Understanding recent trends and ERP stats can protect businesses from investing in solutions that won’t work out for your business. In this article, we will present data from various reliable sources to support your decision-making processes.
Check out the studies where we examine ERP integrations:
- NetSuite AP Automation: 3 Case Studies & 200+ Reviews
- Blackbaud AP Automation: 5 Software & 500+ Reviews
- Dynamics AP Automation Analyzed: 5 Solutions & 500+ Reviews
- SAGE AP Automation: Case Studies & 150+ Review Analysis
ERP market statistics
The revenue in the Enterprise Resource Planning (ERP) software market is projected to reach: ~$52 billion in 2024.1
Revenue is expected to grow at an annual rate (CAGR 2024-2028) of 4.48%, reaching a market volume of ~$62billion by 2028.2
The average spend per employee in the Enterprise Resource Planning (ERP) software market is projected to reach ~$15 in 2024.3
Defense & aerospace, retail and government utility sectors are driving a significant portion of ERP market growth.4
According to data from 2023, Microsoft Dynamics is the most popular in the global ERP market with a share of over ~11% and 29.000 domains. However, from a revenue perspective, SAP is likely to be the market leader since it commands a higher share of the market for midmarket and enterprise users.5
Use of ERP software by industry
Manufacturers comprise the largest segment, accounting for 47% of companies seeking to purchase ERP software.6 ERPs are specifically utilized in manufacturing since they offer several modules and capabilities that are listed under production planning tools.
After manufacturers, the industries most likely to use ERP software are distributors (18%), services (12%), and construction (4%)7
In another survey, the distribution is: manufacturing (47%), distribution (18%), services (12%), construction (4%), retail (3%), utilities (3%), government (3%), healthcare (3%), and other (10%).8
Use of ERP software by business function
In a survey of companies seeking to purchase ERP systems, 89% identified accounting as the most critical function. Other important functions included inventory and distribution (67%), CRM and sales (33%), and technology (21%).9
Use of ERP software by area
The ERP market size in North America exceeds $10 billion.10
In a global comparison, the United States is expected to generate the most revenue, amounting to ~$26 billion in 2024.11
The ERP market in the Asia-Pacific region is emerging, with a projected compound annual growth rate (CAGR) of ~9% through 2027.12
In North America, the finance ERP market is the largest at $4.5 billion, followed by the supply chain ERP market at ~$2.45 billion, and the HR ERP market at $2.3 billion.13
ERP implementation statistics
In a survey with 250 companies implementing ERP, 40% of the companies considered ‘functionality’ to be the most important factor when selecting ERP systems.14
The same survey suggests that the majority of companies (74%) prioritized speed as a crucial factor in their decision-making process.15
Another survey points out that there is only a slight difference between SaaS (51%) and hosted & managed services deployment (48%).16
For more than 25%, customization was not a must for businesses in implementation.17
More than 50% improved business processes with ERP implementation.18
74% of companies enjoyed benefits of productivity & efficiency after implementing ERP systems.19
In a survey on ERP implementation, midsize companies with revenues between $100 million and $250 million completed the process the fastest, averaging 6.7 months. In contrast, companies with over $25 billion in revenue took ~12%20
Almost one-third of companies begin communicating about ERP implementation before selecting the product, 56% do so during the selection process, and 13% share information right before going live.21
58.8% of businesses utilize a phased approach for data migration while implementing ERP projects.22
Cloud based ERP stats
A survey with 180 respondents shows that around 65% choose cloud based ERP systems over 35% on premise.23
96% of companies believe that the majority of their data will be cloud-based within the next five years.24
In a survey with 250 respondents, 95% companies indicated they were open to a cloud deployment model, while just over 50% were also willing to consider on-premises ERP. Among this latter group, 65% were manufacturers and distributors.25
83% of businesses are using more SaaS applications in 2023 compared to 2022.26
79% of businesses are transitioning from on-premise systems to cloud-based alternatives, and an intriguing 78% are considering AI to enhance their testing strategies.27
For 32% of businesses, the primary motivation for moving to the cloud is scalability and return on investment (ROI).28
Survey shows that 32% of businesses cite security breaches as the first reason for not choosing cloud and integration concerns as the second reason with ~24%.29
Future ERP trends
According to a report, by 2027, over 50% of enterprises in service-centric industries will seek an ERP suite approach to fulfill their need for system-of-record capabilities.30
An increasing number of companies are undertaking digital transformations, with the global digital transformation market projected to grow to ~$1,000 billion $ by 2025. This figure is more than double the ~$469 billion $ recorded in 2020.31
40% of market leaders are seeking new technologies in an ERP system. The critical ERP technologies they are exploring include AI (43%), IoT (40%), and machine learning (40%).32 These capabilities aim to improve ERP knowledge management and accounts payable ERP
33% of businesses believe that custom APIs are essential for transforming and extracting ERP data.33
ERP challenges
Implementation can take 30% longer than initially anticipated.34
For %42 of businesses, technical issues were the reason for timeline overruns.35
On average, ERP implementations take 30% longer than estimated. Additionally, -54% of companies experience operational disruption when they go live.36
92% of current ERP systems create bottlenecks for CIOs, often necessitating manual or programmatic intervention.37
According to a survey, 40% of UK CIOs find it challenging to access, analyze, or utilize enterprise and customer data for better decision-making.38
ERP tools landscape
The current ERP market includes tech giants, such as Oracle and SAP for enterprises, smaller scaled commercial ERP products and open-source tools that are for scaleups and startups. Explore more on ERP market by checking out:
For more specific tools, such as Oracle EBS:
- Oracle EBS: Features, Pros & cons
- 3 Types of EBS Migration: Best practices & Key Benefits
- Compare Top 12 SAP Utility Solutions
External links
- 1. Enterprise Resource Planning Software - Worldwide | Forecast. Statista
- 2. Global ERP software market 2019-2026| Statista. Statista
- 3. Enterprise Resource Planning Software - Worldwide | Forecast. Statista
- 4. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 5. Top ERP software market share by company 2024| Statista. Statista
- 6. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 7. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 8. ERP Survey & Profiles Of Companies That Use ERP Systems. SelectHub
- 9. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 10. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 11. Global ERP software market 2019-2026| Statista. Statista
- 12. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 13. 90 Vital ERP Software Statistics 2024: Data Analysis & Market Share - Financesonline.com. FinancesOnline.com
- 14. ERP Survey & Profiles Of Companies That Use ERP Systems. SelectHub
- 15. ERP Survey & Profiles Of Companies That Use ERP Systems. SelectHub
- 16. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 17. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 18. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 19. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 20. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 21. 60 Critical ERP Statistics: Market Trends, Data and Analysis | NetSuite. Oracle NetSuite
- 22. Enterprise Resource Planning Report | ERP Implementation Trends. Panorama Consulting Group
- 23. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 24. State Of ERP Testing Report 2024 | Opkey's Test Automation.
- 25. ERP Survey & Profiles Of Companies That Use ERP Systems. SelectHub
- 26. ERP Survey & Profiles Of Companies That Use ERP Systems. SelectHub
- 27. State Of ERP Testing Report 2024 | Opkey's Test Automation.
- 28. ERP Survey & Profiles Of Companies That Use ERP Systems. SelectHub
- 29. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 30. Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises.
- 31. 95 Must-Know ERP Statistics and Trends. Blue Link ERP
- 32. 60 Must-Know ERP Statistics Before Making a Buying Decision.
- 33. 60 Must-Know ERP Statistics Before Making a Buying Decision.
- 34. ERP Stats & Facts: ERP Success & Failure Rate | TEC .
- 35. “The 2023 ERP Report” Retrieved on June 12, 2024.
- 36. 60 Must-Know ERP Statistics Before Making a Buying Decision.
- 37. 60 Must-Know ERP Statistics Before Making a Buying Decision.
- 38. 60 Must-Know ERP Statistics Before Making a Buying Decision.
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