PUBLISHER: Verified Market Research | PRODUCT CODE: 1615899
PUBLISHER: Verified Market Research | PRODUCT CODE: 1615899
Cloud ERP Market size was valued at USD 55.40 Billion in 2022 and is projected to reach USD 168.34 Billion by 2030, growing at a CAGR of 12.53% from 2023 to 2030. The growing demand for cloud ERP across the various end-use industries is one of the primary factors which boosts the market's growth. Furthermore, the rising focus of the companies to streamline the business processes and improves overall efficiency also driving the adoption of the cloud ERP across enterprises. The Global Cloud ERP Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.
Global Cloud ERP Market Definition
Cloud ERP is an enterprise resource planning (ERP) software that is accessible over the internet. It automates and integrates all the essential operation and financial business functions and provides a single source of data. It includes order and
supply chain management
and helps with procurement, production, distribution, and fulfillment. The software basically runs on a vendor's cloud platform as opposed to an on-premises network, allowing organizations to access the internet. The cloud ERP system worked with a combination of technologies that are connected by a high-speed network. The cloud-based ERP solution is always online and the ERP providers handle security updates.
Some of the key features of cloud ERP include the ability to access customer information, financial data, human resources management tools, sales histories, live operating metrics, supply chain status, and more. One of the biggest benefits of a cloud ERP solution is a reduction in the overall cost which starts from the time of implementation. With cloud ERP, businesses can save the cost of purchasing servers, IT staffing, consultants, and database creation. Furthermore, companies with the on-premise ERP solution have to encounter additional costs for the on-call resources, maintenance upgrades, and updates, as well as additional servers as the company grows.
Cloud ERP generally cost around 30% less than the on-premise ERP solution. In addition to this, the cloud ERP solution allows users across the globe to access information on time, from anywhere, and at any time. Furthermore, a cloud ERP solution is tending to integrate well with other cloud-based solutions and new modules can be added to a cloud ERP system without downtime or additional hardware. Upgrading the on-premise ERP solution requires more time and may also require a higher professional to carry out the process, whereas the cloud ERP updates can take only about 30 minutes and usually occur during off-hours to prevent business disruptions.
Global Cloud ERP Market Overview
The rising shift toward digital transformation across industries is one of the key factors which is driving the growth of the Global Cloud ERP Market. Transformative technologies such as the cloud are drastically changing the way businesses interact, innovate, and gain valuable insights. They give organizations the agility to embrace and sustain state-of-the-art technologies which can drive innovation. The increasing adoption of cloud ERP in the construction industry is primarily driving the growth of the market. The Covid-19 pandemic has bought an opportunity for the construction industry players to steer into an era of technological transformation.
With the technological integration, construction companies are looking to stabilize operations and recapture the growth lost in the crisis. Companies across industries are moving toward Enterprise Resource Planning (ERP) to the cloud in order to leverage the benefits that come with cloud-based ERP. It helps businesses to focus on fast flexible implementations, simplicity, automation, continuous business innovations, and new functionality, offers savings, better insights, access to new technologies, deeper security, secure mobile device support, and scalability.
The Global Cloud ERP Market is segmented on the basis of Component, Organization Size, End-User, And Geography.
Based on Component, The market is segmented into Solution and Services. The Solution segment held the largest market share in the Global Cloud ERP Market in 2021. The demand is mainly due to the low cost of deployment and flexibility offered by cloud ERP solutions. Therefore, many companies prefer the cloud ERP solution over the cloud ERP Services.
Based on Organization Size, The market is segmented into Large Enterprises and Small and Medium-sized Enterprises. The Large Enterprises segment accounted for the major market share in the year 2021. This is mainly attributed to the high economies of scale which enable a large organization to adopt cloud ERP. On the other hand, Small and Medium-sized Enterprises are estimated to grow at the highest CAGR over the forecast period.
Based on End-User, The market is segmented into BFSI, IT & Telecom, Healthcare, Government and Public Sector, Aerospace and Defense, Retail, and Others. The BFSI segment accounted for the largest market share in the year 2021. BFSI is a data-driven industry and generates huge data such as helpline data, transaction details, emails, loan data, customer information, etc.