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The Cloud ERP market size is forecast to increase by USD 15.38 billion, at a CAGR of 10.02% between 2022 and 2027. The growth of the market depends on several factors, including the increasing demand for process automation and digital transformation, the increasing demand for Cloud ERP software from SMEs, and the demand for efficient business processes. Cloud ERP is a single integrated business management system that enables the users to perform all the core processes related to human resources (HR), supply chain management (SCM), manufacturing, finance, accounting, and project management, along with certain industry-specific processes such as asset management and product lifecycle management. Cloud ERP software helps define a set of business processes and enables integration of operations and flow of data across the organization, ensuring maximum utilization of available human, financial, and operational resources. Banking, financial services, and insurance (BFSI), manufacturing, and service-providing companies are major consumers of Cloud ERP.
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This market report extensively covers market segmentation by component (solutions and services), end-user (BFSI, manufacturing and services, government, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is propelled by a surge in customer relationship management needs, facilitated by the seamless integration of ecommerce platforms and sophisticated analytics tools like Data Bridge. The adoption of biometric technology ensures enhanced authentication and safety, particularly in consumer electronics and aerospace and defense sectors. However, challenges persist with mounting cyber threats and navigating complex trade regulations. To address these, the market witnesses a shift towards cloudbased platforms, empowering organizations of all sizes to make strategic decisions backed by expert analysis while ensuring compliance and maximizing the revenue generated through prudent investment.
The increasing demand for process automation and digital transformation is driving market growth. It helps enable enterprises to digitize core business processes and eliminate the need for manual intervention in highly complex and repetitive procedures. Additionally, it increases operational efficiency, helps to provide personalized customer experiences, and reduces time-to-market, chances of error, and operational costs. Hence, industries like BFSI, retail, and manufacturing are implementing BPMaaS solutions to automate internal and external processes, increasing demand for the market.
However, these advantages of BPMaaS can be further expanded by integrating other technologies like BPM, RPA, and AI, commonly known as intelligent automation. It helps in making intelligent, automated, real-time data-driven decisions by usage of AI and analytics which improves flexibility at every stage of the process. As a result, companies in this space are increasingly offering BPM services integrated with AI and RPA. Hence the above factors are likely to result in market growth during the forecast period.
The increasing adoption of remote working models is a key trend in the market. The requirement of collaboration and sharing via Cloud-based software is increasingly important with the shift towards remote work. It helps ensure that enterprise-wide data transfer, business management, and communication are effective and efficient. The adoption of CRM, ERP, and SCM has allowed companies ease of communication and connection with their employees remotely.
Additionally, there is expected to be further growth of the Cloud enterprise resource planning (ERP) market is due to increasing popularity among small and medium-sized businesses and startups that are shifting towards a work-from-home culture. Even post the COVID-19 lockdown, several companies have shifted to a hybrid business model, which is also expected to contribute towards market growth during the forecast period.
The increasing number of cyberattacks on Cloud ERP software is challenging market growth. Cybercriminals that hack ERP platforms gain access to sensitive company data and business-critical data. This can be utilized to damage the firm’s business operations and impact overall business efficiency. In the absence of proper IT security software, this could cause cyberattacks such as distributed denial-of-service (DDoS).
Additionally, the operating environment of companies has shifted towards digitalization, and data transactions are being performed across multiple locations with external entities. This leaves their systems increasingly vulnerable to cyberattacks which could exploit loopholes to access sensitive information. Hence, the increasing number of cyberattacks could pose a hindrance to the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Market Segmentation is influenced by a multitude of factors, including the widespread adoption of biometric technology and encryption to ensure authentication and safety and security in various applications such as consumer electronics and aerospace and defense. Market players leverage customer relationship strategies and analytics tools on ecommerce platforms to analyze data and make strategic decisions. Additionally, geographical coverage and geographic expansions play a crucial role in market dynamics, with companies utilizing cloudbased platforms like Data Bridge for expert analysis and pestle analysis to assess trade regulations and import/export analysis. As the market grows, investments in biometrics technology and epassport solutions contribute to revenue generation and drive innovation in polyurethane dispersions for enhanced performance and durability.
The market share growth by the solutions segment will be significant during the forecast period. It mostly includes software platforms for the effective execution and implementation of ERP which provides integration of price, timing, speed, quantity, and other models into the business. It is mostly used by the BFSI, manufacturing, and services end-users and helps in gaining rapid trade orders effectively. The integration of ERP software helps firms to gain massive profits in relatively less amounts of time compared to conventional software.
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The solutions segment showed a gradual increase in the market share of USD 11.08 billion in 2017 and continued to grow by 2021. It can also be customized according to speed requirements and automation requirements while ensuring reliability and cost-effectiveness. It also has in-built availability of guidance for installation and customization, making solutions easier to implement. Hence, increasing digitalization is likely to result in further market expansion of this segment of the Cloud ERP market during the forecast period.
The BFSI companies segment is increasingly adopting Cloud ERP to streamline their financial planning and budgeting processes in alignment with business strategies and plans. It allows for funds transfer pricing and improves the accuracy of profitability estimation. Banking companies like Mizuho Bank and Westpac are boosting the demand of the Cloud ERP market for various banking functionalities, including maintenance of balance sheets, profit and loss, assets and capital management, market liquidity, and credit quality management. It helps plan and analyze profitability, adhere to relevant regulations, and effectively plan, budget, and forecast the company's business strategies. Hence, the above factors will drive the market growth of this segment during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Within North America, the US and Canada are the largest markets and contribute the greatest revenue to the regional Cloud enterprise resource planning (ERP) market. Enterprises, especially SMEs, are increasingly adopting ERP, primarily in combination with other advanced technologies like blockchain, AI, and Internet of Things (IoT)-enabled applications and data analytics.
To cater to this demand, various companies have offered in-built application programming interfaces (APIs) that allow for product upgrades and maintenance fees. Increasing digitization and the greater importance of business efficiency and transparency are also contributing to the growth of the regional Cloud ERP market. They offer a single integrated system that helps to pool data from all databases across all departments. This prevents duplication of data and reduces data accessing time, other factors that are likely to result in the growth of the Cloud enterprise resource planning market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acumatica Inc. - The company offers Cloud ERP solutions such as the Acumatica Cloud xRP platform.
Epicor Software Corp. - The company offers Cloud ERP solutions for offsite management.
Oracle Corp. - The company offers Cloud ERP solutions such as Fusion for Dummies and finance and operations.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market experiences robust growth propelled by advancements in biometric authentication and AI-driven biometric solutions catering to identification purposes in various sectors like public administration, financial and insurance, and construction. Technologies like Machine Learning and Artificial Intelligence drive technology enhancements in ERP systems, offering scalability and efficiency for businesses of varying organization size. Integration with Google Cloud facilitates big data analytics and enables seamless access to public, private, and hybrid cloud environments, empowering System Integrators to optimize sales processes and enhance enterprises performance. As consumer preferences evolve, ERP solutions tailored for healthcare, IT and telecom, and other industries leverage human capital and strategic partnerships to deliver innovative cloud-based solutions, shaping the future of enterprise management.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.02% |
Market growth 2023-2027 |
USD 15.38 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.52 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acumatica Inc., Certinia Inc., Dassault Systemes SE, Deacom Inc., ECI Software Solutions Inc., Epicor Software Corp., Infor Inc., Microsoft Corp., Oracle Corp., Productoo, QAD Inc., Ramco Systems Ltd., Rockwell Automation Inc., Sage Group Plc, SAP SE, SYSPRO Pty. Ltd., Rootstock Software, Unit4 Group Holding B.V., Workday Inc., and Xledger |
Market dynamics |
Parent market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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