Cloud ERP Market Size, Share & Trends Analysis Report By Deployment (Public Cloud, Private Cloud, Hybrid Cloud), By Enterprise Size (Large Enterprise, Small & Medium Enterprise), By Function, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global cloud ERP market size was valued at USD 29.86 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 17.9% from 2023 to 2030. The global market growth is primarily attributed to factors such as the rising adoption of SaaS solutions owing to the functional ability of cloud computing to improve the business performance of enterprises and the increasing migration of enterprises to the cloud ecosystem for reducing operational costs and improving security. Additionally, a growing need to deploy advanced ERP solutions that contain advanced analytics features and identify probable issues such as delays and disruptions, and rapid inclusion of artificial intelligence (AI) & machine learning (ML) technologies in the development of cloud enterprise resource planning (ERP) solutions are observed as key trends contributing to the market growth. 

Moreover, cloud ERP providers prioritize data security, often implementing stringent measures such as encryption, multi-factor authentication, and frequent security assessments. This robust safety structure offers companies additional protection that may be complicated to provide internally, reducing risks related to data breaches and cyber threats. This factor is expected to drive the market growth over the forecast period, thereby providing numerous growth opportunities for the stakeholders.

Cloud ERP has emerged as a transformative solution for several end-use industries, such as construction, addressing various complexities inherent in project-based environments. Construction companies may effectively control project costs with the help of cloud ERP applications as they link financial data with project operations. With the help of this integration, it is possible to keep a tab on how resources are being used, budget allocations, and expenses in real-time, which is another factor that is positively impacting the market growth. For instance, in May 2023, IFS, a cloud software company, announced a partnership with NCC, a construction company, to increase productivity and efficiency across all its businesses in the four Nordic countries. IFS Cloud will replace the current Infor Lawson ERP and IBM Maximo EAM solution at NCC. The technology will give NCC's business visibility, boost operational effectiveness, and simplify accounting procedures. Through the partnership, NCC Company will use IFS Cloud Enterprise Asset Management (EAM), and IFS Cloud ERP will support 7,000 users across NCC.

Cloud ERP has emerged as a prime focus for government organizations and large-scale enterprises. These organizations gain access to several opportunities as they make strategic investments, including rapid innovation and increased operational effectiveness to improve data governance and compliance. For instance, in February 2023, Oracle announced an investment of USD 1.5 billion to meet cloud computing requirements in Saudi Arabia. Oracle announced plans to create a third public cloud region in Saudi Arabia to address the rapidly expanding demand for cloud services. The new cloud region is expected to support the local businesses with reduced latency issues and increased scalability options that will in turn drive the adoption rate of cloud ERP solutions in the country. Consequently, the number of enterprises migrating from their conventional hosting platforms to cloud platforms will increase, thereby creating pavement of opportunities for cloud migration services associated with ERP software.

Cloud ERP eliminates the need for small businesses to invest in costly hardware and IT infrastructure. This means that small businesses can save money on hardware and maintenance costs, which is expected to drive the market growth. Moreover, it provides a robust platform for SMEs to digitally transform their business operations, modernize their procedures, and remain competitive in a rapidly evolving business environment. Cloud ERP systems offer real-time visibility into the utilization of resources, helping SMEs allocate assets effectively and reduce costs. For instance, in March 2023, SAP SE, a software company, launched an innovative offering termed GROW with SAP for midsize companies to take advantage of the proven features of cloud ERP. GROW with SAP, which is explicitly developed to assist midsize businesses in maximizing the benefits of cloud ERP, assures that customers will stay up to date with the current technological advancements to help them develop efficiently. A global community of specialists and free instructional resources are also available to midsize companies who use GROW with SAP, ensuring they achieve real business results.

The increasing threats of cyberattacks are pushing cloud ERP providers to enhance their security measures. Advanced cybersecurity frameworks are necessary for ensuring data safety, compliance, and resilience when businesses entrust sensitive information to the cloud. However, several cloud ERP providers frequently perform security audits and penetration tests to identify vulnerabilities in the system. These timely approaches can assist in identifying and addressing various issues before intruders can take advantage of them. Moreover, robust encryption techniques need to be adopted by cloud ERP providers to protect data security throughout server storage and transfer between users and the cloud.

Deployment Insights

The public cloud segment accounted for the highest market share of over 58% of the market in 2022. The segment growth can be attributed to the growing flexibility in cost models, the increasing need to avoid vendor lock-in situations, and the rising adoption of containerization architecture to enhance scalability. Subscription-based deployments of public cloud ERP are becoming more prevalent, aligning costs with actual usage. As a result, resource allocation is made more flexible, modular, and effective, maximizing IT spending while retaining performance. Besides this, containerization architecture is driving agility in cloud ERP deployments. The increasing adoption of container management in enterprises demonstrates the appeal of multi-cloud architectures. Furthermore, public cloud platforms allow end users to manage on multiple heterogeneous cloud platforms to achieve maximum independence. Hence, public cloud eliminates vendor lock-in and facilitates seamless migration between vendors. All these factors are expected to drive the segment growth in the market.

The hybrid cloud segment is anticipated to register the highest growth rate over the forecast period. Businesses are utilizing the hybrid cloud strategy to handle issues that are challenging to resolve with conventional IT systems. The hybrid cloud approach is bridging the gap between IT and enterprises by enhancing efficiency and agility and swiftly delivering IT services at a competitive price.Hybrid cloud enables performance optimization by allowing organizations to strategically assign workloads based on their specific requirements and providing the essential agility to respond to new business demands. Companies that use a hybrid cloud can readily extend their workloads on the cloud and more rapidly test, prototype, and release new products as they are not restricted to their personal on-premise infrastructure, which is supporting the segmental growth of the market.

Enterprise Size Insights

The large enterprises segment accounted for the highest market share of over 56% of the global market in 2022.The market growth in large enterprises is driven by the necessity of scalability, automation for efficiency, monitoring processes, and unified data administration. Large enterprises manage huge amounts of data from various sources. With cloud ERP, organizations can centralize customer data, increase data accuracy, and deliver insightful data, which is expected to drive segment growth in the market.

The small & medium enterprises segment is anticipated to register the highest growth rate over the forecast period. SMEs are leveraging Cloud ERP to optimize resource allocation, minimize cost, and enhance operational efficiency. Cloud ERP systems provide real-time visibility into resource utilization, helping SMEs allocate assets effectively and reduce costs. Cloud ERP systems include extensive analytics and reporting features that enable SMEs to extract useful information from their data and make decisions that promote innovation in the cloud ERP market growth.

Function Insights

The supply chain segment accounted for the highest market share of over 23% of the global market in 2022.   The segment growth can be attributed to the increasing integration of digital twin technology. To enable real-time monitoring and predictive analytics for optimized operations, digital twins make virtual replicas of physical assets. Furthermore, cloud ERP systems are incorporating RPA to streamline manual processes, reduce errors, and enhance efficiency in supply chain and operations, which is further expected to drive the segment growth in the market.

The finance segment is anticipated to register the highest growth rate over the forecast period. As financial organizations seek to modernize their operations, improve data-driven decision-making, and adhere to regulatory regulations, cloud ERP adoption is gaining traction in the finance sector. Financial forecasting has evolved due to the emergence of Artificial Intelligence (AI) and machine learning. Cloud ERP systems are using AI algorithms to analyze historical data, market patterns, and outside influences, providing more precise and useful financial projections, thereby boosting finance segment growth in the cloud ERP industry.

End-use Insights

The IT & telecom segment accounted for the highest market share of over 19% of the global market in 2022. The emergence of 5G technology created new opportunities for the IT and Telecom sector. Cloud ERP providers started focusing on integrating capabilities to manage and optimize 5G network resources, ensuring efficient service delivery and customer experience, which is expected to drive the market growth. For instance, in September 2022, Mavenir, a network software provider, announced the integration of Google Cloud's public cloud architecture with cloud-native 5G solutions. Through their partnership, Mavenir and Google Cloud will enable Communications Service Providers (CSPs) to use Google Cloud's scalable infrastructure, big data analytics services, container deployment, management tools, and 5G applications and products. Without affecting network management, performance, or insights, Mavenir's solution lowers complexity and costs for CSPs by shifting portions of the regular telecom application business to cloud operations.

