The Ultimate List of ERP Statistics for 2022
Nearly every company across every industry is utilizing ERP software. ERP (enterprise resource planning) is no longer a tool to manage inventory and quality control. Instead, ERP systems have become full-scale business solutions.
Read on to discover the latest ERP statistics. Most of these statistics demonstrate how organizations implement well-built ERP tools in 2022. At the same time, you will find the key benefits realized and challenges faced by the previous users, including small and mid-size businesses. Moreover, you will discover the most popular ERP systems in the market and learn what ERP functions are critical to businesses.
5 Essential ERP Statistics Showing the Importance of ERP Systems
- Global ERP market was valued at US$ 50.57 billion in 2021 and is forecast to reach US$ 123.41 billion by 2030.
- Only 9% of organizations say they did not realize any benefit (in terms of ROI) after ERP implementations. At least 95% of organizations say they realized some improvements in other processes because of ERP.
- 80% of organizations say ERP’s centralized data system allowed them to co-create new applications.
- ERP reduces the inventory cost by 11% on average. Best-in-class manufacturing companies reduced their inventory costs by 22% using ERP.
- 86% of organizations required accounting as a core feature in their ERP system.
ERP Statistics: ERP Market Size
1. Global ERP market was valued at US$ 50.57 billion in 2021 and is forecast to reach US$ 123.41 billion by 2030.
(Allied Market Research)
ERP market size was valued at US$ 50.57 billion in 2021 and is forecast to reach US$ 123.41 billion by 2021, exhibiting a 10.7% CAGR from 2022 to 2030.
This is attributable to the increasing global demand for ERP software by small and medium enterprises. Plus, rising demand for cloud and mobile-based systems are some other factors driving the ERP market growth.
Not to mention, trends like data-driven decision-making and the need for centralized data systems are other factors positively influencing the worldwide ERP market growth.
ERP on-premise segment accounts for 70% of the ERP market share. However, HubSpot’s 2020 report on the ERP market indicates only 35% of organizations had an on-premise solution.
In addition, SoftwarePath’s 2022 reports highlight that 97% of organizations are considering cloud-based software, given the data backup and storage recovery features.
Still, even SoftwarePath’s 2022 report highlights that 26% of organizations are using on-premise solutions.
Regardless of the source, all highlight that cloud-based ERP systems are becoming popular due to low installation cost and flexibility. However, the most significant challenge in adopting a cloud-based ERP system is — data security concerns.
Equally important, Statista’s global ERP software market report indicates that the global ERP software market size was valued at US$ 43.35 billion in 2021:
2. 38% of businesses in the European Union used Enterprise resource planning (ERP) software applications in 2021.
Furthermore, Allied Market Research highlights the North American region dominates the ERP software market with a share of 35% as of 2021.
However, the Asia Pacific region will exhibit the highest CAGR (11.9%) from 2022 to 2030. This is attributable to the rising number of small and mid-size businesses in the region and the booming manufacturing sector.
As of 2021, 39% of ERP users were large organizations.
At the same time, Eurostat reports that 33% of small businesses and 81% of large organizations were using enterprise resource planning (ERP) software applications in the EU region.
The use of ERP software by EU enterprises grew by 2 percentage points compared in 2021 compared with 2019.
3. Manufacturing (26.4%), information technology (17.1%), and healthcare (13.6%) are the top consumers of ERP software.
(Panorama Consulting Group)
Back in 2020, manufacturing accounted for 36.6% of the ERP market. Professional or financial services (14%), distribution and wholesale (10%), and IT (5%) were other top consumers.
As of 2022, manufacturing (26.4%), information technology (17.1%), healthcare (13.6%), construction (11.4%), and retail (7.9%) account for over three-fourths of the ERP market.
It is no surprise that manufacturers are the top adopters of ERP. After all, ERP (enterprise resource planning) has evolved from manufacturing resource planning (MRP).
And although the modern ERPs are designed to personalize the role of each of their business users, earlier, the software was used primarily for planning and scheduling the resources needed for day-to-day operations.
