ERP Software Market Size & Share, by Deployment (Cloud, On Premise, Hybrid); Enterprise Size (Small & Medium Enterprises (SMEs) and Large Enterprises); Business Function (Manufacturing Module, Inventory Management, Customer Management, Supply Chain, Finance, Human Resource (HR)); End user (Manufacturing, BFSI, Healthcare & Life Sciences, IT & Telecom, Retail & Consumer Goods, Transportation & Logistics, Government) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

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Report ID: 5109
Published Date: Mar 27, 2025
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Global ERP Software Market

Introduction
1. Market Definition and Segmentation
2. Study Assumptions and Abbreviations
Research Methodology & Approach
1. Primary Research
2. Secondary Research
3. SPSS Methodology
4. Data Triangulation
Executive Summary
Global Industry Overview
1. Country Level Synopsis
2. Industry Supply Chain Analysis
3. DROT
4. Government Regulation
5. Competitive Landscape
  1. Infor Inc.
  2. IBM Corporation
  3. Microsoft
  4. Epicor Software Corporation
  5. Hewlett-Packard Development Company, L.P.
  6. Sage Group, plc
  7. SAP SE
  8. Unit4
  9. NetSuite Inc.
  10. Oracle
6. Strength and Weakness Analysis
7. Recent News / Developments
8. SWOT Analysis: Market Level
9. Patents Filled in the Industry
10. End User Analysis
11. Use Case Analysis
12. Ongoing Technological Advancements
13. Startup Analysis
14. ERP Market Share By Customer Size and Industry
15. Root Cause Analysis For the Market
16. PESTLE Analysis
17. ERP Software Trend
18. PORTER Five Forces Analysis
19. Industry Risk Assessment
20. Growth Outlook
Global Outlook and Projections
1. Global Overview
  1. Market Value (USD Million), Current and Future Projections, 2019–2037
  2. Increment $ Opportunity Assessment, 2019–2037
  3. Year-on-Year Growth Forecast (%)
2. Global Segmentation (USD Million), 2019–2037, By
  1. Deployment Model, Value (USD Million)
    1. On Premise
    2. Cloud
    3. Hybrid
  2. Business Function, Value (USD Million)
    1. Finance
    2. Human Resource (HR)
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  3. Enterprise Size, Value (USD Million)
    1. Small and Medium Enterprises (SMEs)
    2. Large Enterprises
  4. End user, Value (USD Million)
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. Others
  5. Regional Synopsis, Value (USD Million), 2019–2037
    1. North America
    2. Europe
    3. Asia Pacific
    4. Latin America
    5. Middle East and Africa
3. Cross Analysis of Deployment Model w.r.t. End User
North America Market
1. Overview
  1. Market Value (USD Million), Current and Future Projections, 2019–2037
  2. Increment $ Opportunity Assessment, 2019–2037
  3. Year-on-Year Growth Forecast (%)
2. Segmentation (USD Million), 2019-2037, By
  1. Deployment Model, Value (USD Million)
    1. On Premise
    2. Cloud
    3. Hybrid
  2. Business Function, Value (USD Million)
    1. Finance
    2. Human Resource (HR)
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  3. Enterprise Size, Value (USD Million)
    1. Small and Medium Enterprises (SMEs)
    2. Large Enterprises
  4. End user, Value (USD Million)
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. Others
  5. Country Level Analysis, Value (USD Million)
    1. U.S.
    2. Canada
3. Cross Analysis of Deployment Model w.r.t. End User
Europe Market
1. Overview
  1. Market Value (USD Million), Current and Future Projections, 2019–2037
  2. Increment $ Opportunity Assessment, 2019–2037
  3. Year-on-Year Growth Forecast (%)
2. Segmentation (USD Million), 2019-2037, By
  1. Deployment Model, Value (USD Million)
    1. On Premise
    2. Cloud
    3. Hybrid
  2. Business Function, Value (USD Million)
    1. Finance
    2. Human Resource (HR)
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  3. Enterprise Size, Value (USD Million)
    1. Small and Medium Enterprises (SMEs)
    2. Large Enterprises
  4. End user, Value (USD Million)
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. Others
  5. Country Level Analysis, Value (USD Million)
    1. UK
    2. Germany
    3. France
    4. Italy
    5. Spain
    6. Netherlands
    7. Russia
    8. Switzerland
    9. Poland
    10. Belgium
    11. Rest of Europe
3. Cross Analysis of Deployment Model w.r.t. End User
Asia Pacific Market
1. Overview
  1. Market Value (USD Million), Current and Future Projections, 2019–2037
  2. Increment $ Opportunity Assessment, 2019–2037
  3. Year-on-Year Growth Forecast (%)
2. Segmentation (USD Million), 2019-2037, By
  1. Deployment Model, Value (USD Million)
    1. On Premise
    2. Cloud
    3. Hybrid
  2. Business Function, Value (USD Million)
    1. Finance
    2. Human Resource (HR)
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  3. Enterprise Size, Value (USD Million)
    1. Small and Medium Enterprises (SMEs)
    2. Large Enterprises
  4. End user, Value (USD Million)
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. Others
  5. Country Level Analysis, Value (USD Million)
    1. China
    2. India
    3. South Korea
    4. Australia
    5. Indonesia
    6. Malaysia
    7. Vietnam
    8. Thailand
    9. Singapore
    10. New Zeeland
    11. Rest of Asia Pacific Excluding Japan
3. Cross Analysis of Deployment Model w.r.t. End User
Latin America Market
1. Overview
  1. Market Value (USD Million), Current and Future Projections, 2019–2037
  2. Increment $ Opportunity Assessment, 2019–2037
  3. Year-on-Year Growth Forecast (%)
2. Segmentation (USD Million), 2019-2037, By
  1. Deployment Model, Value (USD Million)
    1. On Premise
    2. Cloud
    3. Hybrid
  2. Business Function, Value (USD Million)
    1. Finance
    2. Human Resource (HR)
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  3. Enterprise Size, Value (USD Million)
    1. Small and Medium Enterprises (SMEs)
    2. Large Enterprises
  4. End user, Value (USD Million)
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. Others
  5. Country Level Analysis, Value (USD Million)
    1. Brazil
    2. Argentina
    3. Mexico
    4. Rest of Latin America
3. Cross Analysis of Deployment Model w.r.t. End User
Middle East & Africa Market
1. Overview
  1. Market Value (USD Million), Current and Future Projections, 2019–2037
  2. Increment $ Opportunity Assessment, 2019–2037
  3. Year-on-Year Growth Forecast (%)
2. Segmentation (USD Million), 2019-2037, By
  1. Deployment Model, Value (USD Million)
    1. On Premise
    2. Cloud
    3. Hybrid
  2. Business Function, Value (USD Million)
    1. Finance
    2. Human Resource (HR)
    3. Supply Chain
    4. Customer Management
    5. Inventory Management
    6. Manufacturing Module
    7. Others
  3. Enterprise Size, Value (USD Million)
    1. Small and Medium Enterprises (SMEs)
    2. Large Enterprises
  4. End user, Value (USD Million)
    1. Manufacturing
    2. BFSI
    3. Healthcare
    4. Retail & Distribution
    5. Government & Utilities
    6. IT & Telecom
    7. Construction
    8. Aerospace & Defense
    9. Others
  5. Country Level Analysis, Value (USD Million)
    1. Saudi Arabia
    2. UAE
    3. Israel
    4. Qatar
    5. Kuwait
    6. Oman
    7. South Africa
    8. Rest of Middle East & Africa
3. Cross Analysis of Deployment Model w.r.t. End User
About Research Nester
1. Our Global Clientele
2. We Serve Clients Across World

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

ERP Software Market size was valued at USD 81.5 billion in 2024 and is projected to reach a valuation of USD 447.6 billion by the end of 2037, rising at a CAGR of 14% during the forecast period, i.e., 2025-2037. In 2025, the industry size of ERP software is assessed at USD 92.9 billion.

The ERP software market is continuously expanding due to cloud innovation, integrated AI, and the rising use of ERP software in various sectors. Leading vendors are creating industry-specific ERP solutions for the construction, healthcare, and government sectors. In February 2025, Constellation HomeBuilder Systems launched NX, a modular ERP solution aimed at the needs of residential construction companies. With features such as integrated AI to help eliminate operational delays, this release shows that there is an increasing need for specialized ERP applications. On the other hand, governments are also playing an active role in driving the adoption of this technology. In November 2024, the UK government invested EUR 366 million to upgrade its ERP systems, which is a good example of how digital transformation in the public sector is gaining momentum in the ERP software market.

In addition to verticalization, sustainability and automation are emerging as significant trends in ERP development. In February 2025, SAP introduced a new cloud-based ERP solution in collaboration with Accenture, which incorporates ESG metrics into business processes. This makes it easier for enterprises to track the impact of environmental and social performance in addition to the financial results. This trend is supported by SAP’s ERP Private Edition Transition Option launched in February 2025, which provides a gradual transition to the cloud. Smart features, better coordination in terms of regulation, and modularity are the key factors that are transforming ERP into a data-oriented and sustainable system.

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ERP Software Market: Growth Drivers and Challenges

Growth Drivers

Cloud adoption across enterprises: Cloud technology is now gaining popularity and is changing the way ERP software is implemented and scaled. The advantages of cloud-based ERP solutions include real-time data access, low hardware and software requirements, and easy software updates. In December 2024, SAP and AWS introduced “GROW with SAP” in the AWS Marketplace to help organizations easily adopt SAP S/4HANA Cloud, which comes with integrated AI. This strengthens the adoption of ERP across small, medium, and large companies and creates a scalable platform for AI integration. As businesses have become agile and constantly changing, the cloud remains the leading ERP deployment model.
AI and automation enhancing operational intelligence: ERP processes are being transformed by AI through incorporating predictive analytics, anomaly detection, and automation. In May 2024, Riveron and Numeric joined a strategic partnership to bring AI automation of finance processes directly into ERP systems. This integration effectively brings real-time insights and reconstructions into the very center of ERP systems, thus raising them from mere transactional platforms to strategic tools. With the help of AI, organizations are transforming ERP systems into cognitive centers for business improvement.
Digital transformation in regulated sectors: Sectors such as healthcare, government, and banking are adopting ERP to address compliance, reporting, and operational requirements. In September 2024, Great Plains Health Alliance made an agreement with Multiview Financial Software to deliver cloud-based ERP systems to rural healthcare clients. The system provides for compatibility and financial control in heavily governed settings. Likewise, the India government’s transition of more than 25,000 Primary Agricultural Credit Societies to a single ERP in August 2024 exemplifies how ERP solutions are enhancing transparent, secure financial transactions in developing nations.

Challenges

Migration complexity and legacy integration: The process of migrating from legacy ERP systems to the new, more advanced solutions is a concern for many companies. This migration process is not without its challenges as it may result in data incompatibility between the older and the newer systems, and therefore, data loss or corruption may occur. Also, the disruption of the system that is expected during migration presents some risks to business continuity since some operations may not be available or may be affected.
Talent gap in ERP implementation and maintenance: ERP systems’ successful deployment and sustenance entail the presence of professionals with knowledge in both the technology and the business processes. However, there is a current shortage of skilled ERP human capital, which makes it hard to recruit the required workforce. With the integration of AI and cloud, the ERP systems are becoming more sophisticated and will require different competencies to implement and manage, thereby expanding the talent shortage.

ERP Software Market: Key Insights

Base Year	2024
Forecast Year	2025-2037
CAGR	14%
Base Year Market Size (2024)	USD 81.5 billion
Forecast Year Market Size (2037)	USD 447.6 billion
Regional Scope	North America (U.S., and Canada) Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific) Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Latin America (Mexico, Argentina, Brazil, Rest of Latin America) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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ERP Software Segmentation

Deployment (Cloud, On Premise, Hybrid)

Cloud ERP segment is set to hold ERP software market share of over 60.9% by the end of 2037, owing to factors such as flexibility, affordability, and scalability. In August 2024, Marg ERP ventured into the SaaS market by introducing MARG ERP Cloud, a web-based solution that helps SMEs manage inventory and accounting with 99% uptime and data security. Some of the advantages that cloud ERP systems offer include decreased reliance on hardware, compliance, and disaster recovery. With increased remote and hybrid work arrangements, cloud ERP adoption remains on an upward trend across businesses of all sizes.

