90 Vital ERP Software Statistics 2024: Data Analysis & Market Share

Enterprise resource planning (ERP) systems have evolved and grown to support the majority of business functions, starting with back-end operations to front-office processes. By eliminating redundant processes and automating tedious tasks, ERP software helps businesses save money while also providing employees with the information they need to make better decisions faster. Companies are increasingly using ERP systems to run their operations and it seems that these systems will only continue to expand their capabilities and incorporate new technologies. The ERP software statistics in this article showcase how the solution is continuously changing and improving.

Among the many solutions that an organization will invest in, an ERP platform is possibly the most useful. And, as ERP moves from an on-premise system to a cloud solution, it will continue to adapt to industry demands. ERP consolidates practically all business processes across several departments. Meanwhile, other ERP developers are focusing on specific fields with specific needs to create custom solutions. Taking a look at these ERP statistics 2022 shows the dynamic future of the technology and how it is set to become one of the most ubiquitous software solutions out there.

State of the ERP Industry Statistics
ERP Software Statistics
ERP ROI Statistics
Expectations on ERP Statistics
Data on ERP Challenges
Future of ERP Software

State of the ERP Industry Statistics

The ERP industry growth is one of the most unprecedented in the last few decades. As cloud technology improves, it is becoming more viable to run an entire ERP system off-premise. This frees companies from the expensive overhead when implementing in-house solutions. As a result, the ERP industry is enjoying rapid growth and will continue to do so, as the figures below show.

The worldwide ERP market size was valued at $39 billion in 2019. It is expected to reach around $86 billion by 2027. (Allied Market Research, 2021)
Another report predicted that the global ERP software market is poised to hit $97.15 billion by 2024. (Apps Run the World, 2020)
The ERP software market is expected to rebound at a CAGR of 8% from 2021 and earn a value of $181.5 billion in 2023. (The Business Research Company, 2020)
Moreover, experts say that the ERP industry is experiencing a CAGR of 9.8% between 2020 to 2027. (Allied Market Research, 2021)
Other industry leaders report that the ERP software market was valued at about $40 billion in 2020 and experienced accelerated growth due to the pandemic. (Taiwan News, 2021)
While on-premise deployment is still popular among companies, cloud ERP is expected to grow at a CAGR of 11.9% between 2020 and 2027. (GlobeNewswire, 2021)
The North American market is leading the highest market share, but the Asia-Pacific region was cited for having the fastest CAGR of 12.3% during the same period. (GlobeNewswire, 2021)
The cloud ERP market is set to enjoy the largest growth within the next few years. It was valued at around $44.83 billion in 2020 and is poised to grow at a CAGR of 15.6%. (GlobeNewswire, 2021a)
It is expected to reach up to $101.1 billion by 2025 due to the rapid shift of companies to cloud technologies. (Markets and Markets, 2020)
Small and medium enterprises contribute about 8% growth to the worldwide ERP market. (Cybrosys, 2021)

Source: Statista, 2022

Market Statistics by Type of ERP Solutions

The healthcare ERP market was valued at $6.2 billion back in 2020. It is expected to expand at a CAGR of 6.6% from 2021 to 2028. (Grand View Research, 2021)
Due to the pandemic, the healthcare ERP market experienced a 3.9% growth from 2019 to 2020. (Grand View Research, 2021)
According to independent research, about 58% of healthcare ERP developers were already integrating artificial intelligence (AI) in their products. (Grand View Research, 2021)
Among the functionalities of healthcare ERP, billing and finance segments accounted for the largest revenue share at 30%. (Grand View Research, 2021)
The worldwide education ERP market was thought to be valued at $12.7 billion in 2021 and is expected to grow to $25.2 billion by 2026. (Markets and Markets, 2021)
Due to various lockdowns leading to remote and hybrid learning, various education ERP companies are continuously growing at a rapid rate. For example, the Indian educational company BYJU’S, saw a 150% increase in new users since the pandemic began. (Markets and Markets, 2021)
In North America, the finance ERP market is the largest at $4.5 billion, followed by supply chain ERP ($2.45 billion) and HR ERP ($2.3 billion). (Statista, 2022)

ERP Software Statistics

The ERP software statistics below show how important ERP is to most, if not all, organizations. Its adoption is becoming an industry standard and a necessity for companies to become competitive in their spaces. Fortunately, ERP tools come in many forms and functions, from custom ERPs that target SMEs to fully-featured platforms for multinational corporations.

Just like any digital transformation project, organizations invest a significant amount of time, effort, and budget when launching their ERP projects. To maximize their investments, companies explore numerous solutions until they find the perfect ERP for their operations.

Adoption of ERP Solutions

According to industry experts, the adoption of ERP software is popular among manufacturing companies (21%), banking, financial services, and insurance organizations (16%), and telecoms (13%). (PR Newswire, 2021)
More than 55% of retail companies will implement hybrid deployments of ERP systems. (PR Newswire, 2021)
31.6% of project team members and decision-makers are very satisfied with their ERP systems. However, 21.1% also report that they are not happy with their current ERP. (Panorama Consulting Group, 2021)
Close to 50% of companies were planning to or were already implementing an ERP system or an upgrade to their old one. (Technology Evaluation Centers, 2020)
69% of private organizations say that the pandemic is accelerating their digital transformation, which includes adopting ERP solutions. (Deloitte, 2021)
Additionally, 43% of private companies are already planning their digital transformation strategy within the next year or so. (Deloitte, 2021)
25% of finance leaders say that they prioritize capability fit when choosing an ERP solution. Other considerations include extensibility (15%), user experience (15%), and total cost of ownership (15%). (Deloitte, 2021a)

Deployment And Implementation of ERP Systems

With the availability of cloud technology, 53.1% of companies choose cloud ERP solutions, with the rest sticking with on-premise solutions. (Panorama Consulting Group, 2021)
Additionally, 46% of companies choose private cloud solutions, while 12% consider public cloud technology. (Accenture, 2020)
Among those using cloud deployment, a large majority (76.5%) run hosted ERP, with 23.5% opting for a SaaS model. (Panorama Consulting Group, 2021)
Of those with on-premise ERP solutions, 80% host them internally while the rest are paying for external infrastructure. (Panorama Consulting Group, 2021)
More than half of companies (53%) deploy ERP as part of their larger digital business transformation efforts. (Panorama Consulting Group, 2021)
For companies implementing ERP solutions, 32.1% use the big bang approach where they deploy the entire system through on project phase. On the other hand, a similar number of companies choose the hybrid approach, a combination of the big bang and phased methods. (Panorama Consulting Group, 2021)
Business transformation consultants or ERP experts are critical to any project. Companies hire them for their expertise in ERP implementation (81%), business process management (42.9%), organizational change management (33.33%), and project auditing (28.6%), among others. (Panorama Consulting Group, 2021)

Budget For ERP Projects

On average, the budget per user of ERP projects is $8,265. (ERP Focus, 2021)
The cost of implementing an ERP solution can range between $150,000 and $750,000 for mid-sized organizations (ERP Focus, 2021)
Before the pandemic, around half of private companies say they spend more than 5% of their revenue on technology and similar solutions. (Deloitte, 2021)
In 2020, businesses surpassed their original ERP budgets by 18%. This cost the average mid-market United Kingdom company an additional £76,000 in budget. (Supply Chain Digital, 2020)
71% of professionals say they want technology partners to be more transparent when it comes to providing the total costs of ERP projects (Supply Chain Digital, 2020)
60% of professionals say that transparency in ERP projects should go beyond where they are hosted (Supply Chain Digital, 2020)

ERP for SMEs

40% of professionals said that their job entails overseeing the use of ERP systems like NetSuite, Workday, or SAP (Workato, 2021).
Around 95% of emerging businesses and startups were already using some form of ERP or planning to. (Cybrosys, 2021)
ERP solutions minimized operational spending by around 11%. (Cybrosys, 2021)
It also helps SMEs standardized their back-end processes by 77%. (Cybrosys, 2021)
Additionally, ERP systems reduced decision-making time by more than 35%. (Cybrosys, 2021)
Just like their larger counterparts, 50% of SMEs suffer from overbudgeting. (Cybrosys, 2021)

ERP ROI Statistics

A modern ERP system reduces operating costs, boosts productivity, and includes standard features that automate and save time on business tasks. Investing in ERP is a huge undertaking, and it is critical to justify this significant expenditure. Its total cost of ownership (TCO) includes the costs of licensing, implementation, training, and maintenance.

As such, companies need to define their expected benefits early in their ERP project. Laying these aspects down means they have specific standards to meet during the implementation. Without this guidance, ERP projects run the risk of overbudgeting and missing key milestones and timelines.

As many as 35.5% of companies are looking to upgrade their ERP systems, and another 32.3% are planning to shift away from legacy solutions. (Panorama Consulting Group, 2021)
Organizations are achieving their goals through ERP solutions, such as operational efficiency (96.6%), reporting and visibility (85.7%), updating their technology stacks (80%), and increasing competitiveness and growth (68.4%). (Panorama Consulting Group, 2021)
50% of organizations that implemented some form of ERP said that they have improved most of their business processes. Another 43.8% reported that they have improved key business processes as well. (Panorama Consulting Group, 2021)
Among the enterprises that completed their ERP project, 91.7% say that the overall results are successful. (Panorama Consulting Group, 2021)
On average, companies that implemented ERP systems enjoy an ROI in 2.5 years. (The Parker Initiative, 2021)
Among the companies that implemented ERP, about 82% said that they achieved ROI in time. (The Parker Initiative, 2021)

Source: Statista, 2022

Key Benefits of ERP Solutions

For 29% of companies, ERP systems serve as the primary enabler that bridges functional silos and business processes. (Accenture, 2020)
80% of companies reported that their ERP solutions allow them to create new applications that take advantage of business logic and data from other departments. Almost the same number (79%) of companies say that ERP helps them innovate and use it in other parts of their operations. (Accenture, 2020)
A large number of companies (44%) dealt with inflexible ERP software but were actively looking to extend their technology. Another 32% are already using advanced technology (AI, machine learning, etc.) to improve their ERP systems. (Accenture, 2020)
Up to 38% of organizations said that ERP solutions enhanced their ability to cater to the ever-changing customer demands. Another 34% say that it helps them adapt to digital disruptors. (Accenture, 2020)
Additionally, 75% of enterprises reported that ERP helps them engage with customers in real-time. Other benefits of ERP investments also include integration of data (74%), augment datasets to produce high-quality data (73%), and delivering multi-device, omnichannel customer experience (72%). (Accenture, 2020)
Around 40% of organizations said that their current ERP implementation is inflexible, so they are using another layer of UI to create a better customer experience. (Accenture, 2020)
After implementing an ERP solution, 45% of companies found it easy to access customer and enterprise data for timely decision-making. (Accenture, 2020)
Up to 39% of enterprises said that they develop their custom APIs to extract and transform their data from their ERP. (Accenture, 2020)

Most Popular ERP Software

There are thousands of ERP solutions available to small businesses and big corporations alike. That said, it’s more challenging to find the ERP software that fits your needs. To simplify your search, here are some that are currently leading the market:

NetSuite ERP – A cloud-based solution that aims to grow with your business. Aside from the core inventory management functionalities, it automates various processes, such as fixed assets, order management, financial management, and more. It provides a system for the entire company from the executives down to the clerical staff.
Odoo – An open-source ERP and CRM solution that allows you to manage your entire operation without ever needing another application. Perfect for growing companies, this highly extensible platform lets you manage various parts of your business, from finance and human resources to operations and customer management.
Sage Intacct – A popular cloud business solution that streamlines your entire operation to maximize your revenue and minimize your expenses. It includes core ERP features, along with powerful financial management functionalities. You can manage cash flows, accounts payables and receivables, budgets, orders, and more.
SYSPRO – A fully-featured ERP platform specifically developed for the manufacturing industry. It allows you to integrate, control, monitor, and synchronize various manufacturing and operating processes using warehouse automation, employee communication, device integration, and API services. You can optimize your entire workflow using just one system.
Oracle ERP Cloud – A platform that aims to provide end-to-end business solutions to companies of various sizes. Designed to connect data across your entire organization, it comes with various features, such as procurement, financial management, risk management, project management, and much more.

Expectations on ERP Statistics

ERP software has been considered the holy grail of business process solutions for decades. After all, many solutions promise to centralize entire operations, from team workflows to high-level processes. As a result, ERP continues to evolve as customer needs change.

However, the sheer number of ERP platforms out there also means companies may fail to choose the right solution for their needs. As such, many organizations spend a considerable amount of time during planning, research, and selection phases to ensure that they maximize their ROI once the ERP application is deployed.

Around 85% of organizations revealed that a new ERP is urgent. (The Bearing Point, 2021)
However, 40% of companies mistakenly expect that cloud ERP will automatically improve their financial reporting. (Insight Software, 2021)
Additionally, some of the perceived benefits of ERP are report automation (30%), reducing reliance on IT (25%), and higher report accuracy (21%). (Insight Software, 2021)
Up to 53% are preparing for the SAP ECC end-of-life in 2027. (The Bearing Point, 2021)
82% of companies expect their new ERP strategy to have a positive result when it comes to quality. (The Bearing Point, 2021)
Almost half (48%) of companies were still in the middle of their cloud ERP project. About 33% were still focusing on their shift from on-premise to the cloud. (Accenture, 2020)
Still, 44% of stakeholders were not sure about their companies’ plans to move to cloud ERP. Another 25% said that there’s no plan to move to the cloud. (Insight Software, 2021)

