Cloud ERP Market

Cloud ERP Market

Market Synopsys

Global Cloud ERP market is valued at 18,523.50 USD Million in 2021 and is projected to reach a value of 47,760.01 USD Million by 2028 at a CAGR of 17.00% over the forecast period.

The need for a high return on investment (ROI) and lower upfront costs, combined with an increasing organizational need to improve employee productivity and efficiency, have been major drivers of the Cloud ERP markets growth during the forecast period. The growing adoption of cloud-based solutions, as well as the advent of big data and analytics, are fueling global demand for the Cloud ERP market during the forecast period. Furthermore, rising government initiatives, advancements in technology and enterprise management solutions, and the demand for Cloud ERP technology in industries around the world are expected to drive market growth in the years to come. Certain restrictions and challenges will stymie the overall growth of the Cloud ERP market, such as limited customization options for SaaS-based ERP and high CAPEX for PAAS-based ERP are limiting the market during the forecast period. Certain constraints and challenges will stymie the overall growth of the Cloud ERP market. The markets growth is being hampered by factors such as limited customization options for SaaS-based ERP and high CAPEX for PAAS-based ERP. The integration problem with legacy and on-premises systems, as well as a lack of technical professionals and expertise, are stifling the overall Cloud ERP market during the forecast period. It enables businesses to bridge the gap between legacy systems and modern applications, deploy ERP solutions, and educate end users on the benefits of a Cloud ERP solution and also assists businesses in keeping their ERP solution operational. Various technological advancements and digitalization are generating high growth opportunities, giving an additional boost to end-use industries such as banking and financial services, retail, government and public sectors, automotive sectors in the coming years.

Market Segmentation:

The Cloud ERP market is segmented on the basis of component, service type, business function type, and organization size. Based on component, the market is segmented as Solution, Services. By service type, the market is segmented as Implementation and Integration, Consulting, Support and Maintenance. By business function type, the market is Finance and Accounting, Sales and Marketing, Inventory and Order Management. By organization size, the market is segmented as Large Enterprises, Small and Medium-sized Enterprises. By verticals, the market is segmented as BFSI, Telecom, Healthcare and Life Sciences, Manufacturing, Government and Public Sector, Aerospace and Defense, Retail, Education, Others

Based on business function type, the Finance and accounting segment is proved to be the largest in the Cloud ERP market

The Finance and accounting category had a major share in the global Cloud ERP market in 2021. Finance and accounting are two of the most important business processes in any company, but when it comes to financial data, businesses take great care. Cloud ERP for finance and accounting is intended to be comprehensive, integrated, and highly scalable for global businesses across a wide range of industries which is projected to increase the demand of finance and accounting in years to come. It has features like ledger and analytics, as well as payables and assets. It centrally manages customer data, generates customer invoices, receives and processes customer payments, manages customer balances, recognizes revenues and invoices, processes customer payments, and identifies and tracks bankrupt customers are the major factors driving the growth of the market during the forecast period. Cloud ERP collects financial data and generates financial reports such as ledgers, trail balance data, overall balance sheets, and quarterly financial statements which is fueling the growth of finance and accounting in the years to come.

Organization size - Large Enterprises holds the largest market share

The Large Enterprises category had a major share in the global Cloud ERP market in 2021.The large enterprise segment includes companies with more than 1,000 employees as compared with SMEs, large enterprises are said to be more likely to use Cloud ERP solutions. This is due to the low cost of entry and high economies of scale that allow organizations to reap the benefits of a Cloud ERP solution. Large enterprises invest heavily in R&D in manufacturing, allowing them to leverage advanced digital solutions, such as Cloud ERP, to improve their business processes which is the major factor for the growth of large enterprise during the forecast period. In todays highly competitive world, large enterprises, in particular, leave no stone unturned in their pursuit of a larger market share, and thus invest significantly in becoming technologically proficient during the forecast period. Furthermore, large enterprises invest heavily in ERP workshops, training, and education for their employees in order to equip them with the latest trends and technological advancements in the Cloud ERP market which is projected to fuel the growth of the market in the years to come.

In the North America region, the Cloud ERP Market is growing at the highest CAGR during the forecast period.

The region of North America had the largest market share. Moreover, due to technical advancements and an increase in cloud-based ERP solutions in industry, government, and retail during the forecast period, the market is expected to grow due to the increasing use of cloud-based solutions, an increase in IoT adoption, and the presence of a large number of businesses. The Asia-Pacific cloud-based ERP market is expected to grow the fastest, followed by Latin America and the Middle East. The demand for transparent and modernized manufacturing processes is expected to drive the growth of cloud-based ERP software in Asia-Pacific region in the coming years.

Competitive Landscape

The key players in the Cloud ERP market are launching different strategies for the development of Cloud ERP market such as new product development, geographic enhancement, mergers and amp; acquisitions, and product enhancement among others to increase their presence in the market and in market shares as well. Some of the major key players in the Cloud ERP market are Oracle (US), Microsoft (US), SAP (Germany), IFS (Sweden), Infor (US), Sage Software (UK), Workday (US), Plex System (US), Ramco System (India), Epicor (US), Acumatica (US), Deltek (US), Unit 4 (Europe), SYSPRO (South Africa), QAD Inc (US), IQMS (US), MIE Track Pro (US), Genius Solutions (Canada), OpenPro (US), Global Shop Solutions (US).

Cloud ERP Market is segmented as follows:

Cloud ERP Market is tabulated as follows: