Report Highlights


Enterprise software includes business applications like ERP, CRM, BI, SCM, TMS, CMS, EPMS, eCommerce software, and AI development software that help organizations manage core operations. In this report, enterprise software is not “any software that an enterprise uses,” but specifically these business applications - excluding administrative software, office suites, and collaboration tools.

Market size: The global enterprise software market reached $316.69 billion in 2025 and is projected to grow to $403.90 billion by 2030. Note: Using Gartner’s broader definition that includes infrastructure, security software, and databases, the market was $899.9 billion in 2024 - roughly 3x larger.

  • Enterprise software represents 41% of the total global software market by revenue
  • The global enterprise software market reached $317 billion in 2025
  • Using Gartner’s broader definition that includes infrastructure software, security, and databases, the total enterprise software market was $899.9 billion in 2024, growing 11.9% year-over-year
  • Total worldwide IT spending is projected at $5.43 trillion in 2025, growing 7.9% year-over-year
  • U.S. companies spend $868.40 per employee annually on enterprise software - 5.5 times more than European companies at $157.90 per employee
  • 43.3% of EU enterprises use ERP software, while 25.8% use CRM software
  • Denmark leads the EU in enterprise software adoption rate - 74%, with the EU average at 50%
  • Cloud subscription revenue now accounts for 60.1% of the enterprise software market, up from approximately 40% just a few years ago
  • Salesforce dominates CRM with 26.1% market share - more than its top four competitors combined
  • The top 10 Supply Chain Management Software (SCM) vendors control 43.1% of the market, the lowest concentration among major enterprise software categories

Enterprise Software Market Size by Region


United States

  • The U.S. enterprise software market reached $150.50 billion in 2024 and is projected to grow to $159.39 billion in 2025
  • U.S. companies spend an average of $868.40 per employee on enterprise software annually
  • The Americas region accounts for 43% of the global ERP market with $62.6 billion in spending

Europe

  • Europe’s enterprise software market stands at $65.99 billion in 2024, growing to $70.60 billion in 2025
  • European enterprise software spending will reach $94.63 billion by 2029, representing a 6.36% CAGR
  • European companies spend an average of $157.90 per employee on enterprise software - 5.5 times less than U.S. companies

United Kingdom

  • The UK enterprise software market reached $15.19 billion in 2024 and is projected to hit $21.85 billion by 2029
  • The UK has the fastest growth rate in Western Europe at 7.54% CAGR through 2029

Germany

  • Germany’s enterprise software market is estimated at $12-13 billion annually
  • German companies spend an average of $292.90 per employee on enterprise software, the highest in continental Europe

Italy

  • Italy’s enterprise software market stands at $3.36 billion in 2024, growing to $4.02 billion by 2029
  • Italian companies spend $128.10 per employee on enterprise software annually

Enterprise Software Market Size by Category


Customer Relationship Management (CRM)

  • The global CRM market reached $80 billion in 2024, growing 10.5% year-over-year
  • CRM software will reach $106.1 billion by 2029, representing a 5.8% CAGR
  • CRM represents approximately 13.6% of the total enterprise software market

Enterprise Resource Planning (ERP)

  • The ERP software market generated $52.33 billion in 2024 and will reach $65.29 billion by 2029 at a 3.97% CAGR
  • When including finance applications and HCM, the total ERP ecosystem reached $147.7 billion in 2025
  • The U.S. accounts for $26.70 billion of global ERP spending in 2024

Human Capital Management (HCM)

  • HCM software reached $58.7 billion in 2024 with 11.7% year-over-year growth, the second-fastest growing major category
  • HCM software is projected to reach $81.1 billion by 2029 with a 6.7% CAGR

Supply Chain Management (SCM)

  • SCM software represents $20.97 billion in 2025, growing to $24.58 billion by 2029 at a 4.05% CAGR
  • The U.S. accounts for $10.90 billion of SCM spending, over half the global market

Business Intelligence & Analytics

  • Business Intelligence software generated $27.75 billion in 2024, with projections of $36.35 billion by 2029 at a 5.35% CAGR
  • The U.S. represents $13.79 billion of the BI market, nearly half the global total

Collaboration Software

  • Collaboration software reached $15.28 billion in 2024 with modest 1.70% CAGR growth through 2029
  • The broader Unified Communications & Collaboration market stands at $64 billion with 7.5% year-over-year growth

Enterprise Software Market Share by Vendor


CRM Leaders

  • Salesforce commands 26.1% of the CRM market - more than its top four competitors combined
  • Salesforce generated $21.6 billion in CRM revenue in 2024
  • Microsoft holds 5.9% CRM market share, Oracle 4.4%, SAP 3.5%, and Adobe 5-6%

ERP Leaders

  • Oracle surpassed SAP in 2024 to become the #1 ERP vendor with $8.7 billion in revenue (6.63% market share)
  • SAP generated $8.6 billion in ERP revenue (6.57% market share) across 141,399 customers
  • Microsoft Dynamics 365 Business Central dominates by installation count with 87%+ market share across 2+ million domains

HCM Leaders

  • Workday leads the HCM market with 9.8% market share
  • The top 10 HCM vendors collectively hold 45.6% market share, indicating significant fragmentation

SCM Leaders

  • SAP leads the SCM market with 12.2% market share, followed by Oracle, Blue Yonder, and E2open
  • The top 10 SCM vendors control 43.1% of the market, the lowest concentration among major enterprise software categories

Collaboration Leaders

  • Microsoft commands 38% of the collaboration software market through Teams and Office 365

Enterprise Software Adoption Rates


EU-27 Adoption Rates

  • 43.3% of EU enterprises use ERP software, according to Eurostat’s 2023 survey
  • 25.8% of EU enterprises use CRM software
  • 15.3% of EU enterprises use business intelligence software
  • 49.9% of EU enterprises use at least one of these three categories

Share of enterprises using any business software (ERP, CRM or BI) [tin00116]
Country/Region 2023 (%)
Denmark 73.59
Finland 70.79
Netherlands 67.70
Belgium 67.04
Sweden 64.51
Spain 59.65
Malta 57.82
France 53.76
Luxembourg 53.70
Montenegro 53.66
Norway 53.46
Portugal 52.63
Germany 51.27
Cyprus 51.22
European Union - 27 countries (from 2020) 50.00
Austria 49.62
Greece 49.07
Italy 48.67
Ireland 46.13
Lithuania 45.38
Slovenia 41.61
Hungary 39.88
Poland 38.88
Estonia 38.66
Latvia 35.87
Czechia 34.22
Croatia 34.22
Türkiye 32.48
Slovakia 32.09
Bosnia and Herzegovina 27.23
Serbia 26.22
Bulgaria 26.11
Romania 24.27

Source: Eurostat (isoc_eb_iip) , DOI: 10.2908/tin00116, last update: 17/07/2025



Adoption by Company Size (EU)

  • Small enterprises (10-49 employees): 37.9% use ERP, 22.2% use CRM, 11.0% use BI
  • Large enterprises (250+ employees): 86.3% use ERP, 60.5% use CRM, 62.6% use BI

Nordic Countries Lead EU Adoption

  • Denmark leads the EU with 67.3% ERP adoption, the highest rate across all member states
  • Finland has 56.9% ERP adoption and 49.9% CRM adoption - the highest CRM penetration in Europe
  • Sweden posts 58.6% ERP adoption (Eurostat 2023)
  • Belgium ranks second in EU ERP adoption at 59.5%, with 67% overall e-business application deployment
  • The Netherlands leads in CRM adoption at 48.4%, second only to Finland

Cloud vs. On-Premise Deployment


  • Cloud subscription revenue reached 60.1% of the overall enterprise software market in 2024
  • 73% of enterprises have deployed hybrid cloud strategies, combining public cloud, private cloud, and on-premise systems
  • 95% of enterprises now operate in hybrid cloud environments, with only 5% remaining purely on-premise or purely public cloud
  • 92% of organizations use a multicloud approach
  • Microsoft Azure leads adoption with 80% of enterprise respondents using it for public cloud workloads
  • AWS serves 49% of enterprises for significant workloads
  • End-user spending on public cloud services is forecasted at $723.4 billion for 2025
  • SaaS adoption grew from 24% to 36% in just 18 months
  • Enterprises use an average of 364 SaaS applications

Enterprise Software Spending by Industry


  • Financial services allocates 4.4% to 11.4% of revenue to IT spending
  • Financial services cloud adoption reached 88% in 2025, the highest rate across all sectors
  • Manufacturing invests 1.4% to 3.2% of revenue in IT spending
  • Manufacturing operations show 67% adoption of hybrid cloud infrastructures
  • Healthcare enterprise IT spending reached $265.2 billion in 2024 with 9.5% growth
  • Healthcare shows the highest cloud adoption growth at 41% year-over-year increase
  • Retail sector shows 73% of digital operations running in the cloud
  • Telecommunications operates 86% of core services in the cloud
  • Media & entertainment relies on cloud for 79% of real-time streaming
  • The average across all industries stands at 8.2% of revenue allocated to IT spending

Enterprise Software Growth Rates


  • Overall enterprise software market grew 11.9% in 2024
  • CRM shows the fastest growth at 10.5% year-over-year, reaching $80 billion
  • HCM follows with 11.7% year-over-year growth to $58.7 billion
  • Business Intelligence software grows at 5.35% CAGR, expanding from $27.75 billion to $36.35 billion by 2029
  • Supply Chain Management software shows 4.05% CAGR, growing from $20.97 billion to $24.58 billion by 2029
  • ERP software demonstrates 3.97% CAGR, the most mature category
  • Collaboration software shows the slowest growth at 1.70% CAGR
  • Generative AI models grew 320.4% - the fastest-growing segment in enterprise software history
  • 72% of organizations now utilize generative AI services in 2025
  • Asia-Pacific shows the fastest regional CAGR at 9.6-18.2% through 2025

Digital Transformation Statistics


  • 89% of large companies globally have digital and AI transformation initiatives underway
  • Organizations capture only 31% of expected revenue lift and 25% of expected cost savings from digital transformations
  • Digital transformation failure rates range from 70% to 95%, averaging 87.5%
  • Despite 8% annual growth in U.S. enterprise technology spending since 2022, labor productivity grew only 2%
  • High-performing IT organizations deliver 35% higher revenue growth and 10% higher profit margins compared to peers
  • COVID-19 accelerated digital adoption rates by 7 years in 2020

Enterprise Software Market Projections for 2025-2030


  • The enterprise software market is projected to reach $403.90 billion by 2030 at a 4.99% CAGR
  • Total worldwide IT spending is projected at $5.43 trillion in 2025, growing 7.9% year-over-year
  • Cybersecurity spending is projected to increase 15% in 2025
  • Industry cloud platforms are expected to reach 70%+ enterprise adoption by 2027 (from less than 15% in 2023)

Sources


Note on Market Definitions: This report uses two different market definitions. Gartner’s comprehensive definition ($899.9B in 2024) includes all enterprise software categories including infrastructure, security, and databases. Statista’s narrower definition focuses on business applications like ERP, CRM, BI, SCM, and related categories ($295.7B in 2024, $316.69B in 2025). Both are valid measurements of different market scopes.