Education ERP market size has shown exponential growth over the years due to the current digital revolution. According to a study, the Education ERP was valued at $12.21 billion in 2019 and is expected to reach $33.24 billion by 2027. Furthermore, the availability of different electronic devices, including laptops, smartphones, and tablets, aid penetration to cater to the ever-increasing demand for video-based learning.
The global pandemic has disrupted the entire world resulting in an ever-increasing demand for automation and administrative applications, which is why the Education ERP has shown a growth in CAGR by 15.8% from 2020 to 2027.
Everything About Education ERP
Education Enterprise Resource Planning (ERP) enables educational institutions to implement unified systems by integrating different functions and databases on one platform. For instance, schools can significantly reduce the manual work and total person-hours spent in the admission process by automating the admission process. This way, the process guarantees cost-effectiveness, data security, and of course, enhances overall efficiency.
Insights of Education ERP Market Around the World
The educational institutions strive to improve the education system by introducing video-based learning programs, collaboration among different departments, and most importantly, secure, confidential academic data.
Therefore, SaaS-based and cloud-based ERP solutions are quite popular among academic institutions around the globe to increase the efficiency of the administrative modules, manage academic records and enrollments.
However, there are some challenges and limitations that hinder the Education ERP market growth:
- Integration of advanced ERP system with internal systems and databases
- Constrained customization options in different ERP modules make it challenging for the developers to streamline the processes.
- Training and awareness sessions for the existing staff to understand the new ERP modules.
- Competition from different available administrative systems that are cost-effective and user-friendly.
- High cost of implementing and integrating the ERP systems in academic institutions.
Education ERP Market Segmentation Overview
The education ERP market comprises four segments – component, deployment, geography, and user type.
Education ERP Based on Component
The Education ERP market can be categorized by component into solution and service. For instance, the academic institutions can deploy the ERP solutions of education in different functions, such as:
- Financial management
- Student records and enrollment
- Results compilation
- On-demand videos and lectures
- Personalized student dashboards
- Online assignments and papers
We can infer from the above applications, ERP solution segment holds the largest share in the market.
On the other hand, the ERP segment is further divided into consultation, implementation, training, support, and portal management services. The ERP training and support sector will shortly exhibit promising growth as educational institutions train their existing staff to use the new ERP modules.
Education ERP Based on Deployment
Academic institutions can either opt for an on-premise or cloud-based ERP system. Undoubtedly, cloud deployment offers exceptional integration and a secure data storage facility with future scalability. Conversely, organizations need to install on-premise systems. Not only that, but they have to buy, configure, and deploy the hardware and server, which is undoubtedly a tedious and time-consuming task.
There are pros and cons of both cloud-based and on-premise ERP deployment. The on-premise system is reliable and trusted because all the hardware is available on the premises. However, high-speed Internet ensures seamless and fast connectivity to the cloud ERP. Moreover, organizations can reduce server maintenance and deployment cost by opting for cloud-based ERP solutions.
Education ERP Based on Geography
As suggested by the name, the education ERP market is segregated based on the following main regions:
- Asia Pacific
- North America
- Rest of the world
It’s not surprising to see that North America holds the majority of the ERP market share. Moreover, it’s expected to outperform the other regions in the coming years. The primary reason behind North American dominance is the increased investment. Moreover, educational institutions have adopted the ERP system quickly in North America as compared to other regions.
Nonetheless, the Asia Pacific region is also one of the main contributors to the ERP market growth. Many emerging economies, such as China, Japan, and India, are exhibiting growth in video-based learning.
Education ERP Based on User Type
The education ERP market comprises kindergarten, K-12, and higher education. However, out of all the three, higher education holds the most significant industry share. It’s because higher education includes all the universities and government colleges. Moreover, the students and the staff fully understand the ERP system.
However, with the shift in focus towards e-learning, the ERP system in primary education guarantees growth.
Many renowned vendors such as Oracle, SAP, Epicor, and Microsoft offer ERP solutions and services to facilitate the educational sector handling different department tasks.
Moreover, ERP solutions ensure a comprehensive learning management system to facilitate online and on-campus studies. The future is all about digitalization which will surely boost the education ERP market.