The global cloud ERP market is determined to develop from $ 24.5 billion in 2019 to $ 37.7 billion by 2025, at an annual growth rate (CAGR) of about 9.0% over the conjecture period.
Cloud ERP or Cloud Enterprise Resource Planning refers to the use of cloud computing platforms and services to improve and streamline business operations. The introduction of these services has led to the transformation of processes for various organizations and companies. Known as one of the leading technologies in the modern world, cloud computing involves the use of the Internet to store shared computer records, documents, tools and records. The adoption of this technology has enabled companies to host their complete IT infrastructure on virtual platforms via remote data centers. Today, cloud ERP is used to manage human capital, finance and various other important aspects of a business.
In the coming years, analysts predict that smart use of the ERP application in the cloud will reduce operating expenses. A key benefit of using these solutions will be the ability of organizations, businesses, and institutes to avoid purchasing servers and storage equipment, and thus reduce the costs of maintaining them. Despite the various advantages of using ERP solutions in the cloud, the technology has its many disadvantages.
The downside to implementing ERP software is the issue of integrating legacy systems and enterprise ERP modules. The solutions designed to ensure this seamless transfer should soon open several new markets for the global cloud ERP market.
Impact of Covid-19 on Cloud ERP Market:
Coronavirus has prompted most IT companies to adopt the work at home model. IT and ITES companies have empowered the mobile workforce by adopting enterprise mobility tools and services. As a result, there is an increased demand for communication and collaboration services worldwide.
Suppliers of digital collaboration and productivity tools such as Microsoft and Zoom are experiencing a massive increase in their use in China, Italy and the United States because of coronavirus. Therefore, moderate growth in cloud infrastructure services and spending on specialized software, communication equipment and telecommunications services are observed in the coming years. These expenses will focus on employees and educators working remotely, as companies encourage employees to work from home and schools are adopting online courses.
Thus, the increasingly mobile workforce due to lockouts and the growing need for disaster recovery and security to avoid high network downtime costs have fuelled the demand for managed cloud services across the vertical to world level.
Market growth and trends:
Tracking stocks and orders is essential for businesses to ensure smooth production of products and goods. Manual process and human intervention are important areas where errors can occur. Businesses are looking for the solution that will help them solve these problems. An ERP solution helps companies to solve these problems and improve the efficiency of the whole process.
SMEs have a limited budget and workforce, making them vulnerable in the market. To stay competitive in the marketplace, companies are adopting a cloud ERP that will help them optimize business processes and cost benefits. Profitability is one of the main factors for SMEs, as they are price sensitive in terms of adopting new solutions. These benefits of cloud ERP solutions encourage SMBs to aggressively adopt cloud ERP solutions.
Market Drivers and Restraints:
The increasing adoption of cloud services and mobile applications, as well as the increasing demand of small and medium-sized enterprises (SMEs) to achieve optimal efficiency and transparency of business processes are the main factors driving the global ERP market in the cloud. The growing demand of SMEs and large companies from various industry sectors for hosted ERP services and solutions is further stimulating the growth of the cloud ERP market. The growing support from governments around the world for the advancement of IT infrastructure in enterprises is expected to stimulate demand for such solutions.
The other crucial factor that is supposed to boost the global market is the plans of several enterprises to have extended storage facility at all times, along with a disaster recovery policy.
The global cloud ERP market is segmented based on components in solutions and services. The services segment is subdivided into managed services and professional services. The professional services segment is further categorized as implementation, consulting, training and education, and support and maintenance.
Based on the business function, the global market is divided into accounting and finance, sales and marketing, inventory and order management, and human capital management. By business function, the type of inventory and order management is likely to maintain the largest size of the market during the forecast period
Depending on the size of the organization, the global cloud ERP market is segmented into small and medium-sized and large companies. The SMEs segment is determined to progress with a considerable CAGR over the calculated period.
By Vertical, the global cloud ERP market is segmented into the banking, financial and insurance, manufacturing, public and public, aerospace and defense, education sectors, information technology and telecommunications, health care, retail, and others.
Based on geography, the global cloud ERP market can be divided into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa. North America, trailed by Europe, is supposed to rule the worldwide market in the coming years. This is credited to the operations of leading cloud ERP providers and established services in these locales. Also, the early adoption of novel technologies in the developed economies like the United States, the United Kingdom, and Canada are majorly supporting growth in North America and Europe. However, Asia-Pacific is determined to progress as rapidly emerging vicinity in the global cloud ERP market due to the increasing adoption of these technologies by several large and small and medium-sized enterprises.
Key players in the market:
Major global providers offering cloud ERP solution and services include Oracle (United States), SAP (Germany), Microsoft (United States), Infor (United States), Unit4 (Netherlands), Workday (United States), Sage Software (United Kingdom), Epicor (United States), QAD Inc (United States), Plex Systems (United States), Acumatica (United States), Deltek (United States), Software Rootstock (United States), IQMS (United States) and Ramco Systems (India).
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Cloud ERP Market, By Component
6.1.3 Market Size Estimations & Forecasts (2019-2024)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Cloud ERP Market, By Business Function
6.2.1 Accounting and Finance
6.2.2 Sales and Marketing
6.2.3 Inventory and Order Management
6.2.4 Human Capital Management
6.2.5 Market Size Estimations & Forecasts (2019-2024)
6.2.6 Y-o-Y Growth Rate Analysis
6.2.7 Market Attractiveness Index
6.3 Cloud ERP Market, By Vertical
6.3.1 Banking, Financial and Insurance (BFSI)
6.3.3 Public And Government
6.3.4 Aerospace and Defense
6.3.6 Information Technology and Telecommunications
6.3.9 Market Size Estimations & Forecasts (2019-2024)
6.3.10 Y-o-Y Growth Rate Analysis
6.3.11 Market Attractiveness Index
6.4 Cloud ERP Market, By Organization Size
6.4.3 Market Size Estimations & Forecasts (2019-2024)
6.4.4 Y-o-Y Growth Rate Analysis
6.4.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Component
7.2.3 By Business Function
7.2.4 By Vertical
7.2.5 By Organization Size
7.3.1 By Country
188.8.131.52 Rest of Europe
7.3.2 By Component
7.3.3 By Business Function
7.3.4 By Vertical
7.3.5 By Organization Size
7.4 Asia Pacific
7.4.1 By Country
184.108.40.206 South Korea
220.127.116.11 South East Asia
18.104.22.168 Australia & NZ
22.214.171.124 Rest of Asia-Pacific
7.4.2 By Component
7.4.3 By Business Function
7.4.4 By Vertical
7.4.5 By Organization Size
7.5 Latin America
7.5.1 By Country
126.96.36.199 Rest of Latin America
7.5.2 By Component
7.5.3 By Business Function
7.5.4 By Vertical
7.5.5 By Organization Size
7.6 Middle East and Africa
7.6.1 By Country
188.8.131.52 Middle East
7.6.2 By Component
7.6.3 By Business Function
7.6.4 By Vertical
7.6.5 By Organization Size
8. Key Player Analysis
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 SAP SE
8.6 Sage Software
8.8 QAD Inc
8.9 Plex Systems
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures