Australia Enterprise Resource Planning Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2025-2034)

Australia Enterprise Resource Planning Market Trends

The growth of the Australia enterprise resource planning market is driven by the automation of processes, which enhances operational efficiency by reducing manual tasks. ERP systems centralise data management, providing real-time access across departments, which improves decision-making. Automation reduces costs, promotes collaboration, and strengthens data management, improving communication and overall business performance. In February 2025, DyFlex Solutions, Australia’s leading independent SAP Platinum Partner, entered a strategic partnership with Five V Capital to accelerate growth and innovation. This partnership aimed to bolster DyFlex’s SAP presence and expand its reach across Australia, New Zealand, and Southeast Asia, enhancing its capability to deliver advanced cloud-based solutions.

The Australia enterprise resource planning market revenue is impacted as systems enable real-time data access, which helps businesses make faster decisions in rapidly changing industries. They ensure compliance with Australian financial regulations and scale with business growth. ERP also improves customer service by streamlining order management and simplifying financial tasks like cash flow management and reporting, ultimately improving financial precision and accountability.

Australia Enterprise Resource Planning Market Growth

The Australia enterprise resource planning market enhances supply chain operations by improving inventory management and vendor relationships. It helps businesses optimise stock control, reducing supply issues. ERP supports effective project management by tracking budgets and deadlines, while predictive analytics aid in demand forecasting, production planning, and resource allocation. HR functions, such as payroll, are also streamlined. In January 2025, SAP Australia secured a USD 51.8 million contract with the New South Wales government’s Department of Customer Service to migrate various platforms to the cloud. This contract, which runs until May 2030, includes ERP software, RISE finance, HR, and payroll functions, continuing a large-scale SAP ERP consolidation.

Mobile access to ERP systems offers flexibility, supporting remote work influencing the Australia enterprise resource planning market dynamics and trends. Enhanced security features, such as access controls and audit trails, protect sensitive data. ERP centralises supplier data, improving vendor management and streamlining production and supply chains, accelerating time-to-market. It also integrates seamlessly with other business systems to improve overall workflow.

Australia Enterprise Resource Planning Market Insights

• According to the Australian Bureau of Statistics, non-residential building values reached USD 4.92 billion in January 2024. This growth presents a significant opportunity for ERP systems to streamline construction project management, optimise scheduling, and ensure resource allocation, driving efficiency and cost control in the sector.
• The World Bank reported that Australia’s internet adoption reached 96% in 2023. This high level of internet penetration drives the demand for cloud-based ERP systems, enabling businesses to access real-time data, collaborate remotely, and improve decision-making, thereby enhancing overall operational efficiency across industries.
• The industry reports noted a USD 176.6 billion (3.9%) increase in the managed funds industry by the December 2023 quarter. ERP systems can support this sector by improving financial management, streamlining compliance, and offering powerful tools for reporting and forecasting, helping businesses manage funds effectively and optimise performance.

Industry News

January 2025

Swiss digital engineering firm Akkodis acquired Sydney-based Barhead Solutions, a Microsoft business applications specialist. This acquisition enhances Akkodis’ consulting services and IT offerings in Australia. Barhead’s expertise in CRM, ERP, AI, and low-code solutions complements Akkodis’ capabilities in digital transformation, cloud, and data services, expanding their Microsoft partnership.

November 2023

Xero reported a 76% increase in net profit, reaching USD 95 million, driven by growth in its Australian customer base. This reflects the growing demand for cloud-based ERP solutions. Despite Xero’s success, competitor MYOB also saw increased subscribers, highlighting intense competition and sustained growth in Australia’s ERP market.

Australia Enterprise Resource Planning Market Drivers

Integration with Third-Party Applications

The demand for the Australia enterprise resource planning market is rising as businesses face increasing operational complexity. Companies are now seeking ERP solutions that integrate smoothly with third-party tools like CRM, SCM, and e-commerce platforms. This integration creates a unified system, enhancing real-time data flow, operational efficiency, and customer experiences. In April 2024, the Australian Federal Police (AFP) decided to replace its ageing SAP ECC 6.0 ERP system by 2027. They began a year-long discovery phase to assess their automation, modernisation, and integration needs for transitioning to SAP S/4HANA, engaging external experts to support the upgrade.

Cybersecurity and Data Protection

The growth of the Australia enterprise resource planning market is being driven by the increasing need for enhanced cybersecurity as businesses face growing threats to their digital infrastructure. ERP vendors are focusing on robust security features, including encryption, multi-factor authentication, and secure cloud hosting. In August 2023, CSIRO revealed plans to replace its two core enterprise systems by 2027, including its outdated SAP ERP system and an in-house research management platform. The update will involve upgrading to SAP S/4HANA and selecting a new platform for business pipeline management.

