45 ERP Statistics for the 2021 Market
ERP software is one category that clearly withstood the pandemic.
93% of businesses that implement ERP projects consider them a success. That success rate dropped just 2% after COVID-19 hit.
There’s only one problem: ERP software is expensive and time-consuming to implement. Many projects go over budget, and the cost per user is high. Despite this, organizations across industries report a positive ROI.
These statistics demonstrate the reality of buying and implementing ERP tools in 2021.
Click on a Section:
9 Essential ERP Statistics for 2021
- The ERP market is projected to reach $86 billion by 2027. (Allied Market Research 2019)
- 93% of businesses that implement ERP projects consider them a success. (Panorama Consulting Group 2020)
- 47% of organizations did not complete their ERP project within the expected timeline. (Hubspot 2020)
- 45% of ERP projects go over budget. (Selecthub 2021)
- Microsoft Dynamics is the ERP market leader in 2021, commanding 49% of the market share. (TrustRadius 2021)
- 50% of ERP implementations fail the first time around. (TEC 2021)
- 34% of the ERP market is manufacturing. (Hubspot 2020)
- 53% of customers are satisfied with their ERP system. (Hubspot 2020)
- On average, companies spend 17 weeks selecting ERP software. (Softwarepath 2021)
ERP Market Size Statistics
- The global ERP market size was valued at $39 billion in 2019. (Allied Market Research 2019)
- The ERP market is projected to reach $86 billion by 2027. (Allied Market Research 2019)
- 14% fewer organizations upgraded their ERP in 2020 compared to 2019. (Hubspot 2020)
Who’s Winning ERP Market Share in 2021?
Over 1.2 million software buyers use TrustRadius each month. Many of them are shopping for ERP software—so we took a closer look at our data to see which products attract the most attention.
According to buyer interest, the top 6 leaders in today’s ERP market are:
Out of those companies, we’re seeing clear winners when it comes to market share:
- Microsoft Dynamics is the ERP market leader in 2021, commanding 49% of ERP the market share. (TrustRadius 2021)
- Oracle Cloud ERP commands 18% of the ERP market share. (TrustRadius 2021)
- Sage Intacct commands 17% of the ERP market share. (TrustRadius 2021)
- Infor ERP and Epicor each command 6% of the ERP market share. (TrustRadius 2021)
- Out of all ERP software, buyers spend the most time comparing SAP ERP and SAP Business Planning and Consolidation. (Trustradius 2021)
- Buyers spent an average of over 35 minutes comparing Microsoft Dynamics 265 to Odoo. (Trustradius 2021)
ERP Implementation is Difficult
- 50% of ERP implementations fail the first time around. (TEC 2021)
- On average, ERP implementations take 30% longer than estimated. (TEC 2021)
- 47% of organizations did not complete their ERP project within the expected timeline. (Hubspot 2020)
- 65% of all organizations found changing ERP organizations difficult or very difficult. (Hubspot 2020)
- 83% of organizations moving from legacy ERP systems found the transition difficult or very difficult. (Hubspot 2020)
- 78% of SAP S/4HANA reviewers said implementation went as expected, vs. the category average of 68%. (TrustRadius 2021)
- 96% of SAP S/4HANA reviewers say it delivers good value for its price, vs. the category average of 83%. (TrustRadius 2021)
The Real ERP Cost
- 45% of ERP projects go over budget. (Selecthub 2021)
- The average budget per user for ERP software is $8,265. (Softwarepath 2021)
- Most ERP implementations cost 3-4 times what was budgeted. (TEC 2021)
- 65% of organizations go over budget because their ERP system needs modifications to improve usability. (TEC 2021)
How Are Companies Choosing ERP
- On average, companies spend 17 weeks selecting ERP software. (Softwarepath 2021)
- 25% of organizations implement ERP to increase efficiency. (Softwarepath 2021)
- 20% of organizations implement ERP to support growth. (Softwarepath 2021)
- 20% of organizations implement ERP to increase functionality. (Softwarepath 2021)
- 10% of organizations implement ERP to Consolidate disparate. (Softwarepath 2021)
ERP Industry Breakdown
- Manufacturing accounts for 34% of the ERP market. Other major industry users include professional or financial services (14%), distribution and wholesale (10%), and IT (5%). (Hubspot 2020)
How Satisfied are Customers with Their ERP?
