The ERP Software Market is Expected to Reach USD 199.59 Billion by 2030

The rise in government investments is driving the ERP software market growth.

According to Next Move Strategy Consulting, the global Enterprise Resource Planning (ERP) Software Market size was valued at USD 97.77 billion in 2024 and is projected to grow to USD 115.30 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 199.59 billion by 2030, with a CAGR of 11.6% from 2025 to 2030.

Government investments aimed at modernizing public sector operations through digital transformation are significantly accelerating the adoption of ERP software. Efforts to upgrade legacy systems and implement cloud-based ERP solutions are helping governments enhance efficiency, transparency, and service delivery.

For example, in November 2024, the UK government allocated USD 366 million to modernize its ERP systems as part of the Synergy Programme, collaborating with Oracle and IBM to streamline government operations. 

Similarly, in October 2024, the U.S. Department of Veterans Affairs awarded a USD 2 billion contract to implement Oracle Cerner’s EHR system across its healthcare facilities, aiming to improve veterans' services and healthcare efficiency. These large-scale public sector initiatives highlight the increasing role of ERP systems in driving digital transformation, contributing significantly to market growth.

Despite the positive market outlook, the high costs associated with ERP implementation remain a significant barrier, especially for SMEs. The expenses related to software licensing, system customization, employee training, and long-term maintenance often deter businesses from adopting ERP systems. These financial challenges hinder market penetration in price-sensitive sectors, serving as a major constraint on overall market expansion.

On the other hand, the integration of Internet of Things (IoT) technology with ERP systems presents a promising opportunity for the ERP software market expansion, offering enhanced real-time data visibility and operational control. IoT-enabled ERP platforms allow businesses to monitor inventory, track equipment, and predict maintenance needs, greatly improving efficiency in sectors like manufacturing and logistics. 

In March 2025, Epicor Software Corporation launched Epicor Kinetic 2025, an advanced ERP solution with enhanced IoT integration for real-time monitoring and predictive maintenance in manufacturing environments. This technological development highlights IoT’s potential to transform ERP capabilities, further driving the demand for connected and intelligent enterprise solutions.

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According to the report, the top players operating in the ERP software industry include SAP SE, Oracle NetSuite, Workday, Inc., Microsoft Corporation, Xero Limited, Sage Group plc, Infor, Deltek, Inc., Epicor Software Corporation, Acumatica, Inc., among others. These market players are adopting strategies, including product launches and collaborations across various countries and regions to maintain their dominance in the market.

The ERP software industry is expanding rapidly as leading players incorporate digital technologies to improve efficiency, accuracy, and scalability in business operations. A key trend is the integration of AI and IoT into ERP systems, offering real-time data insights and predictive analytics for more informed decision-making. 

In September 2024, Teckzilla Technologies launched Odoo 18, equipped with advanced AI features to streamline workflows and boost operational efficiency. Similarly, in August 2024, Marg ERP introduced Marg ERP Cloud, a cloud-based solution offering GST compliance and multilingual support, enhancing accessibility for SMEs.

Furthermore, strategic partnerships and innovative product launches are driving market growth. In February 2025, a prominent Microsoft Dynamics 365 and Acumatica partner unveiled a new website that enriches its ERP offerings with AI-driven analytics and IoT integration for better supply chain management. 

Additionally, in November 2024, ServiceNow and Rimini Street collaborated to deliver a new enterprise software model, enabling faster ERP transformations through enhanced automation and digital workflows. Despite challenges such as high implementation costs and the complexities of integrating new technologies, the increasing adoption of AI and IoT, coupled with the demand for scalable ERP solutions, continues to propel the market forward, positioning it for sustained growth. 

Key Insights from the ERP Software Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the ERP software market demand is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The market share of the key players in the ERP software market along with their competitive analysis are provided in the report.