Enterprise resource planning (ERP) software is becoming a necessity for many businesses. Market forecasts and recent histories of large companies show a clear trend toward increased reliance in North America and Europe, but those regions are hardly the only ones investing themselves in automated business management software.

The Latin America ERP market is expected to hit $2.73B by 2025, according to a recent report published to Research and Markets.

A summary of the report indicates that the increase investment is not confined to any one size of company. While larger businesses are using ERPs more and more, small and midsized organizations are also turning to technologies like ERPs to stimulate growth.

Before the increase forecasted by the report is realized, companies will have to navigate past some obstacles that have, to date, prevented the same level of adoption as in North America and Europe. Many small and medium enterprises “in Brazil, Mexico, Chile and Peru are still using old IT systems to operate their business. There is a growing need for adoption of upcoming IT systems to sustain in the competitive market.”

Costs are a significant barrier to companies looking to update to the latest ERP technology, but as we’ve examined before, cloud technology is helping to reduce prices while increasing the accessibility of updates and customization. It is therefore no surprise that “The cloud deployment segment is expected to witness a significant growth rate,” over the next eight years. Even so, on-premise solutions will still be popular in Latin America by 2025.

The growing importance of ERPs in Latin America reflects the same trends being recognized in many other parts of the globe.