Education ERP market size is estimated to be valued around USD 15 billion by 2024, growing at a CAGR of around 15% from 2016 to 2024.
The ERP system helps in monitoring business resources, such as cash, raw materials, manufacturing capacity, and track position of purchase demands and payroll. The rising demand for administrative applications accompanied by the increasing acceptance of automated system has made the transmission of information exceptionally flexible and sophisticated for end users. These systems enable the integration of numerous functions of an organization in real time to sustain and manage databases efficiently. In educational institutions, these systems are used to govern the admission status & manage the employee payroll. Furthermore, the need to secure organizations’ vital data may fuel the education ERP market growth from 2016 to 2024.
The escalating demand for automated updates and access to authorized users may open lucrative growth opportunities for the education ERP market growth from 2016 to 2024. Furthermore, the rising number of educational institutions owing to the surging educational awareness may have positive impacts on the industry growth over the forecast timeline. SaaS-based ERP applications are progressively considered by educational institutes owing to the low cost associated with their maintenance as well as system updates. The advent of cloud services in the ERP systems is likely to encourage institutions as they enable effective data and software management centrally through a service provider.
Factors, such as increased availability of administrative systems and negligible customization feasibility, may hamper the education ERP market share. The high cost of implementation accompanied by difficulty in integration with existing internal systems may negatively impact the industry growth from 2016 to 2024.
Based on the deployment, the education ERP market size can be segmented into on-premise and cloud. The cloud deployment model is predicted to witness attractive growth prospects owing to high security and data integrity offered. In addition, it ensures better price control and provides flexible and scalable options to ERP solutions.
On-premise models are installed locally using the company’s hardware and servers. It enables organizations to generate, store, and deliver the critical data. It also provides facilities for customization as per the requirements of end users along with the quality assurance and consistency related to the information. This aids in minimizing the data loss, thus enabling institutions to enhance their performance, reduce cost, and sustain in complex environments.
Based on components, the industry can be segmented into solutions and services. The solution component is further categorized into student information system (Sis), HR or payroll, financial management, placement management, transport management, enrollment & admission, etc. The service segment is further segmented into implementation, consulting, training & support, and portal service. The training and support sector is predicted to exhibit attractive growth rates owing to the rising awareness regarding these systems around the globe.
Based on the user type, the education ERP market can be categorized into kindergarten, k-12, and higher education. The higher education segment could account for the key industry share. The consistent growth in primary education and rising adoption of e-learning approaches in primary classrooms is likely to catalyze education ERP market demand.
The education industry is predicted to outsource the complex management process to third party vendors owing to the rising focus on their core competencies by offering high-quality education; this is likely to offer potential growth avenues over the next eight years. Furthermore, these systems are user-friendly and effectively manages the student information system, admission & enrollment system, payroll, placement management, accounting, transport management, etc. Moreover, the need for critical data security among institutions will further contribute towards the education ERP management market growth from 2016 to 2024.
The U.S. education ERP market is anticipated to witness a considerable growth due to the high prevalence of unconventional infrastructure and universities across the region.
The Asia Pacific education ERP market size is anticipated to experience a substantial growth from 2016 to 2024. The growth can be attributed to the rising significance of video-based learning in various economies such as India, China, and Japan. In addition, the escalating prominence of sophisticated systems may catapult the regional growth over the forecast timeline
Key players operating in the education ERP market share include Netsuite, Ellucian, Jenzabar, Unit4, Oracle Corporation, and Epicor Software. Other companies include blackbaud, SAP, Infor, advanced business solutions, and Microsoft. In April 2016, Ellucian launched Banner Finance 9.0, a higher education financial management system. This software is likely to assist colleges and universities in managing financial transactions effectively.