China ERP Software Market by Component (Software, and Services), Deployment (On-Premise, Cloud, and Hybrid), Business Function (Enterprise Asset Management, Financial Management, Human Capital Management, and Others), Application (Manufacturing, BFSI, Hea
Description
The China ERP Software Market size was valued at USD 9.31 billion in 2024 and is projected to grow to USD 11.47 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 24.07 billion by 2030, with a CAGR of 15.97% from 2025 to 2030
China’s expanding aerospace and defence sector is significantly boosting ERP software adoption. In 2025, the country's defence budget reached USD 249 billion, reflecting a 7.2% annual increase and establishing China as the world’s second-largest defence spender. This rapid investment in military modernisation creates a strong demand for integrated ERP platforms that support real-time analytics, automation, resource optimisation, and secure data management. ERP solutions are critical to managing complex supply chains and ensuring transparency, compliance, and operational efficiency across defence operations.
Despite the growth in ERP adoption, China faces notable restraints. Uneven regional digital infrastructure creates implementation challenges, especially in less-developed areas. Many SMEs are deterred by the high upfront costs and technical complexities associated with ERP deployment, and prefer to prioritise lean operations. Furthermore, conservative business cultures and a shortage of ERP-skilled professionals continue to slow digital transformation, particularly in manufacturing, logistics, and legacy industries. These barriers hinder widespread ERP integration, limiting its potential impact on operational advancement.
On the other hand, the integration of Internet of Things (IoT) technology with ERP systems is rapidly becoming a major driver of growth, providing real-time data visibility and enhanced operational control. IoT-enabled ERP platforms allow businesses to track inventory, monitor equipment performance, and predict maintenance needs, significantly improving efficiency in sectors like manufacturing and logistics. In March 2025, Epicor Software Corporation introduced Epicor Kinetic 2025, a next-generation ERP solution featuring advanced IoT integration for real-time monitoring and predictive maintenance in manufacturing environments. This innovation demonstrates the transformative impact of IoT on ERP functionality and highlights the increasing demand for smart, connected enterprise solutions.
Segment Overview
The ERP software industry is segmented on the basis of component, deployment, business function, application, end users, and region.
By component, the market is divided into software and services.
By deployment, the market is divided into on-premises, cloud, and hybrid.
By business function, the market is divided into enterprise asset management, financial management system, human capital management, manufacturing and operations, supply chain management, and others.
By application, the market is segmented into manufacturing, BFSI, healthcare, retail and distribution, government, IT and telecom, construction, aerospace and defence, and other industries.
By end-users, the market is segmented into small and medium-sized enterprises and large enterprises.
Key Benefits
• The report provides quantitative analysis and estimations of the ERP software market from 2025 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the ERP software market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the ERP software market is provided in the report.
• The competitive analysis of the market players along with their market share in the ERP software market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.
China’s expanding aerospace and defence sector is significantly boosting ERP software adoption. In 2025, the country's defence budget reached USD 249 billion, reflecting a 7.2% annual increase and establishing China as the world’s second-largest defence spender. This rapid investment in military modernisation creates a strong demand for integrated ERP platforms that support real-time analytics, automation, resource optimisation, and secure data management. ERP solutions are critical to managing complex supply chains and ensuring transparency, compliance, and operational efficiency across defence operations.
Despite the growth in ERP adoption, China faces notable restraints. Uneven regional digital infrastructure creates implementation challenges, especially in less-developed areas. Many SMEs are deterred by the high upfront costs and technical complexities associated with ERP deployment, and prefer to prioritise lean operations. Furthermore, conservative business cultures and a shortage of ERP-skilled professionals continue to slow digital transformation, particularly in manufacturing, logistics, and legacy industries. These barriers hinder widespread ERP integration, limiting its potential impact on operational advancement.
On the other hand, the integration of Internet of Things (IoT) technology with ERP systems is rapidly becoming a major driver of growth, providing real-time data visibility and enhanced operational control. IoT-enabled ERP platforms allow businesses to track inventory, monitor equipment performance, and predict maintenance needs, significantly improving efficiency in sectors like manufacturing and logistics. In March 2025, Epicor Software Corporation introduced Epicor Kinetic 2025, a next-generation ERP solution featuring advanced IoT integration for real-time monitoring and predictive maintenance in manufacturing environments. This innovation demonstrates the transformative impact of IoT on ERP functionality and highlights the increasing demand for smart, connected enterprise solutions.
Segment Overview
The ERP software industry is segmented on the basis of component, deployment, business function, application, end users, and region.
By component, the market is divided into software and services.
By deployment, the market is divided into on-premises, cloud, and hybrid.
By business function, the market is divided into enterprise asset management, financial management system, human capital management, manufacturing and operations, supply chain management, and others.
By application, the market is segmented into manufacturing, BFSI, healthcare, retail and distribution, government, IT and telecom, construction, aerospace and defence, and other industries.
By end-users, the market is segmented into small and medium-sized enterprises and large enterprises.
Key Benefits
• The report provides quantitative analysis and estimations of the ERP software market from 2025 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the ERP software market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the ERP software market is provided in the report.
• The competitive analysis of the market players along with their market share in the ERP software market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.
Table of Contents
- 1. Introduction
- 1.1 Report Description
- 1.2 Research Methodology
- 1.2.1 Secondary Research
- 1.2.2 Data Analysis Framework
- 1.2.3 Market Size Estimation
- 1.2.4 Forecasting
- 1.2.5 Primary Research And Data Validation
- 2. China Erp Software Market By Component
- 2.1 Overview
- 2.2 Software Market
- 2.3 Service Market
- 3. China Erp Software Market By Deployment
- 3.1 Overview
- 3.2 On Premise Market
- 3.3 Cloud Market
- 3.4 Hybrid Market
- 4. China Erp Software Market By Business Function
- 4.1 Overview
- 4.2 Enterprise Asset Management (Eam) Market
- 4.2.1 Record Assets (Asset Mgmt)
- 4.2.2 Analytics And Bi
- 4.2.3 Disposal Of Assets
- 4.2.4 Others
- 4.3 Financial Management System Market
- 4.3.1 Core Financials
- 4.3.2 Corporate Performance Mgmt (Cpm)
- 4.3.3 Financial Consolidation
- 4.3.4 Others
- 4.4 Human Capital Management (Hcm) Market
- 4.4.1 Talent Management
- 4.4.2 Administrative Hr
- 4.4.3 Workforce Management
- 4.4.4 Others
- 4.5 Manufacturing And Operations Market
- 4.5.1 Production Planning And Scheduling Products
- 4.5.2 Production Ops And Control Products
- 4.5.3 Manufacturing Information Mgmt Products
- 4.5.4 Others
- 4.6 Supply Chain Management (Scm) Market
- 4.6.1 Inventory Management
- 4.6.2 Warehouse Management
- 4.6.3 Transportation Management
- 4.6.4 Procurement
- 4.6.5 Contract Management
- 4.7 Others Market
- 5. China Erp Software Market By Application
- 5.1 Overview
- 5.2 Manufacturing Market
- 5.3 Bfsi Market
- 5.4 Healthcare Market
- 5.5 Retail And Distribution Market
- 5.6 Government Market
- 5.7 It And Telecom Market
- 5.8 Construction Market
- 5.9 Aerospace And Defense Market
- 5.10 Other Industries Market
- 6. China Erp Software Market By End User
- 6.1 Overview
- 6.2 Small And Medium Sized Enterprise Market
- 6.3 Large Enterprise Market
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