Allied Market Research’s recent ERP usage statistics highlight that the healthcare sector is forecast to rise at the highest CAGR from 2022 to 2030. This is attributable to the ERP’s features like storing large patient records and other quantitative data databases.
ERP Statistics: Worldwide ERP Software Market, ERP Buyers Profile
4. Microsoft Dynamics is the leading ERP in 2022, commanding 29% of the ERP market.
(Panorama Consulting Group 2022)
Oracle Cloud ERP (22%), SAP (18%), and Infor (12%) combined with Microsoft Dynamic command over 80% of the global ERP software market.
The above ERP tools are Tier 1 software designed for enterprises with more than US$ 750 million in annual revenue. However, given these tools — Microsoft Dynamics, Oracle Cloud ERP, and SAP ERP — can be implemented module by module, even the small organizations are using them.
In fact, some 48% of the organization say they implemented ERP software with moderate customizations to fit their processes. At least 15% say they heavily customized the ERP software to fulfill organization processes.
Another 19% say they did no customizations but personalized the ERP software with process modifications. In fact, only a small portion (3%) of organizations say they are using out-of-the-box features.
5. 86% of organizations required accounting as a core feature in their ERP system.
Of the companies that purchased ERP in 2021, 35% were migrating from legacy systems. Some 14% of companies were replacing their homegrown or company’s ERP system with professional services.
Additionally, the most common software that companies replaced for ERP was QuickBooks. (QuickBooks is one of the best cloud-based accounting software).
SelectHub’s survey of companies looking to purchase ERP systems highlights that 53% of companies didn’t have a vendor in mind. However, they knew about the required features.
As indicated, 86% of organizations required financial management features like accounting, budgeting, and forecasting in the ERP. 76% of organizations required inventory management features in their ERP solutions.
Whereas 62% of organizations mentioned that the procurement process is a key requirement in their ERP solutions. Some 33% of organizations mentioned CRM and sales features as a requirement.
Of the 47% of companies that had narrowed their search to specific vendors, 18% said Microsoft Dynamics is their top choice. SAP was identified as a top choice by 12% of ERP buyers. And Netsuite (owned by Oracle) was the number 3 choice at 11%.
However, companies looking to purchase SAP ERP should consider the following problems reported by its users:
6. 31% of organizations identified “support growth” as their primary reason for implementing an ERP system.
Other reasons identified by companies for ERP implementations this year were greater functionality (20.3%), increase efficiency (13%), and replacing outdated legacy systems (12%).
In contrast, SelectHub’s buyer’s profile reports that almost 40% of organizations identified greater functionality for purchasing ERP software this year.
The same ERP implementation statistics from SelectHub state that at least 47% of manufacturing companies were looking to purchase or upgrade their ERP systems this year.
Other buyers were from distribution (18%), services (12%), construction (4%), retail (3%), utilities (3%), government (3%), and healthcare (3%) industries.
Furthermore, when asked about “how much time you’re willing to spend on ERP implementations,” more than 30% said they want to complete the selection process within six months.
In fact, 85% of companies wanted to expedite the selection process and were unwilling to invest more than 12 months in the process.
SoftwarePath states that, on average, organizations spent only 17 weeks selecting an ERP system. There is also a correlation between the number of employees the ERP will impact and the time taken to select the system.
For instance, companies with more than 500 employees took an average of 26 weeks to choose ERP software. In contrast, companies with less than 50 employees took an average of 14 weeks to select an ERP software.
Equally important to consider is that in 23% of organizations, the finance and accounting teams were responsible for selecting the ERP software. An equal number of organizations (23%) asked their IT teams to choose the ERP software.
Plus, operations teams (17%), CEO (12%), outside consultants (17%), sales teams (3%), and project managers (3%) were in charge of purchasing ERP software.
7. The average budget per user for ERP software is US$ 9,000 in 2022, an increase from last year’s US$ 8,295.
However, the average budget per user for ERP software is less for smaller organizations. For context — smaller organizations with less than 50 employees paid an average of US$ 8,500 per user on their ERP system.
At the same time, the average budget per user for ERP systems for large organizations (500+ employees) was US$ 11,000. This includes the cost of license, training, servers and network hardware, enterprise data conversion, and testing.
However, Panorama Consulting Group reports that the cost of ownership of ERP services is even higher. It reports that for a mid-size business (revenue under US$ 1 billion), the cost of ERP ownership is around 3% – 5% of the annual revenue. Whereas for larger organizations (over US$ 1 billion revenue), the cost of ownership is about 2% – 3% of the annual revenue.
Moreover, the average cost of acquisition of ERP was the highest for the healthcare industry (US$ 12,500) in 2022. Retain that the cost of acquisition differs from industry to industry because of different requirements.
ERP Statistics: Cloud Vs. On-Premise ERP Debate
8. 95% of organizations say they are open to cloud-based ERP systems.
(Panorama Consulting Group)
Panorama Consulting Group ERP reports that 65% of organizations are using cloud ERP in 2022. The other 35% of organizations were using on-premise ERP software.
As indicated, most organizations are open to cloud technology. But they state multiple reasons for not choosing a cloud ERP platform service. Some 37% of organizations fear the risk of a security breach.
Plus, 16% of organizations say cloud technology comes with the risk of data loss. An equal number of respondents say there are connectivity challenges. Moreover, 14% of organizations say they do not have enough knowledge about cloud technology.
Equally important to note, 12% of organizations say “more cost” is the reason for not choosing cloud-based software.
Furthermore, of the organizations utilizing cloud ERP tools, 67% are utilizing SaaS (software as a service) model. Whereas 33% are utilizing either managed or hosted cloud ERP tools.
9. No large organizations (500+ employees) are considering on-premise ERP software specifically.
SelectHub’s report on industry trends highlights that at least 50% of organizations are open to on-premise ERP business applications. Of which 65% are manufacturing industries.
At the same time, SoftwarePath’s report on ERP indicates that 56% of small organizations (less than 49 employees) are solely considering cloud systems, while only 4% are solely considering on-premise systems.
53% of the mid-size organizations (less than 500 employees) are solely considering the cloud, while only 3% say they will choose on-premise systems.
ERP Statistics: The Benefits of ERP Projects
10. 67% of organizations consider ERP implementation as “very successful” or “successful.” In fact, only 2% say ERP ERP projects are “not very successful.”
Some 32% of the organizations surveyed by UltraConsultant say their ERP processes achieved partial success.
Of the organizations that achieved ERP success, at least 62% of organizations give credit to their top management support and commitment to achieving success with their ERP processes.
48% say the change in organizational processes made their ERP project a success.
Some 32% say they achieved ERP success because of good testing and management (ERP data and processes). An equal number of organizations (38%) attribute their success to ERP assessment.
Of the organizations that achieved partial success or did not consider their ERP process to be a success, 31% say inadequate testing was the reason for lack of success. So, organizations looking to implement ERP platforms should look for outside help if the organizations lack the skill to test the software.
At the same time, it is important to note that organizations do not state a single, dominant reason for ERP failure. Instead, the reason for lack of success varies from organization to organization:
11. 80% of organizations achieved the projected ROI (sooner, within the timeline, or later) after ERP implementation.
Some 58% of organizations achieved the ROI within the projected timeline. Plus, it took an average of 2.5 years for the organizations to achieve the projected ROI.
Another interesting angle is aggressive organizations (that went live within six months approach) say their ERP implementations achieved the projected ROI sooner than expected.
In contrast, organizations that spent more than six months or a year on ERP projects achieved ROI later than projected.
12. Only 9% of organizations say they did not realize any benefit (ROI) after ERP implementations.
At least 91% of organizations say ERP implementation led to “some benefit” in terms of ROI.
Here are the responses from the organizations when asked about the top benefits realized by ERP:
- Some 40% of organizations say ERP reduced their IT cost.
- 38% say it reduced the cost associated with inventory levels.
- 35% say it reduced the sales cycle time.
- Plus, 32% of organizations say it reduced the headcount related to data entry.
- Some 31% of organizations say they were able to increase production capacity without increasing the headcount.
