Already more than half of the Russian market for ERP systems is occupied by domestic systems. What changes have occurred in their development in recent years, how much the dynamics of market growth has changed and what is hindering the import substitution of Western platforms - in our new review.

In 2024, the Russian market for ERP systems continued to live according to the "stability and economy" scenario. For business, the key task was to optimize resources. Companies reduced investment programs, carefully prioritizing digitalization. This formed a conservative context: startups, breakthrough business models appeared less and less.

According to experts, the market was in the phase of stabilization, optimization and grouping of available resources - this trend is pronounced among most large companies.

The main emphasis is on strengthening the position of domestic products, optimizing their use and developing already implemented systems. Companies developing ERP solutions will be able to succeed in a competitive environment if they carefully listen to the needs and wishes of their customers.

For the development of Russian ERP systems, vendors today have all the possibilities - accumulated expertise and implementation practice, consortia that help develop the best products. In addition, the business is interested in migrating to domestic platforms, as it is faced with the obsolescence of Western software, the risk of critical errors and the lack of technical support.

Import substitution is still the key driver of growth in the Russian ERP market. Despite funding difficulties, migration projects remain a priority and receive the necessary budgets. This also applies to enterprises of critical information infrastructure.

Vendors are trying not only to improve the functionality of their systems for end users, but also work to ensure seamless integration with application solutions of other classes. The creation of an automated workplace with a single convenient user shell contributes to the formation of an ecosystem that will provide users with the necessary level of convenience and transparency in their work.

Many companies have begun to look towards cloud versions of ERP systems. Their benefits include easy scalability, lower costs for your own IT infrastructure, and uninterrupted data access.

In addition, ERP systems continue to develop in the direction of processing large amounts of data, automating processes, improving analytics and forecasting using artificial intelligence and machine learning.

The developers pay great attention to strengthening data protection and increasing system security with an eye to comprehensive protection against cyber attacks, preventing hacking of confidential information, improving security settings for client-server information databases.

A large number of Russian companies continue to use foreign ERP systems in one volume or another. At the same time, they face risks such as the impossibility or high difficulty of buying new licenses, technical support difficulties, cyber attacks and data leaks, especially if ERP systems do not meet Russian security standards and are not updated.

In addition, there are legal risks associated with hosting abroad. And, for example, when changing the ownership structure, it is impossible to transfer the rights to use the ERP solution to companies included in the holding circuit. It will not be possible to deploy ERP in new enterprises. Finally, companies are at risk of facing direct locks from the software vendor.

There is also an increase in reliance on internal resources and integrator teams that can support platforms. Many experts on foreign ERP systems are starting to look for new areas for their own competencies.

One of the main problems of switching to domestic ERP systems is the inconsistency of the logic of various programs. Each of them has its own architecture, and the data must be adapted to a specific solution. Thus, a significant part of the work is to transfer existing information and preserve it.

Over the past 3 years, according to the TAdviser database, ERP systems have most often been implemented in mechanical engineering, medicine, construction and food industry companies. For 2022-2024, TAdviser collected information on more than 320 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.

In 2024, costs in the global open source enterprise resource planning (ERP) systems market reached $40.43 billion. This is 5% more compared to 2023, when expenses in this area were estimated at $38.46 billion. Industry data is provided in the Market Research Future review published at the end of January 2025.

One of the main drivers of the market in question is the increasing demand for operational efficiency solutions among organizations of all sizes. Open ERP systems offer the necessary set of tools that allow companies to optimize their infrastructures to solve specific business problems. This excludes license fees and other costs associated with the implementation of proprietary software. Interest in open products is high among small and medium-sized enterprises that are looking for affordable solutions amid the ongoing digital transformation.

• ERP (TAdviser definition)
• ERP Implementation Guidelines
• Cloud ERP systems
• ERP vs SRM: What to Choose for Purchasing Digitalization
• ERP in an era of change: How to transform an organization and not fail a business