11 min read

ERP Market Size & Leaders in 2024

Simon Litt

Last updated on Oct 22, 2024

QUICK SUMMARY

The global ERP market is estimated to be worth between $150-200M in 2024, and growing quickly. Here's what you need to know.

TABLE OF CONTENTS Market Information Segmentation Analysis Market Trends Future Predictions Current Market Leaders

Key Takeaways

ERP is Booming: Estimates predict the ERP market is currently worth between $150 and $200 billion.

Growth Spurt Alert: The ERP market is expected to grow with a CAGR of 14.4% from 2024 to 2032.

Big Players at the Top: The global ERP market is largely dominated by Microsoft, Oracle, and Workday.

ERP's Future Comes Quickly: Cloud-based, multi-device, and AI-powered ERP tools are gaining a lot of ground.

Estimates place 2024’s ERP market size at anywhere between $50 and $200 billion USD (wide range, I know — I'll explain further later on).

According to Fortune Business Insights, a global market research firm, the market will scale up with an expected CAGR of 14.4% between 2024 and 2032.

There’s a lot of information and data to unpack about ERP software, but given the vast number of datasets pointing to entirely different numbers, it can be hard to decide who to trust.

Here’s a detailed breakdown of all the facts and figures on ERP software, verified by my team and me, so you can make an informed decision about how to proceed.

ERP Software Market Information

According to sources (with amazing names) like Mordor Intelligence, HG Insights, Statista, and more, the ERP software market is projected to grow quickly between 2024 and 2032, led by top vendors like SAP, Intuit, Sage, Oracle, and Microsoft.

Different datasets place the global market size in very different ballparks though, with values ranging from $50 to $200 billion USD in 2024. Not only that, but projections from different research and consulting firms also vary widely.

This is likely a result of research organizations relying on different methodologies, sample sizes, and market definitions instead of following a specific standard.

Current Global ERP Software Market Size

With the data being as inconsistent as it is, I’d say that the current global market size of ERP software as of 2024 is somewhere between $120-150 billion USD.

Here are a few of the data points I looked at:

According to the most recent numbers from Fortune Business Insights, the ERP software market is currently valued at $81.15 billion in 2024.
Meanwhile, The Business Research Company claims that the ERP software industry was already valued at $182.22 billion globally in 2023, with that number likely to increase up to $202.69 billion in 2024.
Statista, one of the leading sources of data analysis and research on the web, puts the global market size in 2024 at $52.33 billion. However, this analysis is based on revenue alone and doesn’t factor in other assets.
HG Insights claims that the ERP software market size will hit $183 billion by the end of the year, in their 2024 ERP Market Share Report.
Mordor Intelligence, in its ERP Market Size & Share Analysis (2024-2029), puts the figure at $65.25 billion.

Generally speaking, I found that reports that are either focused on a revenue-based analysis or based on data that was at least a few years old were more likely to offer a lower estimate for the global market size.

While it doesn’t explain away the disparity in every scenario, this is the most likely cause of the different numbers provided by various firms.

TLDR: $120-150B US.
Your loving cfo club editor, simon litt

North American ERP Software Market Size

North America’s share in the global valuation of the ERP software market seems to be somewhere between $20-30 billion USD. Of this, the US seems to make up for the lion’s share of the North American market, with Canada behind them.

According to Mordor Intelligence, the North American market for ERP software was estimated at $20.30 billion in 2022 and is expected to reach $25.92 billion by 2027.
Fortune Business Insights offers a more current estimate, with a market size of $15.35 billion as of 2024.
Statista provides a more flattering estimate, suggesting that the market will grow from $20.98 billion in 2019 to $32.39 billion in 2028.
The Business Research Company notes that North America was the second-largest market for ERP software in 2023, followed by the Asia-Pacific.
HG Insights provides the highest estimate of all, suggesting that the North American market has spent a whopping $78.7 billion USD on ERP software in 2024 (either they’re crazy, or people are walking around with pocket-sized ERPs that I don’t know about).

It’s worth noting that except for Fortune Business Insights, which puts the North American market size of the ERP software industry at $15.35 billion in 2024, most of these reports offer future projections based on outdated data.

Projected Global ERP Software Market Growth

If there’s one thing that everyone agrees on, it’s that the ERP software market is likely to see significant growth in the next 10–15 years, led by the North American and Asia-Pacific markets.

According to Statista, the global ERP software market is forecast to reach $62.36 billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 4.48% from 2024 to 2028.
Fortune Business Insights projects the global ERP software market to grow from $81.15 billion in 2024 to $238.79 billion by 2032, exhibiting a CAGR of 14.4% during the forecast period.
HG Insights estimates the ERP market will reach $183 billion over the next 12 months, as we’ve already noted above.
The Business Research Company forecasts the global ERP software market to grow from $202.69 billion in 2024 to $311.4 billion in 2028, at a CAGR of 11.3%.
Mordor Intelligence projects the ERP market to reach $65.25 billion in 2024 and grow to $103.95 billion by 2029, at a CAGR of 9.76% during the forecast period (2024-2029).

While the numbers are once again contested, I estimate that the projected global market size in 2029 could be somewhere between $250 to $300 billion USD, factoring in current estimates and projected growth.

North American ERP Software Market Growth

North America’s regional ERP software market is expected to experience steady growth driven by factors like increased ERP adoption, digital transformation, and cloud migration.

According to Statista, the ERP software market revenue in North America is projected to grow from $10.1 billion in 2019 to $11.97 billion by 2028.
Fortune Business Insights projects the U.S. ERP software market to grow from $12.43 billion in 2023 to $15.89 billion by 2030, exhibiting a CAGR of 3.6% during the forecast period.
HG Insights estimates that the Americas region, which includes North America and Latin America, will account for approximately 43% of the global $183 billion ERP software market in 2024.
The Business Research Company does not provide a specific growth rate for the North American market.
Mordor Intelligence forecasts the North American ERP market to reach $20.30 billion in 2024 and grow to $31.98 billion by 2029, at a CAGR of 9.51% during the forecast period (2024-2029).

Analyzing the available data, the North American market is expected to grow at a CAGR between 3.6% and 9.51% from 2023 to 2030. That means the estimated market size in 2029 should be $25-35 billion USD.

ERP Software Segmentation Analysis

There are a few ways to distinguish types of ERP software:

By enterprise type (i.e., small, medium, large, etc.)
By deployment style (i.e., cloud-based, on-premise, and hybrid)
By business function (i.e., financial ops, manufacturing, supply chain, HR, etc.)

I’ll break down the available market data on each software segment in detail. Keep reading to find out information like how big the cloud-based ERP software market is, and how much money small businesses spend on ERP software.

Enterprise Type

The ERP software market serves small, medium, and large enterprises. Large enterprises hold the largest share as of 2024, but small and medium enterprises (SMEs) are showing the highest growth potential over the next 10 years.

Fortune Business Insights notes that large enterprises accounted for a higher ERP market share in 2021, but the SME segment is expected to record the highest CAGR during the forecast period.
Mordor Intelligence highlights that the growing number of SMEs globally is a key factor driving ERP market growth, as these organizations seek to streamline processes and remain competitive.
Grand View Research notes that large-scale enterprises accounted for 39% of the total market share for ERP software globally in 2024.

Best ERP Software for Small Businesses

If you’re a small biz and ERP seems overwhelming, don’t worry. My team and I have looked into the best options for small businesses to ensure you can get the benefits, without sacrificing your salary:

Deployment Style

The global ERP software market is segmented into on-premises, cloud, and hybrid deployment models, with cloud showing the highest growth in recent years.

Grand View Research projects that the cloud deployment segment will dominate the ERP software market by 2030, driven by lower infrastructure costs and the ability to integrate with mobile devices.
Fortune Business Insights expects the cloud and hybrid segments to account for the largest market share during the forecast period.
SkyQuest's analysis shows that the on-premises segment dominated the global ERP software market in 2022 with a 70% market share, but also highlights the increasing adoption of cloud-based solutions by small and medium enterprises.

Business Function

The ERP software market serves various business processes, with finance, supply chain, and inventory management being the largest segments.

According to Grand View Research, the finance segment dominated the ERP software market with a share of 25% in 2022, followed by supply chain, manufacturing, and HR.
HG Insights notes that Financial Applications make up 21% of total ERP spend, while Supply Chain Management and Manufacturing are also significant segments.
SkyQuest reports that the finance segment dominated the global ERP software market in 2022 with a market share of 28%. It’s expected to maintain its dominance throughout the period of 2024-31.
Mordor Intelligence notes that the growing need for ERP components for supply chain visibility and optimization is driving a ton of adoption in these areas. According to them, HR is leading the race among business operations, followed by supply chain, finance, and marketing.

Best Overall ERP Software on the Market

Right now, the ERP software market is dominated by top vendors like SAP, Intuit, Microsoft, Oracle, and Sage. Each of these software companies offers its own specialized ERP solutions, with different features and benefits.

So, here’s a list to help you select the right ERP vendor:

ERP Software Market Trends

With the widespread implementation of cloud-based, multi-device, and AI-powered ERP, there are plenty of exciting times ahead for the global market. Looking at the data from recent years, here’s how these trends have been impacting the growth of the industry:

Increased Cloud ERP Adoption

Cloud-based solutions are seeing rapid adoption as organizations seek cloud ERP's benefits, such as flexibility, scalability, and lower upfront costs. According to Statista, the global cloud ERP market is expected to grow at a CAGR of 13.6% annually.

SAP reports that the cloud ERP market almost doubled between 2021 and 2022, with valuations soaring as high as $64.1 billion USD.

Mobile and Multi-Device ERP

ERP systems are evolving to provide seamless experiences across multiple devices, enabling users to complete tasks and access data from anywhere.

With the widespread adoption of mobile devices especially across the Asia-Pacific and North America, ERP apps for functions like CRM, warehouse management, and approvals are becoming mainstream productivity tools.

AI and IoT Integration

Artificial intelligence and Internet of Things capabilities are being increasingly integrated into ERP systems to enable advanced analytics, automation, and data-driven decision-making.

With vendors like Microsoft, Oracle, and Acumatica already hedging their bets on AI in shaping the future of the ERP market, it’s safe to say that we’ll be seeing further investment in this space.

Future Trends and Predictions

When you consider ERP trends like mobility, cloud computing, and artificial intelligence, things are pretty clear-cut. There’s already a ton of data to support that these are going to play a huge role in shaping the market over the next decade.

But what about the things yet to come?

Composable and Industry-Specific ERP

Looking at players like Scoro, Teamwork, and Striven, ERP systems seem to be getting more and more specialized with time. Future applications will come equipped with tailored best practices, compliance features, and KPIs to support a specific use case or market segment, making them much better than a generic solution.

Hyperautomation and Personalization

With the combination of AI, machine learning (ML), and robotic process automation (RPA) — ERP hyperautomation is going to be one of the top items on my list of predictions for the future.

With advanced multi-agent systems and machine learning algorithms, AI-powered ERP solutions can automate many more business workflows, making employees more productive.

ERP as a Driver of Sustainability

As organizations face pressure to improve environmental, social, and governance (ESG) performance, ERP systems will play a key role in tracking sustainability metrics and enabling sustainable operations. IBM and SAP predict that ERP will be crucial in helping companies operationalize their ESG efforts at scale.

Current Market Leaders

Here are the top market players right now:

SAP: A market leader, SAP's cloud ERP offerings like S/4HANA are driving strong growth. SAP's cloud revenue increased by 25% in Q1 2024, with the cloud ERP suite revenue share rising even faster. SAP ERP has a 10.58% market share according to 6sense data.
Microsoft: Microsoft Dynamics 365 is a major player, with 6sense reporting a 24.66% market share in the ERP category, the highest among competitors analyzed. HG Insights also highlights Microsoft's significant role in the ERP market.
Oracle: Oracle reported total fiscal 2024 revenues of $53 billion, up 6% in USD. Its cloud services and license support revenues were up 12% to $39.4 billion. Oracle ERP Cloud is one of the top solutions by market share according to SelectHub.
Workday: Workday has a strong presence, with a 14.41% market share in the ERP space according to 6sense data. It is the second-largest ERP vendor after Microsoft Dynamics in their analysis.
Sage: Sage 100 Cloud is another top ERP solution by market share based on SelectHub's report. Sage is one of the more established players in the ERP market.

Wow, that sure was a lot to unwrap! We hope this research helped bring you closer to finding your ideal ERP solution.

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