The global cloud ERP market size is poised to showcase monumental growth from 2023 to 2033. According to the research report published by Future Market Insights, the global market is slated to exceed a valuation of USD 72,679.4 million in 2023. It is predicted to reach a valuation of USD 327,126.8 million by 2033. The market is foreseen to thrive at a CAGR of 16.2% from 2023 to 2033.
Increasing focus on workforce efficiency through improved technologies, and demand for mobility solutions, prompting the growth of the market. Moreover, the growing desire among businesses to improve operational efficiency and optimize business operations, and the increasing use of cloud-based solutions are driving the expansion of the cloud ERP sector.
The market is further expected to grow at a significant pace throughout the forecast period due to the increased adoption of cloud computing, enhanced digitization techniques, and financial applications.
| Attribute | Details |
|---|---|
| Cloud ERP Market Share (2022) | USD 63,420.1 million |
| Cloud ERP Market Share (2023) | USD 72,679.4 million |
| Cloud ERP Market Share (2033) | USD 327,126.8 million |
| Cloud ERP Market Share (2023 to 2033) | 16.2% |
Businesses all around the world are focusing on improving their business processes to boost operational efficiency while keeping expenses under control. Businesses are looking for a centralized solution to manage a variety of business activities, including finance and accounting, sales and marketing, procurement, and supply chain management.
Cloud ERP provides businesses with the flexibility and scalability they need to improve productivity and streamline processes. Cloud ERP is one of the most important tools a company can utilize to stay ahead of the competition by assisting them in running their organization and enhancing the demand for the market. Cloud ERP ensures many things such as:
Although cloud-based solutions give businesses huge flexibility and scale, they often limit customized choices. The core product set of SaaS-based models now includes customizations. Enterprises that require substantial customization, especially concerning key functions, may find it challenging to do so with a SaaS-based ERP system.
The majority of cloud ERP vendors offer apps such as human capital management or CRM. However, just a few vendors offer a single suite of solutions that meets most of the user’s needs. These limitations are stifling cloud ERP adoption and stunting the industry's expansion.
Every business operation generates specialized data in a certain format, and businesses collect enormous amounts of data daily. Enterprises are using analytics-based solutions to draw conclusions and make data-driven decisions to handle such a fluctuating and massive stream of data, In turn, it promotes the adoption of cloud ERP.
Big data and analytics create a new income stream for cloud ERP vendors as enterprises seek analytics-based solutions. Analytics tools are used by professionals all around the world to improve asset utilization and increase operational agility and reliability.
Few firms continue to rely on their present systems due to a lack of resources, which are based on outdated technology and include manual processes. Consequently, it results in a high rate of mistakes and a long turnaround time, hampering the efficiency of the Market.
There may be several legacy programs that are incompatible with new systems or require additional integration effort. Organizations continue to oppose considerable hurdles in integrating these solutions with their existing systems due to system complexities and implementation costs.
The global cloud ERP industry size expanded at a CAGR of 14.1% from 2018 to 2022. In 2018, the global market size stood at USD 37,352.9 million. In the following years, the market witnessed tremendous growth, accounting for USD 63,420.1 million in 2022. An important factor that greatly contributes toward the growth of the market is the rising incorporation of modern technologies such as:
Several sectors, including accounting and manufacturing, are deploying AI and other advanced technology-powered solutions to automate common activities.
The market is segmented into components, organizational size, business function type, service type, application, and region. Accounting and finance are two of the most important business operations in any company. When it comes to financial data, businesses exercise extreme caution.
For worldwide enterprises in a wide range of industries, cloud ERP for finance and accounting is meant to be comprehensive, integrated, and highly scalable. It has a ledger and analytics, as well as payables and assets. It centralizes client data, recognizes revenues and invoices, generates customer invoices, receives and processes customer payments, processes customer payments, manages customer balances, and tracks bankrupt customers.
The BFSI sector is expected to see significant growth in the overall market since these solutions are primarily employed to improve the customer experience. Meanwhile, with features such as live operational tracking, secure transactions, and assessment and investigation, it is also being utilized to manage sensitive and critical data of consumers.
Large enterprises are likely to boost their demand for cloud ERP during the forecast period. Large enterprises are significantly adopting cloud-based solutions and services, and this trend is expected to continue during the forecast period. As a result, large enterprises are expected to have a prodigious CAGR of 16.5%. This is owing to the cloud ERP solution's low cost and significant economies of scale, which allow businesses to take advantage of its benefits.
Large enterprises invest heavily in manufacturing research and development, allowing them to take advantage of new digital solutions, such as cloud ERP, to optimize their business processes. In today's highly competitive world, multinational corporations, in particular, leave no stone unturned in their quest for a high market share. Hence, they invest enormous resources in becoming technologically competent.
The solution segment by component holds the lion’s share in the global market. In 2022, the solution segment garnered a 68.3% share of the global market. Based on service type, the implementation & integration segment is predicted to garner swift growth. In 2022, the implementation & integration segment captured a 43.2% share of the global market.
North America is predicted to account for the dominant market size of USD 99 million over the projection period due to the presence of economically and technologically advanced countries such as the United States and Canada, as well as new technologies. In 2022, North America captured 28.1% of the global market share. The United States accounted for an 18.2% share of the global market.
During the projected period, Asia-Pacific cloud-based ERP market is predicted to grow swiftly, followed by LAMEA. In Asia-Pacific, the demand for transparent and modernized manufacturing processes is projected to boost the expansion of cloud-based ERP software. India is anticipated to dominate growth in the Asia Pacific region.
The expanding telecommunication and electronics industries are expected to bolster growth in India. The surging digitalization and growing internet users are foreseen to bolster market growth in India. In 2022, India captured a 17.1% share of the global market. China is predicted to follow India, in terms of growth. In 2022, China captured a 15.4% share of the global market.
| Countries | CAGR Share in Global Market (2022) |
|---|---|
| The United States | 18.2% |
| The United Kingdom | 14.7% |
| China | 15.4% |
| Japan | 7.1% |
| India | 17.1% |
How is the Competition Intensifying in the Market?
The market is extremely competitive due to several small and large players. The cloud ERP market is highly consolidated, with top firms employing techniques such as product innovation to stay ahead of the pack. As a result, many businesses are aggressively seeking out strategic mergers and acquisitions to expand their market dominance.
The strategic framework of key service providers is focused on generating high revenues to increase profitability.
Recent Developments Observed by FMI:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; The Middle East & Africa (MEA) |
| Key Countries Covered | The United States, Canada, Germany, The United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASIAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Component, Business Function Type, Service Type, Organizational Size, Application, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The Cloud ERP market is projected to have a CAGR of 16.2% from 2023 to 2033.
North America is the leading region, with an anticipated CAGR of 16.2% by 2033.
Large Enterprises lead the market with a projected CAGR of 16.7% by 2033.
The cloud ERP market is predicted to reach USD 327,126.8 million by 2033.
Finance and accounting lead the market with the dominant share during the forecast period.
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