Cloud ERP Market to Grow at a CAGR of 17.8% till 2027 | Cloud ERP Market Size and Share – GMI Research
Cloud ERP Market Dynamics
Cloud ERP is the fastest-growing sector of the global ERP market, with services-based businesses driving the majority of income growth. Cloud ERP services provide a centralized system to businesses, enabling them to carry out various tasks such as marketing, accounting, and managing client data, in a more flexible and simplified manner with increased clarity adding to the overall business efficiency. Businesses worldwide are emphasizing improving their business processes, which can help them improve operational efficiency while tracking overall operating expenses. Cloud ERP offers the flexibility to streamline various business processes, such as sales and marketing, finance and accounting, and supply chain.
Rapid digitalization, adoption of the Internet of Things, mobile devices, cloud computing, and the emergence of big data and data analytics are the major factors driving the cloud ERP market share. With the growing adoption of remote working and bring your own device, the shift of workload to cloud environment has increased. This shift ensures better utilization of resources, remote availability to the on-premise data, and less IT expenditure.
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Cloud-based ERP system relatively costs more than on-premise ERP system, which acts as a significant barrier for the market. Moreover, the cloud ERP market research projected that fewer customization abilities compared to on-premises infrastructure and rising concern for data theft and data loss may further hamper the market growth over the forecast period.
Key players operating in the global Cloud ERP Market include Microsoft Corporation, Oracle Corporation, SAP SE, Koch Industries, Inc., Sage Group Plc, Plex Systems, Ramco Systems Limited, Epicor Software Corporation, International Business Machines Corporation, and Acumatica, Inc.
Component Segment Analysis
The finance and accounting segment is expected to hold a substantial market share over the forecast period. Cloud ERP helps interpret financial information from ledgers, sub-ledgers, and balance sheets; manage huge transaction volumes; and offers automatic billing and invoicing system. The software is designed to be integrated and comprehensive for the international in a wide range of industries. For instance, Sage Intacct, SAP ERP, Oracle Financials ERP Cloud, and Xero are some cloud-based ERP systems used for financing and accounting application by an organization.
Organization Size Segment Analysis
The small and medium enterprises segment will grow at a higher CAGR during the forecast period because of the growing adoption of cloud IT infrastructure. The increasing demand for automation to increase their business productivity will further strengthen the cloud ERP market size. According to the World Bank Group, small and medium enterprises depict nearly 90% of businesses worldwide and are likely to offer 600 million jobs by 2030.
Industry Vertical Segment Analysis
The manufacturing segment is expected to expand at a higher rate over the forecast period. This is because of the increasing adoption of cloud ERP systems to interpret and manage data operations in real-time, display direct production status, decrease infrastructure and logistics costs, and offer market trend analysis. Moreover, Microsoft Dynamics 365, Acumatica ERP software, NetSuite ERP, SAP Business One, Epicor ERP are major Cloud ERP software used in the manufacturing industry.
Regional Analysis
North America is predicted to account for a larger share in the coming years. This growth is attributed to the continuous technological innovation, rapid production of the cloud ERP service by a large number of vendors, and availability of skilled professionals. The surging adoption of cloud and mobile technologies in the banking, manufacturing, IT, healthcare, and retail sectors will raise the market growth. The Asia Pacific region is also estimated to register a constant growth in its market share due to the increasing deployment of cloud ERP services across various sectors such as governmental institutions in the region.
Cloud ERP Market Segmentation:
Cloud ERP Market by Business Function Type
- Finance and Accounting
- Sales and Marketing
- Inventory Management
- Others
- Small and Medium Enterprises
- Large Enterprises
- BFSI
- Telecom
- Healthcare and Life Sciences
- Manufacturing
- Government and Public Sector
- Aerospace and Defence
- Retail
- Education
- Others
- Asia Pacific
- China
- Japan
- India
- Rest of APAC
- North America
- United States of America
- Canada
- Europe
- United Kingdom
- Germany
- France
- Spain
- Rest of Europe
- RoW
- Brazil
- South Africa
- Saudi Arabia
- UAE
Cloud ERP Market by Organization Size
- Small and Medium Enterprises
- Large Enterprises
Cloud ERP Market by Industry Vertical
- BFSI
- Telecom
- Healthcare and Life Sciences
- Manufacturing
- Government and Public Sector
- Aerospace and Defence
- Retail
- Education
- Others
Cloud ERP Market by Region:
- North America Cloud ERP Market
- Europe Cloud ERP Market
- Asia-Pacific Cloud ERP Market
- RoW Cloud ERP Market
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