The ERP software market has been around for over 40 years, and do you know why? Think of the market as one giant pie. Each vendor within this pie has its individual ERP market share. In these 40+ years, the market has grown with new vendors and industries, diversifying the pie into a melting pot of different shapes and sizes thanks to new technological advances and business scalability.
Compare Top ERP Software Leaders
This article analyzes the ERP market in 2022 and beyond, including a list of the software vendors that are dominating the ERP market share today.
What This Article Covers
- Overview
- Buyer Trends and Insights
- Top Solutions by Market Shares
- Software Alternatives
- Wrap-up
Overview
Allied Market Research explained that the global ERP market had a value of $43.27 billion in 2020. They predicted the value hitting $117.09 billion by 2030, despite ongoing shifts with the COVID-19 Pandemic and supply chain shortages.
How Did We Get Here?
At this point, you’re probably wondering: What are the driving forces behind this 40-something-year-old software market? The ERP market is propelled forward by its ability to continually revolutionize business processes in a wide range of industries. Year after year, ERP vendors come up with new ways to improve companies’ bottom line.
You may also ask: How do certain software vendors come to succeed in dominating the ERP software market share? In the most basic sense, the vendors that produce the best business results for their customers become the most popular. They often accomplish this by leveraging the newest technology available to provide innovative solutions, as we mentioned earlier.
Buyer Trends & Insights
Another driver of success in the ERP software market share realm relates to incorporating current buyer trends with their solutions. Whether software engineers are creating an ERP from scratch or simply generating updates for their current systems, it’s vital to provide customers with the system features they need to gain a competitive advantage in the modern business world.
This success also comes from investing in new technology to accompany your software. Some current 2022 technological and buyer ERP trends range from cloud software and two-tier ERPs to artificial intelligence (AI) and 3D printing.
Cloud Deployment
More and more people are moving to the cloud, and for good reason. Cloud ERP allows you to access the solution from any device in real time from any location. If your business has regional or global locations, and you travel to these places often, you can either manage them on your ERP or review your data while on the go.
Verified Market Research predicts the global cloud ERP market will reach $168.34 billion by 2030.
The Internet of Things (IoT)
IoT enables you to connect various machinery and other items to the internet for real-time statuses. For example, manufacturers may input IoT sensors in their drilling, sawing and mechanical arms. These sensors will detect and relay information regarding if the machines have upcoming or in-progress jobs. IoT can also inform you if machines need full maintenance or just a quick tune up.
Thanks to IoT sensors, you can perform preventative maintenance to catch machinery issues before they become production bottlenecks.
MarketsandMarkets expects the IoT market will reach $650.5 billion by 2026.
Artificial Intelligence (AI)
AI exists in Alexa, Siri and Google when you ask them to order food, set up a dentist appointment or play your favorite playlist while you brush your teeth. Several industries, such as manufacturing and accounting, are implementing AI-powered solutions to streamline routine tasks to boost productivity and save time. Instead of gathering monthly reports or sending invoices, AI can handle it.
Allied Market Research estimates the global AI market value will reach $1,581.70 billion in 2030.
Two-tier ERP
Typically, two-tier ERP is when small or mid-sized businesses merge and leverage two ERP systems. This concept typically utilizes the cloud and makes ERPs available for all business types.
3D Printing/Additive Manufacturing
Like AI, 3D printing is another sweeping trend for the manufacturing industry. Instead of waiting months or years to create a product, it can take you a few hours or days. It also reduces waste and opens the door for quicker prototyping.
Allied Market Research predicts the 3D printing/additive manufacturing market will reach $94 billion by 2030.
Headless ERP
In a nutshell, headless ERP separates front from back-end practices. This trend offers more efficient data exchanges and expands the customization gap. Headless ERP is still new in the ERP realm, but making a big splash.
Top Solutions by Market Shares
The SelectHub research team investigated and pinpointed key ERP market size and share players:
Oracle ERP Cloud
Founded in 1977, it comes as no surprise that Oracle ERP Cloud is one of the most prominent players in the ERP market today. This full-featured system is powered by cutting-edge technology such as artificial intelligence and machine learning, which automates routine tasks and provides guided user actions. Currently, Enlyft says Oracle ERP has a 5.75% market share, giving it a significant ERP market size.
Our research team found that the Oracle Adaptive Intelligence apps, as well as Oracle Blockchain, were the most stand-out features within the system. The Adaptive Intelligence apps support finance and procurement teams by automating routine tasks, such as payables and receivables, and offering fresh insights that can help optimize their cash flow.
Oracle Blockchain provides a range of APIs, developer frameworks and plug-and-play components for developing and hosting applications.
An example of Oracle ERP Cloud.
Top Benefits
Store and Retrieve Data Quickly
Leverage two strategies: Oracle Blockchain Platform (OBP) and Oracle SaaS Applications. OBP offers a supervised platform as a service (PaaS) with plug-and-play elements, APIs and SaaS application infrastructures. It merges with NetSuite, FlexCube and Open Banking.
Supervise International Resources
Utilize international resources, such as number, date, name and address formats, 26-language translations, country-specific localizations for transactions, bookkeeping and tax files.
Simplify Payment Collections
This module ensures on-time customer collections via automatic assignments. It leverages days sales outstanding (DSO) and broken promise count to review collections protocols via in-depth formulas. You also garner a better understanding of outstanding receivables health, collecting efficiencies and problem areas to address before they become issues.
Boost Customer Rankings
Classify clients with adjustable scores to enhance cash flows and track bankruptcies.
Utilize Discounts and Savings
Create discount offers for particular vendors for early outstanding payables transactions according to supplier profiles and risk data.
Primary Features
Financials
Merge data from BI, social, transactions and other sources. Leverage role-based dashboards and KPIs according to transactions and procedures.
Procurement
Pick vendors, push policies and evaluate supplier risks. Use deliverable tracking, contract creation, contract deviations management, digital signatures and more.
Supply Chain Planning
Cipher safety stock requirements, discrete manufacturing, global supply chain planning and generating supply chains for outsourced manufacturing and upstream suppliers.
Logistics
Help shippers and logistics service providers with complete local and international supply chain transparency. Govern transport orders, shipment planning, and supervision and mailing options for FTL, LTL, parcel, rail, ocean, air and other methods. Leverage mobile devices to review real-time analytics for loading, packing, picking, kitting and more.
PLM
Work with item management, BOM management, approved manufacturer list (AML) management, change management and supplier collaboration. Access a consolidated data model with embedded analytics to execute digital twin and inter/external information into predictive and preventative courses of action.
Limitations
Although this system has several benefits and features, it comes with a few drawbacks. These disadvantages include:
- Doesn’t have Android or iOS apps.
- Has limited OTBI features for cloud apps.
- Can’t report on other data sources.
Platform:
Company Size Suitability: S M L
SAP Business One
The next product on our list is by another legacy ERP company, SAP, which has been dominating the market since 1972. The market share of SAP Business One is 2.38%, a small but noticeable ERP market size. The system is most often used by companies with 10-50 employees and $1-10 million in revenue.
Similar to Oracle ERP Cloud, SAP Business One is a complex and full-featured system. The software has been applauded for its extensive customization options as well as the ability to generate sophisticated business analytics. With that being said, the system is very capable but can be difficult for less tech-savvy individuals to use.
The system is designed for small- and medium-sized businesses and caters to multiple industries, including accounting, manufacturing, retail and distribution. SAP Business One runs on both the SAP HANA and Microsoft SQL Server platforms.
A preview of SAP Business One.
Top Benefits
Obtain More Software Knowledge
Obtain free access to SAP Business One training with presentations, demos, simulations and other training materials.
Gain Clearer Project Details
The interactive Gantt chart pushes project stages forward and enables you to have transparent project management task scheduling.
Complete More Transactions
Garner payments via different methods such as checks, cash and bank transfers.
Save Money
Craft and upkeep numerous multi-level BOMs and preserve expenses.
Consolidate Storage and Bookkeeping Tasks
Fuse this system with warehouse and accounting tools for real-time receipt and inventory warehouse levels. Craft accounts payable invoices automatically from goods receipts and purchase orders.
Primary Features
Financial Management
Streamline basic bookkeeping tasks, including tax calculation, journal entries, accounts receivable and payable, ledger maintenance and more. Cipher bank statements, reconcile accounts, govern cash flows, track budgets and more.
Sales and Customer Management
Produce, supervise and study marketing operations, customer data storage, customer contacts management, reporting and analysis. Draft in-depth reports for sales forecasting, recording goods receipts and problems. You may also leverage pipeline tracking, stock location and transfer tracking, consignment permissions, etc.
Production Planning
Relay prompt data for inbound and outbound cargo, inventory and merchandise location. Establish inventory values with standard expenses, moving average, first in, first out (FIFO) and other protocols.
Business Intelligence (BI)
Pen reports with tailored data visualization features and conduct analytics with pre-set KPIs. Merge this feature with Microsoft Excel to perform interactive evaluations and drill down into information with search assistance and workflow-based notifications.
Analytics and Reporting
Merge SAP Crystal Reports with this system to construct organization-wide informational reports. Choose numerous file formats and offer access to exhibited information.
Limitations
Although SAP Business One has plenty of features and advantages, it comes with some drawbacks:
- Lacks free trials.
- Pretty expensive.
Platform:
Company Size Suitability: S M L
Sage 100 Cloud
Third on our list is Sage 100 Cloud, which claims a 3.51% ERP software market share and serves midsize and enterprise-level organizations.
This system comes with features such as automatic data capture, Microsoft Outlook integration and an inventory advisor, which can provide inventory health checks, quality forecasts and more. These smart capabilities come on top of all of the standard ERP functions. This system isn’t as advanced or complex as the last two, making it a good option for those who are seeking a more straightforward and simple system.
An example of Sage 100 Cloud.
Top Benefits
Initiate Quick Data Saving
Connect scanners to handheld computers to automatically capture and verify stock counts, amounts, item numbers, lots and serial numbers for distributed and received packages.
Boost Client Retention
Link Sage CRM to merge operations, workflow, data and communication channels for customer-facing tasks, accounting, production and inventory sectors.
Reduce Tax Headaches
Automate business workflows and assist with tax problems, including situs, nexus, tax tiers, tax holidays, exemption certificate management and product taxability regulations.
Quickly Balance Accounts
Merge accounts payable/purchase order asset creation and instant general ledger postings.
Easily Access HR Data
Resolve all HR obstacles and align with Affordable Care Act regulations. Work with merged payroll, benefits, recruiting, employee self-service and analytics accessories.
Primary Features
Financial Management
Track cash requirements, implement budgeting and automate sales tax management and tax chronicling. This tool has financial report creation, check writing, discount management and more.
Inventory Management
Track labor overhead, statuses and accounts payable fees. Tracks budget costs and item progress. It makes real-time modifications for inventory, raw materials and production workflows.
Production Management
Supervise production procedures via BOMs. Work with dual grids, batch operations, field customizations, etc.
Order Management
Access particular units in inventory, item pricing, quantity pricing, client data, credit limits, credit card deposits and more in real time.
Limitations
Sage 100 Cloud has a few drawbacks. These disadvantages include:
- Only offers English support.
- Lacks mobile applications.
- Has occasional glitches.
Platform:
Company Size Suitability: S M L
SAP S/4HANA
SAP claims a second spot on our list with another one of their ERP products: SAP S/4 HANA, with a market share of 2.03%, is most often used by large companies with over 1,000 employees and over $1000 million in revenue.
Similar to SAP Business One, SAP S/4 HANA is an ERP that leverages AI and machine learning, but the two systems certainly have their differences. SAP S/4 HANA is designed specifically for large enterprises and includes the SAP Fiori user experience (UX). The SAP Fiori UX provides users with easy-to-use applications that are accessible from any device, as well as the ability for developers to build their own apps using the Fiori framework.
Users say the system has a nice balance between complexity and user-friendliness — this is likely thanks to the Fiori UX.
Aside from Fiori UX, the system has plenty of other modern capabilities, such as the situation handling feature. This feature notifies the user when particular circumstances arise, such as change in demand for a product or an approaching due date, and proposes a guided solution for the user. However, our researchers found that SAP S/4 HANA has long implementation cycles in comparison to other ERPs.
A preview of SAP S/4HANA.
Top Benefits
Centralize Real Estate Files and Operations
Real estate brokers and agencies can upkeep lease agreements, investments and construction projects, such as inspections, maintenances and structure restoration.
Expedite Contracts and Signatures
Request online agreements, automate contract creating, implement workflows, supervise versions and streamline evaluation and approval protocols.
Clean Up Payroll Data
Merge this system with SAP SuccessFactors‘ employee central to centralize employee, payroll and cost-center-related data.
Implement More Customizations
Craft customizable system extensions and apps that interact with other SAP programs. Access Java and JavaScript libraries, templates and toolkits.
Maintain Centralized Workflows
Utilize diverse extensions and integrations to further drive SAP Business One features.
Primary Features
Asset Management
Schedule and carry out asset maintenance to streamline operations and pinpoint malfunctions. You may also supervise workflows to decrease injuries, diseases, incident rates, fines, penalties, costs and unexpected downtime.
Procurement Management
Oversee purchasing with real-time analytical tools that drill down into purchase orders, requisitions, invoices, contracts and supplier performance. Condense demands throughout business units and regions in one centralized approval roadmap.
Sales Management
Govern order-to-cash procedures on all touchpoints, channels and functions via a multi-channel, role-based, real-time information database. Garner, allocate and dive into data point sourcing while simultaneously supporting automatic and manual practices to regulate all procurement documents.
Financial Management
Obtain profit and margin offerings with real-time reporting, predictive analytics and merged business planning. Upkeep one general ledger journal to supervise bookkeeping information and client credit scores. You may also integrate and merge procedures for risk management, compliance assurance and international trading.
Supply Chain Management
Keep an eye on company requirements, available materials and distribution guidelines to craft suitable client delivery dates. Follow the transportation lifecycle for local and international freight to regulate on-time deliveries. Supervise warehouse operations by enhancing asset utilization and overall throughput thanks to implementing the best picking, packing and shipping protocols.
Limitations
Although this ERP software market solution has plenty of perks and attributes, it comes with a few limitations. These drawbacks include:
- Has lengthy implementation cycles.
- Not all modules contain embedded analytics.
- Can be expensive.
Platform:
Company Size Suitability: S M L
Infor ERP
The last item on our list is another ERP giant — but this time we’re going to include a total of five products instead of just one. Infor ERP has a 0.45% ERP software market share and is most often used by companies with 50-200 employees and $10 million to $50 million in revenue.
The five industry-specific solutions include Infor CloudSuite Financials, Infor LN, Infor M3, Infor Cloudsuite Industrial and Infor Distribution SX.e. These versatile ERP solutions can be deployed in the cloud or as a self-hosted solution, and can work for small, medium and large businesses. They cater to the financial, supply chain, distribution and manufacturing verticals. Infor ERP cloud solutions are all hosted through Amazon Web Services (AWS).
Our research team found that Infor ERP has an impressive business intelligence (BI) and analytics platform, Infor Birst, which provides insights related to financial and operational processes, as well as performance management. Another perk is mobile accessibility. Infor ERP offers multiple native applications for Android and iOS devices.
An example of Infor ERP.
Top Benefits
Support Data-driven Decisions
Infor Birst offers BI and business analytics (BA) for all financial and operational analytical tasks and performance management for private and public clouds and on-premise interfaces. Its top features include automated data collection and refinement, reusable business rules and definitions, on-demand user and data scaling volumes and dashboards, data discovery and filing integrations.
Boost Internal Communication
Utilize the Infor Ming.le integration for improved social collaboration. It embeds BI into the user experience for event-driven protocols.
Manage Diverse Operations
Merge ION with Distribution, SX.e or M3 and other non-Infor solutions in one centralized hub.
Enhance Your Online Presence
Infor OS homepages offer role-based filter customizations across platforms. You may also tailor homepages with KPIs, notifications, posts, tasks, documents and other objects on one screen.
Increase File-sharing Methods
Leverage this module as a consolidated database to add and revise documents from any source, transform text from physical files into digital formats and build workflows around your documentation.
Primary Features
CloudSuite Financials
Align financial data with regulatory requirements through ledgers, reports, management reporting necessities, consolidations and other needs. Acquire web-based information solutions, perform process approval practices and pre-made dashboards that you can arrange by period, process or sub-workflow.
CloudSuite Industrial
Conduct shop floor scheduling and inventory management with lean production accessories to boost productivity. Implement procurement tools to source raw materials and access several manufacturing modes.
Distribution SX.e
Execute numerous core features, such as order entries, configure-to-order, electronic data interchange (EDI) orders, online orders, counter sales, non-stock orders, individual quote-to-order platforms, pricing management, rebates management and more. This module also possesses industry-specific tools for electrical, BMAT, plumbing, HVAC and automotive/heavy-duty trucks.
Infor LN
Work with best practices for industrial manufacturing, high-tech, automotive and other industries. Meet compliances for US GAAP, IFRS, IAS and XBRL.
Infor M3
Access a unified view of financials, closing processes and compliances with international accounting regulations like US GAAP and IFRS.
Limitations
This system has plenty of features and benefits, but it also comes with some limitations. These disadvantages are:
- Only the Elite customer support plan offers a customer success manager.
- Has low financial reporting contract flexibility.
Platform:
Company Size Suitability: S M L
Software Alternatives
There are so many dominating ERP market share solutions right now that it would take days to list all of them. However, we have a list of ERP software alternatives that are as popular as the five we’ve mentioned in the previous section.
Wrap-up
In summary, we have four ERP companies that are dominating the market: Oracle, SAP, Sage and Infor. Infor had the least amount of market shares and, established in 2002, they’re the youngest company on this list. Meanwhile, SAP claimed two spots on our list this year, with both of their products being supported by AI and machine learning – a major ERP trend.
No matter how much ERP market share a vendor has, it’s important to pick the solution that best aligns with your needs. For more ERP vendors, check out our in-depth comparison guide.
Do you have any predictions for the next year? Do you think there’s any “rising star” ERP software companies that will break into the top of the market in the coming years? If so, let us know by leaving a comment below.
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