Cloud ERP Market Share, Size, Trends, Industry Analysis Report, By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud); By Enterprise Size, By Function; By End-Use Industry; By Region; Segment Forecast, 2024- 2032
- Published Date:Jan-2024
- Pages: 117
- Format: PDF
- Report ID: PM3926
- Base Year: 2023
- Historical Data: 2019-2022
The global cloud ERP market was valued at USD 70.77 billion in 2023 and is expected to grow at a CAGR of 14.50% during the forecast period.
Enterprise Resource Planning (ERP) solutions play a pivotal role in enabling businesses to manage their operations and processes efficiently. The functionality of modern ERP systems has progressed from basic planning and support functions to encompass comprehensive integration of critical tasks, including hiring and decision-making.
The research report offers a quantitative and qualitative analysis of the Cloud ERP Market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.
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Furthermore, the cloud-based market has seen exceptional performance in banking and finance solutions and services. The incorporation of ERP within the banking sector encompasses a diverse range of both small- and large-scale deployments. These modules are customizable to align with the specific requirements of the organization.
The surge in popularity of cloud-based ERP solutions can be attributed to their capacity to elevate operational efficiency and enhance overall business productivity. The pervasive trend of digitization propels the global adoption of cloud ERP. Moreover, these systems provide a wide array of advantages, ranging from real-time insights and mobile accessibility to reduced costs, streamlined automation, and top-notch security measures.
- For instance, in October 2023, Wahaj, the Saudi-based advanced technologies company, revealed that it will deploy IFS Cloud ERP in order to expedite its digital transformation process.
Although cloud ERP systems offer numerous advantages, there are also several restraining factors that organizations should consider before implementation. These include data security concerns, wherein storing sensitive business data on a cloud platform raises concerns about data security. Companies may worry about unauthorized access, data breaches, and potential compliance issues.
Dependence on internet connectivity is also one factor restraining the growth of the cloud ERP market. Cloud ERP relies heavily on a stable and high-speed internet connection. If there are connectivity issues, it can disrupt operations and lead to downtime.
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- Increased initiatives for digital transformation is projected to spur the product demand.
Businesses are increasingly focused on digital transformation efforts to enhance operational efficiency, agility, and customer experience. Cloud ERP systems play a crucial role in this transformation.
Moreover, cloud ERP is cost-efficient. Cloud ERP eliminates the need for upfront capital investment in hardware and software, reducing the total cost of ownership. This makes it an attractive option for businesses looking to optimize their IT spending.
Further, cloud ERP enables employees to access critical business applications and data from anywhere with an internet connection. This supports remote work and enhances productivity. These are the few factors contributing to the growth of the cloud ERP market.
The market is primarily segmented based on deployment type, enterprise size, function, end-use industry, and region.
By Deployment Type
By Enterprise Size
By End-Use Industry
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By Deployment Type Analysis
- Hybrid cloud segment is expected to witness highest growth during forecast period
The hybrid cloud segment is projected to grow at a CAGR during the projected period. Businesses are increasingly adopting the hybrid cloud strategy to address challenges that are difficult to overcome with traditional IT systems. This approach serves as a bridge between IT and enterprises, enhancing efficiency and agility while swiftly delivering IT services at a competitive cost. The hybrid cloud empowers organizations to optimize performance by strategically allocating workloads according to their specific needs. This flexibility allows them to respond to new business demands promptly. Additionally, companies leveraging a hybrid cloud can easily expand their workloads on the cloud, enabling quicker testing, prototyping, and product releases, unhindered by limitations of their on-premise infrastructure. Hence creating a growth opportunity for the hybrid cloud market.
By Enterprise Size Analysis
- Large enterprise segment accounted for the largest market share in 2022
The large enterprise segment held the major share in the market and growing constantly throughout the forecast period. In large enterprises, market growth is propelled by the imperative for scalability, automation to enhance efficiency, streamlined monitoring processes, and unified data management. Given the substantial volume of data managed by large enterprises from diverse sources, the adoption of cloud ERP allows organizations to centralize customer data, enhance data accuracy, and deliver valuable insights. This is anticipated to be a driving force behind the growth of this segment in the market.
By Function Analysis
- Finance segment is expected to witness highest growth during forecast period
The finance segment is projected to grow at a CAGR during the projected period. The integration of Artificial Intelligence (AI) and machine learning has transformed financial forecasting. Cloud ERP systems now employ AI algorithms to scrutinize historical data, market trends, and external factors, resulting in more accurate and valuable financial projections. This advancement significantly contributes to the growth of the finance segment within the cloud ERP industry.
By End-Use Industry Analysis
- IT & Telecom segment held the significant market revenue share in 2022
The IT & Telecom segment held a significant market share in revenue share in 2022. The advent of 5G technology has ushered in new prospects for the IT and telecom sectors. Cloud ERP providers have shifted their focus towards incorporating features that enable the effective management and optimization of 5G network resources. This strategic move ensures efficient service delivery and an enhanced customer experience, thereby fueling market growth.
Moreover, during the forecast period, the manufacturing sector is poised to experience the highest growth rate. This surge is primarily driven by factors like efficient data management and immediate visibility into operations. By integrating cutting-edge technologies such as AI, ML, big data analytics, and the Internet of Things (IoT), cloud service models hold the promise of delivering substantial advantages to manufacturers.
- North America region dominated the global market in 2022
The North America region dominated the global market with the largest market share in 2022 and is expected to maintain its dominance over the anticipated period. The growth of the segment market is largely attributed to the increasing adoption of hybrid cloud strategies, wherein North American companies integrate both on-premises and cloud infrastructures. Cloud ERP solutions facilitate seamless interaction with hybrid configurations, allowing organizations to merge the management of on-premises systems with the scalability of the cloud. When coupled with advanced analytics, cloud ERP empowers businesses to extract valuable insights from their data, enabling them to make confident and well-informed decisions, further propelling market growth.
The Asia-Pacific region is expected to be the fastest region with a healthy CAGR during the projected period, owing to the rapidly advancing area in terms of digital adoption and e-commerce.
This region is also driven by heightened internet penetration and a notable surge in the adoption of ERP applications across the region. Additionally, countries like Japan, India, and China are witnessing an escalating demand for transformation spurred by the ongoing Industry 4.0 revolution, which is catalyzing widespread digital transformation efforts.
Key Market Players & Competitive Insights
The cloud ERP market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Acumatica Inc.
- Deltek, Inc.
- Epicor Software Corporation
- IFS AB
- Microsoft Corporation
- NetSuite Inc. (now Oracle NetSuite)
- Oracle Corporation
- Plex Systems, Inc.
- Ramco Systems Limited
- Rootstock Software
- SAP SE
- Sage Group plc
- Workday, Inc.
- In September 2023, HSBC launched its virtual card solution in collaboration with Oracle and Mastercard. This innovative offering enables customers to execute supplier payments using virtual cards. The integration of Oracle Fusion Cloud Enterprise Resource Planning (ERP) with HSBC through Mastercard's global virtual card platform streamlines and automates the B2B payment process.
- In April 2023, In Dongguan, southern China, Huawei conducted an internal ceremony to mark the transition to its proprietary 'MetaERP'. This was undertaken after the U.S. banned its operations in China.
Cloud ERP Market Report Scope
Market size value in 2024
USD 79.61 billion
Revenue forecast in 2032
USD 239.23 billion
14.50% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Deployment Type, By Enterprise Size, by Function, By End-Use Industry, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
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