Global Cloud ERP Market Report and Forecast 2024-2032

Global Cloud ERP Market Outlook

The global cloud ERP market size reached approximately USD 68.09 billion in 2023. The market is projected to grow at a CAGR of 15.4% between 2024 and 2032, reaching a value of around USD 247.04 billion by 2032.

Key Takeaways

• The BFSI sector leverages cloud ERP for managing financial risk and ensuring compliance with ever-changing regulations.

• Cloud ERP enables telecom companies to handle various billing models, including prepaid, postpaid, and usage-based billing.

• The government and public sector is witnessing digitisation, leveraging cloud ERP for budgeting, procurement, and expenditure management.

Cloud ERP refers to a type of enterprise resource planning software (ERP) that operates on a provider's cloud computing platform instead of an onsite network of a particular enterprise. Organisations can access the ERP software and tools over the internet, which allows them to consolidate different business processes such as accounting, inventory management, procurement, and other functions into one cohesive system that provides a single data source. Cloud ERP allows companies to access business-essential information from any part of the world.

One of the major factors driving the cloud ERP market growth is its growing usage by various organisations around the globe. These organisations are seeking efficient strategies for improved functioning, which would help them conduct various business operations comprehensively in the ERP software. Cloud ERP services offer a centralised system to businesses, allowing them to carry out multiple tasks such as accounting, marketing, and managing client data, among others, in a more simplified and flexible manner, with increased transparency adding to the overall business efficiency. Cloud ERP further decreases the time needed in data collection and generating analytical reports, which helps in streamlining business operations of different natures.

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Key Trends and Developments

The rise of mobile ERP; expansion of ERP integration capabilities; growing demand for real-time analytics and reporting; and increased adoption of AI and machine learning are the major trends impacting the cloud ERP market expansion

Cloud ERP Market Trends

Businesses are increasingly looking for cloud ERP (Enterprise Resource Planning) solutions that offer seamless integration capabilities with other cloud-based applications and services. This trend underscores the need for cohesive, interconnected systems that can streamline operations, enhance efficiency, and provide a unified view of the business. Integrating cloud ERP with CRM, eCommerce, SCM, and HR systems enables the free flow of data across different business functions and promotes the cloud ERP market development. This interconnectedness ensures that information is updated in real-time across all platforms, providing businesses with a holistic view of operations.

In August 2023, Shinhwa Auto announced that it is utilising a Public Cloud ERP (Enterprise Resource Planning) system to facilitate its growth strategy and operational requirements in North America. With the cloud-based approach, Shinhwa Auto's employees can access the ERP system from anywhere, at any time, as long as they have an internet connection. Such strategies enhance flexibility and enable real-time decision-making, which are crucial for companies seeking to expand across large markets.

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Market Segmentation

“Cloud ERP Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

The finance and accounting segment holds a major cloud ERP market share as the technology offers all-inclusive data management tools that help improve financial management across organisations

Based on business function, the finance and accounting segment is expected to prove profitable for the global market. The finance and accounting processes are important sectors in an organisation that require extra caution in handling data. Cloud ERP software is being increasingly utilised in this segment because it offers flexible and all-inclusive data management tools to gather financial records and create data reports, balance sheets, and overall financial statements. The critical nature of financial management in business operations makes this segment a top priority for organisations moving their operations to the cloud.

The sales and marketing segment is also expected to grow robustly in the cloud ERP market. Sales and marketing ERP modules facilitate the management of customer relationships, sales orders, pricing, promotions, and marketing campaigns and are crucial for driving business growth and customer engagement.

Large enterprises maintain their dominance in the market due to the rising demand for scalable ERP solutions

Large enterprises in the cloud ERP market are rapidly adopting cloud ERP services for more efficient and comprehensive functioning of their various verticals in terms of organisation size. Cloud ERP services provide scalable solutions that can be easily adjusted to meet the changing needs of a large enterprise. This scalability supports growth and expansion without the need for significant additional investment in IT infrastructure. By adopting cloud ERP, large enterprises can reduce upfront capital expenditures on hardware and software as cloud services typically operate on a subscription model.

The cloud ERP market growth is also aided by small and medium-sized enterprises as cloud ERP solutions typically require a lower upfront investment compared to traditional on-premises systems. SMEs, which often have limited capital, find the subscription-based pricing model of cloud ERP attractive because it allows for better cash flow management and reduces the financial burden of investing in IT infrastructure and maintenance. The ability to access the ERP system from anywhere, at any time, is particularly beneficial for SMEs that may not have a fixed office location or those that employ remote or mobile workers.

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Competitive Landscape

The market players are offering tailored services for businesses as well as expanding their operations to gain a competitive edge in the market

The market features a dynamic mix of established technology giants and emerging players, each offering cloud-based solutions designed to meet the diverse needs of businesses across various end-use sectors of the cloud ERP market.

Cloud ERP Market Analysis by Region

In terms of region, North America is estimated to hold a substantial share of the market. This increase is attributed to the ongoing technological innovations, easy availability of skilled expertise, and expeditious manufacturing of the cloud ERP services provided by the large number of cloud ERP vendors based in the region. The Asia Pacific region is also expected to register a consistent growth in its market share due to heightened deployment of cloud ERP services in the working of many sectors such as governmental institutions in the region.

The Asia Pacific cloud ERP market is experiencing significant growth as Asia Pacific countries are experiencing rapid economic growth and are at different stages of digital transformation. As businesses expand, there is a growing need for scalable, flexible solutions like cloud ERP to manage increasing operational complexities and support expansion, both locally and globally. Businesses in the Asia Pacific are increasingly focusing on innovation and agility to stay competitive in fast-moving markets. Cloud ERP systems offer real-time data analytics and business intelligence capabilities, enabling companies to make informed decisions quickly and adapt to market changes.

Key Highlights of the Report

Cloud ERP Market Report Snapshots

Cloud ERP Market Size

Cloud ERP Market Trends

Cloud ERP Market Regional Analysis

Cloud ERP Companies