Moreover, businesses achieve major improvements in regard to data accuracy, inventory accuracy, and internal collaboration. As much as 95% of organizations have realized business process benefits that were beyond ROI. However, retain that the additional business performance improvements indirectly affect the ROI.
13. 80% of organizations say ERP’s centralized data system allowed them to co-create new applications.
At least 79% of organizations either agree or strongly agree that ERP helped them utilize technology from one part of the business to the other.
Not to mention, only 2% of organizations say ERP is a “hindrance” to cross-department collaboration.
In fact, almost 29% say that ERP is the “primary” enabler to bridge business and functional silos. Whereas 74% of organizations say — ERP implementation helped bridge business or functional silos to some level.
Moreover, almost 85% of organizations say they are already utilizing or exploring the possibility of using intelligence technologies with ERP platforms to improve productivity, operational efficiency, and decision making.
Some 9% of organizations say intelligence technologies like machine learning are already a core part of their ERP systems.
On a side note, regardless of whether businesses are integrating ERP with technologies or not, almost all companies are investing in artificial intelligence tools and technologies. In fact, machine learning statistics highlight that 91.5% of leading businesses have ongoing investments in ML and AI.
14. 38% of organizations say ERP enhances their ability to meet changing customer demands.
It is important to note that no organization says that ERP limits its ability to meet changing customer demands.
At the same time, 34% of organizations say ERP enhances their ability to defend against digital disruptors.
ERP Statistics: Small and Medium Businesses
15. 82% of SMBs with less than US$ 50 million annual revenue use ERP systems.
(Aberdeen SMEs and ERP)
Not to mention, 18% of SMBs with no ERP rely on spreadsheets (80% of them) and small business accounting software (75%), whereas 17% use some other tool. (Average of best-in-class, average performers, and laggards SMBs without ERP software).
However, although 18% have managed to succeed without ERP in their organization, they realize the shortcomings of the legacy systems.
- 49% say their legacy business systems cannot track business processes.
- 47% say their business systems cannot interact with each other.
- 40% say the legacy business systems lack collaboration features.
- 34% of SMBs say they cannot access data outside the office.
- 30% say it is difficult to share data outside of the organizations.
However, the small businesses using legacy systems are looking for alternatives (not necessarily ERP systems).
66% of SMBs are looking for a new system that delivers better visibility of business processes across all departments. 23% of SMBs using legacy systems are looking for a new system to modernize technology infrastructure and applications. (Average of best-in-class, average performers, and laggards SMBs without ERP software).
Needless to say, modern-day reliable ERP solutions are designed for real-time visibility and centralized management of business processes.
16. Account payable (77%) and account receivable (73%) are the top ERP processes adopted by small businesses.
(Aberdeen’s ERP Expectations)
The most common reason SMBs adopt ERP systems is for financial solutions like tracking costs against accounts, general ledger, and balance sheets.
In addition to financial solutions, 62% of small and medium businesses say they use the purchase order management process within the ERP systems.
At least 62% of leaders and 46% of followers also use the project management capabilities of the ERP systems. (Leaders are top 30% based on performance, followers are the remaining 70%).
However, most enterprises are likely to use individual project management software.
Equally important to note, a small portion of leaders (23%) and followers (18%) among SMBs utilize the workflow management features of the ERP systems.
Furthermore, 74% of leaders and 47% of followers utilize their ERP software’s track product costs feature, indicating SMBs use the control processes capabilities within the ERP.
At the same time, 47% of leaders utilize ERP to share and integrate data across the organization. Plus, 63% of leaders and 60% of followers utilize the process capabilities of ERP for standardizing efficiency procedures across the organization.
Not only small companies but almost 89% of organizations also say accounting is the most critical ERP function to them.
17. 55% of SMBs use a cloud ERP because of ease of use (29%) and flexibility (27%).
(Aberdeen’s ERP Expectations)
As indicated earlier, most SMBs utilize their ERP software’s financial solutions and project management capabilities. However, many SMBs also use the standardization as well as real-time visibility features available within the ERP software.
Additionally, SMBs’ preference for cloud-based software is increasing for numerous reasons. Top of everything, cloud platform services require no large upfront cost like on-premise systems and IT teams to manage the systems.
Plus, cloud technology offers flexibility and can integrate with other technologies.
For context, 53% of SMB leaders have integrated their ERP systems with small business CRM software. Nevertheless, only 7% of followers say they have integrated ERP and CRM (customer relationship management) software.
42% of leaders and 37% of followers have integrated their business intelligence and analytics tools with ERP software.
ERP Statistics: Manufacturing Industry
18. ERP implementation reduces the inventory cost by 11% on average. Best-in-class manufacturing companies reduced their inventory costs by 22%.
Manufacturing companies with ERP systems say the overall cost is reduced by 20%. Here’s a breakdown of average cost savings realized by manufacturing companies after implementing ERP systems:
- All manufacturing companies with an ERP system saw a 13% reduction in operating costs. Plus, the best-in-class manufacturing companies saw a 20% reduction in operating costs.
- All report a 10% reduction in administrative cost; organizations with best-in-class practices report an 18% reduction.
- ERP systems reduced the cost associated with schedule compliance by 12% across all manufacturing companies with ERP implementations. Best-in-class companies report an 18% cost reduction.
Aberdeen’s ERP implementation statistics highlight that 26% of manufacturing companies are yet to implement ERP. (It comes from a 2010 report today’s adoption rates vary).
Most of these companies are small to mid-size manufacturing organizations. At least 50% of manufacturing companies with annual revenue of less than US$ 25 million are yet to implement ERP projects.
Equally important to note, 54% of manufacturing organizations without ERP say the “fear of burden” is the reason for the lack of ERP in their organizations.
At the same time, 41% say they will be able to function without ERP systems. An equal number of organizations (41%) say the cost of ERP solutions is too high.
And a small number (16%) of organizations say, “we are too small for an ERP solution.” Whereas 14% say — ERP systems are too complicated.
In addition, 68% of manufacturing organizations say they use spreadsheet tools instead of ERP.
- 54% say they use an accounting application.
- 46% use some legacy system that cannot be considered an ERP system.
- 41% say they use some internal software developed by them.
- 38% use desktop applications instead of an ERP system.
19. 74% of manufacturing companies employed cross-functional teams to choose and manage the ERP implementation.
91% of best-in-class manufacturing companies utilize ERP systems. Plus, 88% of followers (bottom 65% of manufacturing companies based on performance) are using ERP systems.
90% of best-in-class companies used a cross-functional team — including sales, IT, engineering, manufacturing, and finance — to select an ERP system and build a use case. This is something to consider when selecting and building the case for ERP.
Additionally, manufacturer companies prioritize industry-specific ERP tools over any other industry. Given that a food manufacturing company has different processes than an industrial equipment manufacturing company, manufacturers look for ERP tools that align with business objectives.
41% of leaders and 28% of followers choose ERP tools that include capabilities to align with their business objectives.
Even more, 48% of leaders and 43% of followers say they utilize the industry-specific features within the ERP platforms.
When it comes to purchasing ERP software, 50% of manufacturers pick an ERP system that is easy to use.
48% consider it based on functionality, whereas 43% say the total cost of the new ERP system is a decisive factor when choosing a new ERP system. Some 23% look for integration capabilities.
20. 71% of manufacturing companies using ERP solutions have standardized cash processes vs. 36% of companies with no ERP.
(Aberdeen, To ERP or Not To ERP)
As indicated, manufacturing companies with ERP systems were able to lower their cost of operation, inventory costs, administrative costs, and so on.
And these results come from exceptional upgrades the manufacturing companies were able to make because of ERP.
Manufacturing companies with ERP had much success when it comes to standardizing processes across the organization and centralizing enterprise data compared to the companies with no ERP solution.
Aberdeen’s ERP implementation statistics indicate:
- 66% of manufacturing companies with ERP were able to standardized procedures for order management and deliveries vs. 31% of companies with no ERP.
