Cloud ERP Market by Component (Solution, Services), Business Function (Accounting and Finance, Sales and Marketing, Inventory and Order Management), Organization Size, Vertical (BFSI, Manufacturing, IT and Telecom) and Region - Global Forecast to 2027

Cloud ERP Market by Component (Solution, Services), Business Function (Accounting and Finance, Sales and Marketing, Inventory and Order Management), Organization Size, Vertical (BFSI, Manufacturing, IT and Telecom) and Region - Global Forecast to 2027

MarketsandMarkets forecasts the global Cloud ERP market to grow from USD 64.7 billion in 2022 to USD 130.0 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 15.0% during the forecast period. The major factors driving the growth of the Cloud ERP market include increase in cloud adoption across verticals, streamlined processes and operational requirement, handling volumes of data with regular upgrades and maintenance, need for disaster management and recovery services especially vis-à-vis COVID-19 pandemic outbreak effects.

Services segment to grow at a higher CAGR during the forecast period

Services are integral to the software life cycle, including deployment, integration, product upgradation, maintenance, training, and consulting. Services are categorized into managed services and professional services. Managed services are valued based on their use and are provided by third-party vendors. The cost implied while using managed services is limited to the time and amount of their use. Professional services are obtained directly from parent companies. These services can be provided as advisory, implementation and integration, and support and maintenance. The demand for advisory services would increase as technology-based software solutions are expected to increase. Support services include assistance provided during installation and maintenance activities.

Manufacturing segment to record the second highest CAGR during the forecast period

Manufacturing cloud ERP software(s) integrates manufacturing, inventory management, and accounting to help businesses ensure raw materials are available for production, manage the manufacturing process, maintain revisions, and track financials. Integrated ERP for manufacturing helps streamline business processes, generates accurate pricing, and calculates total manufacturing costs. Manufacturing companies have been moving their traditional ERP systems to the cloud as they realize their core competency is manufacturing, not managing software and hardware. Cloud ERP offerings from various prominent vendors are more secure and reliable than most in-house solutions and have become a distinct advantage for enterprises. For instance, Acumatica ERP software for the manufacturing industry integrates with financial and CRM modules to effectively support all major business areas, helping flexible business processes to plan and control manufacturing operations.

Europe to record for significant market size during the forecast period

The established internet and robust economic infrastructure with business demand for cloud services market. Europe’s one of the top 3 markets for cloud-based services and the second largest market in the overall Cloud ERP market. The major countries considered in this report for analysis are the UK, Germany, and others. The UK and Germany are the countries with the highest potential for the Cloud ERP market among all other countries. Business demands in the European market are diverse, reasonably like North America. Enterprises in this region have strong technical expertise along with bigger IT budgets. The increasing digitalization and the growing focus of organizations on IT problems and streamlining IT processes and services with business objectives are projected to drive the demand for cloud applications in the region. The UK and Germany have the highest growth potential in the cloud ERP market among all the other countries in the region. Due to the rise in European government initiatives, cloud ERP vendors are employing several security and access protocols to maintain service quality. Major players, such as Microsoft, Oracle, IBM, and OVH, have established their data centers in European regions to cater to customers' growing demands and increase the customer base. The region is an early adopter of cloud technology due to the strong technical expertise and better IT budget of enterprises.

By Company Type: Tier 1 – 16%, Tier 2 – 43%, and Tier 3 – 41%

By Designation: C-level Executives – 28%, Directors Level – 46%, Manager Level (other designation)-26%

By Region: North America – 44%, Europe – 32%, Asia Pacific – 14% and Rest of the World – 10%.

Some prominent players across all service types profiled in the Cloud ERP market study include Microsoft (US), Oracle (US), SAP (Germany), IFS (Sweden), Infor (US), Sage software (UK), Workday (US), Plex systems (US), Ramco systems (India), Epicor (US), Tally solutions (India), Odoo (Belgium), Tyler technologies (US), Syspro (South Africa), Acumatica (US), Brightpearl (UK), Deltek (US), QAD Inc. (US), Openpro (US), DELMIAworks (US), 3i Infotech (India).

Research coverage

The market study covers the Cloud ERP market across different segments. It aims at estimating the market size and the growth potential of this market across different segments, such as components (solutions and services), business function, vertical, region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key benefits of buying the report

The report is expected to help the market leaders/new entrants in this market by providing them information on the closest approximations of the revenue numbers for the overall Cloud ERP market and its segments. This report is also expected to help stakeholders understand the competitive landscape and gain insights to improve the position of their businesses and to plan suitable go-to-market strategies. The report also aims at helping stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.