Cloud ERP Market size was estimated at USD 36.5 billion in 2021 and is projected to reach USD 117.2 billion in 2029, expanding at a CAGR of 15.7% over the forecast period 2022-2029 attributed to rise in the number of small and medium sized companies around the world.
Key Cloud ERP Market Trends and Drivers
Major factors driving the cloud ERP market are growing focus of companies to improve their workflow efficiency, increasing adoption of enterprise resource software and rising demand for mobility solutions like remote assistance and Artificial Intelligence (AI). Companies operating in different sectors are increasingly adopting cloud ERP solutions as it eliminates the requirement to invest in hardware, helps in reducing operating costs, improve security, facilitates real-time analytics and offers 24*7 service support. Since, cloud ERP systems works on subscription basis, companies need to pay fixed amount monthly and can spend funds in other business activities, which is one of the major factors boosting its adoption amongst enterprises.
Post-covid various companies around the world are increasingly adopting work from home (WFH) models to reduce their operational costs, which will shift majority of the workloads to cloud environment. This will increase the demand for cloud ERP, as cloud ERP systems can easily provide remote access to business data and applications. Moreover, governments across different countries are collaboration with different companies to support digital transformation in different industry verticals. For instance, SAP, a leading software company based out of Germany collaborated with Ministry of Micro Medium and Small Enterprises (MSME) of India to develop Bharat ERP program to increase digital empowerment in India with cloud-based ERP solution. However, limited option of customization for software-as-a service (SaaS) ERP solutions coupled with growing security concerns, are restricting the cloud ERP market growth.
Business Function: Segment Analysis
Cloud ERP solutions are widely used finance and accounting division to analyse information such as ledgers, sub ledgers, transaction volumes and providing automatic billing. Some of the most commonly used cloud ERP systems includes SAP ERP, Xero and Oracle Financials ERP cloud.
According to cloud ERP market analysis, Small and Medium Enterprises segment is projected to expand at a faster CAGR.
Small and medium sized companies worldwide are increasingly adopting cloud management systems as it offers increases scalability, productivity and flexibility.
Based on Industry Vertical, BSFI segment is estimated to expand at a fastest rate.
Integrated banking ERP software helps banks to predict with more accuracy and meet customer expectations. Cloud ERP software aids banks in making investigations, secure transactions and provides 24*7 database.
Based on Region, North American region is forecast to hold the largest cloud ERP market share.
North American cloud ERP market is driven by growing adoption of advanced solutions by organisations to manage different business processes and presence of major cloud erp vendors such as Microsoft Corporation, Oracle Corporation and Koch Industries.
Cloud ERP Market Leaders
Some of the major companies operating in the cloud ERP market are SAP SE, Koch Industries, Inc., Sage Group Plc, Epicor Software Corporation, Oracle Corporation, International Business Machines Corporation, Microsoft Corporation, Plex Systems, Ramco Systems Limited, and Acumatica, Inc. among others.
Key Developments
- In January 2023, RIPL in collaboration with ORGNN technologies Pvt Ltd., introduced FusionHub Cloud ERP software in India.
- In August 2022, SAP introduced S/4HANA Cloud, which is designed to help companies automate different business processes as per their convenience.
- In April 2020, Koch Industries announced that it has acquired Infor, a major enterprise software from Golden Gate Capital. This acquisition will help company to boost digital transformation, while providing Koch necessary resources so it can continue growing its expertise in software for different industries like manufacturing and retail.
Market Segmentation
Segmentation by Business Function Type
o Finance and Accounting
o Sales and Marketing
o Inventory Management
o Others
Segmentation by Organization Size
o Small and Medium Enterprises
o Large Enterprises
Segmentation by Industry Vertical
o BFSI
o Telecom
o Healthcare and Life Sciences
o Manufacturing
o Government and Public Sector
o Aerospace and Defence
o Retail
o Education
o Others
Segmentation by Region
• Asia Pacific
o China
o Japan
o India
o Rest of APAC
• North America
o United States of America
o Canada
• Europe
o United Kingdom
o Germany
o France
o Spain
o Rest of Europe
• RoW
o Brazil
o South Africa
o Saudi Arabia
o UAE
About GMI Research
GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and business decisions.
Our Related Reports:
Contact Information:
Media Contact Company Name: GMI RESEARCH Contact Person: Sarah Nash Email: [email protected] Phone: Europe – +353 1 442 8820; US – +1 860 881 2270 Address: Dublin, Ireland Website: https://www.gmiresearch.com/
Tags:
Reportedtimes, Extended Distribution, iCN Internal Distribution, Wire, Research Newswire, English