The Enterprise Resource Planning (ERP) Software Market is expected to grow at a CAGR of 4.78%, reaching a market size of US$65.134 billion in 2030 from US$51.567 billion in 2025.
ERP software is an advanced computing software that allows businesses to manage their day-to-day operations by integrating, streamlining, and managing core business processes under a unified system. It combines a variety of business processes like accounting, procurement, risk management and compliance, human resources, etc.
The increasing use of technology to streamline operations, expanding internet access, and a notable rise in activity, especially among small and medium-sized enterprises, are expected to significantly contribute to the ERP market’s expansion. Strong advancements in key end-user industries further support this growth. The ERP market consists of various elements that cover a wide range of software solutions, service providers, and specialized technologies to fulfill the requirements of businesses.
Surging investment and governmental support for small and medium enterprises (SMEs) are projected to support the market growth, creating scope for technology advancement and adoption, hence supporting the demand for ERP software. The SME sector has witnessed promising growth over the years and has been notably investing in technological upgradation and advancement. With the rise in computer technology inculcation to improve operations, the ERP software market is forecasted to witness promising growth.
A report published by the World Bank shows that small and medium enterprises account for 90% of global business and 50% of global employment generation. Reports by Oracle Netsuite, which is a leading provider of ERP Solutions, estimated that SMEs would grow at the rate of 7% through 2025 in the ERP market share.
Robust infrastructure development and investment in BFSI, IT, and telecom sectors are projected to increase the adoption of the ERP software market. The manufacturing sector is also anticipated to experience significant growth with a surge in technological adoption. 77% of companies that have implemented ERP hold the view that institutional leadership is the most critical success factor. Hence, the growth in these sectors would lead to a surge in demand for ERP implementation.
For instance, the global telecom sector has seen significant growth in the last 5 years, driven by new 5G technology and increased demand for connectivity worldwide.
During the forecast period, finance would dominate the ERP software market among all the segments based on function. ERP Software helps companies in managing their financial activities more systematically, like their purchasing, invoicing, data entry, accounting, cash flow, etc., improving their business efficiency and managing their financials better.
In 2022, the finance segment held around 26% of the revenue share from the ERP software market. Banks are streamlining their banking activities by adopting better and enhanced ERP solutions; thus, the improving ERP solutions are catering to banking needs. Hence, the demand for ERP solutions from the finance sector is rising, and this software market is dominating.
Region-wise, the global market is segmented into Asia-Pacific, North America, South America, Europe, Middle East and Africa. Asia-Pacific is expected to be the fastest-growing ERP market in the forecasted period.
The Asia Pacific region is forecasted to grow fastest, owing to a surge in internet penetration and booming investments in small and medium-scale enterprises. The growing economics of the Asian region, along with the increase in demand for cloud-based solutions for startups, is driving the ERP software solutions market growth. China is expected to hold a dominating share in the Asia-Pacific ERP software market, while India is projected to grow at the fastest CAGR.
Though there is a growing demand for ERP solutions across businesses to streamline their activities, the ERP market is also facing some challenges that can act as a market restraint if not tackled properly. Around 51% of companies experience operational disruption when they go live, thus falling short of user experience. This inadequate user experience inhibits customers or users from utilizing its full potential, thus acting as a market restraint for ERP solutions. Involving stakeholders in the ERP Project and creating a more flexible ERP System are ways this market can meet the challenges with other innovative solutions.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Enterprise Resource Planning (ERP) Software Market Size in 2025 | US$51.567 billion |
| Enterprise Resource Planning (ERP) Software Market Size in 2030 | US$65.134 billion |
| Growth Rate | CAGR of 4.78% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Enterprise Resource Planning (ERP) Software Market |
|
| Customization Scope | Free report customization with purchase |