Enterprise Performance Management Software (EPMS) Market

Enterprise Performance Management (EPM) Software Market Outlook (2024 to 2034)

The global enterprise performance management (EPM) softwaremarket is estimated to be valued at US$ 3,940.3 million in 2024 and is forecast to reach a value of US$ 6,182.9 million by 2034, with a projected CAGR of 4.6% from 2024 to 2034.

The enterprise performance management (EPM) software market consists of tools designed to help organizations plan, manage, and analyze their operations. These solutions typically include elements of budgeting, forecasting, financial integration, reporting, analytics, and process management.

EPM software market has seen steady growth due to increasing demand for data-driven decision-making, increased budgets, and the need to better track performance across projects. Widespread technological advancements, including AI, machine learning, and the integration of predictive analytics into EPM solutions, are likely to play a more significant role in boosting product demand.

Management (EPM) is a type of software designed to help organizations connect their systems to processes and operations. EPM software has a variety of features associated with business processes such as budgeting, scheduling, forecasting, and modeling.

EPM software allows results to be compiled and books closed in a timely manner. EPM software also has a feature that allows internal and external stakeholders to report and analyze performance and check whether the organization’s performance is aligned with the organization’s vision and mission as planned significant role in shaping the market.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 3,940.3 million
Forecasted Market Value (2034F)	US$ 6,182.9 million
Global Market Growth Rate (2024 to 2034)	4.6% CAGR
Services Segment Growth Rate (2024 to 2034)	6.6% CAGR
On-premises Segment Growth Rate (2024 to 2034)	5.3% CAGR
North America Market Share (2024)	28.6%
East Asia Market Share (2024)	36.5%
Key Companies Profiled	Anaplan Inc. Vena Solutions Board International SAP Prophix Software IBM Oracle Workday Sisense Ltd Corporater AS

Which Factors are surging the Demand for Enterprise Performance Management Software (EPMS)?

“Increasing Emphasis on Data-Driven Decision-Making within Organizations”.

Data has become an invaluable asset for businesses across industries. EPMS solutions enable companies to collect, manage, analyze, and visualize vast amounts of data related to their performance, finances, operations, and other crucial aspects of the business. This data-centric approach empowers organizations to make informed, strategic decisions.

In today's intricate and ever-evolving business environment, companies face a myriad of challenges, from fierce global competition to shifting consumer trends and rapid technological progress. Enterprise Performance Management Software serves as a crucial compass in deciphering this complexity, offering invaluable insights that empower intelligent decision-making.

Businesses are continuously striving to enhance their performance, whether it is financial optimization, operational efficiency, or strategic planning. EPMS tools equip organizations with the functionalities required to streamline processes, allocate resources effectively, and align strategies with objectives. EPMS software assists in ensuring accuracy and compliance in financial reporting, planning, and other critical areas, thereby addressing regulatory requirements effectively.

“Expansion of Businesses is a Significant Driver Fueling the Growth of the Enterprise Performance Management Software (EPMS) Market”

As businesses expand their operations geographically or diversify into new products and services, the complexity of managing varied operations increases. EPMS tools offer scalability, allowing these expanding businesses to efficiently manage and coordinate diverse activities while maintaining centralized control.

EPMS solutions provide a standardized platform for planning, budgeting, reporting, and analytics, ensuring consistency and alignment of strategies across the expanded business footprint.

What is Restraining the Expansion of the Enterprise Performance Management Software (EPMS)?

“High Cost of the Software May Hamper the Market Growth”

Rising concerns regarding data security and privacy are significant barriers to adopting cloud-based EPM solutions. Some businesses, particularly in highly regulated industries, might be hesitant to migrate sensitive financial data to the cloud due to security vulnerabilities and compliance issues.

The high initial investment and ongoing costs associated with EPM software, including licensing fees, customization, maintenance, and support, might pose financial challenges for smaller or mid-sized businesses.

This can hinder adoption, especially when considering alternatives or sticking to traditional methods. In addition, a lack of awareness about how these tools can streamline processes, improve decision-making, and boost overall performance can result in lower adoption rates.

Country-wise Insights

The North American enterprise performance management software market is poised for exceptional growth, projecting a CAGR of 3.8% through 2034, driven by increased demand in key countries in the United States and Canada. In 2024, the United States will dominate the industry with an estimated 81.5% market share.

Meanwhile, the East Asia EPM software market is anticipated to exhibit substantial progress, aiming for a 5.1% CAGR through 2034. In East Asia, China emerges as the key player in the industry, commanding a significant share of 38.4% in 2024.

Why is the United States Dominating the Enterprise Performance Management Software (EPMS) Market?

“Rising Demand in Various Enterprises to Boost the Market Growth in United States”

Attribute	United States
Market Value (2024)	US$ 918.4 million
Growth Rate (2024-2034)	3.6% CAGR
Projected Value (2034)	US$ 1,302.6 million

The United States is forecast to hold 79.5% of the North American market share by the end of 2034. The growing emphasis on data-driven decision-making was driving the demand for EPM software. Businesses in the United States were seeking robust solutions that could process large volumes of data and provide actionable insights for strategic planning and performance management.

Increasing stringent regulatory compliance standards are fueling the adoption of EPM software in the country. These tools assisted companies in meeting regulatory requirements, especially in finance-related functions like financial reporting, budgeting, and compliance management.

The growing focus on strategic business planning and staying competitive drives the need for EPM software to facilitate these processes and provide the necessary tools for scenario modeling, forecasting, and predictive analytics.

Why is China Emerging As a Lucrative Market For EPMS?

“Increasing Government Initiatives to Boost the Market Growth in China”.

Attribute	China
Market Value (2024)	US$ 851.4 million
Growth Rate (2024-2034)	5.0% CAGR
Projected Value (2034)	US$ 1,381.8 million

China is predicted to have 58.2% of the East Asia market revenue by 2034. The rapid economic growth and the expansion of its businesses, both domestically and internationally, were driving the need for robust performance management tools in China. As companies expanded, the complexity of operations increased, necessitating sophisticated EPM solutions for efficient management.

The increasing government initiatives aimed at enhancing transparency and compliance in financial reporting were encouraging businesses to invest in EPM software. These tools helped companies adhere to regulatory requirements and maintain accurate financial records.

Growing emphasis on data-driven insights. EPM software enabled Chinese businesses to harness their data for actionable insights, facilitating informed decision-making across various functions.

Category-wise Insights

Based on the component, the services segment is estimated to hold a 76.3% market share in 2024. Simultaneously, the software segment is anticipated to secure a 23.7% share, contributing significantly to the EPM software market growth. Based on deployment, the on-premises segment marks its dominance in the industry, with a share of 77.3% in 2024.

Why is the Services Segment Leading the Market?

“Services Segment Generates High Revenue”

Attribute	Services
Segment Value (2024)	US$ 3,006.4 million
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034)	US$ 4,680.5 million

EPMS services offer a holistic approach to performance management. They consolidate various aspects such as budgeting, forecasting, financial consolidation, reporting, and analytics into a unified platform. This integration facilitates a comprehensive view of an organization.

Businesses strive for operational efficiency and resource optimization. EPMS services streamline processes, identify inefficiencies, and optimize resource allocation. This leads to improved productivity and cost-effectiveness, critical factors in competitive markets.

Which is the leading Deployment Type in the EPMS Market?

“On-Premises Segment Account for a High Market Share”

Attribute	On-Premises
Segment Value (2024)	US$ 3,045.9 million
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034)	US$ 4,816.5 million

Based on deployment, the on-premise segment is forecasted to hold 77.9% of the EPMS market share by 2034. On-premises EPMS deployment allows for better integration with existing systems without major disruptions.

On-premises deployment often allows for more extensive customization and control over the software environment. This level of control can be beneficial for organizations with unique requirements or specific workflows that are not easily accommodated by cloud-based solutions.

While the initial investment for on-premises deployment can be significant, some companies perceive long-term cost savings as they don't have to pay recurring subscription fees associated with cloud services. Over time, they may view on-premises deployment as more cost-effective.

Competitive Landscape

The leading players in the EPM software market are investing in R&D to enhance their software's capabilities, integrating AI, machine learning, predictive analytics, and user-friendly interfaces to meet evolving customer needs. Market players are expanding their product portfolios through acquisitions, partnerships, or in-house development.

• In December 2022, Vena announced a strategic collaboration with Fluence Technologies, specializing in financial consolidation, closing, and reporting software tailored for rapidly growing businesses. This partnership aims to provide an integrated solution that empowers Financial Planning and Analysis (FP&A), extended planning (xP&A), and financial close management. The joint offering targets customers of both Vena and Fluence, offering a comprehensive suite of tools and functionalities to streamline and enhance financial processes for these businesses.

• Arab Business Machine, a prominent value-added distributor of top-tier brands in the Middle East, has chosen to integrate Anaplan's robust planning platform and specialized demand Planning application into its operations. This adoption aligns with Anaplan's suite of Supply Chain Applications, enhancing Arab Business Machine's capabilities in planning and optimizing their supply chain processes.

Some of the key companies in the enterprise performance management software industry are Anaplan, Inc, Vena Solutions, Board International, SAP, Prophix Software, IBM, Oracle, Workday, Sisense Ltd, and Corporater AS.

Enterprise Performance Management Software (EPMS) Market -Key Segments

• By Component :

  • Software
  • Services

• By Deployment :

  • Cloud
  • On-premise

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • South Asia and Pacific
  • East Asia
  • Middle East and Africa