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Cloud ERP Market Size, Share & COVID-19 Impact Analysis, By Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), By Function (Financial & Account Management, Order & Procurement Management, Human Capital Management, Enterprises Performance Management, and Others), By Organization Type (SMBs and Enterprises), By Industry (Distribution, Manufacturing, Construction, Healthcare, E-Commerce & Retail, BFSI, IT & Telecom, and Others), and Regional Forecast, 2023 – 2030

Region : Global | Format: PDF | Report ID: FBI108617

 

KEY MARKET INSIGHTS

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The cloud ERP market size was valued at USD 43.60 billion in 2022 and is projected to grow from USD 49.80 billion in 2023 to USD 140.14 billion by 2030, exhibiting a CAGR of 15.9% during 2023-2030. North America dominated the global market with a share of 39.67% in 2022.


Cloud ERP is an ERP software that runs on a provider’s cloud platform. They work with a combination of technologies that are connected by high-speed internet networks.  It automates and integrates essential operational and financial business functions, including order and supply chain management, inventory, production, order and procurement, distribution and fulfillment.


In the report, we have considered market players offering solutions, including Oracle Corporation, Infor, Microsoft Corporation, Acumatica, and others. This market is witnessing greater demands in small and mid-sized businesses.  SMEs use such ERP to develop communication and collaboration across departments and enhance business processes by creating transparency. They can integrate both their customer and financial information into one system. For instance, in March 2023, SAP SE launched a cloud-based ERP offering for midsize companies to aid them in efficiently managing their business and tackling the challenges in unpredictable markets.


Moreover, the rapid inclusion of Machine Learning (ML) and Artificial Intelligence (AI) technologies in the development of such ERP solutions are observed as key trends contributing to market growth.


COVID-19 IMPACT


Remote Work Policies and Online Retail to Create Profitable Demand in the Post-Pandemic Era


The COVID-19 pandemic had a significant impact on the cloud ERP market. With lockdowns and shutdowns, many businesses increased their focus on profitability and decreased their expenses in ERP, which led to a decrease in demand for cloud-based ERPs.


However, the market experienced growth post-pandemic owing to the remote work policies and digital shift in industries. Furthermore, the rise of trends such as work-from-home, e-commerce, and online retail created profitable demand for such systems. In addition, moving to cloud-based ERP aided many SMBs in running their business during the pandemic by allowing employees to access enterprise applications from home.


LATEST TRENDS


Increasing Demand for Mobile and Web-Based Applications to Bolster Market Growth


The global regions are experiencing greater adoption of cloud ERP and mobile applications that have led to improved efficiency of business processes. It makes an ideal solution for organizations with a mobile or remote workforce, resulting in improved collaborations across multiple locations and processes. Moreover, mobile ERP systems advance and support businesses in accessing critical data from anywhere with an internet connection. Through this, companies stay informed about the business functions in real-time, ensuring timely decision-making.



  • September 2023: NetSuite launched a mobile-friendly ERP solution to aid wholesale distribution industry access to a customized platform, resulting in more accuracy and efficiency. The mobile ERP benefits distributors and manufacturers from accessing applications while moving in the warehouse or shop floor.


Thus, it aids in real-time data access, better workflow management, inventory and supply chain management, reporting and analytics, among others, driving the cloud ERP market growth.


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CLOUD ERP MARKET GROWTH FACTORS


Fusion of Analytics with Cloud ERP to Facilitate Better Informed Decision-Making Drives Market Growth


Cloud ERP provides real-time insights into various aspects of the business, enabling quicker and more informed decision-making. This is essential for staying competitive in fast-paced industries. The rising need to implement advanced ERP solutions that contain advanced analytics features is observed across many industries, as it can identify delays and disruptions. Moreover, AI and machine learning technologies are being integrated into such solutions to offer improved and advanced insights. In addition, it generates customized dashboards and reports, providing a complete view of Key Performance Indicators (KPIs). For instance,



  • September 2023: Oracle Corporation introduced Accounting Hub Analytics within Oracle Fusion ERP Analytics to empower financial organizations to deliver insights into accounting data. The incorporation of Oracle ERP data with Accounting Hub sub-ledger application data forms a strong base for deep analysis.


Big data analytics provides valuable insights into the supply chain, including demand forecasting, inventory optimization, and supplier performance. Thus, above are some factors that drive the global market.


RESTRAINING FACTORS


Limited Customization to Create Major Drawbacks for Enterprises Requiring a Tailored Approach


Cloud based ERP solutions enable organizations with great scalability and flexibility. However, it might be challenging for companies seeking substantial customization. It provides fewer customization options compared to on-premises, which can be a major drawback for businesses that require a more tailored approach. Also, transferring large volumes of data from on-premises systems to the cloud can be time-consuming and complex. It requires extensive planning and execution without missing on data security. Additionally, advancements in technology and improvements in cloud services may mitigate some of these concerns over time.


SEGMENTATION


By Deployment Analysis


Public Cloud Segment Growth Driven by Growing Popularity of the SaaS Model in the Cloud ERP Systems


Based on deployment, the market is segmented into public cloud, private cloud, and hybrid cloud. The public cloud segment holds the largest cloud ERP market share, owing to its growing popularity among small and mid-sized businesses. Such Software as a Service (SaaS) model ERP software is cost-effective and facilitates users with a pay-as-you-go model.


The hybrid cloud segment is anticipated to grow with the highest CAGR. Using such a model, companies can continue corporate functions on the existing on-premises ERP system while adding cloud solutions to support some or all business units, such as CRM.


By Function Analysis


Financial & Account Management Segment’s Growth Boosted by Growing Need for Automation of Financial Management Processes


Based on function, the market is classified into financial & account management, order & procurement management, human capital management, enterprises performance management, and others. The financial & account management segment holds the largest share in the market owing to its potential to recognize revenues and invoices, centralize client data, generate customer invoices, process customer payments, receive and process customer payments, track bankrupt customers, manage customer balances, thus automating the whole process.


The order & procurement management segment is expected to grow with the fastest CAGR during the forecast period due to the increasing applications of such ERP in the fields of supply chain management, inventory management, and intelligent order management that leverage machine learning.


By Organization Type Analysis


Enterprises Segment Dominates as they Harness ERP for Centralized Business Operation


Based on organization type, the market is segmented into SMBs and enterprises. The enterprises segment holds the largest share of the market due to their affordability, capital funds, and technological infrastructure. Such ERP aids enterprises in maintaining a central database for all their business processes.


The SMBs segment is expected to grow with the highest CAGR owing to their rapid adoption of cloud technologies to improve business performance and enhance productivity.


By Industry Analysis


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Manufacturing Segment Leads as it Leverages ERP for Process Optimization and Automation


Based on industry, the market is divided into distribution, manufacturing, construction, healthcare, e-commerce & retail, BFSI, IT & telecom, and others. The manufacturing segment holds the highest share of the market owing to the growing demand for transparent and modernized manufacturing processes. It facilitates process optimization by providing analytics in real time and aids in automation of manufacturing processes.


The IT & telecom segment is estimated to grow with the highest CAGR due to its integration capability with other cloud-based solutions. Such ERP can integrate with emerging technologies such as Internet of Things (IoT), AI, Big Data, 5G, and others, enabling IT & Telecom companies to stay competitive and innovative.


REGIONAL INSIGHTS


We have studied the market across North America, South America, Europe, Asia Pacific, and the Middle East & Africa.


North America Cloud ERP Market Size & Share, 2022


North America holds the highest cloud ERP market share owing to the rapid use of cloud technologies to improve the efficiency of business processes. Companies in the region are creating lucrative opportunities for small and mid-sized businesses to promote cloud technologies. For instance, in 2021, Infor launched a Three for Free program for smaller merchants in North America. For a limited time, the company provided SMEs with a subscription to Infor CloudSuite Distribution for three free user licenses. Also, the region is expected to see further growth with the expanding use of such ERP in the healthcare sector.


Asia Pacific is expected to grow with the highest CAGR during the forecast period with the growing number of SMEs and startups in the region. The region is gaining traction and attracting huge investments in cloud technologies. According to the Public Cloud Services Spending Guide, 2021, the annual spending on public cloud services is estimated to reach USD 116.06 billion in 2024. Moreover, the expanding IT & telecommunication industries are expected to bolster market growth in the region. The cloud based ERP offers a unified platform to manage various aspects of telecommunications operations.


Europe is likely to grow significantly over the years owing to an increasing focus on efficiency through new and improved technologies and the rising demand for mobility solutions. Many European businesses are undergoing digital transformation to enhance efficiency and competitiveness. Moreover, such ERP is appealing to businesses that are looking to reduce capital expenditure and shift to operational expenses.


Middle East & Africa also holds market potential owing to the growing popularity of such solutions in the construction and logistics sector. Moreover, major tech companies, such as AWS, Google, and Microsoft, are launching data centers in the region, drawing the attention of cloud investors in the region.


Similarly, South America is paving toward digital transformation, and the region is experiencing high levels of urbanization. Manufacturers and distributors are making tremendous strides to modernize their enterprise technology with the aid of cloud solutions.


KEY INDUSTRY PLAYERS


Collaborations and Partnerships among Key Players to Propel Market Growth


Key market companies are engaging in collaborations and integrations with counterparts to mutually leverage significant financial advantages. These partnerships facilitate sales augmentation and cost reduction through the shared or combined utilization of resources, benefiting both entities involved. For instance,


September 2023: Workday, Inc. partnered with ADP to improve compliance, payroll, and HR experience for joint customers. The collaboration enabled both companies to utilize enterprise cloud applications for finance and human resources.


List of Key Companies Profiled in Cloud ERP Market: 



KEY INDUSTRY DEVELOPMENTS:



  • October 2023: Acumatica made advancements in its cloud-based ERP product, Acumatica 2023 R2. The additions include Acumatica Payments, access to Amazon’s Seller Central marketplace, integration of Shopify’s online sales with Acumatica’s back-end fulfillment processes, and many others.

  • October 2023: Infor partnered with AWS to develop cloud-based ERP software to aid manufacturing and logistics industries to transform digitally. The combined capabilities enabled organizations to tackle supply chain issues and fierce competition.

  • September 2023: Oracle partnered with Mastercard to aid enterprise customers in automating end-to-end business-to-business (B2B) payment transactions. The collaboration enabled Oracle to connect Oracle Fusion Cloud ERP with banks to simplify, restructure, and automate the B2B payment process.

  • June 2023: Microsoft Corporation launched Dynamics 365 Copilot, along with introducing more AI-powered assistance across ERP solutions, including Dynamics 365 Project Operations, Microsoft Dynamics 365 Finance, and Dynamics 365 Supply Chain Management.

  • January 2023: RIPL partnered with ORGNN Technologies Pvt. Ltd. to launch ‘FusionHub Cloud ERP’ in the Indian market. The ERP software is a business management software that aids the Architecture, Engineering, and Construction (AEC) industries in managing business functions.


REPORT COVERAGE


An Infographic Representation of Cloud ERP Market

To get information on various segments, share your queries with us



The cloud ERP market report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.


Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2017-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2017-2021



Growth Rate



CAGR of 15.9% from 2023 to 2030



Unit



Value (USD Billion)



 


 


 


 


 


 


 


 


 


 


 


 


 


 


Segmentation



By Deployment



  • Public Cloud

  • Private Cloud

  • Hybrid Cloud


By Function



  • Financial & Account Management

  • Order & Procurement Management

  • Human Capital Management

  • Enterprises Performance Management

  • Others


By Organization Type



  • SMBs

  • Enterprises


By Industry



  • Distribution

  • Manufacturing

  • Construction

  • Healthcare

  • E-Commerce & Retail

  • BFSI

  • IT & Telecom

  • Others


By Region



  • North America (By Deployment, Function, Organization Type, Industry, and Country)

    • U.S.

    • Canada

    • Mexico



  • South America (By Deployment, Function, Organization Type, Industry, and Country)

    • Brazil

    • Argentina

    • Rest of South America



  • Europe (By Deployment, Function, Organization Type, Industry, and Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Benelux

    • Nordics

    • Rest of Europe



  • Middle East & Africa (By Deployment, Function, Organization Type, Industry, and Country)

    • Turkey

    • Israel

    • GCC

    • North Africa

    • South Africa

    • Rest of Middle East & Africa



  • Asia Pacific (By Deployment, Function, Organization Type, Industry, and Country)

    • China

    • Japan

    • India

    • South Korea

    • ASEAN

    • Oceania

    • Rest of Asia Pacific





Frequently Asked Questions

The market is projected to reach USD 140.14 billion by 2030.

In 2022, the market was valued at USD 43.60 billion.

The market is projected to grow at a CAGR of 15.9% during the forecast period.

Fusion of analytics with cloud solutions to facilitate better-informed decision-making, thus driving market growth.

Oracle Corporation, Infor, Microsoft Corporation, Acumatica, Epicor, Workday, SAP SE, Intuit Inc., Sage, and IFS are the top players in the market.

North America is expected to hold the highest market share.

By function, order & procurement management is expected to grow with the highest CAGR during the forecast period.

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