The Enterprise Performance Management (EPM) market is estimated to grow at a CAGR of about 8.46% over the forecast period 2020 to 2025. The increasing need to have a transparent business strategy, growing focus on core business, overall improvement in performance, and rising data-driven decision making in the organization is driving the growth of the EPM market.

  • The increasing regulatory requirements owing to the rising volume and sensitive nature of data being generated across industries are prompting the deployment of EPM software. For instance, to comply with the changing regulations, AirAsia Group Bhd recently deployed EPM software to facilitate its global account reconciliation. The software used will also enable the organization to manage and publish its financial, regulatory, and management reports.
  • The increase in the adoption of cloud-based EPM across the world is gaining traction of the market. For instance, In February 2020, Harper College deployed Oracle Cloud Applications to bring HR and finance teams together, where Oracle ERP Cloud and Oracle EPM Cloud are expected to enable accurate and efficient process financial information, track project statuses, and identify patterns in operational and financial data.
  • The integration of Robotic Process Automation Tools in enterprise performance management is one of the critical EPM market trends that is influencing growth. The inclusion of RPA in the enterprise’s performance management processes will enable employees to focus more on core operations. UiPath and Oracle recently collaborated to combine powerful RPA of the former with Oracle’s cloud platform and business applications to streamline critical workflows and processes.
  • Moreover, the companies are adapting to various merger and acquisition strategy to develop new products and expand its product portfolio to different geographies. ?For instance, In March 2020, Inspirage acquired Vertical Edge Consulting Group to strengthen its capability to implement a full suite of Oracle ERP Cloud applications for companies.
  • COVID-19 is expected to have a positive impact on the market studied. Since the financial disruption for some of the businesses is unprecedented, companies are expected to deploy EPM software for impact analysis. With many companies, like TCS, already planning to restructure business processes, remote performance management modules are also likely to be added to the existing EPM Tools in the future.

Key Market Trends

BFSI Sector is Expected to Account for a major Portion of the Market Share

  • Later the global financial crisis, the banks have been very conscious about the measure that helps them reduce risk in their balance sheet and are restructuring their cost bases leveraging the economic prosperity and liquidity. However, many banks remain vulnerable to customers’ financial circumstances, such as loan debts added with the commercialization of banks gives rise to cut-throat competition.
  • Thereby, Companies in the BFSI sector are increasingly deploying EPM applications to enable financial planning and budgeting processes streamlining. Blue Link ERP Launched the Financial Report Writer in Aug 2019 that is expected to aid its deployment in the BFSI sector. Also, industries such as the Swedish banking industry, the Thai banking industry have started to implement progress management solutions into their core operations.
  • Also, with the introduction of cloud-based bespoke solutions has enabled the broader deployment of EPM solutions across the industry. Oracle offers SAP S/4HANA Finance that is an ERP financial management and accounting software solution that covers everything starting from business planning and analysis to treasury management and collaborative finance operations.
  • Additionally, The global pandemic COVID-19 causing the disruption in business operations in the BFSI sector is expected to enable companies to deploy EPM software for such business impact analysis. Moreover, with the various company working remotely, the EPM software is providing much-needed support to maintain the business requirement’s nitty-gritty. For instance, Oracle Hyperion EPM is evaluating the user environment and determining the needs that are to be tuned to optimize the experience of remote users.

Asia - Pacific is Expected to be the Fastest-growing Market

  • The market growth is expected to be driven by the growth of the end-user segments. The retail and e-commerce vertical is expected to hold the largest market size in the region during the forecast period.
  • As the emerging countries such as India in the region with the growing regulatory controls, rapid and highly competitive business across the industries has increased the need for the guidance of business strategies added with the unprecedented and unrelenting pressure on finance professionals is driving the demand for EPM solutions.
  • For instance, In July 2019, Hindalco Industries Ltd, a subsidiary of Aditya Birla Group, owing to issues with the seamless collection of data and filing the financial reports added with the tight deadline, announced the adoption of the Oracle EMP cloud to streamline its financial reports.
  • Also, the growing 5G networks are expected to aid the remote deployment of such software in end-user segments like banking. The Telecom Regulatory Authority of India has proposed the sale of 20 MHz blocks initially and plans to increase it to three-fold to 7.5 million route kilometers by 2022.
  • Besides, China’s government has launched the ’Made in China 2025’ initiative for improving the country’s manufacturing competitiveness. The goal of upgrading the nation’s manufacturing capacity is expected to lead to higher deployment of such software.

Competitive Landscape

The competitive landscape of the market remains dynamic. The vendors continually add new modules to their existing solutions to aid better performance management of customers.

  • May 2020: Thridware Solution Inc announced the partnership with Strategic iQ solutions, one of the prominent vendors of EMP and other business process integration services. Under the partnership, the company aims to leverage its technical expertise and industry experience to identify, recommend, and develop lifecycle solutions, including financial planning, financial consolidations, profit cost management integrated into the EMP platform.
  • August 2019: Oracle Corporation announced Oracle Blockchain Platform Enterprise Edition 19.3 for On-premise Deployment ideal for customers experiencing various data sovereignty or data residence issues Oracle Cloud Platform. It provides an independently-installable version of the Oracle Blockchain Platform built on Docker containers.
  • May 2019 - Host Analytics Inc, a leading player offering connected financial planning and close solutions, launched a new solution integration with Blackline, to accelerate and automate the financial close, consolidation, and reporting process for midsized and large enterprises.

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