clients and we see marginal increase in the number of clients, licenses. However, the services required to implement, support, enhance, migrate seem to increase rapidly in recent years. So EPM market definitely revolves more around providing services. 

 2) By Geography 

North America is expected to dominate the overall market during the forecast period, as it experiences the highest demand for enterprise performance management software. However, the Asia Pacific Enterprise Performance Management Market would witness market growth of 14.9% CAGR during the forecast period (2019 - 2025). 

3) By Industry Vertical

Later the global financial crisis, the banks have been very conscious about the measure that helps them reduce risk in their balance sheet and are restructuring their cost bases leveraging the economic prosperity and liquidity. However, many banks remain vulnerable to customers' financial circumstances, such as loan debts added with the commercialization of banks gives rise to cut-throat competition.

Thereby, Companies in the BFSI sector are increasingly deploying EPM applications to enable financial planning and budgeting processes streamlining. Blue Link ERP Launched the Financial Report Writer in Aug 2019 that is expected to aid its deployment in the BFSI sector. Also, industries such as the Swedish banking industry, the Thai banking industry have started to implement progress management solutions into their core operations.

The BFSI segment led the market in 2016, and is expected to dominate in the near future. However, the energy & utility segment is expected to grow at a significant pace during the forecast period.

4) By Vendor

In 2019, the top 10 EPM software vendors accounted for nearly 76.1% of the global Enterprise Performance Management (EPM) applications market which grew 8.5% to approach nearly $3.9 billions in EPM license, maintenance and subscription revenues, slightly above our previous projection.

Last year Oracle led the pack with a 27.6% market share riding on a 25% jump in EPM license, maintenance and subscription revenues. SAP was #2, followed by IBM, Anaplan and Workday in that order.

 

5) By Business Function

The Enterprise Performance Management market by business function has been segmented into finance, Human Resource (HR), supply chain, sales and marketing, and others, which include IT, operations, and support and maintenance. The HR segment to grow at the highest CAGR, as the HR department needs to maximize the potential of their workforce while increasing efficiency. EPM solutions offer better insights into human capital performance and streamline HR processes, right from recruitment to retirement.

Finance will continue to lead the EPM market. 

6) By Deployment 

Integration of cloud-based infrastructure and business analytics is expected to provide lucrative growth opportunities.

Faster time to value (TTV), reduced total cost of ownership (TCO), and increased autonomy are some of the factors, which are expected to fuel the market demand during the forecast period. The adoption of cloud-based EPM software is increasing significantly, owing to the benefits such as real-time availability of operational and financial data that is not available using existing legacy and on-premise systems. Infrastructure costs ranging from operating system updates to server upgrades also increase the costs of maintaining on-premise enterprise performance management systems, without an assurance of higher quality. Cloud-based EPM application updates are automatically pushed out to customers. Thus, all these factors are anticipated to offer future opportunities for cloud-based EPM software market. 

Disclaimer: The research methodology used to estimate and forecast the global Enterprise Performance Management market size began with capturing data from key vendors’ revenue through secondary research, annual reports, government publishing sources, the technical and market blogs, Factiva, Bloomberg, and press releases. So, numbers are not accurate but close to accurate.