The manufacturing segment is anticipated to register the highest growth rate over the forecast period. The segment growth can be attributed to the factors such as seamless data management and real-time visibility. Incorporating various technology such as, AI, ML, big data analytics, and the Internet of Things (IoT) would enable cloud service models to significantly benefit manufacturers. In addition, the manufacturing industry uses computing services for enterprise resource planning, supply chain management, and data archiving. The manufacturing sector can effectively analyze, access, and exchange information using cloud computing services. Additionally, cloud services provide platforms for ongoing innovation, business focus, availability, scalability, flexibility, and cost reductions that is expected to support the segmental growth of the market.

Regional Insights

North America dominated the global cloud ERP industry with a share of over 30% of the global market in 2022. In North America, the market growth can be attributed to factors such as the growing adoption of hybrid cloud strategies that combine on-premises and cloud infrastructures by North American companies. With the ability to easily interface with hybrid configurations, cloud ERP solutions enable organizations to combine the management of on-premises systems with the scalability of the cloud. By combining cloud ERP with advanced analytics, businesses can extract valuable insights from their data, which helps them make assertive, well-informed decisions, that is further expected to drive the market growth.

Asia Pacific is anticipated to register significant growth over the forecast period. Asia-Pacific has been a rapidly growing region in terms of digital adoption and e-commerce, with countries such as China, India, South Korea, and Japan witnessing significant advancements in cloud ERP adoption. For instance, in April 2023,Huawei, a manufacturing company, announced that its MetaERP system had substituted the old ERP system that the company fully controls. 80% of Huawei's business volume and all business scenarios are handled using MetaERP. Additionally, Huawei has collaborated with partners to integrate advanced technologies into the MetaERP system, substantially improving service effectiveness and operational quality. These technologies include cloud-native architecture, metadata-driven multi-tenant architecture, and real-time intelligence. Such developments are expected to flourish the market growth in the region.

Key Companies & Market Share Insights

Partnerships, strategic mergers, and acquisitions are projected to be the most efficient ways for industry companies to increase technological capabilities and obtain speedy access to the growing market. For instance, in May 2023, Google LLC, a technology services company, announced a partnership with SAP SE, a software company, offering customers an open data solution built on Google Cloud Cortex Framework on BigQuery and SAP Datasphere that places data and analytics at the center of business transformation. With SAP Datasphere, users can combine their non-SAP enterprise data and SAP system data on Google Cloud, allowing them to access all data from nearly any source in a single end-to-end data cloud in real-time.

Additionally, market players focus on product diversification and upgrades, as well as the expansion of services. For instance, in September 2022, Yonyou (Hongkong) Company Limited, a software company, announced the launch of Yonyou BIP, the newest platform for business innovation, in Bangkok, Thailand, marking the introduction of the company's next-generation cloud ERP product for international users. Yonyou BIP eliminates common roadblocks to digital transformation, links businesses with the industrial internet, and fosters innovation.  Some of the prominent players in the global cloud ERP market include:

• Acumatica, Inc.

• Deltek, Inc

• Epicor Software Corporation

• Infor

• Microsoft Corporation

• Oracle Corporation

• RAMCO Systems

• Sage Group plc

• SAP SE

• Syspro

• Unit4

• Workday, Inc.

Cloud ERP Market Report Scope

Global Cloud ERP Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global cloud ERP market report on the basis of deployment, enterprise size, function, end use, and region:

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• Function Outlook (Revenue, USD Million, 2018 - 2030)

  • Finance

  • Supply Chain

  • Human Resources (HR)

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Manufacturing

  • BFSI

  • Healthcare

  • Retail & E-commerce

  • Government

  • Aerospace & Defense

  • IT & Telecom

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa