The global cloud market is growing by leaps and bounds. According to a research by MarketsandMarkets on Cloud ERP Market by Component (Solution and Services), Business Function (Accounting and Finance, Sales and Marketing, Inventory and Order Management, and Human Capital Management), Vertical, Organization Size, and Region - Global Forecast to 2024, the global ERP market size is expected to reach USD 37.7 billion by 2024 from USD 24.5 billion in 2019, growing at a Compound Annual Growth Rate (CAGR) of 9.0% during the forecast period.

Let’s explore the attributes and trends in the market put forth by the report that contribute towards the massive growth of the cloud ERP market.

Why Cloud ERP?

The enterprises are feeling the urge to streamline the business processes for optimal outcomes. The need is further strengthened as the companies face resources crunch in the absence of efficient resource management tools, thus giving birth to the need for implementing ERP. However, cost factors are the major obstacles on the path of implementing an ERP solution.

This is the primary reason the cloud ERP market is facing massive demand as the companies seek a cost-effective alternative when they attempt to assimilate technology in their business operations. A cloud ERP is an enhanced solution in the contemporary scenario. Additionally, this trend is very much prevailing among SMEs, as the cost is a significant challenge for them when it comes to ERP implementation.

Which is the largest market for Cloud ERP?

According to the report, North America is the leader in adopting tech-driven disruptions in the business. Because of the dominant players in the cloud market like Amazon, Microsoft, and Google with immense technical acumen, the North American market has been experiencing technological progress at the fastest rate. This makes North American firms flag-bearers when it comes to embrace Predictive Analytics, Robotics, Machine Learning, Artificial intelligence, Internet of Things, and Big Data. Asia Pacific countries rank second after North America. An increasing number of firms in APAC are adopting ERP cloud for achieving financial, personnel, and operational efficiencies.

The cloud ERP market is typically ruled by few major players including but not limited to Oracle, SAP, Infor, Microsoft, Epicor, Plex Systems, Workday, and many more. With its first version released in 1972, SAP is the leader in ERP solutions. In 2006, SAP released SAP Business All-in-One, focusing SMEs. SAP HANA is the latest version launched in 2015. S/4HANA Cloud is the cloud ERP business suite offered by SAP.

Oracle launched its first ERP cloud solution in 2012 while it has enabled it with AI in March 2019. Oracle has deployed cloud ERP in many firms while upgrading their legacy systems due to operational bottlenecks like increasing cost and decreasing business agility. Oracle is also focusing on emerging economies like India and China, thus making them a lucrative market for Cloud ERP providers.

Conclusion

Cloud ERP is one of the most promising technology trends known for supporting backbones of the organizations operating in the customer-centric economy. The innovative breakthroughs are anticipated to provide a favorable environment for cloud ERP for both small and large scale enterprises.