An enterprise resource planning (ERP) system is the key to integrating different business functions across an organisation. Rather than data living in silos, it’s integrated into a single digital space so business platforms such as supply chain, customer relationship and financial management are all accessed from one portal, and the combined data is a single source of truth enterprise wide. The extensive growth of ERP system adoption illustrates its importance to successful businesses.
Why have ERP systems gained such popularity? Because a shared database of information for employees and decision-makers is a direct path to peak levels of business performance.
53 Critical ERP Statistics to Know
The technology, market forces and implementation driving ERP software and its growth is shifting rapidly. Cloud-based tools are opening the platforms to more businesses. Here are some statistics to help you glean insight into trends of ERP software.
ERP Market Statistics
A core system for businesses, ERP tools are driven by market characteristics such as widespread digital adoption, thriving global trade and vast amounts of data that need to be tracked, maintained and analysed. ERP market statistics show the move toward increased usage and global demand.
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The global ERP software market is expected to grow from US$182.22 billion in 2023 to US$202.69 billion in 2024.
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The ERP market in Asia-Pacific (APAC) is projected to reach US$48 billion by 2030.
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As of 2023, APAC was the largest region in the global ERP software market, followed by North America.
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The increasing number of start-ups and SMEs implementing cloud-based ERP software across APAC is driving ERP market growth.
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Asia-Pacific is an emerging ERP market expected to achieve a compound annual growth rate (CAGR) of 14.8% between 2021 and 2030.
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Global ERP software market growth is expected to increase at a CAGR of over 11% in the next ten years.
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Growth in the manufacturing industry is the key driver of growth in the APAC ERP market.
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80% of survey respondents based in Australia, Indonesia, Malaysia, New Zealand and Singapore are in the process of building a strategic ERP plan for their organisation.
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The Singapore ERP Software Market was valued at US$481.29 million in 2023 and is anticipated to grow at a CAGR of 11.05% through to 2029.
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The ERP market in Australia is projected to grow by 3.72% between 2024 and 2028 to achieve a market volume of US$1.03 billion in 2028.
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The Phillipines ERP market is estimated to grow by a CAGR of 7.53% between 2024 and 2028, resulting in a market volume of US$92.09 million by 2028.
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The ERP software market in Hong Kong is projected to grow by a CAGR of 4.65% between 2024 and 2028 to achieve a market volume of US$187.00m in 2028.
ERP Implementation Statistics
To execute a successful ERP implementation, companies must have a clear vision of new system requirements to create alignment throughout the organisation. Choosing the right vendor and assigning an internal implementation team increases the chance of project success.
Although ERP implementations can be challenging, data and statistics show many companies exceeding and even surpassing implementation efficiency expectations.
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Research has revealed that the top three critical success factors for ERP implementation were continuous system integration, post-implementation training, and active user participation.
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A global survey of companies implementing ERP found 36.6% took a hybrid approach, 22.1% phased in ERP by module, and 18.3% took a big bang approach — going live with all modules and offices at the same time.
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When asked, 68.7% of global companies reported that their ERP implementation was completed on time or earlier than expected.
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The most common reason for ERP implementation delays is resource constraints. Only 2.4% of companies noted delays caused by the vendor.
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After ERP implementation, 51.1% of companies said they improved key business processes and 46.6% improved most business processes. Only 2.3% of businesses didn’t see any improvement.
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According to a survey of 131 global companies, the average ERP implementation cost for companies with a median annual revenue of US$200.5 million was US$450,000.
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In the same survey, additional technology requirements were cited as the primary reason companies went over budget during implementation (51.2%), followed by underestimating staffing requirements (39.5%).
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The median project timeline for ERP implementation is 15.5 months.
#1 Cloud ERP
Software
ERP ROI Statistics
Organisations use ERP to become more efficient and cut costs. Statistics on ERP return on investment (ROI) highlight the benefits of the technology.
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ERP implementation leads to business process improvement for 97% of businesses, according to a 2023 global study.
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The same study revealed that 67.2% of ERP implementations stayed within or below the expected budget. Meanwhile, 27.5% of companies said their ERP implementations are only slightly above anticipated costs.
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The top three benefits businesses gain from an ERP system are improved customer experience (95.1%), standardisation (90.7%) and reduced IT maintenance costs (90.5%).
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Companies also cited that ERP implementation improved productivity and efficiency (90.4%), enhanced interactions with suppliers (87.5%), and provided access to real-time data (86.6%).
ERP Usage Statistics
ERP adoption by industry varies, and organisations use ERP systems for different reasons. Recent ERP usage statistics provide some insight into current usage trends.
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Manufacturing companies are the biggest users of ERP software in APAC, accounting for nearly one-fourth of the Asia-Pacific ERP software industry.
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A recent report by Gartner predicts that by 2026, 30% of enterprises will rely on their ERP applications to enable environmental, social and governance (ESG) reporting.
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The rise of ecommerce in Southeast Asia is driving organisations to adopt ERP systems to manage their supply chain and inventory more efficiently.
Cloud Technology Statistics
Adoption of cloud technology continues to increase worldwide as businesses move from on-premises technology to achieve business efficiencies, on-demand service, network elasticity and expanded network access. Statistics on the increase of cloud technology show the dramatic growth of cloud applications as they relate to the ERP market.
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Up to 42% of APAC businesses are investing in cloud technologies.
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A 2022 study revealed almost half of APAC organisations planned to take a cloud-first strategy for future technology investments, while 44% planned to invest in hybrid cloud management tools.
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An international survey of ERP users indicated 70.9% of companies use SaaS and 29% use hosted or managed services.
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A 2023 global survey revealed 78.6% of organisations implementing ERP chose cloud software rather than on-premise, up from 65% in 2022.
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Cloud-based ERP solutions are growing in popularity across Asia due to the region's rapid digital transformation.
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47% of APAC organisations want ERP that is SaaS/cloud-based to allow for remote access.
ERP Trends
As business needs become more complex, ERP software is advancing to meet the demand for more customisable features and broader integrations. Current ERP trends illustrate a shift towards greater cloud adoption and intelligent systems that streamline and automate processes.
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Over 65% of organisations surveyed believed AI is critical to their ERP systems, according to research by IDC.
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Across APAC, 89% of software decision makers say it’s important or very important that the software they purchase has AI functionality.
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Increased need for operational efficiency and transparency in business processes, adoption of cloud and mobile applications, and rise in demand for data-driven decision-making are driving APAC businesses to adopt ERP.
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The medium-scale enterprise buyer segment is expected to grow the most between now and 2030.
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According to an international survey, business intelligence is the most popular digital initiative deployed during ERP implementation.
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The same survey revealed that more than three in four companies deployed business intelligence significantly or moderately during their most recent ERP implementation
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The same survey revealed that 74% of companies deployed predictive analytics during their ERP implementation.
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Emerging technologies, such as AI and IoT are increasing in popularity year over year. The ideal way to integrate these technologies is through SaaS platforms, leveraging cloud technology's vast computational resources and scalability.
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According to Statista, customisation is highly valued among customers in the ERP software market.
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When asked how important the integration of new software with existing solutions is, 64% of APAC companies said it was the most important, compared to 56% in North America and 45% in Europe, the Middle East and Africa.
ERP Challenges
Poor project management, inability to manage implementation costs and duration, internal resistance to new systems, software integration issues and poor data quality are all common ERP challenges. These problems stem from unclear ERP implementation goals, choosing the wrong ERP vendor and purchasing software that's not right for your company.
An ERP system can supercharge your business, but you must choose the right platform and implementation team to avoid becoming another unfortunate ERP statistic.
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Studies indicate that 70% to 80% or more ERP implementations fail.
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Approximately 69% of ERP implementations in the manufacturing sector fail.
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Most implementations cost three to four times what was initially budgeted.
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While the majority of implementations are completed on time, over 30% of global companies experience delays.
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Businesses in APAC are prone to purchasing shadow IT—software not approved or vetted by IT or InfoSec teams—due to their desire for speed.
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Data migration challenges cause overspending in 34.9% of ERP implementations.
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Insufficient resources is the most commonly cited cause of ERP implementation delays (56.1%).
