South Korea ERP Software Market by Component (Software, and Services), Deployment (On-Premise, Cloud, and Hybrid), Business Function (Enterprise Asset Management, Financial Management, Human Capital Management, and Others), Application (Manufacturing, BFS
Description
The South Korea ERP Software Market size was valued at USD 2.08 billion in 2024 and is projected to grow to USD 2.59 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 5.62 billion by 2030, with a CAGR of 16.80% from 2025 to 2030.
South Korea’s aerospace and defence sector is emerging as a key driver of ERP software growth, with the market projected to reach USD 4.46 billion by 2025 and expand at a CAGR of 9.38% through 2033. Accelerated by government initiatives aimed at modernisation and digital transformation, along with rapid growth in commercial aviation, the sector increasingly requires advanced ERP systems to manage complex production workflows, ensure regulatory compliance, streamline supply chains, and harness real-time analytics. The integration of cutting-edge technologies such as AI and IoT further highlights the need for scalable, data-driven ERP platforms, positioning them as essential tools for driving operational efficiency and innovation across the industry.
However, several challenges hinder widespread ERP adoption in South Korea. High implementation costs remain a significant barrier, particularly for small and medium-sized enterprises that struggle to justify the substantial upfront investment. In addition, outdated IT infrastructure and a lack of system standardisation complicate integration efforts across diverse operations. The fast pace of technological advancement in sectors such as aerospace and AI also increases the frequency of required updates and upgrades, raising the total cost of ownership and limiting broader market penetration.
On the other hand, the integration of Internet of Things (IoT) technology with ERP systems is rapidly emerging as a powerful growth accelerator. IoT-enabled ERP platforms provide real-time visibility and enhanced operational control, enabling organisations to track inventory, monitor equipment performance, and predict maintenance needs with greater accuracy. These capabilities significantly improve efficiency in manufacturing, logistics, and aerospace sectors. A notable example is the March 2025 launch of Epicor Kinetic 2025 by Epicor Software Corporation, a next-generation ERP solution featuring advanced IoT capabilities for real-time monitoring and predictive maintenance. This innovation underscores IoT’s transformative role in expanding ERP functionalities and meeting the growing demand for intelligent, connected enterprise solutions.
Segment Overview
The ERP software industry is segmented on the basis of component, deployment, business function, application, end users, and region.
By component, the market is divided into software and services.
By deployment, the market is divided into on-premises, cloud, and hybrid.
By business function, the market is divided into enterprise asset management, financial management system, human capital management, manufacturing and operations, supply chain management, and others.
By application, the market is segmented into manufacturing, BFSI, healthcare, retail and distribution, government, IT and telecom, construction, aerospace and defence, and other industries.
By end-users, the market is segmented into small and medium-sized enterprises and large enterprises.
Key Benefits
• The report provides quantitative analysis and estimations of the ERP software market from 2025 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the ERP software market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the ERP software market is provided in the report.
• The competitive analysis of the market players along with their market share in the ERP software market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.
South Korea’s aerospace and defence sector is emerging as a key driver of ERP software growth, with the market projected to reach USD 4.46 billion by 2025 and expand at a CAGR of 9.38% through 2033. Accelerated by government initiatives aimed at modernisation and digital transformation, along with rapid growth in commercial aviation, the sector increasingly requires advanced ERP systems to manage complex production workflows, ensure regulatory compliance, streamline supply chains, and harness real-time analytics. The integration of cutting-edge technologies such as AI and IoT further highlights the need for scalable, data-driven ERP platforms, positioning them as essential tools for driving operational efficiency and innovation across the industry.
However, several challenges hinder widespread ERP adoption in South Korea. High implementation costs remain a significant barrier, particularly for small and medium-sized enterprises that struggle to justify the substantial upfront investment. In addition, outdated IT infrastructure and a lack of system standardisation complicate integration efforts across diverse operations. The fast pace of technological advancement in sectors such as aerospace and AI also increases the frequency of required updates and upgrades, raising the total cost of ownership and limiting broader market penetration.
On the other hand, the integration of Internet of Things (IoT) technology with ERP systems is rapidly emerging as a powerful growth accelerator. IoT-enabled ERP platforms provide real-time visibility and enhanced operational control, enabling organisations to track inventory, monitor equipment performance, and predict maintenance needs with greater accuracy. These capabilities significantly improve efficiency in manufacturing, logistics, and aerospace sectors. A notable example is the March 2025 launch of Epicor Kinetic 2025 by Epicor Software Corporation, a next-generation ERP solution featuring advanced IoT capabilities for real-time monitoring and predictive maintenance. This innovation underscores IoT’s transformative role in expanding ERP functionalities and meeting the growing demand for intelligent, connected enterprise solutions.
Segment Overview
The ERP software industry is segmented on the basis of component, deployment, business function, application, end users, and region.
By component, the market is divided into software and services.
By deployment, the market is divided into on-premises, cloud, and hybrid.
By business function, the market is divided into enterprise asset management, financial management system, human capital management, manufacturing and operations, supply chain management, and others.
By application, the market is segmented into manufacturing, BFSI, healthcare, retail and distribution, government, IT and telecom, construction, aerospace and defence, and other industries.
By end-users, the market is segmented into small and medium-sized enterprises and large enterprises.
Key Benefits
• The report provides quantitative analysis and estimations of the ERP software market from 2025 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the ERP software market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the ERP software market is provided in the report.
• The competitive analysis of the market players along with their market share in the ERP software market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.
Table of Contents
- 1. Introduction
- 1.1 Report Description
- 1.2 Research Methodology
- 1.2.1 Secondary Research
- 1.2.2 Data Analysis Framework
- 1.2.3 Market Size Estimation
- 1.2.4 Forecasting
- 1.2.5 Primary Research And Data Validation
- 2. South Korea Erp Software Market By Component
- 2.1 Overview
- 2.2 Software Market
- 2.3 Service Market
- 3. South Korea Erp Software Market By Deployment
- 3.1 Overview
- 3.2 On Premise Market
- 3.3 Cloud Market
- 3.4 Hybrid Market
- 4. South Korea Erp Software Market By Business Function
- 4.1 Overview
- 4.2 Enterprise Asset Management (Eam) Market
- 4.2.1 Record Assets (Asset Mgmt)
- 4.2.2 Analytics And Bi
- 4.2.3 Disposal Of Assets
- 4.2.4 Others
- 4.3 Financial Management System Market
- 4.3.1 Core Financials
- 4.3.2 Corporate Performance Mgmt (Cpm)
- 4.3.3 Financial Consolidation
- 4.3.4 Others
- 4.4 Human Capital Management (Hcm) Market
- 4.4.1 Talent Management
- 4.4.2 Administrative Hr
- 4.4.3 Workforce Management
- 4.4.4 Others
- 4.5 Manufacturing And Operations Market
- 4.5.1 Production Planning And Scheduling Products
- 4.5.2 Production Ops And Control Products
- 4.5.3 Manufacturing Information Mgmt Products
- 4.5.4 Others
- 4.6 Supply Chain Management (Scm) Market
- 4.6.1 Inventory Management
- 4.6.2 Warehouse Management
- 4.6.3 Transportation Management
- 4.6.4 Procurement
- 4.6.5 Contract Management
- 4.7 Others Market
- 5. South Korea Erp Software Market By Application
- 5.1 Overview
- 5.2 Manufacturing Market
- 5.3 Bfsi Market
- 5.4 Healthcare Market
- 5.5 Retail And Distribution Market
- 5.6 Government Market
- 5.7 It And Telecom Market
- 5.8 Construction Market
- 5.9 Aerospace And Defense Market
- 5.10 Other Industries Market
- 6. South Korea Erp Software Market By End User
- 6.1 Overview
- 6.2 Small And Medium Sized Enterprise Market
- 6.3 Large Enterprise Market
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