Industrial ERP: IFS Posts 23% Growth in 2025 and Outperforms the Market Thanks to AI

Founded in 1983 in Sweden, IFS continues to demonstrate the strength of its business model. Driven by a massive shift toward the subscription model (SaaS) and a constantly expanding global customer base, the industrial software provider has established itself as a key player in the real economy.

IFS’s performance in 2025 reflects a profound structural transformation of the enterprise software market. Asset-intensive multinationals (in the energy, construction, and aerospace sectors) and service-oriented industries no longer question whether artificial intelligence is just a gimmick. They now demand solutions capable of generating immediate and measurable productivity gains in manufacturing, asset maintenance (Enterprise Asset Management —EAM),supply chain management, andfield service management (FSM). To meet this challenge, they are turning to this Scandinavian leader, now valued at 15 billion euros and operating in 90 countries.

Top-Notch Financial Metrics and a Rapid Rise in Cloud Computing

In 2025, IFS reported particularly strong financial results that validate its unified platform strategy:

• Annual Recurring Revenue (ARR): Up 23%. This growth reflects the loyalty of existing customers and strong acquisition of major new accounts. For the software company, this ensures a highly predictable revenue base that is decoupled from macroeconomic conditions.
• Cloud Revenue: It has seen spectacular growth of 30%. The cloud is no longer just an option for industrial giants, but the essential foundation for connecting factories, warehouses, and field maintenance teams.
• EBITDA Growth and New Customers: This strong commercial performance is accompanied by improved operating margins (EBITDA), driven by the signing of significant multi-year contracts with global leaders in manufacturing and infrastructure.

Comparative Analysis: IFS Pulls Ahead of Industry Giants

The European and global market for industrial enterprise resource planning (ERP) software is rapidly shifting toward more agile cloud architectures. In this landscape, IFS’s growth rate is twice that of its direct competitors in its specialty segments, as confirmed by data from the Gartner report *Market Share Analysis: ERP Software, Worldwide, 2024* (published in June 2025).

Compared to the approaches taken by other major publishers, the dynamics are as follows:

• IFS (+23% in revenue / +30% in cloud revenue): The group is widening its lead thanks to its deep specialization in heavy industry and field service management. AI is natively integrated to optimize operational workflows in real time.
• SAP (Cloud growth between 18% and 20%): Although the German giant is making progress, its growth momentum is harder to sustain due to the complexity of transitioning its massive base of legacy customers to S/4HANA Cloud.
• Oracle (cloud application growth between 12% and 15%): Focused primarily on its global cloud infrastructure and financial ERP systems, Oracle is posting more moderate growth in the purely industrial segment.
• Infor (stable to moderate growth): Despite strong industry specialization, this company lacks the financial resources to carry out large-scale technology acquisitions capable of competing with the IFS platform.

The Industrial Software Market in Europe: Focus on Resilience

In Europe, the industrial technology market is driven by three major economic factors: the need to secure production chains in the face of geopolitical tensions, the shortage of skilled labor, and decarbonization requirements. CFOs in the industry no longer purchase software simply to record accounting entries, but to optimize the use of each machine and extend the lifespan of their infrastructure through predictive maintenance.

To meet this demand for performance, IFS rolled out a highly targeted technology acquisition strategy in 2025 to enhance its platform:

• TheLoops (United States): A specialist in autonomous AI assistants capable of resolving complex technical issues in industrial environments. Initial deployments have shown a tenfold increase in support team productivity.
• 7Bridges (United Kingdom): A London-based startup whose artificial intelligence optimizes logistics flows in real time, enabling companies to drastically reduce their transportation costs and carbon footprint.
• Softeon (United States): An expert in warehouse managementsystems (WMS) and robotics, essential for streamlining interactions between human operators and automated systems.

“Companies choose IFS because our technology is designed from the ground up to address industrial complexity and deliver results at scale. As they see the return on investment, they accelerate their deployments and strengthen their commitment. The gap with our competitors is widening as we enter 2026,” says Mark Moffat, CEO of IFS.