Market Insights Technology Software Enterprise Software

Enterprise Resource Planning Software - Japan

Japan

Revenue in the Enterprise Resource Planning Software market is projected to reach US$1.89bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 3.27%, resulting in a market volume of US$2.15bn by 2028.
The average Spend per Employee in the Enterprise Resource Planning Software market is projected to reach US$28.19 in 2024.
In global comparison, most revenue will be generated in the United States (US$26,440.00m in 2024).

Key regions: Australia, South Korea, China, United States, Japan

Market

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Currency

Analyst Opinion

The Enterprise Resource Planning (ERP) Software market in Japan has been steadily growing over the past few years, driven by a number of factors unique to the country.

Customer preferences: Japanese companies have a strong preference for locally developed ERP software, with many businesses opting for systems developed by domestic vendors. This is due in part to the language barrier, as many Japanese employees may not be fluent in English and may struggle to use software that is not available in Japanese. Additionally, Japanese companies tend to prioritize stability and reliability over cutting-edge features, which may make them more likely to choose established domestic vendors over newer international competitors.

Trends in the market: One major trend in the Japanese ERP market is the increasing adoption of cloud-based ERP systems. This is in line with global trends, as many companies are recognizing the benefits of cloud-based systems such as improved scalability and cost savings. However, in Japan, there is also a growing concern around data security, which has led some companies to opt for hybrid cloud solutions that allow them to keep sensitive data on-premise while still utilizing cloud-based ERP for other functions.Another trend in the Japanese ERP market is the increasing importance of mobile functionality. With many Japanese employees working long hours and spending significant time commuting, mobile ERP solutions are becoming increasingly popular. This trend is also in line with global trends, as more and more companies are recognizing the benefits of mobile ERP solutions for improving productivity and efficiency.

Local special circumstances: One unique aspect of the Japanese market is the prevalence of small and medium-sized businesses (SMBs). While there are certainly large corporations in Japan, the vast majority of businesses are SMBs, which can have a significant impact on the ERP market. Many SMBs may not have the resources to invest in large-scale ERP systems, and may instead opt for more affordable and streamlined solutions. Additionally, Japanese SMBs may have different needs and preferences than larger corporations, which can also impact the ERP market.

Underlying macroeconomic factors: Japan has experienced relatively slow economic growth over the past few years, which has had an impact on the ERP market. Many companies may be hesitant to invest in new ERP systems during times of economic uncertainty, which can lead to slower growth in the market. However, Japan's aging population and shrinking workforce may also be driving demand for more efficient and streamlined ERP systems, which can help companies reduce costs and improve productivity. Overall, the ERP market in Japan is likely to continue growing in the coming years, driven by a combination of global trends and unique local factors.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.