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Cloud ERP Market size is anticipated to witness healthy growth during 2023 to 2032, driven by the recent breakthroughs in IoT and big data analytics.
Cloud-based ERP solutions are gaining significant momentum owing to their ability to enhance operational efficiency and improve overall business performance. The advent of digitization is driving the adoption of cloud ERP worldwide. Additionally, these systems offer a myriad of benefits including real-time insights, mobile ERP, lower costs, automation, and world-class security.
Moreover, the emergence of novel global and economic crises such as the COVID-19 pandemic followed by the Russia-Ukraine war further catalyzed the adoption of cloud ERP systems. Due to unprecedented supply chain shortages and soaring gas prices, businesses turned to smart and automated processes to adapt and implement newer more robust models. Furthermore, the emergence of new pandemic-driven trends such as work-from-home, and online retail fostered lucrative demand for cloud ERP systems.
Considering the component, the cloud ERP market from the solutions segment will gain remarkable momentum during the forecast timeline. The surging demand for cloud-based solutions can be credited to the flexible, low-cost, and hassle-free deployment. Single-tenant SaaS, hybrid ERP, multi-tenant SaaS, public-hosted cloud ERP, and privately hosted cloud ERP are the five types of cloud ERP solutions widely deployed by businesses.
Meanwhile, cloud enterprise resource planning (ERP) market will also garner significant growth over the projected timeframe due to a paradigm shift from on-premise to cloud. Several organizations are rapidly integrating big data analytics and cloud-based services to effectively manage the growing volumes of data and assess foreseeable industry trends.
In terms of function, the demand for cloud ERP systems for finance and accounting is set to gain impetus over 2023-2032. Cloud ERP solutions designed for finance and accounting are highly scalable and can be integrated across diverse companies to cater to a comprehensive suite of functions. For finance and accounting, cloud ERP helps with payables & assets, and ledger & analytics, allowing enterprises to create customer invoices, and receive/apply for customer payments. It also ensures the management of customer data centrally along with gathering financial data for making reports and financial statements.
With regards to application, the BFSI sector is set to hold a notable share in the cloud ERP market till 2032, due to the increasing use for the improvement of customer experience. Cloud ERP is helping fintech firms and banking service providers manage sensitive customer data and ensure safe and secure transactions.
The demand for cloud ERP is expected to increase significantly across North America driven by the growing reliance on cloud computing, IoT, and big data analytics for the optimization of business workflows. Moreover, a rapid influx of small and medium-sized enterprises (SMEs) in the U.S., and Canada will favor the adoption of cloud ERP systems in the region.
Some of the leading companies involved in the cloud enterprise resource planning (ERP) market include Oracle Cloud, SAP, Microsoft Corporation, NetSuite Inc. (Oracle Corporation), IBM, and Sage Group Plc. These companies are focusing on long-term partnerships and collaborations to consolidate a competitive lead. For instance, in May 2022, IBM announced the expansion of its partnership with SAP by migrating to SAP S/4HANA®, SAP's next-generation ERP software for performing business across more than 120 countries.
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