
An ERP system brings together core business functions into one centralised platform.
Instead of storing data in isolated systems, businesses manage everything—from supply chain to customer relationships and financial operations—through a unified digital environment that addresses diverse business needs. This integration ensures all teams work from a single, accurate data source across the organisation.
The sharp rise in ERP adoption reflects its vital role in driving efficiency and informed decision-making across modern enterprises.
Why have ERP systems gained such popularity?
A shared information database gives employees and decision-makers clear access to the needed data, supporting stronger business operations and performance.
ERP software continues to evolve as cloud-based solutions make the technology more accessible. The shift towards cloud computing has further accelerated the adoption of ERP systems, offering scalable and flexible solutions for businesses of all sizes. Shifting market demands and implementation strategies also drive its rapid growth. The following statistics highlight key ERP statistics shaping the future of enterprise management.
ERP market statistics
As a core business system, ERP tools respond to key market forces—including widespread digital adoption, expanding global trade, and the growing need to track, manage and analyse large volumes of data. Current ERP market statistics reveal rising usage and growing international demand.
- 50% of companies are acquiring, upgrading or planning to update ERP systems soon.
- The global ERP software market is projected to reach $78.4 billion by 2026.
- Forecasts estimate that the ERP market will grow to $96 billion by 2032.
- ERP systems are increasingly being adopted in distribution industries to streamline operations and enhance efficiency.
- Between 2023 and 2032, global ERP market growth is expected to continue at a CAGR of 7%.
- North America’s ERP market is set to approach $32 billion by 2029.
- The Asia-Pacific region will become the fastest-growing ERP market by 2032.
- Large enterprises currently hold 39% of the ERP market share.
- The small and midsize business segment will grow at an annual rate of 7% through 2025.
- Human resources is one of the fastest-growing ERP segments, with a 9% growth forecast from 2023 to 2032.
- Manufacturing, IT, and healthcare remain the top industries driving ERP market expansion.
- Almost all companies are acquiring, upgrading, or planning to update their ERP systems.
- The top three reasons for implementing a new ERP system are replacing legacy systems, consolidating disparate software, and adopting newer technologies.
- In a 2024 survey of manufacturers, 94% identified digital transformation as a top priority.
ERP implementation statistics
Companies need a clear understanding of system requirements to implement ERP software successfully and ensure organisation-wide alignment. Selecting a suitable vendor and appointing a dedicated internal team significantly improves the likelihood of success by integrating disparate systems into a unified platform.
While ERP projects can be complex, data shows that many businesses meet—and often exceed—their implementation efficiency targets.
- Gartner predicts that 70% of ERP initiatives will fail to meet business goals by 2027.
- Among companies that completed an ERP implementation, 77% identified institutional leadership support as the most critical success factor, while 60% cited effective stakeholder communication as the key skill for success. ERP systems also help reduce manual data entry, streamlining processes and improving overall efficiency.
- Around one-third of organisations begin internal communication about ERP implementation before selecting a product; 56% do so during the selection process, and 13% wait until just before going live.
- More than 50% of organisations chose a slower, phased approach to implementation, following set stages when moving to a new system.
- Only 21% of organisations adopted a “faster” implementation method, launching all system components simultaneously.
- Small and midsize businesses typically complete ERP implementation within three to nine months, while large enterprises take six to 18 months.
- Over 25% of businesses stated that customisation was not essential for implementation.
- Nearly half of companies delivered their ERP projects within expected timelines. About 31% experienced slight delays, 12% finished significantly later, and 8% completed ahead of schedule.
- Among those facing delays, 43% cited technical issues, and 40% pointed to project scope expansion as the leading cause.
- Budget overruns often stemmed from underestimated staffing (38%), expanded project scope (35%), and technical problems (34%).
- ERP implementation costs are often estimated at around 1% of a company’s operating budget.
- The average ERP cost per user is £9,000, with roughly 26% of employees actively using the system.
ERP data and analytics
ERP data and analytics are critical in helping organisations make informed decisions and support business growth. By analysing ERP data, companies uncover insights into their operations, identify inefficiencies, and gain real time visibility into their business processes.
These systems also ensure that financial records are automatically updated, providing consistent and accurate data across departments. These systems deliver real-time data and reporting tools, enabling businesses to react swiftly to market shifts and customer demands. Strong analytics support improved financial management, tighter inventory control, and more effective supply chain management, resulting in greater efficiency, lower costs, and better customer outcomes.
With the ability to interpret ERP data effectively, companies make strategic decisions that fuel growth and demonstrate clear returns, as reflected in the ERP ROI statistics below.
ERP ROI statistics
Organisations adopt ERP systems to increase efficiency, reduce costs, and enhance financial management. ERP return on investment (ROI) data clearly illustrates the technology’s measurable benefits.
- ERP market revenue is projected to grow at a CAGR of 4.48% between 2024 and 2028, reaching $62 billion by 2028.
- Among organisations that conducted an ROI analysis before implementation and had been live for over a year, 83% reported meeting their ROI expectations.
- The most commonly realised benefit—reported by nearly 91% of companies with at least one phase live for over a year—was optimised inventory levels.
- Around 74% of businesses experienced increased productivity and improved efficiency following ERP implementation.
- Roughly 62% of companies said ERP helped reduce costs, particularly in purchasing and inventory control.
- Nearly 78% of businesses reported greater productivity, 77% broke down data silos, 76% improved supplier collaboration, 75% strengthened compliance, and 70% enhanced customer experience.
- Businesses identified reduced process times, improved cooperation, and centralised data access as the top three ERP benefits.
- For midsize companies (revenue under $1 billion), ERP ownership costs typically range from 3% to 5% of annual revenue.
- For large enterprises (revenue over $1 billion), ERP ownership costs fall between 2% and 3% of yearly revenue.
ERP usage statistics
ERP adoption varies across industries, with organisations using ERP systems for diverse operational needs. Recent ERP statistics offer insight into current usage trends.
- Manufacturing companies are the top users of ERP software.
- Manufacturers represented the most significant portion at 47% of companies looking to purchase ERP software.
- Large organisations often implement multiple ERP systems to support various business units and streamline internal processes.
- Following manufacturers, distributors (18%), services (12%) and construction (4%) are the other industries most likely to use ERP software.
- In a survey of companies looking to purchase ERP software, 89% identified accounting as the most critical ERP function. Other responses included inventory and distribution (67%), CRM and sales (33%) and technology (21%).
- Forty per cent of companies identified better functionality as their primary reason for implementing an ERP system.
- The biggest influencers in purchasing ERP software were finance and accounting (23%) and IT department employees (23%).
- On average, 26% of workers use their company’s ERP software.
Cloud technology statistics
- The adoption of cloud technology is rising globally as businesses shift from on-premises solutions to gain efficiency, on-demand services, network flexibility, and broader access. Cloud tech and ERP Statistics on cloud adoption highlight the rapid growth of cloud-based applications within the ERP market.
- The top reasons organisations didn’t choose ERP cloud solutions were the risk of a security breach (32%), integration concerns (25%) and data loss (19%).
- Global public cloud services revenue is projected to grow at a CAGR of 19%, reaching $1.3 trillion by 2027.
- SAP Business One and SAP Business ByDesign are popular cloud ERP solutions for small and midsize businesses.
- Worldwide IT spending is expected to total $5.74 trillion in 2025, an increase of 9.3 per cent from 2024.
- The cloud ERP market is expected to reach $140 billion by 2030, growing at a CAGR of nearly 16%.
- The main reasons companies avoided cloud ERP were concerns about security breaches (32%), integration challenges (25%), and potential data loss (19%).
ERP trends
As business requirements grow more complex, ERP software evolves to offer more customisable features and wider integration options. Current ERP trends show a move towards increased cloud adoption and intelligent systems that automate and streamline business processes.
- A recent survey found that adding AI to some business processes dramatically improved an organisation’s ERP performance. For example, 33% of organisations said AI helped increase project management metrics.
- Improved production planning is a key trend, with companies like Cadbury using ERP systems to enhance their supply chain and manufacturing processes.
- Thirty-eight per cent of organisations say ERP improves their ability to handle changing customer demands.
- Over 65% of organisations view AI as essential to their ERP systems.
- Forty per cent of businesses said AI was a key factor in their ERP investment decisions, and nearly 16% considered embedded AI a must-have feature.
- A recent survey revealed that integrating AI into business processes significantly enhanced ERP performance; 33% of organisations reported improved project management metrics.
- CIOs identified predictive analytics and deep learning as the most critical ERP technologies for gaining a competitive edge.
- Thirty-eight per cent of organisations stated that ERP systems enhance their ability to respond to changing customer demands.
ERP challenges
Poor project management, rising implementation costs and delays, internal resistance, integration difficulties, and weak data quality are common ERP challenges faced by software companies.
These issues often result from unclear implementation goals, selecting the wrong vendor, or investing in unsuitable software.
An ERP system can transform your business, streamline operations, and support long-term growth, but success depends on choosing the right platform and a capable implementation team—key steps to avoid joining the list of failed ERP projects.
- Half of all ERP implementations fail on the first attempt.
- Most implementations end up costing three to four times more than initially budgeted.
- Implementation projects typically take 30% longer than planned.
- Fifty-one per cent of companies report operational disruptions when their ERP systems go live.
- In 65% of cases, system modifications to improve usability lead to budget overruns.
- Users cite shortcomings in data accuracy, user experience, and analytics.
- The two most frequently reported implementation challenges are insufficient testing and inadequate process reengineering.
Choosing the best ERP partner
Leading solutions like NetSuite offer comprehensive services that cover essentials such as accounting and human resources. They also support applications, including CRM, human capital management, product lifecycle management, supply chain management, and warehouse management systems.
Cloud-native ERP platforms with advanced capabilities suit progressive organisations seeking benefits like improved efficiency, cost savings, and rapid deployment, making it easier for businesses to use ERP systems effectively.
Cloud deployment has made ERP software accessible to growing businesses of all sizes. Partnering with a trusted NetSuite Implementation Partner or consultant ensures you maximise the value of your ERP investment.
Scale your organisation wtih NetSuite ERP
NetSuite is the leading cloud ERP solution for small to midsize businesses across all sectors, helping them streamline operations and enhance efficiency. Over 37,000 organisations worldwide rely on its cloud-native platform, which offers built-in flexibility, commerce-ready features, and robust data analytics.
As organisations grow, spreadsheets alone are no longer enough to manage vital business data. ERP systems combine software from across the company—including CRM, HCM, and SCM—into one unified digital environment. The ERP market continues to expand rapidly, driven by strong ROI potential, cloud-based applications, and integrated automation and machine learning.
Although implementing a new ERP system can be complex, the right ERP partner reduces deployment time and supports long-term gains. For small and mid sized businesses, NetSuite remains the leading cloud ERP platform.
ERP statistics FAQs
What is ERP in statistics?
ERP platforms are essential for businesses to organise and integrate data across departments, using ERP systems to enhance overall performance. Instead of existing in silos, information from sales, accounting, customer relationships, the supply chain, and more is housed within one digital ecosystem. This structure allows for deeper, cross-functional analysis—for instance, examining how supply chain disruptions affect revenue or how recent hires influence profitability. With the knowledge of ERP statistics, businesses can track various metrics to monitor and improve overall performance.
What percentage of companies use an ERP?
As cloud-based ERP platforms become more prevalent, more companies are adopting ERP solutions to manage financial records and other critical data. However, adoption rates differ by industry, with manufacturers being the most frequent users. Midsize businesses that have outgrown the capabilities of spreadsheets and basic accounting tools are especially likely to implement ERP software.
What is ERP in data analytics?
ERP systems effectively combine accounting and operational data, enabling deeper analysis that would be difficult with separate systems. Businesses can review past and present data to forecast future outcomes by unifying this information. Clear, visual dashboards enhance performance visibility and support executive decision-making. ERP platforms also help clean, organise, and analyse data to deliver meaningful insights that drive action.
What does an ERP system mean?
Enterprise resource planning (ERP) systems are comprehensive software platforms that support various business functions, including accounting, human resources, supply chain, and warehouse management. Instead of separating data from these areas, an ERP system integrates everything into one digital environment. This enables single sign-on access and cross-departmental visibility, allowing for more advanced data analysis.
With this visibility, you can assess how improvements in processes, sales, or HR initiatives impact revenue and growth. Many of the world’s leading companies rely on ERP tools, and with cloud-based, scalable solutions, more small and midsize businesses are also adopting ERP to drive performance.
The State of ERP
Many companies are adopting enterprise resource planning (ERP) software to enhance operations, improve processes, and strengthen customer engagement. The ERP market is projected to reach nearly $50 billion annually.