The Enterprise Resource Planning (ERP) Software Market is estimated to be valued at USD 69.3 billion in 2025 and is projected to reach USD 165.5 billion by 2035, registering a compound annual growth rate (CAGR) of 9.1% over the forecast period.
| Metric | Value |
|---|---|
| Enterprise Resource Planning (ERP) Software Market Estimated Value in (2025 E) | USD 69.3 billion |
| Enterprise Resource Planning (ERP) Software Market Forecast Value in (2035 F) | USD 165.5 billion |
| Forecast CAGR (2025 to 2035) | 9.1% |
The enterprise resource planning ERP software market is witnessing accelerated adoption as organizations increasingly prioritize digital transformation, integration of business functions, and real time decision making. The shift toward intelligent enterprise models is being fueled by the need for operational efficiency, cost control, and improved resource utilization.
On premise and cloud based deployments are both evolving, with heightened demand for scalable systems that cater to businesses of varying sizes. Advancements in artificial intelligence, automation, and analytics integration are further strengthening ERP capabilities, enabling predictive insights and seamless workflow management.
Regulatory compliance requirements and globalization of supply chains are also reinforcing the adoption of ERP solutions across diverse industries. The future outlook remains strong as enterprises focus on data driven strategies and sustainable growth through technology enabled management platforms.
The on premise ERP software segment is projected to hold 54.60% of the overall market by 2025, making it the leading deployment mode. This position is driven by the high level of control, customization, and security provided by on premise solutions.
Enterprises with complex operational structures and sensitive data have preferred this deployment to maintain direct oversight of infrastructure. Long term investment strategies and the ability to tailor systems to unique business requirements have reinforced adoption.
Despite growing demand for cloud based solutions, the reliance on on premise systems remains significant among industries with strict regulatory environments and legacy integration needs. As a result, on premise ERP software continues to command a strong share in the market.
The small and mid sized enterprises segment is expected to account for 47.30% of total revenue in 2025, emerging as a major contributor in the enterprise size category. This growth is being fueled by the rising need for affordable, scalable, and efficient ERP systems that address resource constraints while enabling digital competitiveness.
SMEs have increasingly recognized ERP as a tool to streamline operations, enhance customer service, and achieve compliance in evolving regulatory environments. Vendors are offering modular and subscription based models that align with SME budgets and growth objectives.
The adoption of ERP solutions by this segment has also been supported by government initiatives promoting digital adoption among smaller enterprises. These factors combined have positioned SMEs as a strong driver of ERP software demand.
The financial management function is projected to contribute 42.80% of total revenue by 2025 within the business function category, establishing it as the dominant segment. This is attributed to the critical role of financial oversight, compliance, and reporting in all enterprise operations.
ERP systems enable accurate tracking of financial data, real time reporting, and improved risk management, which are indispensable for decision making. Integration of automation and AI driven tools within financial management modules has further enhanced accuracy, reduced manual workload, and improved forecasting capabilities.
The importance of meeting global accounting standards and maintaining transparency has accelerated adoption. Consequently, financial management remains the foundational function within ERP adoption, driving overall system integration and efficiency.
ERP software is a type of application that helps in business process automation. It also provides insights and internal controls for the user firms that install and utilize it. ERP helps to draw a central database that saves inputs from departments including manufacturing, accounting, supply chain management, marketing, sales, and human resources (HR).
The enterprise resource planning (ERP) software market is projected to grow at 9.1% CAGR between 2025 and 2035 in comparison to the 7.0% CAGR registered during 2020 to 2025.
The growing need for ERP software to manage customer orders, and deliver the right products and services to customers on time, and the growing demand for cloud-based ERP software are expected to drive the market over the forecast period.
The global enterprise resource planning (ERP) software market is projected to witness an increase in revenue from ~USD 69.3 Billion in 2025 to ~USD 165.5 Billion by 2035.
The demand for cloud-based ERP software is rising owing to factors such as the surging adoption of new and evolving SaaS technologies, extending the value of existing ERP systems, reducing third-party dependencies, more robust security resources, evolving financial systems, and others.
The growing trend of implementation of cloud-based ERP applications in the manufacturing, banking, financial services, and insurance (BFSI) and IT & telecom industries has boosted ERP software sales across the globe.
Cloud-based ERP software has offered various benefits such as improved business insight, lower operational costs, enhanced collaboration, improved efficiency, higher user adoption rates, and others. Such benefits drive the growth of the ERP software market. There are different cloud hosting options for cloud-based ERP software such as single-tenant cloud ERP and multi-tenant cloud ERP.
Nowadays, consumers are more focused on cloud-based ERP software owing to lower initial/implementation costs, easier ERP integration, greater scalability and agility, and others.
China is Expected to Remain a Leading ERP Software Market in East Asia
According to FMI analysis, the overall ERP software spending in China alone is likely to increase by 9.8% between 2025 and 2035, with a market value of USD 69.3 Billion in 2025. There is increasing adoption of ERP software across China due to various factors such as high demand for IT and supply chain management.
Furthermore, China is the dominant country in East Asia. Leading players operating in East Asia are engaged in adopting and developing various types of ERP applications such as on-premise ERP software, and cloud-based ERP software among others. Increasing demand for ERP software and services in IT & telecom, manufacturing, retail, government, healthcare, and BFSI sectors are expected to drive the ERP software demand in China.
France to Spearhead the ERP Software Market in Europe
Demand for ERP software in France is expected to rise at 12.7% CAGR over the forecast period due to its high digital and cloud-based ERP application adoption rates. Moreover, an increase in the use of ERP software is enabling higher productivity and efficiency standards in France, which is anticipated to drive the ERP software industry during the forecast period.
Furthermore, Europe constitutes developed economies such as Germany, France, and Spain, among others that have fairly adopted cloud-based ERP software, besides incorporating advanced technologies. It offers various benefits such as higher productivity, deeper insights, accelerated reporting, lower risk, and improved agility, among others. Such benefits create new growth opportunities for the ERP software market across Europe.
Rapid Shift to Cloud across Organizations Driving ERP Software Adoption in India
Sales of enterprise resource planning (ERP) software in India are expected to grow at 15.9% CAGR between 2025 and 2035. The market is projected to witness significant growth due to the need to provide personalized and relevant experiences to the customers leading to ERP systems, the rapid shift to the cloud, and ERP software helping IT and telecom, and manufacturing industries to sustain COVID-19 impact.
The manufacturing and IT & telecom sectors are growing rapidly in the South Asia & Pacific region owing to a high number of Tier II & Tier III software providers, which in turn has increased the demand for cloud-based ERP software in the region drastically.
Demand for On-Premise ERP Software to Soar Globally
By deployment mode, on-premise ERP software dominated the market and constituted the highest market share of 60.0% in 2025. However, the cloud-based ERP software segment is set to expand at a higher CAGR of 10.4% from 2025 to 2035. The ERP software market is undergoing a technological shift driven by the advent of cloud computing.
The rising demand for cloud-based ERP software major vendors to either come up with separate cloud-based ERP offerings or modify their existing ERP solutions. Cloud-based ERP software reduces the IT infrastructure implementation cost of the enterprise to a certain extent. This is the major reason behind the adoption of cloud-based ERP software among other enterprises.
Digitization and Shift to Cloud Fueling ERP Software Demand in Large Enterprises
The large enterprise segment accounted for more than 65.0% of the overall market share in 2025 and is expected to continue its dominance during the forecast period. However, the small and mid-sized enterprises (SMEs) segment is set to expand at a higher CAGR of 10.4% from 2025 to 2035.
ERP software is being implemented across small and mid-sized enterprises (SMEs) for the better management of their business operations while offering simplified compliance, productivity, improved enterprise collaboration, and risk management. Additionally, it is also being implemented as they deliver effective planning and streamlining of data under a single platform, which helps in regulating operational costs, increasing sales, and enhancing decision-making.
Demand in Financial Management to Drive Growth in Coming Years
As per FMI, the financial management segment is expected to showcase a higher market share in the coming years. This segment is predicted to account for an exponential share of 32.1% by the end of 2035. With the growing focus of the financial management segment on improving the enterprise’s operational and business process efficiency, the adoption of ERP will increase, fueling the growth of the ERP software market size.
Financial institutions including trust companies, credit unions, and insurance sectors are adopting technologies such as machine learning, blockchain, and cognitive computing for enhancing their business operations. Over the forecasted period, an increase in the demand for business process efficiency and transparency as a result of digital transformation will considerably fuel ERP software market growth in this area.
Manufacturing Emerges as a Leading End User
Based on industry, the market is segmented as IT & telecom, retail, government, healthcare BFSI, manufacturing, and others. The BFSI industry segment is set to witness a relatively higher CAGR of 11.8% during the forecast period. However, the manufacturing industry segment accounted for the largest market share of 22% in 2025.
The ERP software for the manufacturing industry uses advanced features and functionality to improve all sections of the manufacturing process from sourcing and acquisition to storage, development, quality testing, and distribution. It also offers various benefits for production such as improved efficiency, increased sales reduced cost, and gain profits.
The ERP software providers focus on improving their existing products and on developing new products for the existing as well as new markets. This strategy helps the company diversify its product offerings and enhance its customer base & user experience.
| Attributes | Details |
|---|---|
| Market value in 2025 | USD 50.3 Billion |
| Market CAGR 2025 to 2035 | 9.1% |
| Share of top 5 players | Around 55% |
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2025 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa, and South Africa |
| Key Segments Covered | Deployment Mode, Enterprise Size, Business Function, Industry, and Region |
| Key Companies Profiled | Oracle Corporation; Infor; The Sage Group plc; Unit 4; Epicor Software Corporation (USA); Workday, Inc.; SYSPRO; Acumatica; Ramco System; QAD Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global enterprise resource planning (erp) software market is estimated to be valued at USD 69.3 billion in 2025.
The market size for the enterprise resource planning (erp) software market is projected to reach USD 165.5 billion by 2035.
The enterprise resource planning (erp) software market is expected to grow at a 9.1% CAGR between 2025 and 2035.
The key product types in enterprise resource planning (erp) software market are on-premise erp software and cloud-based erp software.
In terms of enterprise size, small and mid-sized enterprises (smes) segment to command 47.3% share in the enterprise resource planning (erp) software market in 2025.
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Enterprise Resource Planning (ERP) Software Market
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