ERP Software Market Analysis

Deployment Segment Analysis

On-premises segment is projected to maintain a 62.5% ERP software market share during the forecast period, driven by corporate requirements for direct control of data, enhanced security, and compliance with stringent regulatory environments. Large-scale firms and regulated industries, such as banking, healthcare, and government, prefer on-premises solutions for handling sensitive information and maintaining operational independence from third-party service providers. In August 2025, Oracle Corporation integrated future technologies, including quantum computing, smart neural networks, and edge computing, into the Oracle ERP platform architecture. The platform development includes blockchain for transaction verification, AI for process optimization, and edge computing for real-time processing, resulting in robust supply chain management and financial operation capabilities.

Function Segment Analysis

The finance segment is expected to hold a 35% market share by 2035, reflecting the critical role of financial management, regulatory compliance, and reporting capabilities in operations across all industries. Financial capabilities, such as accounting, budgeting, financial reporting, and compliance with regulatory requirements, are core ERP requirements that drive upfront system utilization and future platform adoption. High-end financial modules offer premium features such as multi-currency support, automated reconciliation, regulatory compliance reporting, and integrated analytics, enabling enhanced decision-making and improved operating performance. In July 2025, Sage acquired Fyle, a company focused on simplifying and automating expense management workflows for small-to-medium-sized businesses (SMBs). This robust financial foundation makes the finance segment a cornerstone of ERP market growth.

Enterprise Size Segment Analysis

The large enterprise segment is expected to hold on to a 41% market share by 2035, driven by complex operating requirements, high transactional volumes, and strong integration demands across multiple departments and geographies. These companies invest heavily in ERP solutions to optimize business performance, achieve cost savings, and maintain competitive advantages through integrated business process management and real-time analytics capabilities. Microsoft Corporation further augmented its AI-based ERP in August 2024 with Microsoft Business Central, featuring proprietary AI advancements with machine learning as the primary focus, which is the top customer priority. The use of AI offers businesses unprecedented possibilities for forecasting demand and optimizing operations, leveraging complementary features such as Business Central integration with Common Data Service and extended data entry functionality.

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