Research Highlights
- The global ERP market reached $66 billion in 2024, and is growing at 11.3% annually
- The global ERP market size is estimated at $73 billion in 2025
- Cloud ERP accounts for 70% of the market and grows 14.5% annually compared to on-premise's 2% growth
- Oracle ($8.7B) surpassed SAP ($8.6B) as the #1 ERP vendor by revenue in 2024 for the first time
- Sage leads ERP customer count with 6.1 million customers despite generating only $3.1B revenue; SAP has 141,399 customers but generates $8.6B
- Asia-Pacific ERP market grows fastest at 14% CAGR, double North America's rate
- Manufacturing represents 32% of the ERP market, the largest industry vertical
- 92% of high-performing SMBs use or plan to use ERP systems
ERP Historic Market Size by Year
How big is the ERP market in 2025?
The global ERP market size in 2025 is estimated at $73 billion.
How big was the ERP market in 2024?
The ERP market size in 2024 was $66 billion, which represents 11.3% growth from 2023.
How big was the ERP market in 2023?
The ERP market size in 2023 was $59 billion, representing 34.1% growth from 2022. This large percentage increase reflects a methodology revision by Gartner rather than actual market expansion. Using the previous methodology, the ERP market size in 2023 was $51 billion and had a growth rate of 13%.
How big was the ERP market in 2022?
The ERP market size in 2022 was $44 billion, growing 8%.
How big was the ERP market in 2021?
The ERP market size in 2021 was $44.4 billion, representing 11% growth as companies accelerated digital transformation post-COVID-19.
How big was the ERP market in 2020?
The ERP market size in 2020 was $40 billion, representing 3.1% growth due to COVID-19 budget freezes. Cloud-based SaaS models prevented market collapse.
How big was the ERP market in 2019?
The ERP market size in 2019 was $38.8 billion, representing 10.9% growth during the pre-pandemic economic expansion.
How big was the ERP market in 2018?
The ERP market size in 2018 was $35 billion, representing 10% growth from 2017.
ERP market size historical comparison (2018-2025)
| Year | Worldwide ERP Market Size | YoY Growth |
|---|---|---|
| 2025 | $73B | 15% |
| 2024 | $66.0B | 11.3% |
| 2023 | $59.0B | 34.1%* |
| 2022 | $44.0B | -0.9%* |
| 2021 | $44.4B | 11.0% |
| 2020 | $40.0B | 3.1% |
| 2019 | $38.8B | 10.9% |
| 2018 | $35.0B | 10.0% |
*2022-2023 anomalies reflect Gartner methodology changes, not actual market movements
ERP Market Size Projections
What is the projected ERP market size for 2026?
The projected ERP market size for 2026 is $81 billion, representing 11% growth from 2025.
What is the projected ERP market size for 2027?
The projected ERP market size for 2027 is $90 billion based on 11% CAGR from 2024. This year is particularly significant as SAP's mainstream support for on-premise ECC ends in 2027, forcing large-scale customer migrations.
What is the projected ERP market size for 2030?
The projected ERP market size for 2030 is $120 billion based on 11% CAGR from 2024.
What is the growth rate of the ERP market?
The ERP market compound annual growth rate (CAGR) is 11.2% annually based on 2018-2024 data, which demonstrates consistent double-digit growth despite pandemic disruption.
Cloud ERP specifically grows at 14.5% CAGR, while on-premise ERP grows at only 2% CAGR.
Cloud ERP specifically grows at 14.5% CAGR, while on-premise ERP grows at only 2% CAGR.
ERP Market Size by Region
What is the US ERP market size?
The US ERP market size in 2025 is $27.82 billion, which is 49.8% of the global market. The United States is the single largest country market for ERP software.
The US ERP market is projected to grow at 10% CAGR through 2030, reaching approximately $45 billion by 2030.
The US ERP market is projected to grow at 10% CAGR through 2030, reaching approximately $45 billion by 2030.
What is the European ERP market size?
The European ERP market size in 2025 is $12.67 billion, which represents 22.7% of the global market. Europe is the second-largest regional market after North America.
The European ERP market is projected to grow at 4.67% CAGR through 2030, the slowest among major regions due to market maturity.
The European ERP market is projected to grow at 4.67% CAGR through 2030, the slowest among major regions due to market maturity.
What is the UK ERP market size?
The UK ERP market size in 2025 is $2.96 billion. The UK represents approximately 23% of the European ERP market, making it the largest European country market.
What is the Germany ERP market size?
