Cloud-Based ERP Market Report 2025

The cloud-based erp market size has grown strongly in recent years. It will grow from $43.61 billion in 2024 to $46.14 billion in 2025 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to transition to cloud computing, need for scalability in enterprise resource planning (ERP), cost reduction and resource optimization, increased mobility and accessibility of data, growing awareness of software as a service (SaaS) models.

The cloud-based erp market size is expected to see rapid growth in the next few years. It will grow to $73.91 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to rise in demand for industry-specific cloud ERP solutions, growing emphasis on cybersecurity in cloud-based ERP, expansion of cloud ERP in small and medium-sized enterprises (SMEs), advanced analytics, hybrid cloud adoption. Major trends in the forecast period include industry-specific solutions, mobile ERP, blockchain integration, continuous updates and improvements, focus on user experience.

The growing digitization, IoT adoption, and cloud computing environment all contributed to the expansion of the cloud-based ERP market share. Cloud ERP provides real-time information, helps to gain vital business insights instantly, can improve decision-making in a business and enables better interaction between devices. Also, cloud-based ERP is an affordable option that enables employees to access the system from any device in small to mid-sized businesses. For instance, In January 2021, in a global survey, Software AG, an enterprise software company, announced that results of their global survey stated that 97% of global IT directors reported that their companies went through digital transformation in 2020 and also listed the areas of focus such as Cloud computing (67%), 5G (51%), AI (43%), and Integration (43%) that are of interest in 2021.

The increasing investment in the technology sector is expected to drive the growth of the cloud-based ERP market. Investment in the technology sector involves allocating funds to acquire or support technology-related businesses and assets, such as software development, hardware manufacturing, and innovative startups, with the anticipation of future financial returns. These investments are directed toward cloud-based Enterprise Resource Planning (ERP) systems to modernize and transform business operations, streamline processes, and improve overall efficiency. For instance, in October 2022, according to the India Brand Equity Foundation, India's IT spending in 2024 is projected to increase by 11.1%, reaching $138.6 billion compared to $124.7 billion the previous year. Thus, rising investment in the technology sector will boost the growth of the cloud-based ERP market.

Leading companies in the cloud-based ERP market are concentrating on developing advanced products, such as SaaS-based ERP solutions, to enhance scalability, improve business efficiency, and provide more flexible, cost-effective options for organizations of all sizes. SaaS, or Software as a Service, is a cloud-based model where software is hosted online by a provider and accessed by users over the internet. For example, in May 2024, FORTERRO, a UK-based software company, introduced Fortee, a cloud-based SaaS ERP solution tailored for SME manufacturers and industrial startups. Built on Forterro’s Sylob platform, it offers key features such as purchasing, production, CRM, and supply chain management, delivering a simplified ERP system for businesses new to ERP.

Major companies operating in the cloud-based ERP market focus on technological advancements, such as the new Microsoft Dynamics 365 Copilot, to enhance efficiency, precision, and sustainability in processes and gain a competitive advantage. Microsoft Dynamics 365 Copilot refers to an AI-driven virtual assistant designed to assist users with business tasks and decision-making within the Dynamics 365 suite. For instance, in March 2023, Microsoft Corporation, a US-based technology company, launched the new Microsoft Dynamics 365 Copilot, providing interactive, AI-powered assistance across business functions. It takes advantage of recent advancements in generative AI to automate these tedious tasks and unlock the full creativity of the workforce. Dynamics 365 Copilot puts customer relationship management (CRM) and enterprise resource planning (ERP) to work for business users to accelerate their pace of innovation and improve business outcomes in every line of business.

In September 2022, Exact, a Netherlands-based provider of business and accounting software, acquired Weclapp for an undisclosed amount. Through this acquisition, Exact will get best-in-class cloud-native technology to provide a fully integrated system for clients encompassing CRM, project management, accounting, manufacturing, and inventory management, among other areas. Weclapp is a Germany-based provider of cloud ERP (enterprise resource planning) software.

Major companies operating in the cloud-based erp market include SAP SE, Microsoft Corporation, Oracle Corporation, IBM Corporation, Infor Inc., Sage Group plc, Aptean, Epicor Software Corporation, Acumatica Inc., Ramco Systems Limited, Deltek Inc., Plex Systems Inc., Syspro, Unit4 N. V., QAD Inc., Workday Inc, Netsuite Inc., Daffodil Software Ltd, Certinia (FinancialForce Inc.), IQMS (Dassault Systemes SE), Rootstock Software (The Danville Group Inc.), IFS AB, Genius Solutions Inc., OpenPro Inc., Koch Industries Inc., Sapphire Systems (Kechie ERP), Brahmin Solutions LLC, Method Integration Inc., Deskera Holdings Limited, Blue Link Associates Limited, Brightpearl Limited.

The cloud-based ERP refer to an enterprise resource planning (ERP) system that runs on a cloud platform, allowing organizations to access it over the internet as opposed to an on-premises network. Integrates various departments in an organization and automates essential financial and operational business functions for the smooth flow of communication and information by providing a central database.

The main components of cloud-based ERP are solutions and services. Cloud-based ERP solutions meet the requirements of clients while saving time and money. A cloud-based ERP solution, along with reduced cost, allows users across the globe to access business information by connecting to the internet. The different organisation sizes include small and medium-sized enterprises and large enterprises. Private cloud, public cloud, and hybrid clouds are the various cloud-based ERP development models used by various end-use industries such as automotive, aerospace, and defense, retail, banking and financial services, IT and telecommunication, education, government and public sectors, and other end-use industries.

The cloud-based ERP market research report is one of a series of new reports that provides cloud-based ERP market statistics, including global cloud-based ERP industry size, regional shares, competitors with a cloud-based ERP market share, detailed cloud-based ERP market segments, market trends and opportunities, and any further data you may need to thrive in the cloud-based ERP industry. This cloud-based ERP market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

North America was the largest region in the cloud-based ERP market in 2024. The regions covered in the cloud-based erp market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cloud-based erp market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The cloud-based ERP market includes revenues earned by entities by providing software tools to an organization with access to their business-critical applications at any time from any location and provides analytical capabilities, customizable dashboards and reports, vendor-generated updates, and enterprise-level security. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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