Global Cloud ERP Market - 2024-2031

Overview

Global Cloud ERP Market reached US$ 48.63 billion in 2023 and is expected to reach US$ 176.28 billion by 2031, growing with a CAGR of 17.41% during the forecast period 2024-2031.

The increasing demand for sophisticated ERP solutions equipped with advanced analytics capabilities to detect potential issues like delays and disruptions, along with the swift integration of artificial intelligence (AI) and machine learning (ML) technologies in the development of cloud-based enterprise resource planning (ERP) solutions, are recognized as significant trends driving market expansion.

The sector is experiencing increased demand for small and mid-sized enterprises. Small and medium-sized enterprises utilize such ERP systems to foster communication and collaboration among departments and improve business operations by establishing transparency. It may consolidate both their consumer and financial data into a single system. In March 2023, SAP SE introduced a cloud-based ERP solution for midsize enterprises to facilitate effective business management and address issues in volatile marketplaces.

The market growth in North America is attributable to the increasing adoption of hybrid cloud solutions that integrate on-premises and cloud infrastructures by organizations in the region. Cloud ERP solutions facilitate seamless integration with hybrid configurations, allowing enterprises to merge the management of on-premises systems with the scalability offered by the cloud. Integrating cloud ERP with analytics enables businesses to derive useful insights from their data, facilitating informed decision-making, which will propel market expansion.

Dynamics

Rising Generative AI

Generative AI (GenAI) is revolutionizing workplace dynamics and interactions by markedly improving efficiency and optimizing business operations. By integrating GenAI with cloud ERP systems, firms may enhance operational efficiency, transform decision-making processes, implement predictive algorithms and facilitate automation and data analysis. The innovative technology enhances organizational agility by identifying process efficiencies and providing real-time information.

Moreover, utilizing AI in cloud ERP solutions enables firms to enhance essential operations, facilitating ongoing learning and adaption for superior performance. In October 2023, Deloitte enhanced the SAP Business Technology Platform (SAP BTP) to deliver GenAI solutions to ERP clients. The company's innovation, Clean Core + Edge, relies on cloud application development and the integration of AI capabilities to assist cloud ERP clients in providing genuine business insights.

Furthermore, in February 2024, Kyndryl enhanced its collaboration with Google Cloud to expedite the advancement of GenAI and Responsible AI. The collaboration allowed Kyndryl to utilize the Google Cloud Cortex Framework to enhance the value of ERP data on Google Cloud.

Fusion of Analytics With Cloud ERP

Cloud ERP offers instantaneous insights into multiple facets of the organization, facilitating expedited and more informed decision-making. This is crucial for maintaining competitiveness in rapidly evolving businesses. The increasing necessity to use sophisticated ERP solutions with advanced analytics capabilities is evident across all industries since they can detect delays and disruptions. Furthermore, AI and machine learning technologies are being incorporated into these products to provide enhanced and sophisticated insights.

It produce tailored dashboards and reports, offering a comprehensive overview of Key Performance Indicators (KPIs). In September 2023, Oracle Corporation launched Accounting Hub Analytics as part of Oracle Fusion ERP Analytics to enable financial firms to provide insights into accounting data. The amalgamation of Oracle ERP data with the Accounting Hub sub-ledger application data establishes a robust foundation for comprehensive analysis.

Restricted Customization Choices For Software As A Service (Saas) ERP Solutions

Cloud-based ERP systems provide various benefits, including scalability, cost-effectiveness and accessibility; however, they frequently impose limitations on customizing the program to address the unique requirements of individual enterprises. SaaS ERP solutions are engineered to be extensively standardized and adaptable, targeting a wide array of sectors and enterprises. Consequently, they may exhibit insufficient flexibility and adaptability to meet the needs of certain companies.

Enterprises throughout diverse sectors frequently possess distinctive and intricate procedures that differentiate them from their rivals. SaaS ERP solutions, due to their standardized approach, may not accept unique workflows, necessitating enterprises to modify existing processes to align with the software, which could lead to inefficiencies. SaaS ERP systems provide a certain level of customisation, although it is generally more constrained than that of on-premises ERP solutions. Users may find it challenging to extensively change the program to precisely meet their own company needs.

Segment Analysis

The global cloud ERP market is segmented based on component, business function, organization size, deployment mode, end-user and region.

ERP Innovations and Strategic Partnerships Driving IT & Telecomm Growth

The advent of 5G technology has generated novel prospects for the IT and telecommunications sectors. Cloud ERP providers have begun to emphasize the integration of functionalities for managing and optimizing 5G network resources, hence assuring effective service delivery and enhancing customer experience, which is anticipated to propel market expansion.

In September 2022, Mavenir, a network software supplier, announced the integration of Google Cloud's public cloud infrastructure with cloud-native 5G solutions. Mavenir and Google Cloud's collaboration will empower Communications Service Providers (CSPs) to utilize Google Cloud's scalable infrastructure, advanced data analytics capabilities, container deployment and management tools, as well as 5G applications and solutions. It reduces complexity and costs for CSPs by transitioning segments of conventional telecom application operations to the cloud, without compromising network management, performance or insights.

Geographical Penetration

Cloud ERP Growth And Adoption in Asia-Pacific's Expanding E-Commerce Landscape

Asia-Pacific has experienced rapid growth in digital adoption and e-commerce, with nations like China, India, South Korea and Japan making notable progress in cloud ERP implementation. The technologies encompass cloud-native architecture, metadata-driven multi-tenant architecture and real-time intelligence. Such innovations are anticipated to enhance market expansion in the region.

For instance, in April 2023, Huawei, a manufacturing firm, announced the replacement of its previous ERP system with its fully controlled MetaERP system. 80% of Huawei's business operations and all business contexts are managed with MetaERP. Moreover, Huawei has partnered with collaborators to include innovative technologies into the MetaERP system, significantly enhancing service efficiency and operational quality.

Chinese enterprises are seeking to modernize their operations and compete on a global scale, frequently opting for Cloud ERP solutions as a cost-efficient and scalable approach to accomplish this objective. Furthermore, when enterprises grow, they necessitate ERP systems that oversee intricate operations across several areas and adhere to differing regulatory standards. The proliferation of enterprises into burgeoning domestic marketplaces enhances the utilization of Cloud ERP solutions.

Competitive Landscape

The major global players in the market include Oracle, Microsoft, SAP, Workday, Infor, IFS, Plex Systems, Epicor Software Corporation, Sage Group and Ramco Systems.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine crisis has significantly influenced the Cloud ERP market, particularly regarding cybersecurity and data protection. Organizations are currently emphasizing cyber resilience due to the rising frequency of advanced cyberattacks from state-sponsored hacker collectives like REvil and Emissary Panda. The threats have highlighted the necessity for enterprises to implement a risk-based strategy to detect vulnerabilities in their defense mechanisms and to conduct cyber threat intelligence (CTI) evaluations.

As a result, enterprises are allocating increased resources towards comprehensive cybersecurity measures for their Cloud ERP systems, particularly in hybrid and multi-cloud settings where threat surveillance is essential. Artificial intelligence (AI) is significantly enhancing Cloud ERP security. AI and machine learning (ML) tools are becoming indispensable for identifying and alleviating risks on cloud platforms like Azure, AWS and M365.

Companies such as Vectra are offering complimentary AI-driven detection solutions to enterprises affected by the conflict, facilitating swift threat identification and action to avert significant harm from possible cyber catastrophes. By sifting through the complexities of IT settings, AI facilitates the rapid detection of anomalous activities, which is essential given the heightened danger of cyberattacks on Cloud ERP infrastructures due to escalating geopolitical tensions.

Component

• Solutions
• Services

Business Function

• Finance & Accounting
• Order & Procurement
• Sales & Marketing
• Operations
• Human Resources
• Enterprises Performance
• Others

Organization Size

• Large Enterprises
• SMEs

Deployment Mode

• Public Cloud
• Private Cloud
• Hybrid Cloud

End-User

• BFSI
• IT & Telecom
• Government & Defense
• Retail
• Manufacturing
• Education
• Healthcare & Life Sciences
• Other

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2024, Truckin Digital introduced their 2024 Trucking Software ERP (Enterprise Resource Planning) suite. This sophisticated program is designed to improve trucking operational efficiency and optimize trucking processes with advanced technologies. It provides functionalities including all aspects of transportation business, from planning and dispatching to accounting.
• In July 2024, SAP partnered with Indigi Consulting and Solutions Private Limited to introduce Grow with SAP, a cloud-based enterprise resource planning (ERP) solution. This ERP solution is tailored for small and medium-sized enterprises in India, especially in the West Bengal area. It seeks to enhance the growth aspirations of these organizations by offering a robust and scalable IT infrastructure driven by advanced innovation.
• In September 2023 oracle unveiled the Fusion Data Intelligence Platform, an advanced data, analytics and AI platform designed to assist Oracle Fusion Cloud Applications clients in attaining superior business outcomes through the integration of data-driven insights with intelligent decision-making and actions.
• In July 2023, Microsoft launched Dynamics 365 Copilot, the first AI copilot integrated into cloud-based CRM and ERP systems, aimed at enhancing processes, revealing insights, determining optimal subsequent actions and minimizing time allocated to administrative duties. Organizations dependent on on-premise applications would find it challenging to compete with counterparts adopting AI-driven technology in the cloud.

Why Purchase the Report?

• To visualize the global cloud ERP market segmentation based on component, business function, organization size, deployment mode, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel spreadsheet containing a comprehensive dataset of the cloud ERP market, covering all levels of segmentation.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global cloud ERP market report would provide approximately 78 tables, 79 figures and 208 pages

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies