The Cloud ERP Market is projected to grow from USD 25.90 billion in 2024 to USD 63.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.82% during the forecast period (2024 - 2032). Additionally, the market size for Cloud ERP was valued at USD 22.8 billion in 2023.
The rise in the number of SMEs globally is the major market driver enhancing market growth. The market is growing more quickly due to the use of cloud testing, which makes it easier to plan, execute, and strategize tests while also meeting the growing demand for more operational efficiency.
Market CAGR for cloud ERP is being driven by the ongoing trend of digitization. The market for cloud-based ERP has grown due to increasing digitalization, IoT use, and the cloud computing environment. Real-time information is provided by cloud ERP, which aids in gaining crucial business insights instantaneously, can enhance decision-making inside an organization, and makes it possible for improved device engagement. Moreover, cloud-based ERP is a cost-effective option that enables small- to mid-sized organization staff members to access the system from any device. For example, in January 2021, Software AG, an enterprise software company, announced they also listed the areas of focus that are of interest in 2021, such as Cloud computing (67%), 5G (51%), AI (43%), and Integration (43%), and in 2020, 97% of all IT directors worldwide said their companies would have undergone digital transformation.
Technological advancements are considerably shaping the market for cloud-based ERP. Technology development is accelerating the expansion of cloud-based ERP services and solutions. These cloud-based ERP system technologies will support workflow optimization, better decision-making and communication, better device interaction, tracking employee performance, user-friendliness, and giving digital business support. For instance, Yonyou, a cloud service and enterprise resource planning (ERP) solutions provider based in China, introduced the next-generation cloud ERP in September 2021 to improve the company's innovation platform. The newly introduced Yonyou BIP is the improved architecture "1+3+X," moving from an "All-in-One Suite" to an "Integrated Service Cluster" to improve the ERP solutions in Business, HR, and Finance, encompassing 10 primary lines of business, including sales and marketing, and financial services. Thus, driving the cloud ERP market revenue.
Companies operating abroad have been compelled to adopt a variety of business models due to the requirement for operational efficiency and transparency in corporate procedures. Technology advancements reduce the complexity of enterprise resource planning software systems and enable third-party apps to effectively maintain corporate procedures. In the upcoming years, 80% of all CEOs anticipate that product commercialization will substantially impact their companies and business models, according to PwC's 22nd Annual Global CEO Survey.
The Cloud ERP Market segmentation, based on deployment type, includes private and hybrid. In 2022, the hybrid cloud-based ERP system dominated the market. Compared to other cloud services, the hybrid cloud sector has grown at a major rate over the past few years. It provides some advantages to businesses with large data sets and processing demands. When a company wants to free up local resources for more sensitive data or applications, using a hybrid cloud enables it to do so without spending a tonne of money on handling temporary surges in demand.
October 2021 Citrix Systems and Google Cloud have announced a new partnership in which Citrix will introduce a new Desktop-as-a-Service (DaaS) product on Google Cloud. Citrix's management plan and the HDX protocol provide the seamless delivery of virtualized applications and desktops on Google Cloud.
Additionally, in 2022, the private cloud-based ERP system witnessed the fastest growth. Private clouds, which provide computing capabilities through a private network or the internet, are accessible to a limited individual rather than the general public. Scalability, self-service, flexibility, more customizability, and controls hosted on an on-premise computer system are all benefits it offers enterprises.
The Cloud ERP Market segmentation, based on organization size, includes large enterprises. The market for worldwide cloud ERP has a larger percentage of large organizations. With an ERP system, large firms can collect, organize, and analyze data from their operations in a single location, giving them the transparency they need to make better decisions. Due to the integrated data, a business may acquire real-time information and produce more useful reports.
The Cloud ERP Market segmentation, based on vertical, includes aerospace & defense, IT and telecommunications. The IT and telecommunications sector dominated the market in 2022. ERP manages and integrates business operations using a single system. Businesses can better plan and allocate resources with a clearer line of sight. Without ERP, businesses frequently run in silos, with each department utilizing a separate, disjointed system. Also, the aerospace & defense sector experienced significant growth. For large, medium, and small defense producers, ERP is proving to be a crucial option. Strong Material and Production Planning are needed when chain concerns are considered. Since that defense items can have very long service lives, life cycle management is another crucial element that ERP software must include. The ERP Business Operations package is essential because Department of Defense policy is always evolving.
By Region, the report provides market insights into Asia-Pacific, Europe, North America, and Rest of the World. The North American cloud ERP area will dominate this market. In the United States, 94% of mid-sized critical enterprises are using the cloud, according to Epicor Software's Annual Insights Report. Also, 94% of respondents thought the cloud would help them future-proof their companies. One of the main investment options for manufacturers doing business in the area is cloud ERP.
Further, the leading countries studied in the market report are U.S., Canada, German, UK, France, Spain, Italy, China, Japan, India, Australia, South Korea, and Brazil.
Europe cloud ERP market accounts for the second-largest market share. The main forces behind the growth of the European market are the advancement of technology and the expansion of regional manufacturing businesses. According to European Commission, 30% of small enterprises and 80% of major corporations employed enterprise resource planning technologies in 2019. Further, the German cloud ERP market held the largest market share, and the UK cloud ERP market was the fastest-growing regional market.
The Asia-Pacific Cloud ERP Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the expanding manufacturing industry and small and medium-sized businesses. According to information from Ministry of Micro, Small, and Medium Companies, as of November 2022, the Udyam Registration portal had registered 12,201,448 MSMEs in India. Additionally, it is predicted that the rising number of start-ups and their growing demand for cloud-based solutions will accelerate market expansion.
Leading market players are investing heavily in research and development to expand their product lines, which will help the cloud ERP market, grow even more. Market participants are also undertaking different strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the cloud ERP industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global cloud ERP industry to benefit clients and increase the market sector. In recent years, the cloud ERP industry has offered some of the most significant medical advantages. Major players in the cloud ERP market, including OpenPro (US), SAP (Germany), SYSPRO (South Africa), Oracle (US), and others, are attempting to increase market demand by investing in research and development operations.
SAP is a multinational software business headquartered in Walldorf, Baden-Württemberg, Germany. It creates corporate software to help businesses manage their operations and customer relationships. The firm is the world's top enterprise resource planning (ERP) software provider. In August 2022, SAP S/4HANA Cloud was introduced to automate SAP's clients' business activities wherever possible. This shift is aided by robotic process automation. SAP S/4 HANA Cloud 2208 now offers 15 cloud studio bot templates, such as creating Product Master Data or creating Sales Orders automatically from unstructured data, eventually employing machine learning.
Infor is a global leader in corporate cloud software products for enterprises in specialized industries. Infor creates full industry suites in the cloud and installs technology that prioritizes the user experience, utilizes data science, and connects easily with current systems. Infor is trusted by over 60,000 enterprises globally to help them handle market changes and achieve business-wide digital transformation. In July 2022, Infor joined forces with Syntellis data and analytics, an enterprise performance management software solution provider. Customers in the healthcare industry now have access to the Syntellis Axiom Healthcare Suite, which provides intelligent planning and performance solutions.
Today, Decentral Life, Inc. (OTC: WDLF) announced that it has officially launched an AI Powered ERP SaaS for its TBI company, Outdoorsmen.com, Inc. The New Enterprise Resource Planning (ERP) cloud-based software will first be used by the tradeshow operators and small businesses acquired by Outdoorsmen.com before being sold via a software as a service (SaaS) subscription to their business customers. Outdoorsmen.com is a social media and e-commerce technology company operating in the sporting goods industry. It is focused on serving hundreds of millions of consumers and business operators, contributing to $1.1 trillion worth of the United States' outdoor economy annually.
Acumatica – a leading provider of business management solutions – highlighted key features available today that allow prompt growth transformation and improved efficiency for mid-market organizations. The beta version of 2024 R1 is available to Acumatica’s clients before the official launching of new functionalities in the product in 2024 R1. The new user interface includes a public preview in the 2024 R1 release, with full general availability expected later this year after a controlled release.
Oracle made the announcements during its ongoing CloudWorld 2022 conference, where it said that it was allowing ERP customer developers into its applications platform. To enable customization, Microsoft, SAP, and Infor IFS, among others. Oracle also unveiled new B2B commerce services and made several additions to both SCM EPM and HCM Fusion Cloud offerings. This move allows Oracle to not only improve its ERP offerings but also compete against rival companies such as Microsoft, SAP, Infor, and IFS by making sure that they have been adjusted to meet customer needs.
On May 23, 2023, IFS, a leading global cloud enterprise Software Company, announced a partnership with a leading construction company in the Nordics, NCC, to streamline digital operations. Under the partnership, IFS will provide its Cloud ERP and EAM to NCC to streamline efficiency and productivity across its operations across all four Nordic countries. IFS Cloud ERP will support 7,000 users across NCC, while IFS Cloud EAM will support the NCC Industry.
On Mar.03, 2023, an agricultural input retail chain, IFFCO eBazar Ltd., announced that it is using Oracle Cloud ERP to unify its finance operations and drive greater efficiency and productivity. The initiative will consolidate multiple finance systems onto a single integrated finance platform for increasing productivity, reducing costs, and improving IFFCO eBazar's finance operations, driving greater efficiency and productivity.
On Mar.21, 2023, SAP launched a cloud ERP offering for midsize companies to harness the proven benefits of cloud ERP. Today, midsize companies are growing rapidly and incubating innovations and novel ideas. However, in this journey, they are also struggling with business pressures. SAP's cloud will help ERP Midmarket leaders with flexible, agile tools to effectively manage their businesses in an ever-changing, fiercely competitive, and often unpredictable market.
On Apr.26, 2023, Greater Austin Merchants Cooperative Association (GAMA) launched its Cloud ERP journey with SAP SE. GAMA represents the convenience, gas, and wholesale distribution industries. It has selected SAP S/4HANA Cloud, a public edition, to support its business transformation and help future-proof the organization. With this move, GAMA sees opportunities with its IT environment, procurement, and accounting functions. It has also started looking for new warehouse management and a different ERP system.
On Apr.28, 2023, Rootstock Software announced that its Manufacturing Cloud ERP has won the prestigious Gold Stevie Award in the Best Cloud ERP category. The award was presented by the 2023 American Business Awards. Built on a next-generation cloud platform, Rootstock Manufacturing Cloud ERP enables manufacturers, distributors, and supply chain organizations to monitor costs, logistics, materials, and production intelligently while demonstrating value and ROI among customers, analysts, and independent judges of software solutions.
North America
Europe
Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 22.8 billion |
| Market Size 2024 | USD 25.90 billion |
| Market Size 2032 | USD 63.3 billion |
| Compound Annual Growth Rate (CAGR) | 11.82% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends |
| Segments Covered | Deployment Type, Organization Size, and Vertical |
| Geographies Covered | Asia Pacific, North America, Europe, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, UK, France, Spain, Italy, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | OpenPro (US), SAP (Germany), SYSPRO (South Africa), and Oracle (US). |
| Key Market Opportunities | The advent of big data and analytics in cloud ERP solutions |
| Key Market Dynamics | The surge in the adoption of cloud ERP solutions across verticals |
Cloud ERP Market Highlights:
Frequently Asked Questions (FAQ) :
The Cloud ERP Market size was valued at USD 22.8 Billion in 2023.
The global market is predicted to grow at a CAGR of 11.82% during the forecast period, 2024-2032.
North America had the major share of the global market
The key players in the market are OpenPro (US), SAP (Germany), SYSPRO (South Africa), and Oracle (US).
The hybrid cloud ERP category dominated the market in 2023.
The IT and telecommunications sector had the largest share of the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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