Enterprise Resource Planning Software - Japan

The Enterprise Resource Planning Software market in Japan is expected to generate a revenue of ¥US$1.91bn by 2024.
This projection indicates a steady growth rate of 2.81% annually, resulting in a market volume of ¥US$2.20bn by 2029.
In terms of average Spend per Employee, the Enterprise Resource Planning Software market in Japan is projected to reach ¥US$27.66 in 2024.
When compared globally, United States is expected to generate the highest revenue in the Enterprise Resource Planning Software market, reaching a staggering US$26.70bn in 2024.
The adoption of Enterprise Resource Planning software in Japan is driven by the country's strong focus on efficiency and streamlining business processes.

Definition:

The Enterprise Resource Planning (ERP) Software market covers software applications that support organizations in managing, integrating, and optimizing important business activities related to resources such as people, finance, capital, materials, and orders. These software applications help organizations to streamline their internal business processes, increase efficiency, and make more informed decisions.

Products in the Enterprise Resource Planning Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Additional Information:

The Enterprise Resource Planning Software market comprises revenue and revenue growth as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by enterprises (B2B) and governments (B2G).

Key players in this market include SAP, Intuit Inc., Oracle, Infor, and Sage.

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Financial applications, such as QuickBooks, Oracle NetSuite, and Xero
Asset management applications, such as Asset Panda, ManageEngine AssetExplorer, and GoCodes
Procurement software, such as SAP Ariba, Kissflow, and Procurify
Resource planning, such as Smartsheet, Float, and Hub Planner

SCM Software, such as Anvyl, Tada, and Magaya Supply Chain
BI software, such as Microsoft Power BI, SAS Business Intelligence, and MicroStrategy
CRM software, such as Salesforce Sales Cloud, Monday sales CRM, and HubSpot CRM

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.

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.

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