Preliminary results show that 2006 has been a better year for the ERP applications market than expected in Western Europe. After disappointing growth of only 2.5% in 2005, growth in 2006 is currently estimated to have been 6.8%. IDC expects this positive trend to continue and has increased its five-year forecast to a CAGR of 5.5%.
2006 appears to be the turnaround year for ERP applications in Western Europe. The European ERP market has benefited from replacements of ERP systems from the late nineties as well as an upswing in business conditions in general in Europe. Mergers and acquisitions have also helped consolidate vendors of questionable financial viability into larger, financially stable vendors, said Bo Lykkegaard, manager of European Enterprise Applications research at IDC. These market improvements witnessed during 2006 have prompted IDC to raise our forecast for 2007 to 2011.
Forecasts by segment reveal that midmarket companies in the 100-999 employee bracket will outspend other company size segments. The study also includes the first ERP application forecast by deployment model (traditional on-premise deployment model versus the much talked about on-demand model). IDC predicts a rapid growth in excess of 50% annually of ERP as a service, particularly in 2008 to 2011. However, on-demand ERP applications are not expected to have a significant revenue impact in the entire ERP market until the end of the forecast period.
The study Western European ERP Applications, Forecast and Analysis, 2007-2011 (Doc LC01P, May 2007) presents initial top-down sizing of the European ERP applications market in 2006 and a forecast of market growth for 2007 to 2011. Market sizing and forecasts are provided for the entire ERP applications market and for a number of segments, including functional market, company size, deployment model, and country. All the 16 countries in Western Europe are forecast individually in this study.
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European ERP Applications Market Back to Healthy Growth as New Trends Kick in, Says IDC
Preliminary results show that 2006 has been a better year for the ERP applications market than expected in Western Europe
