Global Enterprise Performance Management (EPM) Market Overview

According to Global Market Monitor, the global enterprise performance management market size is $7468.09 million in 2024 with a CAGR of 8.43% from 2024 to 2029.

Enterprise Performance Management (EPM) is a type of software that is developed to help organizations connect their strategies to their plans and execution.

Application Fields

The largest segment by application is the segment BFSI, with a market share of 25.47% in 2024. Banks have taken advantage of the economic boom and liquidity to help them reduce balance sheet risk and restructure costs, however, many banks remain vulnerable to the financial situation of their customers, such as increased loan debt after the commercialization of the bank, resulting in fierce competition. Deploying EPM applications to streamline financial planning and budgeting processes, banks in Sweden and Thailand have begun implementing schedule management solutions in their core businesses.

Rise in Focus on Core Business & Improved Scalability

The need for better and more resources is increasing with the growth of the business. Thus, companies need efficient EPM software to scale according to the demand to increase capabilities and licenses as needed. This software provides scalability and high performance, as the business expands and grows. Moreover, it provides predictive analytics to decrease the time spent on the finance function enabling more focus on higher-value tasks. It delivers operational efficiencies by automating routine tasks, reducing planning efforts & reporting, and providing Key performance indicators (KPI) & metrics for better assessment, and financial closures, and giving organizations qualitative business insights periodically. In this way, EPM software allows companies to better focus on the core business functions and improves decision-making rather than handling routine financial and nonfinancial tasks.

High cost of deploying EPM systems

EPM tools can improve a company’s performance, which, in turn, adds to the cost of implementing such software tools. Organizations have budget constraints while implementing any new software tool. Given the relatively high cost of the EPM tool, organizations expect how this tool will pay off. It is difficult for organizations to perform cost and benefit analysis for EPM, which does not have a good project management system. Since the EPM tool does not generate any revenue for the business, the organizations need to focus on improving the business profits and reducing costs. EPM systems come with an additional maintenance cost to receive timely updates over a year. EPM systems can impact the financial performance and ROI of an organization. Hence, this factor is expected to restrict the adoption of EPM systems in small enterprises.