Cloud ERP Market Share, Growth Prospects and Key Opportunities by 2028

According to a research report "Cloud ERP Market by Component (Solutions, Services), Business Function (Finance & Accounting, Sales & Marketing, Operations), Deployment Mode (Public Cloud, Private Cloud), Organization Size, Vertical and Region - Global Forecast to 2028" published by MarketsandMarkets, the cloud ERP market size is expected to grow from USD 72.2 billion in 2023 to USD 130.5 billion by 2028 at a compound annual growth rate (CAGR) of 12.6% during the forecast period. Cloud ERP solutions are designed to facilitate integration with other software and services. They often include open APIs (Application Programming Interfaces) and connectors that make connecting the ERP system with a wide range of third-party applications relatively straightforward. This capability allows businesses to create a more comprehensive and interconnected technology ecosystem, integrating ERP with customer relationship management (CRM) systems, e-commerce platforms, analytics tools, and other applications that contribute to a more streamlined and efficient operation.

Moreover, customer relationship management (CRM) and project management are integral components of a comprehensive cloud ERP solution. CRM enhances customer interactions by centralizing and analyzing customer data, enabling better sales and service. This data integration with ERP improves decision-making, inventory management, and demand forecasting. Project management within ERP facilitates efficient resource allocation, task tracking, and collaboration, ensuring project timelines and budgets are met. When integrated into a cloud ERP system, both CRM and project management modules benefit from real-time data access, scalability, and accessibility from anywhere, which streamlines operations, boosts productivity, and drives growth. Combining CRM and project management with a cloud ERP solution helps businesses improve customer relationships, streamline processes, and enhance organizational efficiency.

By component, the services segment is expected to capture the highest CAGR during the forecast period.

The component segment of the cloud ERP market is segmented into solutions and services. The services segment is estimated to hold the highest CAGR during the forecasted period. Services are categorized into managed services and professional services. The services segment in the cloud ERP market plays a crucial role in complementing the software solutions by offering a wide array of training, support, and maintenance, implementation & integration, and consulting & advisory services. This segment is instrumental in helping organizations adopt and maximize cloud ERP systems' benefits. Service providers assist businesses in effectively deploying ERP solutions, tailoring them to specific organizational needs, and ensuring seamless integration with existing infrastructure. They offer training programs to empower users, facilitate data migration, and provide strategic guidance to align ERP strategies with business objectives. These services are instrumental in helping organizations harness the full potential of cloud ERP, enabling streamlined operations, data-driven decision-making, and long-term scalability while ensuring compliance and data security.

Based on deployment Mode, the public cloud segment is expected to account for the largest market share during the forecast period.

The cloud ERP market, by deployment mode, is segmented into public and private cloud. It is expected that during the forecast period, the public cloud segment is estimated to account for the largest market size and share in the cloud ERP market. Public cloud deployment is pivotal in the cloud ERP market, revolutionizing how businesses manage their operations and data. Cloud ERP systems, hosted on public cloud infrastructure provided by industry giants such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), offer several key advantages. First and foremost, they eliminate the need for significant upfront hardware and software investments, making ERP solutions more accessible to organizations of all sizes. This democratization of ERP technology allows smaller enterprises to compete on a level playing field with larger counterparts.

Additionally, public cloud deployment ensures scalability and flexibility. Businesses can quickly scale their ERP resources up or down based on their changing needs, avoiding the inefficiencies of overprovisioning or the limitations of underprovisioning. Moreover, the global presence of public cloud providers ensures high availability and disaster recovery capabilities, reducing downtime risks and enhancing business continuity.

Moreover, security and compliance are also strengthened through public cloud ERP deployments, as major cloud providers invest heavily in robust security measures and compliance certifications, often exceeding what individual organizations can afford or manage on their own. This instills confidence in customers that their sensitive data is well-protected.

North America is projected to hold the largest market share during the forecast period.

The cloud ERP market by region has been segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. As per region, North America is estimated to account for the largest market share in the global cloud ERP market in 2023, and this trend is expected to continue during the forecast period. The cloud ERP market, encompassing a wide range of critical business functions, is pivotal in reshaping the North American business landscape. First and foremost, it serves as the backbone of digital transformation efforts, enabling organizations to modernize their operations across various sectors. From finance and human resources to supply chain and customer relationship management, cloud ERP systems streamline and integrate these functions, fostering agility and efficiency. In North America, where diverse industries flourish, this technology empowers businesses to adapt rapidly to market changes, scale operations as needed, and remain competitive globally.

Some of the significant cloud ERP market vendors are Oracle (US), Microsoft (US), SAP (Germany), Workday (US), Infor (US), IFS (Sweden), Plex Systems (US), Epicor Software Corporation (US), Sage Group (UK), Ramco Systems (India), QAD (US), Tally Solutions (India), Odoo (Belgium), SYSPRO (South Africa), Tyler Technologies (US), MIE Solutions (US), Acumatica (US), Genius Solutions (Canada), Deltek (US).

About MarketsandMarkets™

MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.

MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

Earlier this year, we made a formal transformation into one of America's best management consulting firms as per a survey conducted by Forbes.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines - TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the 'GIVE Growth' principle, we work with several Forbes Global 2000 B2B companies - helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.