Cloud ERP Market Growth

The global cloud ERP market size was valued at USD 49.80 billion in 2023. The market is projected to be worth USD 57.17 billion in 2024 and reach USD 181.04 billion by 2032, exhibiting a CAGR of 15.5% during the forecast period.

Cloud ERP is an Enterprise Resource Planning (ERP) software that runs on a provider’s cloud platform. It works with a combination of technologies that are connected by high-speed internet networks.  It automates and integrates essential operational and financial business functions, including order & supply chain management, inventory, production, order & procurement, distribution, and fulfillment.

In the report, we have considered market players offering solutions, including Oracle Corporation, Infor, Microsoft Corporation, Acumatica, and others. This market is witnessing greater demand in small and mid-sized businesses. SMEs use such ERP to develop communication and collaboration across departments and enhance business processes by creating transparency. They can integrate both their customer and financial information into one system. For instance, in March 2023, SAP SE launched a cloud-based ERP offering for midsize companies to aid them in efficiently managing their business and tackling the challenges in unpredictable markets. The market also experienced growth post the COVID 19 pandemic owing to the remote work policies and digital shift in industries. Furthermore, the rise of trends, such as work-from-home, e-commerce, and online retail created profitable demand for such systems.

Moreover, the rapid inclusion of Machine Learning (ML) and Artificial Intelligence (AI) technologies in the development of these ERP solutions are observed as key trends contributing to the market growth.

Cloud ERP Market Trends

generative AI to transform Business Processes and deliver real – time Insights , drive Cloud ERP Market

Generative AI (GenAI) is transforming work dynamics and interactions by significantly enhancing efficiency and streamlining operations for enterprises. By seamlessly incorporating GenAI into cloud ERP frameworks, businesses stand to elevate their operational efficiency, redefine decision-making mechanisms, deploy predictive algorithms, and unlock ways for automation and data analysis. This transformative technology augments business agility across the organization to identify process efficiencies and deliver real-time insights. In addition, leveraging AI within cloud ERP solutions empowers organizations to optimize critical processes, while enabling continuous learning and adaptation for optimal performance.

For instance, in October 2023, Deloitte expanded the SAP Business Technology Platform (SAP BTP) to provide GenAI solutions to ERP clients. The company’s innovation of Clean Core + Edge depends on cloud application development and implementing AI capabilities to aid cloud ERP clients in delivering real business insights. Similarly, in February 2024, Kyndryl expanded its partnership with Google Cloud to accelerate the development of GenAI and Responsible AI. The partnership enabled Kyndryl to leverage the Google Cloud Cortex Framework to increase the value of ERP data on Google Cloud.

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Cloud ERP Market Growth Factors

Fusion of Analytics With Cloud ERP to facilitate Informed decision – make drive Market growth

Cloud ERP provides real-time insights into various aspects of the business, enabling quicker and more informed decision-making. This is essential for staying competitive in fast-paced industries. The rising need to implement advanced ERP solutions that contain advanced analytics features is observed across many industries as they can identify delays and disruptions. Moreover, AI and machine learning technologies are being integrated into these solutions to offer improved and advanced insights. In addition, they generate customized dashboards and reports, providing a complete view of Key Performance Indicators (KPIs). For instance,

• September 2023: Oracle Corporation introduced Accounting Hub Analytics within Oracle Fusion ERP Analytics to empower financial organizations to deliver insights into accounting data. The integration of Oracle ERP data with Accounting Hub sub-ledger application data forms a strong base for deep analysis.

Big data analytics provides valuable insights into the supply chain, including demand forecasting, inventory optimization, and supplier performance. Thus, above are some factors that drive the global market.

restrain factor

limited customization to create major drawback for enterprise require Tailored approach

Cloud – base ERP solutions is equip equip organization with great scalability and flexibility . However , it is challenging might be challenge for company seek substantial customization . It is provides provide few customization option compare to the on – premise model , which can be a major drawback for business that require a more tailor approach . Also , transfer large volume of datum from on – premise system to the cloud can be time – consume and complex . It is requires require extensive planning and execution without compromise on datum security . However , advancements is mitigate in technology and improvement in cloud service may mitigate some of these concern over time .

Cloud ERP Market Segmentation Analysis

By Deployment Analysis

Public Cloud Segment growth drive by grow popularity of SaaS Model in Cloud ERP Systems

Based on deployment, the market is segmented into public cloud, private cloud, and hybrid cloud. The public cloud segment holds the largest cloud ERP market share owing to its growing popularity among small and mid-sized businesses. This Software as a Service (SaaS) model ERP software is cost-effective and facilitates users with a pay-as-you-go model.

The hybrid cloud segment is anticipated to record the highest CAGR. Using such a model, companies can continue corporate functions on the existing on-premises ERP system, while adding cloud solutions to support some or all business units, such as CRM.

By function Analysis

Financial & Account Management Segment’s Growth Boosted by Growing Need for Automation of Financial Management Processes

Based on function, the market is classified into financial & account management, order & procurement management, human capital management, enterprises performance management, and others. The financial & account management segment holds the largest share in the market owing to its potential to recognize revenues & invoices, centralize client data, generate customer invoices, process customer payments, receive & process customer payments, track bankrupt customers, and manage customer balances, thus automating the whole process.

The order & procurement management segment is expected to record the fastest CAGR during the forecast period due to the increasing applications of such ERP in the fields of supply chain management, inventory management, and intelligent order management that leverage machine learning.

By Organization Type Analysis

Enterprises Segment Dominates as They Harness ERP for Centralized Business Operations

Based on organization type, the market is segmented into SMBs and enterprises. The enterprises segment holds the largest share of the market due to their affordability, capital funds, and technological infrastructure. Such ERP aids enterprises in maintaining a central database for all their business processes.

The SMBs segment is expected to register the highest CAGR owing to their rapid adoption of cloud technologies to improve business performance and enhance productivity. Also, key companies in the market are creating opportunities for SMEs to promote cloud adoption. For instance, in November 2023, SAP launched the SAP Hong Kong Cloud ERP Experience Center to aid midsize companies in revolutionizing operations through AI-based cloud ERP.

By Industry Analysis

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Manufacturing Segment Leads as It Leverages ERP for Process Optimization and Automation

Based on industry, the market is divided into distribution, manufacturing, construction, healthcare, e-commerce & retail, BFSI, IT & telecom, and others. The manufacturing segment holds the highest share of the market owing to the growing demand for transparent and modernized manufacturing processes. It facilitates process optimization by providing analytics in real time and aids in the automation of manufacturing processes.

The IT & telecom segment is estimated to display the highest CAGR due to its integration capability with other cloud-based solutions. This ERP can integrate with emerging technologies, such as Internet of Things (IoT), AI, Big Data, 5G, and others, enabling IT & telecom companies to stay competitive and innovative.

REGIONAL INSIGHTS

We have studied the market across North America, South America, Europe, Asia Pacific, and the Middle East & Africa.

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North America is holds hold the high global market share owe to the rapid use of cloud technology to improve the efficiency of business process . Companies is creating in the region are create lucrative opportunity for small and mid – sized business to promote cloud technology . For instance , in 2021 , Infor is launched launch a Three for free program for small merchant in North America . For a limited time , the company is provided provide sme with a subscription to Infor CloudSuite Distribution for three free user license . Also , the region is expect to see further growth with the expand use of such ERP in the healthcare sector .

Asia Pacific is expected to register the highest CAGR during the forecast period with the growing number of SMEs and startups in the region. Asia Pacific is gaining traction and attracting huge investments in cloud technologies. According to the Public Cloud Services Spending Guide, 2021, the annual spending on public cloud services is estimated to reach USD 116.06 billion in 2024. Moreover, the expanding IT & telecommunication industries are expected to bolster the market growth in the region. The cloud-based ERP offers a unified platform to manage various aspects of telecommunication operations.

Europe is likely to grow significantly over the years owing to an increasing focus on efficiency through new and improved technologies, and the rising demand for mobility solutions. Many European businesses are undergoing digital transformation to enhance efficiency and competitiveness. Moreover, this ERP is appealing to businesses that are looking to reduce capital expenditure and operational expenses.

The Middle East & Africa also holds market potential owing to the growing popularity of such solutions in the construction and logistics sectors. Moreover, major tech companies, such as AWS, Google, and Microsoft are launching data centers in the region, drawing the attention of cloud investors in the region.

similarly , South America is moving is move toward digital transformation , and the region is experience high level of urbanization . Manufacturers is making and distributor are make tremendous stride to modernize their enterprise technology with the help of cloud solution .

List of Key Companies in Cloud ERP Market

collaboration and partnership Among Key Players to Propel Market Growth

key market companies is engaging are engage in collaboration and partnership with their counterpart to mutually leverage significant financial advantage . These partnerships is facilitate facilitate sale augmentation and cost reduction through the share or combine utilization of resource , benefit both entity involve . For instance ,

• September 2023 : Workday , Inc. partner with ADP to improve compliance , payroll , and hr experience for joint customer . The collaboration is enabled enable both company to utilize enterprise cloud application for finance and human resource .

List of Key Companies Profiled:

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Acumatica made advancements in its cloud-based ERP product, Acumatica 2023 R2. The additions include Acumatica Payments, access to Amazon’s Seller Central marketplace, integration of Shopify’s online sales with Acumatica’s back-end fulfillment processes, and many others.
• October 2023: Infor partnered with AWS to develop a cloud-based ERP software to help manufacturing and logistics industries transform digitally. The combined capabilities enabled organizations to tackle supply chain issues and fierce competition.
• September 2023: Oracle partnered with Mastercard to aid enterprise customers in automating end-to-end business-to-business (B2B) payment transactions. The collaboration enabled Oracle to connect the Oracle Fusion Cloud ERP with banks to simplify, restructure, and automate the B2B payment process.
• June 2023: Microsoft Corporation launched Dynamics 365 Copilot and offered more AI-powered assistance across ERP solutions, including Dynamics 365 Project Operations, Dynamics 365 Finance, and Dynamics 365 Supply Chain Management.
• January 2023: RIPL partnered with ORGNN Technologies Pvt. Ltd. to launch the ‘FusionHub Cloud ERP’ in the Indian market. The ERP software is a business management software that aids the Architecture, Engineering, and construction (AEC) industries in managing business functions.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation