Market Note: Enterprise Resource Planning
Leaders
SAP, Oracle, Microsoft, IFS, Infor, Workday
These vendors consistently rank as Leaders in GartnorGroup’s positioning of their comprehensive ERP offerings, market presence, and ability to execute. They provide robust, scalable solutions suitable for large, complex organizations across various industries.
SAP and Oracle are known for their extensive ecosystem of applications and strong global presence, catering to the needs of large multinational corporations. Microsoft Dynamics 365 leverages the power of the Microsoft stack, offering seamless integration and a user-friendly interface. Infor and IFS have strong industry-specific capabilities, with Infor focusing on user experience and IFS specializing in asset-intensive and project-oriented sectors. Workday stands out for its cloud-native architecture, strong financial management, and human capital management capabilities.
These Leaders continuously innovate, invest in R&D, and have a proven track record of successful implementations. They offer a wide range of deployment options, including on-premise, cloud, and hybrid models. With their deep domain expertise and extensive partner networks, these vendors are well-equipped to support the evolving needs of large enterprises.
Visionaries
Sage Intacct, Epicor, Acumatica
The Visionaries in the ERP market are characterized by their innovative approach, cloud-first strategies, and focus on specific market segments. These vendors offer modern, agile solutions that cater to the needs of growing businesses.
Sage Intacct is a cloud-native financial management solution that offers deep accounting capabilities, real-time insights, and a user-friendly interface. It is well-suited for mid-market companies seeking to streamline their financial processes and drive growth. Epicor focuses on the manufacturing, distribution, and retail sectors, providing industry-specific functionality and a flexible architecture. Acumatica offers a comprehensive, cloud-based ERP solution that emphasizes usability, adaptability, and cost-effectiveness, making it an attractive choice for small to mid-market companies.
These Visionaries are known for their strong customer focus, continuous product innovation, and ability to leverage emerging technologies. They often have a strong ecosystem of partners and integrations, enabling businesses to extend their capabilities and adapt to changing market dynamics.
Niche Players
Unit4, QAD, FinancialForce, SYSPRO, Deltek
Niche Players in the ERP market focus on specific verticals, company sizes, or geographies. They offer targeted functionality and deep industry expertise, making them a strong fit for organizations with specialized requirements.
Unit4 caters to people-centric industries such as professional services, education, and the public sector, providing tailored solutions that address the unique needs of these verticals. QAD specializes in manufacturing ERP, particularly for the automotive and life sciences industries, with a strong emphasis on quality management and compliance. FinancialForce offers cloud-based financial management and professional services automation built on the Salesforce platform, leveraging the power of the Salesforce ecosystem.
SYSPRO focuses on manufacturing and distribution industries, providing cost-effective solutions for small to mid-market companies. Deltek is known for its ERP offerings for project-based businesses, particularly in the government contracting, professional services, and architecture and engineering sectors.
These Niche Players differentiate themselves through their deep understanding of specific market segments, ability to provide targeted solutions, and strong customer relationships. They often have a loyal customer base and are well-positioned to serve organizations with industry-specific or niche requirements.
Strategic Planning Assumptions for the Enterprise Resource Planning (ERP) Industry
AI and ML Capabilities
Understanding the accelerating integration of advanced AI and ML across modern ERP systems, by 2029, 75% of ERP solutions will leverage predictive analytics, automated decision-making, and intelligent process automation to enhance operational efficiency, optimize business processes, and provide real-time, contextual insights to empower data-driven decision-making.
Recognizing the growing demand for ERP systems that can adapt and evolve alongside changing business needs, within the next 6 years, 60% of ERP vendors will incorporate AI-powered digital assistants and natural language processing to enable more intuitive, user-centric experiences, boosting user adoption and productivity.
Given the imperative for ERP systems to keep pace with the accelerating rate of technological change, by 2032, 80% of ERP implementations will feature embedded AI and ML capabilities, allowing organizations to rapidly adapt to market disruptions, automate repetitive tasks, and proactively identify emerging risks and opportunities.
Multi-device ERP Experiences
Considering the rising expectations for seamless, omnichannel ERP experiences that transcend traditional device boundaries, by 2027, 65% of organizations will adopt ERP solutions that provide intelligent, multi-device interfaces, enabling employees to access critical business data and functionalities anytime, anywhere, and on any device.
Recognizing the transformative impact of mobile-first, IoT-enabled ERP on workforce productivity and real-time decision-making, within the next 5 years, 55% of ERP implementations will integrate with a wide range of smart devices, wearables, and edge computing nodes, empowering users to collaborate, monitor operations, and execute tasks in the flow of work.
Given the imperative for ERP systems to support the evolving needs of a distributed, hybrid workforce, by 2030, 70% of ERP vendors will offer comprehensive, cloud-based solutions that deliver a consistent, personalized user experience across laptops, tablets, smartphones, and other connected devices, driving greater agility and responsiveness.
Composable ERP Architectures
Recognizing the growing demand for ERP systems that can rapidly adapt to changing business requirements, by 2028, 75% of leading ERP vendors will offer low-code/no-code development platforms and modular, API-driven architectures, enabling organizations to easily customize, extend, and integrate their ERP systems to meet evolving needs.
Understanding the criticality of composable ERP in supporting continuous business transformation, within the next 6 years, 60% of ERP implementations will leverage microservices, event-driven integrations, and other composable design patterns to quickly assemble, deploy, and reconfigure business capabilities, accelerating time-to-value and maximizing the return on ERP investments.
Given the imperative for organizations to remain agile and responsive in the face of market disruptions, by 2032, 80% of ERP systems will feature highly modular, plug-and-play components that can be rapidly composed, orchestrated, and recomposed to support evolving business models, customer expectations, and operational requirements.
Real-Time Monitoring, Predictive Maintenance, and Enhanced Supply Chain Visibility
Considering the growing importance of real-time operational insights and proactive decision-making, by 2027, 70% of ERP systems will tightly integrate with IoT devices, digital twins, and advanced analytics to provide comprehensive visibility into supply chain operations, asset performance, and production workflows, empowering organizations to optimize resource utilization, predict and prevent disruptions, and enhance overall operational resilience.
Recognizing the transformative impact of predictive maintenance capabilities on reducing downtime, improving asset productivity, and minimizing maintenance costs, within the next 6 years, 60% of ERP implementations will leverage machine learning algorithms and sensor data to forecast equipment failures, schedule proactive interventions, and automate maintenance scheduling, driving significant operational and financial benefits.
Given the heightened focus on supply chain agility and responsiveness in the face of global disruptions, by 2032, 75% of ERP solutions will feature advanced supply chain planning and execution modules that leverage AI, IoT, and blockchain technologies to provide end-to-end visibility, scenario planning, and automated decision-making, enabling organizations to rapidly adapt to changing market conditions and customer demands.
Data Security in the Digital Age and Quantum Age
Recognizing the escalating cyber threats and regulatory compliance requirements in the digital age, by 2027, 80% of ERP systems will incorporate advanced security features, such as multi-factor authentication, encrypted data storage, blockchain-based data integrity, and AI-powered anomaly detection, to safeguard sensitive business information and ensure uninterrupted operations.
Considering the impending transition to quantum computing and the potential impact on current cryptographic standards, within the next 8 years, 70% of leading ERP vendors will update their systems to leverage post-quantum cryptography, quantum-resistant algorithms, and other quantum-safe technologies, ensuring the long-term security and reliability of critical enterprise data and transactions.
Given the growing concerns around data privacy, sovereignty, and regulatory compliance, by 2032, 85% of ERP implementations will seamlessly integrate with advanced data governance frameworks, enabling organizations to maintain complete control over their data, comply with evolving industry and regional regulations, and build trusted relationships with customers and partners.
Low-Code/No-Code Platforms
Recognizing the transformative impact of low-code/no-code development platforms on the speed and cost of ERP customization and deployment, by 2027, 70% of ERP vendors will offer visual, drag-and-drop tools and citizen development capabilities, empowering business users to rapidly configure, extend, and integrate their ERP systems without relying on specialized IT resources.
Understanding the growing demand for agile, user-centric ERP solutions, within the next 6 years, 60% of organizations will leverage low-code/no-code platforms to quickly adapt their ERP systems to changing business requirements, accelerate the delivery of new functionalities, and drive greater user adoption and satisfaction.
Given the imperative for organizations to future-proof their ERP investments and maintain a competitive edge, by 2032, 80% of ERP implementations will leverage low-code/no-code technologies to enable rapid prototyping, iterative development, and seamless integration with emerging technologies, significantly reducing the time and cost of ERP modernization and digital transformation initiatives.
Relative Market Shares and Competitive Positioning
Recognizing the evolving needs of organizations across various industries and sizes, by 2027, the top 5 ERP vendors will collectively capture 60% of the global ERP market, with increasing differentiation in their product offerings, industry-specific solutions, and go-to-market strategies to cater to the diverse requirements of their customer base.
Understanding the growing demand for cloud-native, composable ERP solutions, within the next 6 years, disruptive vendors offering low-code/no-code platforms and API-driven architectures will gain a 30% market share, challenging the dominance of traditional ERP giants and driving increased competition and innovation in the industry.
Given the heightened focus on digital transformation and the integration of emerging technologies like AI, IoT, and blockchain, by 2032, the ERP market will experience a major realignment, with the top 10 vendors accounting for 80% of the global market share as they invest heavily in R&D, strategic partnerships, and industry-specific expertise to deliver comprehensive, future-ready ERP solutions.
Industry-Specific and Vertical-Focused ERP Solutions
Considering the specialized needs and regulatory requirements of various industries, by 2027, 65% of ERP vendors will offer tailored, industry-specific solutions that incorporate deep domain knowledge, pre-configured workflows, and advanced analytics to address the unique challenges faced by organizations in sectors such as healthcare, manufacturing, retail, and financial services.
Recognizing the growing demand for vertically-focused ERP systems that can support the distinctive business processes and data management needs of SMBs and mid-market enterprises, within the next 6 years, 60% of ERP implementations in these segments will leverage purpose-built, cloud-based solutions that provide greater flexibility, faster time-to-value, and more accessible pricing models.
Given the increasing importance of digital transformation and the adoption of emerging technologies across all industries, by 2032, 75% of ERP vendors will develop comprehensive, extensible platforms that can be rapidly configured and customized to address the specific requirements of diverse verticals, enabling organizations to future-proof their ERP investments and maintain a competitive edge in their respective markets.
Vendor Appendix
SAP
Headquarters: Walldorf, Germany
Founded: 1972
Key Products: SAP S/4HANA, SAP ERP, SAP Business One
Target Industries: Various, including manufacturing, retail, financial services, and healthcare
Oracle
Headquarters: Austin, Texas, USA
Founded: 1977
Key Products: Oracle ERP Cloud, Oracle NetSuite, Oracle JD Edwards EnterpriseOne
Target Industries: Various, including financial services, healthcare, manufacturing, and retail
Microsoft
Headquarters: Redmond, Washington, USA
Founded: 1975
Key Products: Microsoft Dynamics 365 Finance and Operations, Microsoft Dynamics GP
Target Industries: Various, including manufacturing, retail, professional services, and public sector
IFS
Headquarters: Linköping, Sweden
Founded: 1983
Key Products: IFS Applications, IFS Cloud
Target Industries: Manufacturing, service industries, energy and utilities, and construction
Infor
Headquarters: New York City, New York, USA
Founded: 2002
Key Products: Infor CloudSuite, Infor M3, Infor LN
Target Industries: Various, including manufacturing, distribution, healthcare, and hospitality
Workday
Headquarters: Pleasanton, California, USA
Founded: 2005
Key Products: Workday Financial Management, Workday Human Capital Management, Workday Adaptive Planning
Target Industries: Various, including financial services, healthcare, higher education, and government
Sage Intacct
Headquarters: San Jose, California, USA
Founded: 1999 (acquired by Sage in 2017)
Key Products: Sage Intacct
Target Industries: Various, including professional services, financial services, nonprofit, and wholesale distribution
Epicor
Headquarters: Austin, Texas, USA
Founded: 1972
Key Products: Epicor ERP, Epicor Prophet 21, Epicor Eagle
Target Industries: Manufacturing, distribution, retail, and services
Acumatica
Headquarters: Bellevue, Washington, USA
Founded: 2008
Key Products: Acumatica Cloud ERP
Target Industries: Various, including distribution, manufacturing, construction, and professional services
Unit4
Headquarters: Utrecht, Netherlands
Founded: 1980
Key Products: Unit4 ERP, Unit4 Financials, Unit4 PSA Suite
Target Industries: Professional services, public sector, nonprofit, and higher education
QAD
Headquarters: Santa Barbara, California, USA
Founded: 1979
Key Products: QAD Adaptive ERP, QAD Adaptive Applications
Target Industries: Manufacturing, particularly automotive and life sciences
FinancialForce
Headquarters: San Francisco, California, USA
Founded: 2009
Key Products: FinancialForce Financial Management, FinancialForce Professional Services Automation (PSA)
Target Industries: Professional services, software and technology, and business services
SYSPRO
Headquarters: Costa Mesa, California, USA
Founded: 1978
Key Products: SYSPRO ERP
Target Industries: Manufacturing and distribution
Deltek
Headquarters: Herndon, Virginia, USA
Founded: 1983
Key Products: Deltek Costpoint, Deltek Vision, Deltek Vantagepoint
Target Industries: Government contracting, professional services, and architecture and engineering
NetSuite (Oracle)
Headquarters: San Mateo, California, USA
Founded: 1998 (acquired by Oracle in 2016)
Key Products: Oracle NetSuite
Target Industries: Various, including wholesale distribution, manufacturing, retail, and professional services
IQMS
Headquarters: Paso Robles, California, USA
Founded: 1989
Key Products: IQMS ERP
Target Industries: Manufacturing, particularly plastics and medical devices
Plex Systems
Headquarters: Troy, Michigan, USA
Founded: 1995
Key Products: Plex Manufacturing Cloud
Target Industries: Manufacturing, particularly automotive, aerospace and defense, food and beverage, and industrial machinery
VAI
Headquarters: Ronkonkoma, New York, USA
Founded: 1978
Key Products: S2K Enterprise
Target Industries: Manufacturing, distribution, retail, and service industries