The cloud ERP sector is projected to grow from US$ 27.59 billion in 2022 to US$ 108.17 billion by 2030, reflecting a compound annual growth rate (CAGR) of 18.6% during this period.
ERP solutions have evolved significantly, transitioning from traditional systems to encompass a wide array of business functions, including manufacturing and front-office operations like marketing automation, sales force automation (SFA), and e-commerce. Modern ERP systems that incorporate artificial intelligence (AI) and machine learning (ML) capabilities are increasingly meeting the demand for personalized services while enhancing various business processes. Previously, businesses had the option to integrate AI features into specific ERP systems; however, manufacturers are now providing ERP software that comes with AI functionalities built-in. Organizations are leveraging AI to make informed business decisions based on the extensive operational and customer data they gather. AI technologies are adept at analyzing large sets of unstructured data, quickly identifying patterns and predicting trends that would be challenging to uncover through numerical data analysis alone. This technology aids in the enhancement and automation of numerous processes. For example, a just-in-time inventory strategy aims to deliver components that minimize inventory holding costs. AI, particularly through ML, can optimize labor schedules and supply deliveries, thereby boosting productivity and reducing expenses. According to a study by IFS's Global Enterprise Software Solution Provider, 40% of manufacturers are planning to implement AI for inventory logistics and planning, while 36% are looking to utilize it for customer relationship management and production scheduling. Consequently, technological innovations are expected to introduce new trends in the cloud ERP market in the near future.
Numerous companies in the cloud ERP market are broadening their operations in the Asia-Pacific (APAC) region to facilitate and support their customers' digital transformation journeys. For instance, in August 2021, ACUMATICA, INC, a provider of cloud ERP solutions, announced its accelerated expansion in APAC, particularly focusing on enhancing support channels for customers in South Asia, with an emphasis on Sri Lanka. Through Acumatica's robust partner ecosystem and its global workforce, customers in South Asia will experience improved regional support for deployment, product feature updates, and timely resolution of urgent issues.
In nations like India, the rapid digitalization of small and medium-sized enterprises (SMEs) is driving the uptake of cloud ERP solutions. A survey conducted in August 2023 by Capterra India revealed that a significant trend among Indian SMEs is the establishment of digitalization strategies, with 88% of them now having such plans in place. Across the Asia-Pacific region, various cloud ERP providers are expanding their footprint to optimize the operational processes of mid-sized companies. For example, in April 2023, SAP SE introduced a new offering called "GROW with SAP" aimed at Indian customers. This product is tailored to assist mid-sized businesses in deploying cloud ERP solutions that promote speed, predictability, and ongoing innovation. The GROW with SAP initiative also integrates SAP S/4HANA Cloud, a public edition that includes accelerated deployment services, a global network of experts, and complimentary learning resources. These developments are collectively propelling the growth of the cloud ERP market in the APAC region.
Key players in the cloud ERP market include Acumatica Inc, Infor Inc, Microsoft Corp, Oracle Corp, Sage Group Plc, SAP SE, Workday Inc, SYSPRO Proprietary Ltd, Epicor Software Corp, and Unit4 Group Holding BV, among others. A comprehensive analysis of several other significant players in the cloud ERP market has been conducted to provide a well-rounded perspective of the market and its ecosystem.
The overall size of the cloud ERP market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the cloud ERP market. This approach also aims to provide an overview and forecast of the growth of the cloud ERP market across all segments. Additionally, numerous primary interviews have been conducted with industry participants and commentators to validate the findings and gain deeper analytical insights into the subject. Participants in this research include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the cloud ERP domain.