Preparing For ERP Projects

Many companies are still wary of cloud ERP systems due to the risk of data loss (26.7%), risk of a security breach (26.7%), and lack of knowledge about available solutions (20%). (Panorama Consulting Group, 2021)
Implementing an ERP system brings significant changes to the organization. That’s why 53.8% of enterprises moderately focus on change management to prepare their members. (Panorama Consulting Group, 2021)
Among those change management activities, the most popular are communication plan (53.8%), customized training (53.8%), benefits realization plan (46.2%), and change management strategy (30.8%). (Panorama Consulting Group, 2021)

Data on ERP Challenges

ERP implementations can be challenging because they affect business processes throughout the organization. And, to reap the benefits of the new system, people frequently have to alter their work habits—often by replacing lengthy manual processes with more efficient, automated ones.

One of the most difficult aspects of ERP implementation is convincing users and functional groups to alter their behavior to support the new solution. Managing this change effectively needs good project management and senior leadership support. The organization will require a dedicated project team of representatives from all ERP platform users to develop the new system. This ensures that the software meets all departments’ requirements and business processes within the organization.

Surprisingly, according to decision-makers, the technical aspect of ERP systems is the easiest, with only 8% of them finding it difficult. On the other hand, 33.3% said that the most difficult part is the organizational change, which deals with people within the company. (Panorama Consulting Group, 2021)
During ERP software implementation, the need to purchase additional technology is a major reason (50%) of budget overruns. (Panorama Consulting Group, 2021)
Similarly, organizational issues (26.7%), expansion of project scope (20%), and data issues (20%) were the most common causes of missing project milestones and deadlines. (Panorama Consulting Group, 2021)
Almost 50% of ERP projects fail on their first try. (Technology Evaluation Centers, 2020)
Around 30% of ERP projects take longer than expected. (Technology Evaluation Centers, 2020)
Most ERP implementations end up costing three to four times the allotted budget. (Technology Evaluation Centers, 2020)
SMEs invested a huge part of their budget on ERP projects, and many faced risks and challenges such as customization (40%), training (39%), cost of upgrades (33%), and the lack of flexibility (28%). (Cybrosys, 2021)
According to experts, the top barriers to implementation were resistance to change (82%), lack of sponsorship (72%), unrealistic expectations (65%), and bad project management (54%). (Deloitte, 2021b)
Only 8% of IT directors said that their new ERP system is easy to use. (Supply Chain Digital, 2020)
In 2020, 4 out of 5 IT directors reported that they were not completely satisfied with their ERP project. (Supply Chain Digital, 2020)
93% of IT directors and finance managers believe that ERP implementation is critical to their operations. (Supply Chain Digital, 2020)

Reasons For Budget Overruns

Expenses for additional technology

50%

Expansion of project scope

37.5%

Budget was underestimated

37.5%

Technical issues

37.5%

Organizational issues

37.5%

Source: Panorama Consulting Group, 2021

Future of ERP Software

ERP software is evolving rapidly, driven by new technologies and changing business needs. Here are some of the emerging trends shaping the future of ERP:

Modular and Flexible ERP Systems: Businesses are increasingly favoring modular ERP solutions that allow for flexibility and scalability. In these solutions, companies can select only the necessary modules for their specific needs. This trend is particularly popular among small-to-medium enterprises (SMEs) that may not need a full suite of ERP features.
Mobile ERP: Mobile accessibility is now essential as remote work and on-the-go data access grow in demand. ERP solutions integrate mobile functionality, allowing users to access real-time data, manage workflows, and stay connected through smartphones or tablets.
AI and Machine Learning Integration: Artificial Intelligence (AI) and Machine Learning (ML) are transforming ERP by enhancing predictive analytics, automation, and decision-making. AI-driven ERP systems can provide insights into trends, automate routine tasks, and support more accurate forecasting.
Internet of Things (IoT) and Real-Time Data: IoT integration enables ERP systems to gather data from interconnected devices, offering real-time insights. This capability is particularly beneficial in sectors like manufacturing, where IoT data can streamline processes and improve maintenance schedules through predictive analytics.
Blockchain for Enhanced Security: Blockchain technology is increasingly explored in ERP to enhance security, particularly for data verification and secure, traceable transactions. As cybersecurity concerns grow, ERP vendors invest in blockchain features to provide secure data handling and transparent audit trails.
Hybrid Cloud ERP: With the rise of hybrid work models, hybrid cloud ERP solutions that combine on-premises and cloud components are gaining traction. This setup offers flexibility and data privacy and allows businesses to control where specific data and applications reside.

Maximize Your ERP for the Future

While (ERP) software was originally created for enterprises, today’s cloud-powered software-as-a-service (SaaS) solutions have lowered entry barriers and aided countless emerging and midsize businesses in increasing their efficiency, visibility, and, ultimately, profitability.