- 56% of companies with ERP say they were able to standardized procedures for production planning and execution vs. 22% of companies with no ERP.
Even more, 54% of manufacturing companies that underwent ERP implementation say the decision-making capabilities increased because of real-time visibility of all procedures across the organizations.
At the same time, only 14% of organizations with no ERP say they have real-time visibility of all processes.
Manufacturing companies with ERP say they received immense organizational benefits because of ERP solutions. From streamlining processes to increasing productivity and improving supply chain management to efficient inventory control — ERP helped improve organization-wide processes in the manufacturing industries.
ERP Statistics: The Challenges to ERP Implementation
21. 72% of organizations say inadequate sponsorship is the biggest barrier to ERP implementation.
The biggest barrier to implementation is resistance to change. Of the companies that do not use ERP, some 82% say they do not either know how to or do not want to embrace change.
Understand that, on average, 26% of employees use the company’s ERP system. Meaning ERP implementations involve quite a bit of change across the organization.
However, Panorama Consulting Group reports that organizations can overcome the “resistance to change” and minimize it by identifying the change agents early in the ERP project.
Another key suggestion by Panorama Consulting Group is to “train the employees and involve them in ERP project.”
Other barriers to implementation, as found by Deloitte, are:
22. 69% of organizations say process change is the most difficult aspect of ERP implementation.
(Panorama Consulting Group)
In contrast, only 24% of organizations say the technical aspects are difficult. In fact, at least 64% say the technical aspects were neutral, easy, or very easy to deal with after implementing the system.
However, 65% say they found the organizational change to be very difficult or difficult to overcome, while only a small fraction (3%) of them say it was easy.
Previous year reports (2019 and 2020) from Panorama Consulting Group indicate the same pattern — technical aspects are easier to overcome than organizational change management and people management.
As mentioned earlier, training and identifying the change early on is key to overcoming the challenges of ERP implementation.
Additionally, the Panorama Consulting Group report highlights that 51% of organizations that sought outside help were able to overcome organizational change comfortably. This means that seeking outside expertise is helpful in improving organizational change management.
Equally important to note, at least 90% of organizations sought consultant guidance to implement or update ERP systems.
23. Only 59% of organizations (up from 40% in 2021) were able to complete ERP projects on budget.
(Panorama Consulting Group)
Some 32% of organizations say their ERP projects budget was completed with a “slightly more” budget, while at least 9% say they had to spend “significantly more” compared to the initial project scope.
Almost 48% of organizations say that organizational issues like governance and resistance to change caused the ERP project’s budget overrun. Whereas some 27% say — the initial project scope expanded.
41% say they needed additional technology. Plus, 12% overestimated the consultant’s cost.
On the same note, only 64% of organizations completed the ERP project within the estimated project timeline. 28% of organizations needed “slightly more” time to complete the project, while 7% needed “significantly more” time.
Technical issues were the most common reason for project timeline overrun. Plus, some 15% of organizations say the ERP service providers didn’t deliver the functionality on time.
Here are the other common reasons for timeline overruns as stated by organizations:
What Do These ERP Statistics Mean for Your Enterprise?
The statistics identified in this report reflect the state of ERP across all organizations. It informs you about the possible business process improvement to expect. Plus, it outlines the most common challenges faced by organizations.
That is to say — retain these insights while writing the project scope and not repeat the mistakes of others. For instance, 78% of organizations took outside consultants’ help to assist with their ERP projects. However, most of these organizations limited the outside’s help with implementation.
Needless to say, most faced difficulties with organizational change management.
It is critical to note that the organizations that took outside help in aspects other than implementation like technology assessment and software selection were able to select systems per budget and need.
Above all, organizations must understand that ERP projects are not just an IT affair. This means that leaders must involve cross-departmental teams and consider ERP projects as a business strategy rather than an IT strategy to understand the impact of change and plan accordingly.
Moreover, many businesses wonder whether they should consider ERP if they already have reliable CRM software. However, CRM vs. ERP debate is an age-old debate. And it is best to view them as stand-alone systems unattached to each other, and one cannot be used as a substitute for the other.