The Germany ERP market size in 2025 is $2.41 billion, making it the second-largest European country market after the UK. Germany represents approximately 19% of the European ERP market, driven by its strong manufacturing sector and the presence of SAP's headquarters.
What is the Netherlands ERP market size?
The Netherlands ERP market size in 2025 is $777 million, representing approximately 6% of the European ERP market. The Netherlands has high ERP penetration among mid-sized companies due to its trade-oriented economy.
What is the Nordics ERP market size?
The Nordics (Denmark, Sweden, Norway, Finland) combined ERP market size in 2025 is $1.3 billion, representing approximately 10% of the European ERP market. The Nordic region has among the highest ERP adoption rates globally due to advanced digitization.
Sweden represents the largest Nordic market at approximately $471 million, followed by Denmark at $313 million, Finland at $262 million and Norway at $238 million.
Sweden represents the largest Nordic market at approximately $471 million, followed by Denmark at $313 million, Finland at $262 million and Norway at $238 million.
What is the France ERP market size?
The France ERP market size in 2025 is $1.34 billion, representing approximately 11% of the European ERP market. France is the third-largest European country market after the UK and Germany.
What is the Spain ERP market size?
The Spain ERP market size in 2025 is $375 million, representing approximately 3% of the European ERP market.
What is the Italy ERP market size?
The Italy ERP market size in 2025 is $608 million, representing approximately 5% of the European ERP market.
What is the Benelux ERP market size?
The Benelux (Belgium, Netherlands, Luxembourg) combined ERP market size in 2025 is $1.1 billion, which represents about 9% of the European ERP market. The Netherlands accounts for the majority at $777 million, Belgium represents $288 million, and Luxembourg approximately $47 million.
What is the Baltics ERP market size?
The Baltics (Estonia, Latvia, Lithuania) combined ERP market size in 2025 is estimated at $32.8 million.
What is the Asia-Pacific ERP market size?
The Asia-Pacific ERP market size in 2025 is $9.56 billion, representing 17% of the global market. Asia-Pacific is the fastest-growing regional market.
The Asia-Pacific ERP market is projected to grow at 14% CAGR through 2030, roughly double North America's growth rate. The market is expected to reach $19 billion by 2030.
The Asia-Pacific ERP market is projected to grow at 14% CAGR through 2030, roughly double North America's growth rate. The market is expected to reach $19 billion by 2030.
What is the China ERP market size?
The China ERP market size in 2025 is $3.4 billion, representing approximately 36% of the Asia-Pacific market. China is the largest country market in Asia-Pacific.
The China ERP market grows at approximately 13% CAGR driven by "Made in China 2025" digital transformation initiatives and first-time ERP adoption among millions of manufacturers.
The China ERP market grows at approximately 13% CAGR driven by "Made in China 2025" digital transformation initiatives and first-time ERP adoption among millions of manufacturers.
What is the India ERP market size?
The India ERP market size in 2025 is $816 million, representing approximately 9% of the Asia-Pacific market.
What is the Japan ERP market size?
The Japan ERP market size in 2025 is $2 billion, representing approximately 21% of the Asia-Pacific market. Japan is the second-largest country ERP market in Asia-Pacific.
What is the Australia ERP market size?
The Australia ERP market size in 2025 is $942 million, representing approximately 10% of the Asia-Pacific market.
What is the Middle East and North Africa ERP market size?
The Middle East and North Africa (MENA) combined ERP market size in 2025 is $1.7 billion, representing 3% of the global market.
What is the Latin America ERP market size?
The Latin America ERP market size in 2025 is $1.7 billion, representing 3% of the global market.
The Latin America ERP market's growth is driven by SME cloud adoption and government e-invoicing mandates in countries like Brazil and Mexico.
The Latin America ERP market's growth is driven by SME cloud adoption and government e-invoicing mandates in countries like Brazil and Mexico.
Regional ERP market comparison table
| Region / Country | 2025 ERP Market Size | % of Global |
|---|---|---|
| United States | $27.82B | 49.7% |
| Europe (total) | $12.67B | 22.6% |
| — United Kingdom | $2.96B | 5.3% |
| — Germany | $2.41B | 4.3% |
| — France | $1.34B | 2.4% |
| — Italy | $0.608B | 1.1% |
| — Spain | $0.375B | 0.7% |
| — Netherlands | $0.777B | 1.4% |
| — Benelux (total) | $1.10B | 2.0% |
| —— Belgium | $0.288B | 0.5% |
| —— Luxembourg | $0.047B | 0.1% |
| — Baltics (EE+LV+LT) | $0.0328B | 0.1% |
| — Nordics (total) | $1.30B | 2.3% |
| —— Sweden | $0.471B | 0.8% |
| —— Denmark | $0.313B | 0.6% |
| —— Finland | $0.262B | 0.5% |
| —— Norway | $0.238B | 0.4% |
| Asia-Pacific (total) | $9.56B | 17.1% |
| — China | $3.40B | 6.1% |
| — India | $0.816B | 1.5% |
| — Japan | $2.00B | 3.6% |
| — Australia | $0.942B | 1.7% |
| MENA (total) | $1.70B | 3.0% |
| Latin America (total) | $1.70B | 3.0% |
Cloud ERP vs On-Premise ERP
What is the cloud ERP market size?
The cloud ERP market size in 2025 is $51 billion (calculated as 70% of $73B global market), representing 70% of the total ERP market. Cloud ERP has become the dominant deployment model.
The cloud ERP market grows at 14.5% CAGR, significantly faster than the overall market.
The cloud ERP market grows at 14.5% CAGR, significantly faster than the overall market.
What is the on-premise ERP market size?
The on-premise ERP market size in 2025 is $22 billion (calculated as 30% of $73B global market), representing 30% of the total ERP market.
The on-premise ERP market grows at only 2% CAGR as organizations migrate to cloud.
The on-premise ERP market grows at only 2% CAGR as organizations migrate to cloud.
What percentage of ERP is cloud-based?
70% of the ERP market is cloud-based in 2025. This represents a dramatic shift from 2020 when cloud represented only 52% of the market.
Panorama Consulting Group's 2024 survey found 78.6% of organizations implementing new ERP systems selected cloud solutions, up from 64.5% in 2023.
Panorama Consulting Group's 2024 survey found 78.6% of organizations implementing new ERP systems selected cloud solutions, up from 64.5% in 2023.
What is the SaaS ERP market size?
The SaaS ERP market size in 2025 is $33 billion, representing the majority of cloud ERP deployments. Within cloud deployments, 64.8% of organizations chose pure SaaS versus hosted or managed services.
ERP Vendor Market Share by Revenue
Who is the largest ERP vendor by revenue?
Oracle is the largest ERP vendor by revenue with $8.7 billion in 2024, surpassing SAP for the first time.
Oracle's market share by revenue is 6.63% of the $131 billion total ERP applications market tracked by Apps Run The World.
Oracle's market share by revenue is 6.63% of the $131 billion total ERP applications market tracked by Apps Run The World.
What is SAP's ERP revenue?
SAP's ERP revenue in 2024 was $8.6 billion, making it the second-largest ERP vendor by revenue. SAP's market share by revenue is 6.57%.
SAP reported total cloud ERP suite revenue of €14.17 billion ($15.4B), but core ERP-specific revenue (excluding CRM, SCM, and other applications) is estimated at $8.6 billion.
SAP reported total cloud ERP suite revenue of €14.17 billion ($15.4B), but core ERP-specific revenue (excluding CRM, SCM, and other applications) is estimated at $8.6 billion.
What is Microsoft's ERP revenue?
Microsoft's ERP revenue in 2024 was $5.4 billion, making it the third-largest ERP vendor. Microsoft doesn't separately report ERP revenue, but Dynamics 365 total revenue exceeded $7 billion with ERP representing an estimated 75% of that.
Microsoft's market share by revenue is 4.0%.
Microsoft's market share by revenue is 4.0%.
What is Workday's ERP revenue?
Workday's ERP revenue in 2024 was $3.3 billion, estimated at 45.6% of its $7.3 billion total subscription revenue. Workday's market share by revenue is 2.5%.
What is Sage's ERP revenue?
Sage's ERP revenue in 2024 was $3.1 billion, making it the fifth-largest ERP vendor by revenue. Sage's market share by revenue is 2.3%.
What is Infor's ERP revenue?
Infor's ERP revenue in 2024 was $3.0 billion, making it the sixth-largest ERP vendor by revenue. Infor's market share by revenue is 2.2%.
What is IFS's ERP revenue?
IFS's ERP revenue in 2024 was $1.3 billion, representing 38% growth in cloud revenue. IFS's market share by revenue is 1.0%.
ERP vendors ranked by revenue (2024)
| Rank | ERP Vendor | ERP Revenue | ERP Market Share |
|---|---|---|---|
| 1 | Oracle | $8.7B | 6.63% |
| 2 | SAP | $8.6B | 6.57% |
| 3 | Microsoft | $5.4B | 4.00% |
| 4 | Workday | $3.3B | 2.50% |
| 5 | Sage | $3.1B | 2.30% |
| 6 | Infor | $3.0B | 2.20% |
| 7 | IFS | $1.3B | 1.00% |
What is Oracle's ERP market share?
Oracle's ERP market share is 6.63% by revenue ($8.7B of $131B market). By customer count, Oracle represents 1.4% of the total market (100,000 of 7 million total ERP customers).
What is SAP's ERP market share?
SAP's ERP market share is 6.57% by revenue ($8.6B of $131B market). By customer count, SAP represents 2.0% of the total market (141,399 of 7 million total ERP customers).
What is Microsoft Dynamics market share?
Microsoft Dynamics market share is 4.0% by revenue ($5.4B of $131B market). By customer count, Microsoft represents approximately 1.4% of the total market.
What is Workday's ERP market share?
Workday's ERP market share is 2.5% by revenue ($3.3B of $131B market). By customer count, Workday represents 0.07% of the total market but dominates the large enterprise segment with 5,000+ Fortune 500 customers.
ERP Vendor Market Share by Customer Count
Who is the largest ERP vendor by customer count?
Sage is the largest ERP vendor by customer count with 6.1 million customers globally. Despite having the most customers, Sage generates only $3.1 billion in revenue due to its focus on small businesses.
How many ERP customers does SAP have?
SAP has 141,399 ERP customers. SAP is the largest enterprise ERP vendor by customer count, though it ranks second overall behind SMB-focused Sage.
How many ERP customers does Oracle have?
Oracle has around 100,000 ERP customers including Oracle Fusion Cloud ERP (14,000+ large enterprise customers) and NetSuite (41,000+ customers growing 25% annually in 2024).
How many ERP customers does Microsoft have?
Microsoft has approximately 100,000 organizations using Dynamics 365 ERP products (Business Central and Finance & Operations). Microsoft does not publicly disclose specific customer counts.
How many ERP customers does Workday have?
Workday has 5,000+ ERP customers, all of which are large enterprises. Workday exclusively targets Fortune 500 and large enterprise organizations.
How many ERP customers does Infor have?
Infor has 60,000+ ERP customers across its industry-specific solutions (CloudSuite Industrial, CloudSuite Healthcare, etc.).
How many ERP customers does IFS have?
IFS has 7,000+ ERP customers, primarily in manufacturing, energy, and service-intensive industries.
ERP vendors ranked by customer count (2024)
| Rank | ERP Vendor | Customer Count | ERP Revenue per Customer | Target Segment |
|---|---|---|---|---|
| 1 | Sage | 6.1 million | $508 | SMB |
| 2 | Intuit QuickBooks | 5+ million | $200 | Very small business |
| 3 | SAP | 141,399 | $61,429 | Enterprise |
| 4 | Oracle | 100,000 | $87,700 | Enterprise + Midmarket |
| 5 | Microsoft Dynamics | 100,000 | $54,000 | SMB to Enterprise |
| 6 | Infor | 60,000 | $50,000 | Industry-specific |
| 7 | IFS | 7,000 | $175,000 | Manufacturing / Service |
| 8 | Workday | 5,000 | $660,000 | Large enterprise only |
ERP Market by Industry Vertical
What is the manufacturing ERP market size?
The manufacturing ERP market size in 2025 is $23 billion, representing 32% of the total ERP market. Manufacturing is the single largest industry vertical for ERP software.
The manufacturing ERP market grows at 8% CAGR, driven by Industry 4.0 initiatives, IoT integration, and supply chain optimization.
The manufacturing ERP market grows at 8% CAGR, driven by Industry 4.0 initiatives, IoT integration, and supply chain optimization.
What is the retail ERP market size?
The retail ERP market size in 2025 is $11.6 billion. Retail grows at 11.95% CAGR, the fastest among major industry verticals, driven by omnichannel requirements and real-time inventory management.
What is the healthcare ERP market size?
The healthcare/life sciences ERP market size in 2025 is $8.2 billion. Healthcare ERP grows at 12.6% CAGR, driven by regulatory compliance, patient data management, and telehealth integration.
What is the financial services ERP market size?
The financial services and banking ERP market size in 2025 is $11 billion, representing 15% of the total market. Financial services ERP is driven by open banking regulations, real-time payment processing, and AI-enabled fraud detection.
ERP spending by business function (2025)
| Function | Market Size | % of Total |
|---|---|---|
| Finance Applications | $39.7B | 27% |
| Human Capital Management | $34.6B | 23% |
| Sourcing & Procurement | $21.3B | 14% |
| Project & Portfolio Management | $21.0B | 14% |
| Supply Chain Management | $13.0B | 9% |
| Manufacturing PLM | $12.4B | 8% |
| Distribution Management | $5.6B | 4% |
(includes total ERP-related spending of $147.7B across all modules and functions due to data availability and differing methodologies)
ERP Market by Company Size
What is the SMB ERP market size?
The SMB ERP market size (companies under 500 employees) in 2025 is $44 billion, representing 60% of the total market.
Small businesses (under 100 employees) account for $22 billion while mid-market companies (100-499 employees) represent $22 billion.
The SMB ERP market grows at 10.7% CAGR, significantly faster than enterprise.
Small businesses (under 100 employees) account for $22 billion while mid-market companies (100-499 employees) represent $22 billion.
The SMB ERP market grows at 10.7% CAGR, significantly faster than enterprise.
What is the enterprise ERP market size?
The enterprise ERP market size (1,000+ employees) in 2025 is $29 billion, representing 40% of total market share.
The enterprise ERP market grows at 7% CAGR, slower than SMB but from a higher baseline with larger deal sizes.
The enterprise ERP market grows at 7% CAGR, slower than SMB but from a higher baseline with larger deal sizes.
What percentage of SMBs use ERP?
80% of SMBs with annual revenue under $50 million now use ERP systems. More specifically, 92% of high-performing SMBs either currently use or plan to use ERP systems.
For comparison, 75% of large enterprises with 1,000-4,999 employees have ERP systems, rising to 90%+ for very large enterprises with 5,000+ employees.
For comparison, 75% of large enterprises with 1,000-4,999 employees have ERP systems, rising to 90%+ for very large enterprises with 5,000+ employees.
What percentage of companies use ERP?
57% of all companies globally use some form of ERP system. This varies significantly by company size:
- 90%+ of large enterprises (5,000+ employees) (Gartner 2024)
- 75% of mid-sized enterprises (1,000-4,999 employees) (Gartner 2024)
- 80% of SMBs with $10M+ revenue (Panorama Consulting 2024)
- 45% of very small businesses (under 50 employees) (Panorama Consulting 2024)
ERP market by company size comparison
| ERP User Company Size | Market Size | % Total Market | Adoption Rate | Avg Cost per User (5 years) |
|---|---|---|---|---|
| Small (under 100) | $22B | 30% | 80% | $7,143 |
| Mid-market (100–999) | $22B | 30% | 80% | $8,542 |
| Large Enterprise (1,000–4,999) | $15B | 20% | 75% | $7,257 |
| Very Large (5,000+) | $14B | 20% | 90% | $7,500 |
Key ERP Market Drivers in 2025
What is driving ERP market growth?
ERP market growth in 2025 is driven by five primary factors:
-
Cloud migration mandates: SAP's end of mainstream support for on-premise ECC in 2027 forces hundreds of thousands of customers to migrate to S/4HANA Cloud
-
Generative AI integration: Vendors embedded AI capabilities for intelligent automation, predictive analytics, and conversational interfaces. Organizations implementing AI-enabled ERP report 20% improvements in forecasting accuracy
-
ESG and sustainability reporting: By 2027, 50%+ of organizations will use ERPs for carbon tracking and environmental compliance
-
Composable ERP architectures: 75% of organizations will replace monolithic systems with modular solutions by 2027
- Economic preference for subscription models: CFOs prefer operational expenditure (cloud subscriptions) over capital expenditure (on-premise infrastructure)
What is the ERP adoption rate?
The overall ERP adoption rate globally is 57% of all companies. Adoption varies significantly by region, company size, and industry:
By company size:
By company size:
- Very large enterprises (5,000+ employees): 90% (Gartner 2024)
- Large enterprises (1,000-4,999): 75% (Gartner 2024)
- Mid-market (100-999): 80% (Panorama Consulting 2024)
- Small business (under 100): 80% (Panorama Consulting 2024)
By region:
- North America: 70% adoption (industry analysis)
- Europe: 65% adoption (industry analysis)
- Asia-Pacific: 50% adoption (rapidly increasing)
How many companies use ERP worldwide?
1.4 million companies worldwide deploy ERP systems, serving 65+ million individual users globally. This represents 57% of companies that could benefit from ERP (those with 10+ employees or $1M+ revenue).
Sources
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