The Russian market for ERP systems decreased, but prepared for growth

According to preliminary estimates by TAdviser, the volume of the Russian ERP systems market in terms of license sales and vendor support in 2023 amounted to 48.5 billion rubles, slightly reduced compared to 2022. Such results were influenced by the final withdrawal from the market and the cessation of sales of ERP solutions by foreign developers, primarily SAP, which was not so long ago the leader in the field of ERP in Russia. The market did not grow, even despite a significant increase in sales of 1C ERP systems. As analysts at TAdviser expect, the market drawdown that occurred in 2022 and 2023 may be partially leveled at the end of 2024. As a result, the volume of the Russian ERP systems market (in terms of licenses and support) will be able to approach 63 billion rubles. More...

Largest suppliers ERP systems

The rating of Russian IT companies by revenue from the implementation of ERP projects in 2022 gathered 36 participants. Most of the companies belong to integrators of ERP systems. The rating does not contain such large Russian vendors as 1C and Galactica, since they did not provide TAdviser with data on the results of their activities in the ERP direction for the study period. The leader of the new rating was the 1C-Rarus company. Its revenue in the ERP direction increased by 11.9% and reached 4.3 billion rubles. TerraLink has the second line. Its revenue from the implementation of ERP projects approached 4.2 billion rubles, the dynamics amounted to + 158.4%. The leader of the previous rating Borlas Group at the end of 2022 took 3rd position, reducing ERP revenue by a third.

As trends that are gradually gaining momentum and will actively influence the market in the future, market participants highlight Big Data, artificial intelligence, robotization of processes, analytics systems, the first attempts to use language models in the business software segment. Already, technologies for recognizing and automatically processing primary documents can significantly reduce labor costs when working in ERP. The trend of finding new niches of the use of artificial intelligence both in everyday tasks and in business analytics will continue in the near future. This is a logical development of the domestic automation market, which over the past 20 years has been systematically moving towards solutions for forecasting and business management. Read more about what technological trends in the development of domestic ERP systems are relevant now and will be relevant in the near future here.

Many Russian companies continue to work on foreign ERP solutions, since they previously made significant investments in implementation and in the next few years it is more profitable for them to stay on them than to migrate to Russian ERP systems. Investing in the purchase of licenses, for example, on parallel imports, is risky. Therefore, ERP systems based on foreign software are "frozen" in development. Nevertheless, the number of those companies that have already launched the transition process is also growing. But they do it very carefully, testing hypotheses and conducting pilot projects. Read more about the features of ERP import substitution and the difficulties of migration to Russian solutions here.

Over the past 3 years, according to the TAdviser database, ERP systems have most often been implemented in mechanical engineering, trade and food industry companies. For 2021-2023, TAdviser collected information on more than 400 projects for the implementation of such systems. In total, during the observation period since 2005, the publication systematized information about more than 10,000 such projects.