expand and conquer

After dipping to $9 billion in 2001, the worldwide market for enterprise resource planning (ERP) solutions continues to rebound. In 2005, the market reached a record $16.67 billion, according to a new study by ARC Advisory Group. And it appears there's more growth ahead. ARC projects that the market will exceed $21 billion in 2010.

What's driving the recovery? A major factor has been the ERP vendors' expansion into applications that go beyond manufacturing, says ARC Senior Analyst Steve Clouther, the principal author of the report. "While ERP had its genesis in manufacturing," he says, "users from a wide range of other industry sectors are taking advantage of the wide range of benefits."

Historically and traditionally, ERP, which has roots in manufacturing resource planning (MRP), was exclusive to the manufacturing domain, the report explains. But for the past decade, major portions of ERP solutions—financials, human resources, and, more recently, supply chain management applications—have found their way into sectors like government, banking/finance, health, retail, distribution and education/administration under the ERP umbrella. And there may be more to come. In India, the ARC study notes, ERP is now being sold in the real estate and construction markets.

For more information on the study, Enterprise Resource Planning Worldwide Outlook, visit www.arcweb.com/res/erp.