Opportunities in the Australia Enterprise Resource Planning Market

The growing remote work in Australia has increased businesses' reliance is a key trend in the Australia enterprise resource planning market to manage distributed teams. These systems offer centralized access to data, tasks, and workflows, ensuring productivity regardless of location. Features like cloud access, mobile apps, and real-time communication tools support efficient collaboration. In April 2021, IBM Australia secured a USD 128 million contract for the Department of Defence's ERP overhaul, following a USD 95 million design phase deal. The project, worth USD 1 billion over eight years, will replace more than 500 applications.

Market Restraints

The Australia enterprise resource planning market offer numerous benefits but also present challenges that may hinder adoption. These include high initial costs, especially for SMEs, and the complexity of implementation, which can be time-consuming and costly. Employees may resist change, further slowing adoption. Data migration from legacy systems is difficult, and ongoing maintenance and updates can add to costs. Integration with existing systems and the shortage of skilled talent make the implementation process even more challenging.

Customisation limitations can lead to mismatched functionality for some businesses. Additionally, data security and privacy concerns, along with the risk of vendor lock-in, pose further barriers. Overcoming these requires careful planning and investment.

Australia Enterprise Resource Planning Market Share

Market Analysis by Deployment Type

According to the Australia enterprise resource planning market analysis, SaaS and cloud-based ERP solutions dominate the market, providing businesses with scalability, flexibility, and cost-effectiveness. They remove the need for on-premise infrastructure and maintenance, offering automatic updates, stronger security, and remote access. These systems enable real-time data access, enhance collaboration, and assist businesses in adopting new technologies, helping them remain competitive in the digital age. In Q2 2025, SAP will introduce the "SAP ERP, private edition, transition option," a cloud subscription service to aid large customers in migrating from SAP ERP to cloud ERP. This service supports complex IT environments, providing flexibility for migration, business continuity, and extended support until 2033. It is intended for those requiring additional time post-2030 for their transformation journey.

The growth of the Australia enterprise resource planning market is driven by on-premise ERP solutions, which offer businesses more control over data and systems, ensuring custom configurations suited to their specific needs. These solutions provide stronger security and compliance, especially for industries with strict regulations. On-premise systems also facilitate deeper integration with legacy systems, ensuring stability and performance without relying on external internet access or third-party hosting. TechnologyOne launched its 'Solution as a Service' (SaaS+) in October 2022 to reduce consulting costs and streamline ERP implementations. This comprehensive offering eliminates upfront fees, guarantees outcomes, and aims to cut implementation time to as little as 30 days by 2025. SaaS+ seeks to replace costly third-party consulting models, enabling faster and more cost-effective digital transformation.

Market Analysis by Industry Vertical

According to the Australia enterprise resource planning market report, ERP solutions in the BFSI sector enhance financial management, improve regulatory compliance, and strengthen risk management. They enable real-time reporting, automate transactions, and integrate with financial systems, driving operational efficiency and meeting the growing demands of the Australian financial industry. As reported by the Australian Prudential Regulation Authority, the general insurance sector recorded a net profit after tax of USD 4.6 billion and a return on net assets of 14.2% for the year ending 30 June 2023.

In the manufacturing sector, ERP systems streamline production, inventory management, and supply chain operations. They improve resource utilisation, reduce costs, ensure real-time data visibility, and aid quality control. By facilitating seamless integration across departments, ERP systems enhance efficiency and the ability to respond swiftly to market changes.

The development in the Australia enterprise resource planning market is growing as ERP systems in healthcare boost operational efficiency by automating processes such as patient scheduling, billing, and inventory management. They provide real-time access to critical patient data, ensure regulatory compliance, and optimise resource management, thus helping healthcare providers enhance patient care, reduce costs, and deliver services in a timely manner.

ERP solutions in government and utilities enhance service delivery, financial management, and resource allocation. They assist with managing large-scale projects, ensuring compliance, and supporting transparency and accountability. These systems simplify budget management and improve citizen services, as evidenced by a report from the Australian Banking Association, which shows that 95% of Australian banks supported the mutual funds market in 2023.

In retail and distribution, ERP systems optimise inventory management, order processing, and customer relationship management. They improve demand forecasting, reduce stockouts, and optimise supply chains. With real-time data on sales and customer trends, ERP helps retailers enhance customer service and boost profitability in a competitive market.

As per the Australia enterprise resource planning market growth, the aerospace and defence sectors, ERP systems manage complex supply chains, production schedules, and regulatory compliance. They streamline project management, improve operational visibility, and foster collaboration between teams. These systems also aid in maintaining quality control, tracking materials and parts, and managing government contracts effectively.

In construction, ERP systems assist with managing project timelines, budgets, and resources. They enhance cost control, optimise procurement, and track progress across sites. By providing real-time data and visibility, ERP solutions help construction companies deliver projects on time and within budget, while improving decision-making and collaboration. According to the Australian Bureau of Statistics, 44,853 dwellings were completed in the June quarter of 2024, with a notable 11.4% increase in new private houses.

The demand for the Australia enterprise resource planning market is boosted as ERP systems in IT and telecom enhance service delivery, streamline project management, and improve customer relationship management. They support large-scale infrastructure management, optimise resource allocation, and track service-level agreements (SLAs). These solutions boost operational efficiency, scalability, and cost-effectiveness in a highly competitive sector.

Australia Enterprise Resource Planning Market Regional Insights

New South Wales Enterprise Resource Planning Market Overview

As per the Australia enterprise resource planning industry analysis, the ERP market in New South Wales is experiencing steady growth, supported by the region's strong economy and ongoing digital transformation trends. Businesses are increasingly adopting cloud-based solutions to enhance efficiency, reduce costs, and meet regulatory requirements. A report by MTS, covering 6,307 doctors in training across NSW, offers valuable insights into the current medical workforce.

Queensland Enterprise Resource Planning Market Trends

In Queensland, ERP adoption is focused on industry-specific solutions, especially within agriculture, mining, and manufacturing. The rising demand for real-time data analytics, mobile accessibility, and integration with IoT systems is shaping ERP trends in the region. In Q1 2024, Queensland saw a 3.5% increase in detached house construction, according to the Housing Industry Association (HIA).

Western Australia Enterprise Resource Planning Market Dynamics

Western Australia's ERP market is driven by the mining and resources sector's need for scalable, robust solutions. ERP systems optimise supply chain management, project tracking, and financial operations, improving productivity and decision-making in this resource-heavy economy. In 2023, Western Australia recorded 44,093 dwellings for common enterprise resource planning, reflecting market adjustments, according to the Australian Bureau of Statistics (ABS).

Competitive Landscape

The Australia enterprise resource planning market key players empower businesses to optimise operations, improve efficiency, and foster innovation. These providers offer a broad range of software solutions, including cloud-based applications, data management, financial management, human resources, and supply chain management. The solutions are tailored to assist Australian businesses of all sizes in making data-driven decisions and driving digital transformation. With a robust local presence, these companies support various industries, delivering customised solutions to address the specific needs of the Australian market.

Key Industry Players

SAP Australia Pty Ltd.: Headquartered in Sydney, Australia, SAP Australia Pty Ltd. is a subsidiary of the global software company SAP SE, founded in 1972 in Germany. SAP provides enterprise resource planning (ERP) software, enabling businesses to streamline operations and enhance efficiency. It has been a leader in business management solutions for decades.

Oracle Corporation Australia Pty Limited: Established in 1989, Oracle Corporation Australia Pty Limited is the Australian branch of the global Oracle Corporation, headquartered in Austin, Texas. Oracle offers cloud solutions, database management, and ERP systems, catering to businesses looking to optimise data storage, security, and enterprise applications for enhanced operational efficiency.

Sage Business Solutions Pty Ltd.: Founded in 1981 and headquartered in Sydney, Sage Business Solutions Pty Ltd. is part of Sage Group plc, a UK-based enterprise. Sage provides cloud-based accounting, payroll, and ERP solutions for small and medium-sized businesses, aiming to simplify financial management and support growth with user-friendly software tools and services.

Microsoft PTY Limited: Microsoft Pty Limited, established in 1982 in Australia, is the Australian subsidiary of Microsoft Corporation, headquartered in Redmond, United States. Microsoft offers a broad range of software and cloud-based solutions, including enterprise resource planning (ERP) and productivity tools, aiming to transform business operations and enhance digital collaboration across industries.

Other key players in the Australia enterprise resource planning market report are Epicor Software (Aust) Pty Ltd, Workday, Inc., and Concur Technologies, Inc., among others.

Recent Developments

January 2025

The partnership between Rimini Street and ServiceNow provided a new approach for on-premises ERP users to access modern AI, automation, and visibility without the need for system migration. This hybrid model allowed businesses to innovate while maintaining stable, customised systems. It challenged the idea that digital transformation necessitated complete platform replaenterprise resource planning, offering cost-effective, low-risk solutions.

August 2023

In 2023, fast-growing businesses increasingly adopted cloud ERP to transform operations and seize global opportunities. Cloud ERP, accessible via the web, enabled businesses to automate processes and gain data-driven insights. Companies like Bailey achieved efficient, remote operations, with SAP’s embedded AI and automation driving innovation and streamlining tasks.