Due to their modularity, cloud ERP solutions can be implemented more quickly and can be updated in real time, which will enable innovation at scale. This role in enabling embedded finance, AI analytics, and ESG tracking strengthens its position even more. With large players such as SAP, Oracle, Microsoft, and new entrants focusing on enhancing cloud solutions, this deployment model is poised to remain the fundamental of ERP advancement.

Enterprise Size (Small & Medium Enterprises (SMEs) and Large Enterprises)

In ERP software market, large enterprises segment is expected to capture revenue share of over 74% by 2037, owing to their large and complicated operations and global presence. In January 2025, SAP launched the Business Data Cloud with Databricks to make it possible for large enterprises to integrate on-premises and cloud-based ERP data for AI-driven insights. These organizations require flexible and expandable ERP solutions that are capable of addressing compliance requirements across multiple geographical locations, supply chain management, and financial reporting. Enterprise resource planning systems for large firms are known to link with customer relation management, human resource management, and industry solutions and this leads to more complicated systems and costs.

The demand for integrated business intelligence and the centralized management of ERP systems is fueling its usage across industries such as manufacturing, healthcare, and logistics. Moreover, the use of embedded AI, robotic process automation (RPA), and sustainability reporting is more visible in large enterprises. ERP remains the key to large-scale enterprise digital strategy execution.

Our in-depth analysis of the global ERP software market includes the following segments:

Deployment Model	On Premise Cloud Hybrid
Business Function	Finance Human Resource (HR) Supply Chain Customer Management Inventory Management Manufacturing Module
Enterprise Size	Small and Medium Enterprises (SMEs) Large Enterprises
End user	Manufacturing BFSI Healthcare Retail & Distribution Government & Utilities IT & Telecom Construction Aerospace & Defense

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North America Market Analysis

North America ERP software market is set to account for revenue share of more than 34.9% by the end of 2037, due to digital-first businesses and a sophisticated cloud environment. In April of 2024, TA Associates invested in Edmunds GovTech to further develop the ERP modules focused on the U.S. municipalities market. This represents the high demand for ERP in transforming the public sector in the digital age. North America also stands out as the leading region in ERP innovation, the integration of AI, blockchain, and embedded fintech tools, and operational flexibility. From supply chain management to legal operations, enterprise resource planning remains essential for core business processes.

The U.S. remains a global innovation center for ERP solutions and vendors continue to roll out modules with AI and other specialized solutions for different sectors. In March 2025, iFabric Corp invested CAD 500,000 in BlueCherry ERP from Computer Generated Solutions to improve its inventory operations through AI. The increased adoption of ERP in businesses in the United States can be attributed to the tech-friendly environment, availability of cloud providers, and the modernization of regulations. Business requirements for integrated accounting, customer relationship management, and supply chain management drive ERP vendors to add more functionality and deployment options.

Canada is gradually emerging as an attractive ERP software market, with increased interest from both new firms and traditional businesses. In May 2024, Teal, a Vancouver-based firm, raised CAD 11 million for developing embedded accounting applications for a vertical SaaS marketplace. The initiative helps in real time tracking of financials in ERPs and increases the accessibility of ERP infrastructure for small firms in Canada. Canada’s ERP adoption is being powered by cloud-native design, regional data ownership, and integrated financial applications in Toronto, Vancouver, and Montreal hubs.

Asia Pacific Market Statistics

By the end of 2037, Asia Pacific ERP software market is projected to dominate around 13.5% revenue share, due to industrial digitalization, smart city initiatives, and cloud adoption. In October 2024, China’s State Taxation Administration implemented fully digital e-fapiao or electronic invoicing with ERP connection throughout China. This initiative increases the level of tax transparency and automates the processes of compliance for companies that are using ERP systems. The APAC region is emerging as one of the most promising ERP growth markets due to its fast-growing cloud adoption, strong government backing, and developing startup cultures.

The ERP software market in China is growing rapidly, owing to the support of the government’s digitalization initiatives as well as the development of information technology. In April 2023, Huawei introduced MetaERP, an internally developed ERP system replacing Western vendors due to geopolitical factors. MetaERP currently covers 80% of Huawei’s main business processes, demonstrating China’s drive for the domestication of enterprise software. Other trends, such as digital tax compliance and smart manufacturing, are also contributing to the continued adoption of ERP systems among enterprises. Thus, it is evident that localized features, cybersecurity, and performance optimization are still the key drivers of ERP competitiveness in China.

The ERP software market in India is expanding attributed to the digitization of the MSME segment, the reform of rural credit, and the integration of fintech solutions. In October 2024, J&K Bank signed a strategic partnership agreement with Marg ERP to provide business solutions for MSMEs in the retail, pharma, and FMCG sectors. The platform consists of inventory management, digital lending, and accounting. This is in line with India’s efforts to enhance the digital transformation of small businesses through ERP implementations. With the advancement in GST, e-invoicing, and UPI, ERP systems are now critical to business operations and compliance.

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Companies Dominating the ERP Software Market

The ERP software market is saturated, and it is dominated by IBM Corporation, Microsoft, Epicor, HP, Sage Group, SAP SE, Oracle, NetSuite Inc., and Unit4. Every vendor provides industry solutions, artificial intelligence capabilities, and cloud-first approaches. The ERP software market is currently experiencing significant demand for embedded finance, e-procurement, and ESG reporting capabilities. New entrants such as Teal, Nominal, and Sigma Technology are introducing more modular and verticalized ERP solutions in the mid-market and SME tiers. In March 2024, Nominal, a tech startup aiming to disrupt the ERP market with artificial intelligence, raised USD 9.2 million in a seed funding round led by Bling Capital and Hyperwise Ventures. Nominal focuses on mid-market, multi-entity businesses, offering AI-driven solutions to streamline complex business processes. Such developments reaffirm the vendors' focus on advancing data insights and intelligent automation as key elements of future ERP systems.

Here are some leading companies in the ERP software market:

Infor Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
IBM Corporation
Microsoft
Epicor Software Corporation
Hewlett-Packard Development Company, L.P.
Sage Group, plc
SAP SE
Unit4
NetSuite Inc.
Oracle

In the News

In February 2025, KPMG introduced its dynamic Audit Quality Report, transitioning from a static annual document to a dynamic, data-driven platform updated to respond to market developments. The platform features the full report, a dynamic data dashboard, blogs, and data graphics aligned with KPMG's Audit Story. The report highlights the firm's efforts with next-generation auditors, growing use of technology, and progress in service delivery models.
In January 2025, Reliable Paints selected BatchMaster ERP to enhance its business efficiency by streamlining operations and improving resource planning. The implementation of BatchMaster ERP is expected to optimize inventory management, production planning, and compliance processes. This strategic move aims to support Reliable Paints in meeting growing market demands and maintaining quality standards.
In November 2024, Open Source Integrators and Pragmatek announced a strategic merger to enhance ERP and business process solutions, aiming to provide comprehensive services to clients. The merger combines Open Source Integrators' expertise in open-source ERP systems with Pragmatek's proficiency in business process optimization. This collaboration is expected to deliver integrated solutions that improve operational efficiency and scalability for businesses.

Author Credits: Abhishek Verma

Report ID: 5109
Published Date: Mar 27, 2025
Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In 2024, the industry size of ERP software was USD 81.5 billion.

The global ERP software market size was USD 81.5 billion in 2024 and is expected to reach USD 447.6 billion by the end of 2037, expanding at a CAGR of 14% during the forecast period, i.e., 2025-2037. In 2025, the industry size of ERP software will be valued at USD 92.9 billion.

Key players in the market are IBM Corporation, Microsoft, Epicor Software Corporation, Hewlett-Packard Development Company, L.P., Sage Group, plc, SAP SE, Unit4, NetSuite Inc., Oracle.

The large enterprises segment is anticipated to lead the ERP software market during the forecast period.

North America is anticipated to dominate the ERP software market during the forecast period.