All businesses should conduct periodic reviews of their current tech stack and ask, “Is our technology assisting us—or impeding us?” When out-of-date or insufficient systems introduce bottlenecks, muddy the data, or are incapable of supporting the changes desired by the business, it’s time to find a new solution.

Additional indicators that it’s time for a change include inaccuracies in data, a lack of system integration, high error rates, and an over-dependence on email and spreadsheets. While purchasing and deploying ERP software incurs costs, it frequently provides a rapid return on investment, as the ERP software statistics above have indicated.

Key Insights

Market Growth: The global ERP market size was valued at $39 billion in 2019 and is expected to reach $86 billion by 2027, showcasing significant growth potential.
Cloud ERP: Cloud ERP solutions are gaining popularity, with a projected CAGR of 11.9% from 2020 to 2027, driven by the shift from on-premise to cloud technologies.
Regional Dynamics: North America leads in market share, while the Asia-Pacific region is experiencing the fastest growth with a CAGR of 12.3%.
Industry Adoption: ERP adoption is highest among manufacturing (21%), banking and financial services (16%), and telecoms (13%) industries.
Deployment Trends: Over 50% of companies are choosing cloud ERP solutions, with a mix of private and public cloud deployments.
ERP Benefits: Companies report increased operational efficiency, better reporting and visibility, and enhanced competitiveness after implementing ERP systems.
Implementation Challenges: Organizational change management is the most challenging aspect of ERP implementation, with 33.3% of decision-makers citing it as a major difficulty.
ROI Realization: On average, companies achieve ROI from their ERP systems within 2.5 years, with 82% meeting their ROI expectations.
Key Players: Oracle ERP leads the market with a 5.78% share, followed by SAP Business One and Sage 100.
Budget Considerations: The average ERP project budget per user is $8,265, with mid-sized organizations spending between $150,000 and $750,000 on implementation.

FAQ

What is ERP and why is it important for businesses? ERP, or Enterprise Resource Planning, is a type of software that integrates and manages core business processes. It is important because it helps streamline operations, improve data accuracy, and support better decision-making, ultimately leading to increased efficiency and reduced operational costs.
How has the ERP market evolved in recent years? The ERP market has seen significant growth, especially with the shift from on-premise systems to cloud-based solutions. The global ERP market size was valued at $39 billion in 2019 and is expected to reach $86 billion by 2027. This evolution is driven by advancements in cloud technology, making ERP more accessible and scalable.
What industries are the biggest adopters of ERP systems? The biggest adopters of ERP systems are the manufacturing industry (21%), banking and financial services (16%), and telecoms (13%). These industries benefit greatly from the efficiency and integration capabilities provided by ERP systems.
What are the common challenges faced during ERP implementation? Common challenges during ERP implementation include managing organizational change, ensuring data accuracy, staying within budget, and dealing with the technical complexities of integration. Effective project management and senior leadership support are critical to overcoming these challenges.
What are the key benefits of using an ERP system? Key benefits of using an ERP system include improved operational efficiency, enhanced reporting and visibility, better decision-making capabilities, and increased competitiveness. ERP systems also help in integrating various business processes and reducing manual errors.
How do cloud ERP solutions compare to on-premise ERP solutions? Cloud ERP solutions offer several advantages over on-premise systems, including lower upfront costs, scalability, and easier updates. They also reduce the need for in-house IT infrastructure and support, making them a popular choice for many businesses. However, concerns about data security and loss still make some companies hesitant to fully adopt cloud ERP.
How long does it typically take to see ROI from an ERP system? On average, companies see a return on investment (ROI) from their ERP systems within 2.5 years. This includes improvements in operational efficiency, cost savings, and better decision-making processes.
What factors should businesses consider when choosing an ERP solution? When choosing an ERP solution, businesses should consider factors such as capability fit, extensibility, user experience, total cost of ownership, and the specific needs of their industry. It is also important to evaluate the vendor’s reputation, support services, and the flexibility of the solution to adapt to future business needs.
What are the trends in ERP deployment and implementation? Trends in ERP deployment and implementation include a significant shift towards cloud-based solutions, with over 50% of companies opting for cloud ERP. Additionally, there is a trend towards hybrid deployments and the use of advanced technologies such as AI and machine learning to enhance ERP capabilities.
How can companies ensure the success of their ERP implementation? To ensure the success of ERP implementation, companies should focus on thorough planning, involving key stakeholders, effective change management, and choosing the right implementation partner. It is also crucial to set clear goals, monitor progress, and provide adequate training and support to users.

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By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.