- 93% of organizations consider their ERP project a success. (Hubspot 2020)
- 53% of customers are satisfied with their ERP system. (Hubspot 2020)
- 7% of customers are dissatisfied with their ERP system. (Hubspot 2020)
- 3% of customers are very dissatisfied with their ERP system. (Hubspot 2020)
- 38% of customers have neutral feelings about their ERP system. (Hubspot 2020)
ERP Hosting Preferences in 2021
- 64% of organizations prefer to host ERP software on the cloud. (Softwarepath 2021)
- 34% of employees have no preference for hosting ERP software in-house or on the cloud. (Softwarepath 2021)
- 86% of ERP software are deployed as Software-as-a-Service (monthly/yearly installment payments to license the use of a software). (Hubspot 2020)
- 14% of ERP software are deployed on-premise through a one time payment. (Hubspot 2020)
- 77% of ERP software are hosted internally. 23% are hosted externally. (Hubspot 2020)
ERP Usage by Employees
- On average, 26% of employees use a company’s ERP system. (Softwarepath 2021)
- 45% of employees in the distribution industry use an ERP. (Softwarepath 2021)
- 45% of employees in the distribution industry use an ERP. (Softwarepath 2021)
- 44% of employees in Ecommerce use an ERP. (Softwarepath 2021)
- 43% of employees in professional services use an ERP. (Softwarepath 2021)
- 41% of employees in the non-profit sector use an ERP. (Softwarepath 2021)
- 39% of employees in made-to-order manufacturing use an ERP. (Softwarepath 2021)
ERP Fundraising and Acquisition News
The COVID-19 pandemic caused a massive increase in investment for the ERP market. The impacts on supply chain management, manufacturing, and information integration have driven explosive growth in demand for ERP resources.
With that, we’ve seen some new up-and-coming leaders in the ERP market.
Others are using the 2021 market boost to expand their ERP products. Xentral has raised $20 million specifically to develop enterprise tools. The company already provides ERP tools for small-to-mid-sized, online-focused companies and will now expand into higher capital markets.
The past year has also seen significant acquisitions in the ERP market.
Admin software company Holded has been acquired by Visma for €120 million. Higher Education ERP company Ellucian is set to be acquired by Blackstone and Vista Equity. Priority Software is purchasing EDEA for $43 million after raising $120 million last year.
Other major fundraisers include:
Hot ERP Trends for 2021
The Cloud Migration
ERP is an older tech market, and the ever-creeping expansion of cloud applications will continue to make waves.
Just 3% of organizations want to host on-premise ERP software this year. We assume this is because customers implement ERP software to increase efficiency, support growth, and expand functionality—and cloud ERP tools offer flexibility in all of these areas. The rise of SaaS ERP and the general preference towards cloud software will likely see vendors focus on cloud solutions moving forward.
Two-Tier ERP
While most older ERP systems had a single ERP to fit their needs, this is changing rapidly.
A two-tier system allows enterprise companies to have a customized, expansive system for their global needs and a smaller, more focused system for local units. Two-tier ERP is more cost-effective.
This type of system also helps organizations on legacy systems adapt without breaking the bank. Organizations looking to replace ERPs no longer have to disrupt their entire system by linking outdated, incompatible software. Many emerging Tier 2 systems are made to integrate with older tier 1’s.
We expect the two-tier EPR trend to continue well past 2021.
AI-Powered Customization
The ERP market is currently seeing a huge influx of AI features designed to tailor software to an organization’s needs.
On the front end, chatbots and assistive interfaces are driving the gathering and manipulation of consumer information. On the back end, AI can power customization of business processes and company insights.
As AI technology improves, we expect this trend to continue.
Evaluating ERP Cost for Top Products
| ERP | trScore | Starting Price | Free Trial | Free or Fremium | Premium Services | Setup Fee |
| Microsoft Dynamics 365 | 7.8/10 | $44 |  |
 |
|
None |
| Oracle Cloud ERP | 8.6/10 | Contact Vendor | |
|
|
Required |
| Sage Intacct | 8.6/10 | Contact vendor | |
|
|
None |
| Infor ERP | 7.1/10 | Contact Vendor | |
|
|
None |
| Deltek Vision | 6.8/10 | Contact Vendor | |
|
|
None |
| SYSPRO | 6.1/10 | Contact Vendor | |
|
|
None |
| SAP S/4HANA |
8.6/10 | Contact Vendor | |
|
|
Required |
Due to the nature of ERP, pricing varies wildly. You’ll likely have to contact the vendor to get an accurate pricing estimate.
What do actual buyers on TrustRadius say about the value across this product range?
- Usability: Microsoft Dynamics 365, Sage Intacct, SAP S/4HANA were all rated above the category average in usability.
- Customer support: Oracle Cloud ERP, Sage Intacct, and SAP S/4HANA all rated above average for customer support.
If you’re looking for your next ERP solution, check out reviews on TrustRadius. You’ll see 100% authentic reviews from buyers just like you.
Sources
-
The 2020 ERP Report (Panorama Consulting Group 2020)
-
ERP Case Study (Selecthub 2021)
-
ERP Market Share, Trends & Growth (Allied Market Research 2019)
-
ERP Statistics & Facts: ERP Success & Failure Rate (TEC 2021)
-
The 2020 ERP Report (Hubspot 2020)
-
The 2018 ERP Report (Hubspot 2018)
-
The 2021 ERP Software Project Report (Softwarepath 2021)
-
45 Key ERP Statistics for 2021 (TrustRadius 2021)
About the Author