Cloud ERP Global Market Report 2024

The global cloud erp market has grown rapidly in recent years. It will grow from $72.75 billion in 2023 to $84.7 billion in 2024 at a compound annual growth rate (CAGR) of 16.4%. The growth in the historic period can be attributed to rising demand for enterprise resource planning, growing adoption of cloud computing, government support for cloud erp adoption, growing awareness of the benefits of cloud erp, globalization.

The global cloud erp market is expected to see rapid growth in the next few years. It will grow to $154.59 billion in 2028 at a compound annual growth rate (CAGR) of 16.2%. The growth in the forecast period can be attributed to continued growth of the digital economy, demand for industry-specific cloud erp solutions, global expansion, growing iot integration. Major trends in the forecast period include hybrid cloud erp adoption, real-time analytics, eco-friendly cloud erp, innovative software updates.

The burgeoning trends of digitalization and cloud computing are poised to be the driving forces behind the expansion of the cloud ERP market. Digitalization entails the conversion of information and processes into digital formats, while cloud computing encompasses the on-demand delivery of various computing resources through the Internet. In this context, cloud ERP plays a pivotal role, facilitating the management of vast data volumes and the optimization of intricate operations and workflows. For example, findings from a 2021 survey conducted by Software AG, a Germany-based enterprise software company, indicated that a substantial 97% of global IT leaders reported their companies underwent digital transformation in 2020. Notably, cloud computing (cited by 67% of IT leaders), 5G (51%), AI (43%), and integration (43%) were listed as pivotal technologies for 2021. Consequently, the upward trajectory of digitalization and cloud computing is set to propel the cloud ERP market.

The ongoing surge in data usage within cloud computing is poised to be a driving force in the growth of the cloud ERP market in the near future. Data usage denotes the volume of data that is either uploaded or downloaded through a device. The ever-increasing data volumes generated by organizations necessitate more efficient approaches for its management and processing. Cloud ERP systems present a centralized platform for overseeing diverse business functions. For instance, as revealed by a legal technology survey conducted by the American Bar Association, a US-based organization of lawyers and law students, there was a notable uptick in cloud data usage, increasing from 60% in 2021 to 70% in 2022. Moreover, the number of solo cloud users surged from 52% to 84% within a year. Consequently, the expanding data usage landscape is expected to be a major driver of growth in the cloud ERP market.

The significant expense associated with ERP solutions is a hindrance to the growth of the cloud ERP market in the forecast period. High costs refer to substantial or inflated expenditures linked to specific products, services, or activities. The cost of ERP solutions can vary due to a variety of factors and represents a considerable challenge for businesses looking to implement these systems. For instance, in March 2023, as reported in an article on ERP Focus, a UK-based company that offers knowledge and evaluation resources to ERP software professionals, the average budget per user for an ERP project stands at $9,000, with implementation costs ranging from $150,000 to $750,000 for mid-sized businesses. Thus, the high expenses related to ERP solutions present a significant obstacle to the expansion of the cloud ERP market.

Major companies operating in the cloud ERP sector are focused on advancing their products and services by integrating technologies such as business innovation platforms to strengthen their position in the market. Business innovation platforms are programs that aid organizations to innovate and expand by offering tools and resources to facilitate collaboration, knowledge sharing and idea generation. For instance, in September 2022, Yonyou, a China-based cloud service provider and enterprise resource planning (ERP) solutions, launched BIP (Business Innovation Platform), the next-generation cloud ERP to enhance the business innovation platform. The newly launched Yonyou BIP is the upgraded architecture ‘1+3+X’, shifting from ‘All-in-One Suite’ to ‘Integrated Service Cluster’ to enhance the ERP solutions in HR, Business and Finance, covering ten major line-of-businesses.

In June 2023, Aptean Inc., a US-based company specializing in the development of cloud ERP solutions, made an undisclosed acquisition of Affinitus Group Ltd. This strategic acquisition has empowered Aptean Inc. to bolster its services by capitalizing on the synergies between the two teams. This collaborative effort facilitates accelerated innovation and quicker adaptation, ultimately delivering advanced products to clients within reduced timeframes. Affinitus Group Ltd. operates out of the UK and is known for providing cloud-based business resource planning solutions.

Major players in the cloud erp market are Microsoft Corporation, Hewlett-Packard Development Company L.P., International Business Machines Corporation, Oracle Corporation, NetSuite Inc., SAP SE, Workday Inc., Infor, Tyler Technologies Inc., Epicor Software Corporation, Unit4, Deltek, IFS AB, Odoo, QAD Inc., Sage Intacct Inc., Ramco Systems Limited, Tally Solutions Private Limited, Global Shop Solutions, Plex Systems Inc., SYSPRO, Rootstock Software ERP, Genius Solutions Inc., IQMS, MIE Solutions Inc., Acumatica, VIENNA Advantage.

North America was the largest region in the cloud ERP market in 2023. The regions covered in cloud ERP report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the cloud ERP market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components of Cloud ERP consist of solutions and services. A Cloud ERP solution represents a type of ERP software hosted on a cloud computing platform and accessible over the internet. These solutions cater to organizations of various sizes, encompassing both large enterprises and small and medium-sized enterprises, and are employed in sectors such as banking, financial services, insurance (BFSI), healthcare, IT and telecom, aerospace and defense, government and public sector, retail, and more.

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

The cloud ERP market include revenues earned through entities by providing services such as to access customer information, sales histories, financial data, human resources management tools, live operating metrics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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