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Integrating ERP systems with existing legacy infrastructure is one of the primary challenges for businesses in Singapore.
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A literature review by Monash University found the top five ERP implementation challenges globally are data security, customisation, network failure, service level agreement and long term costs.
Choosing the Right ERP Partner
The best ERP partners will offer a suite of services that cover enterprise basics like accounting and human resources — but they also offer applications spanning customer relationship management (CRM), human capital management (HCM), product lifecycle management (PLM), supply chain management (SCM), warehouse management systems (WMS) and more.
Cloud-native ERP systems with advanced technologies suit forward-thinking organisations that want access to ERP benefits such as increased efficiencies, cost savings and quick deployment times. Cloud deployment has opened the door for fast-growing organisations of all sizes, making ERP software available for big and small companies.
Grow Your Business With NetSuite ERP
NetSuite is the No. 1 cloud ERP software solution serving small to midsize businesses across all industries. NetSuite is the choice of over 28,000 customers worldwide, offering a cloud-native ERP system with built-in flexibility, commerce-ready applications and data analytics.
Conclusion
Maturing organisations will need more than spreadsheets to track and organise important business information. ERP systems integrate business software from across the company — including CRM, HCM, SCM and more — into one digital ecosystem. The market for ERP continues to grow at a remarkable pace thanks, in part, to the potential ROI, as well as cloud application and integrated machine learning and automation features. While implementation of a new ERP system can be a daunting task, selecting the right ERP partner can cut down on deployment time and eventually return dividends. NetSuite is the top cloud-based ERP platform for small and midsize businesses across all industries.
FAQ
What is ERP in statistics?
ERP platforms are key for businesses to organise and integrate data from different areas of the company. Rather than existing in silos, data from sales, accounting, customer relationship, supply chain and more all reside in a single digital ecosystem. This enables greater statistical analysis than if you could only perform data dives on single topics. For example, you can explore how disruptions in the supply chain impact revenue or examine how new hires affect the bottom line. There are many metrics you can track to monitor business performance using ERP platforms.
What percentage of companies use an ERP?
With the growth of cloud-based ERP platforms, more and more companies are implementing ERP solutions. However, the rate of adoption varies by industry. Manufacturers are the most likely to utilise ERP software. Generally, mid-size businesses that outgrow the limits of basic spreadsheets and entry-level accounting software are more likely to adopt ERP software.
What is ERP in data analytics?
ERP systems blend accounting and operational information beautifully. This opens analysis doors that otherwise would be closed. By combining this data into a single source, you’re able to examine past and present information to help predict future states. Simple-to-read dashboards can serve up visuals to improve understanding on performance and share that insight with executives. ERP platforms can help you clean, structure and mine your data for impactful insights.
What does ERP system mean?
Enterprise resource planning (ERP) systems are a suite of software platforms for your business. ERP platforms provide tools for things like accounting, human resources, supply chain, warehouse management and more. But rather than data from these disparate areas staying separate, it’s all integrated into one digital ecosystem. This allows you and your team to access all this information from a single sign on. It also allows you to see across departments and perform more robust data analysis. You can analyse how process improvements and other efficiency, sales or human resources efforts affect revenue and growth. Many of the largest and best-run businesses in the world use ERP tools. Thanks to cloud-based software and scale-as-you-grow accessibility, more small and mid-size businesses are taking advantage of ERP, as well.
The State of ERP
More and more companies are taking advantage of enterprise resource planning (ERP) software. And more companies are leveraging its capabilities to find greater business success, improve processes and interact with customers. Its market size is expected to near $50 billion annually by 2025. Dive deeper to learn more about trends, market growth, implementation and challenges.
ERP Market
14.8%
annual growth in APAC to 2030
ERP Implementation
68.7%
of organisations reported their ERP projects were implemented on time or earlier than expected
Return on Investment
97%
of companies saw business process improvement from ERPs
Usage
No. 1
Manufacturing companies are the biggest users of ERP in APAC
Cloud Technology
42%
of APAC enterprises are investing in cloud-based technologies
ERP Trends
89%
of IT decision-makers say it’s important that new software investments include AI functionality
Challenges
56.1%
of ERP implementations that went over schedule were due to insufficient resources