In 2025, ERP adoption is at an all-time high, with market spending reaching $147.7 billion and 70% of large enterprises relying on ERP. Why the surge?
After decades of lagging modernization cycles and long, drawn-out transformation initiatives, enterprise supply chain leaders are now facing an urgent need to solve (or optimize. or stab) their tech stack. The challenges of a rapidly evolving global supply chain demand real-time solutions, and modern ERP systems are at the center of that transformation.
Speaking at the North American Supply Chain Executive Summit last year, Dave Clark, former CEO of Amazon Consumer, noted, “The last 20 years were fun in transforming supply chains to the consumer world. But… the next 20 will be ‘bananas’ in terms of transformation of supply chains.”
The speed of technological innovation is making it increasingly difficult for ERP leaders to keep up. New tools, automation capabilities, and AI-driven optimizations emerge daily, often outpacing companies’ ability to integrate them effectively. The challenge isn’t just acquiring new technology—it’s about making existing systems work smarter.
So, as childhood cartoons once taught us, knowing is half the battle. In this article, we’re diving into the major ERP trends shaping 2025—providing insights to help you navigate your ERP planning in an era of transformation. Now, to be completely transparent, we know these trends are fairly common knowledge. But it’s always good to refresh from time to time -- stay tuned for deeper dives into these trends in future articles.
There’s no way to discuss ERP trends without acknowledging AI’s transformative impact. As highlighted in our recent insights on Agentic AI, today’s near-exponential advancement in AI models goes beyond simple tasks, instead orchestrating complex workflows and decision-making processes with minimal human intervention. This shift is evident in the widespread adoption of AI-powered ERP solutions, with 85% of ERP vendors incorporating AI-powered features to enhance data visibility, optimize supply chains, and eliminate repetitive tasks.
For businesses, AI-driven ERP capabilities improve data visibility and efficiency across procurement, supply chain tracking, and exception management. Even simple automation, like eliminating repetitive tasks such as invoice matching and order management, can unlock massive productivity gains.
For example, AI-powered ERP systems can analyze historical purchasing data to optimize supply chain decisions, ensuring businesses order the right amount of inventory at the right time—reducing waste and improving cost efficiency.
However, technology isn’t the only factor at play. The human side of AI adoption matters arguably more than the machines interpreting their commands. Employees who have spent years manually managing ERP processes may resist change, fearing job displacement. Effective organizational change management is critical—leaders must emphasize how AI removes tedious tasks, allowing employees to focus on higher-value work, instead of wondering who (or what) is replacing them.
ERP is becoming more accessible thanks to the rise of low-code automation. Instead of requiring deep coding expertise, low-code platforms allow users to build workflows through drag-and-drop and WYSIWYG interfaces, empowering a new wave of “citizen developers.”
In ServiceNow, for instance, the App Engine product suite enables non-technical teams to automate business processes—from HR onboarding to supply chain optimizations—without needing IT support. While citizen developer programs have been around for years, 2025 marks a turning point where businesses are ready to roll out low-code development at scale.
Expect to see an increase in low-code ERP adoption as companies prioritize agility and reduce dependency on long IT development cycles. The ability to deploy solutions without waiting years for IT teams to implement critical patches will be a game-changer.
A “cloud-first” approach is becoming the ERP standard—even in highly regulated industries. Historically, ERP has been slow to move to the cloud due to concerns over security, legacy infrastructure, and resistance from IT teams accustomed to on-premise systems. However, as businesses demand real-time data access and improved scalability, cloud adoption is accelerating.
Today, 64% of companies use Software as a Service (SaaS) ERP solutions, shifting away from hybrid models. One of the biggest advantages? Data at the speed of business.
Cloud-based ERP enables real-time analytics, eliminating the need to sift through disorganized datasets. This is critical for businesses managing complex, global supply chains that must pivot hourly due to shifting regulations, tariffs, and market demands. With cloud ERP, companies can proactively handle supply chain disruptions rather than reacting after the fact.
With AI-driven automation and cloud adoption on the rise, cybersecurity is no longer an afterthought—it’s a top priority. While companies are investing millions in ERP upgrades, many still fail to implement adequate cybersecurity measures, leaving them vulnerable to attacks.
In 2024, more than 17,000 ERP systems were targeted by cybercriminals, exposing critical business data. The interconnected nature of ERP makes these systems prime targets.
Adding to the urgency, the SEC now mandates stricter cybersecurity disclosures, forcing enterprises to address risks at the board level. This shift is reshaping conversations around supply chain security and ERP risk management.
To safeguard ERP systems, businesses must integrate robust security protocols, including:
A well-secured ERP isn’t just a technology investment—it’s a fundamental business necessity. Without proper cybersecurity, companies risk catastrophic downtime and financial loss.
Supply chains shape the destiny of most businesses. Companies that implement industry-specific ERP solutions see higher success rates, according to Deloitte and ServiceNow’s “Workflow Automation Outlook.”
Manufacturing leads the way, accounting for 47% of all ERP usage. The sector’s complex operations—spanning procurement, logistics, production, and sales—require centralized management. ERP consolidates these functions under a single dashboard, enabling real-time decision-making for everyone from plant workers to executives.
But it’s not just manufacturing. Healthcare ERP adoption is projected to grow by 12% this year, demonstrating that tailored ERP solutions drive efficiency across industries. The lesson? Businesses that align ERP capabilities with their unique operational needs gain a competitive edge.
The solution isn’t to keep piling on disconnected tools just to “stay current.” Instead, businesses should focus on unlocking the hidden value within their existing ERP systems.
By leveraging AI, low-code automation, cloud capabilities, and cybersecurity best practices, companies can transform their ERP platforms into powerful enablers of agility and growth. The technology itself isn’t new—but using it effectively is what will set businesses apart in 2025 and beyond.