ERP Software Global Market Report 2024

The ERP software market size has grown rapidly in recent years. It will grow from $182.22 billion in 2023 to $202.69 billion in 2024 at a compound annual growth rate (CAGR) of 11.2%. The growth observed during the historical period can be attributed to several factors, including the drive for business process optimization, the necessity for integrating various business functions and processes, the replacement of legacy systems with more advanced ERP solutions, the importance of regulatory compliance, and the expansion of businesses on a global scale. These factors have contributed to the adoption and growth of enterprise resource planning (ERP) software, as organizations sought to streamline their operations and meet the demands of a rapidly changing business landscape.

The ERP software market size is expected to see rapid growth in the next few years. It will grow to $311.4 billion in 2028 at a compound annual growth rate (CAGR) of 11.3%.

The anticipated growth in the forecast period can be attributed to several factors, including the increased adoption of cloud ERP solutions, the ongoing trend of digital transformation within organizations, the rising importance of mobile and remote work capabilities, the integration of artificial intelligence (AI) and automation into ERP systems, and the emphasis on user-friendly interfaces for enhanced usability. Prominent trends in the forecast period encompass the continued adoption of cloud ERP solutions, the development of mobile ERP applications to cater to a more mobile and connected workforce, the integration of Internet of Things (IoT) capabilities into ERP systems to enable data-driven decision-making, the popularity of Software as a Service (SaaS) ERP solutions, and the exploration of blockchain integration to enhance data security and transparency in ERP operations. These trends are expected to drive growth in the ERP software market.

The primary functional types of ERP software include finance, human resources (HR), supply chain management, and other miscellaneous functions. The ERP finance module, for instance, is a vital component of ERP systems, focusing on essential accounting and financial management functions within an organization. ERP software can be deployed in various ways, including as on-premises ERP or cloud-based ERP, depending on the specific needs and preferences of the organization. These ERP solutions find application across a range of industry verticals, including manufacturing, services, banking, financial services and insurance (BFSI), healthcare, retail, government utilities, aerospace and defense, telecommunications, and various other sectors.

The ERP software market research report is one of a series of new reports that provides ERP software market statistics, including ERP software industry global market size, regional shares, competitors with an ERP software market share, detailed ERP software market segments, market trends and opportunities, and any further data you may need to thrive in the ERP software industry. This ERP software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The enterprise resource planning (ERP) software market is poised for growth, primarily driven by the booming e-commerce industry. E-commerce, the electronic buying and selling of products and services online, has seen a significant uptick in demand. ERP software plays a pivotal role by providing real-time data and updates to customers, enhancing their experience and reducing potential frustrations. For example, data from the United States Census Bureau reveals that e-commerce sales accounted for 15.4% of total U.S. sales in the second quarter of 2023, with total retail e-commerce sales estimated at $269.5 billion, marking a 6.6% increase from the first quarter of 2023. This surge in the e-commerce sector is a key driver behind the growth of the ERP software market.

The growing need for improved efficiency and transparency in business operations further contributes to the growth of the enterprise resource planning software market. ERP systems enable the integration of vast amounts of data across various departments, facilitating seamless information flow throughout organizations. The adoption of cloud-based technologies for real-time data storage and access, analytical reporting for informed decision-making, and compliance with industry-standard processes embedded in the software all contribute to market expansion. An illustrative example is Annabelle Candy, which utilized Syspro's ERP software for manufacturing and distribution, helping the company expand its marketing reach and streamline progress tracking.

The rising number of cyberattacks poses a challenge to companies operating in the ERP software market. These attacks, including compromises and distributed denial of service (DDoS) attacks, disrupt business operations. ERP applications like SAP and Oracle are especially vulnerable, with over 9,000 security vulnerabilities combined, as reported by ERP cybersecurity and compliance firm Onapsis. These vulnerabilities threaten the growth of companies within the ERP software market.

A noteworthy trend in the ERP software market is the integration of blockchain technology with ERP systems. Blockchain, characterized by a chronological data series managed by multiple computers across various entities, secures data with cryptographic codes. The fusion of ERP with blockchain technology creates a secure collaboration platform, allowing the free sharing of trusted systems of records. For example, software company SAP is exploring ways to efficiently integrate blockchain into its existing ERP system, with a focus on improving 3D printing and digital manufacturing.

Major companies in the ERP software sector are developing innovative products such as MetaERP to replace legacy ERP systems and better serve customers. MetaERP is a cloud-based ERP system that incorporates advanced technologies like cloud-native architecture, metadata-driven multi-tenancy, and real-time intelligence. These innovations significantly enhance service efficiency and operational quality. Huawei, for instance, launched a self-controlled MetaERP system in April 2023. Huawei's MetaERP transformation aims to reduce costs, elevate operational capabilities, and enhance service efficiency and quality.

The strict regulations implemented by governments pose challenges for the ERP software market. The adoption of advanced technologies like the Internet of Things (IoT) and machine learning across applications, including ERP, has led to fraudulent practices. Governments, including the UK and French governments, have imposed stringent guidelines on IoT device manufacturers to combat these practices. Such regulations hinder market growth and make it difficult for new companies to enter the ERP software market. Leading ERP software vendors like SAP and Oracle have been exploring the integration of IoT and machine learning into their products. However, the strict policies surrounding product development restrain market growth.

Major companies operating in the erp software market include SAP SE, Oracle Corporation, Microsoft Corporation, Epicor Software Corporation, Infor, Sage Intacct Inc., NetSuite Inc., IFS AB, Syspro Technologies, Brightpearl Limited, FinancialForce, Dolibarr ERP CRM, Awery Software FZ LLC, WP ERP, Kechie ERP, Stafiz, BatchMaster Software Pvt Ltd., Intuit Inc., Fidelity National Information Services Inc., Finserv Inc., Cerner Corporation, SS&C Technology Holdings Inc., Constellation Software Inc., Odoo, Lawson, Consona Corp, Activant Solutions Pvt Ltd., QAD Inc., Kronos Incorporated, International Business Machines Corporation

Asia-Pacific was the largest region in the ERP software market in 2023. North America was the second largest region in the ERP software market. The regions covered in the erp software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the erp software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The ERP Software Market Empowering Seamless Business Communication and Information Flow

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.