DUBLIN--(BUSINESS WIRE)--The "Cloud ERP Market by Component (Solution, Services), Business Function (Accounting and Finance, Sales and Marketing, Inventory and Order Management), Organization Size, Vertical (BFSI, Manufacturing, IT and Telecom) and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The author forecasts the global Cloud ERP market to grow from USD 64.7 billion in 2022 to USD 130.0 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 15.0% during the forecast period.
Services segment to grow at a higher CAGR during the forecast period
Services are integral to the software life cycle, including deployment, integration, product upgradation, maintenance, training, and consulting. Services are categorized into managed services and professional services. Managed services are valued based on their use and are provided by third-party vendors. The cost implied while using managed services is limited to the time and amount of their use.
Professional services are obtained directly from parent companies. These services can be provided as advisory, implementation and integration, and support and maintenance. The demand for advisory services would increase as technology-based software solutions are expected to increase. Support services include assistance provided during installation and maintenance activities.
Manufacturing segment to record the second highest CAGR during the forecast period
Manufacturing cloud ERP software(s) integrates manufacturing, inventory management, and accounting to help businesses ensure raw materials are available for production, manage the manufacturing process, maintain revisions, and track financials. Integrated ERP for manufacturing helps streamline business processes, generates accurate pricing, and calculates total manufacturing costs.
Manufacturing companies have been moving their traditional ERP systems to the cloud as they realize their core competency is manufacturing, not managing software and hardware. Cloud ERP offerings from various prominent vendors are more secure and reliable than most in-house solutions and have become a distinct advantage for enterprises. For instance, Acumatica ERP software for the manufacturing industry integrates with financial and CRM modules to effectively support all major business areas, helping flexible business processes to plan and control manufacturing operations.
Europe to record for significant market size during the forecast period
The established internet and robust economic infrastructure with business demand for cloud services market. Europe's one of the top 3 markets for cloud-based services and the second largest market in the overall Cloud ERP market. The major countries considered in this report for analysis are the UK, Germany, and others. The UK and Germany are the countries with the highest potential for the Cloud ERP market among all other countries.
Business demands in the European market are diverse, reasonably like North America. Enterprises in this region have strong technical expertise along with bigger IT budgets. The increasing digitalization and the growing focus of organizations on IT problems and streamlining IT processes and services with business objectives are projected to drive the demand for cloud applications in the region. The UK and Germany have the highest growth potential in the cloud ERP market among all the other countries in the region.
Due to the rise in European government initiatives, cloud ERP vendors are employing several security and access protocols to maintain service quality. Major players, such as Microsoft, Oracle, IBM, and OVH, have established their data centers in European regions to cater to customers' growing demands and increase the customer base. The region is an early adopter of cloud technology due to the strong technical expertise and better IT budget of enterprises.
Market Dynamics
Drivers
- Implementation of ERP Systems to Perform Core Business Operations
- Surge in Adoption of Cloud ERP Solutions Across Verticals
- Increasing Cloud Spending Driving Demand for Cloud-Based Applications
- Unified Enterprise-Wide Integration Approach
- Need for Disaster Recovery and Backup Services Amid COVID-19 Pandemic
Restraints
- Limited Customization Options Available for Saas ERP Solutions
- Dependency on Wireless Routers Creates Network Barrier
Opportunities
- Advent of Big Data and Analytics in Cloud ERP Solutions
- Increasing Government Investment in Digitalization
Challenges
- Integration Issue with Legacy and On-Premises ERP Systems
- Security Concerns in Adopting Cloud ERP Solutions
Companies Mentioned
- 3I Infotech
- Acumatica
- Brightpearl
- Delmiaworks
- Deltek
- Eci Software Solutions
- Epicor
- Genius Solutions
- Global Shop Solutions
- IFS
- Infor
- Microsoft
- Mie Solutions
- Odoo
- Openpro
- Oracle
- Plex Systems
- Qad Inc.
- Ramco Systems
- Rootstock Software
- Sage Software
- Sap
- Syspro
- Tally
- Tyler Technologies
- Unit4
- Vienna Advantage
- Workday
For more information about this report visit https://www.researchandmarkets.com/r/j5a8xa
