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Cloud-Based ERP: Critical Driver Shaping the Growing Digitization And IOT Adoption Fuels Cloud-Based ERP Market Growth Market in 2025
Cloud-Based ERP Market
Cloud-Based ERP Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In recent times, the size of the cloud-based ERP market has experienced notable growth. A projected increase from $43.61 billion in 2024 to $46.14 billion in 2025 with a Compound Annual Growth Rate (CAGR) of 5.8% is anticipated. The historical period growth has been promoted by factors such as the shift to cloud computing, the necessity for scalability in Enterprise Resource Planning (ERP), cost cutting and resource optimization, enhanced mobility and data accessibility, and a rising comprehension of Software as a Service (SaaS) models.
Cloud-Based ERP Market Size Forecast: What's the Projected Valuation by 2029?
Forecasting for the next few years indicates a swift expansion in the size of the cloud-based ERP market, reaching a substantial $73.91 billion by 2029, fueling a CAGR of 12.5%. The predicted growth during this period is primarily driven by a surge in need for industry-focused cloud ERP solutions, heightened priority on cybersecurity with respect to cloud-based ERP, broadening of cloud ERP among small to medium-sized businesses (SMEs), sophisticated analytics, and hybrid cloud implementation. Key trends during this forecast period encapsulate industry-tailored solutions, mobile ERP, integration with blockchain, ongoing upgrades and enhancements, and an elevated emphasis on user experience.
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What Are the Drivers Transforming the Cloud-Based ERP Market?
The surge in digitization, the adoption of IoT, and the environment of cloud computing all played a part in augmenting the market share of cloud-based ERP. Offering real-time data, facilitating crucial business insight acquisition instantaneously, improving decision-making processes in an organization and promoting superior interaction among devices are some benefits of Cloud ERP. Furthermore, for small to medium enterprises, cloud-based ERP is a cost-effective choice that allows staff to access the system from any device. For example, a McKinsey study reported that firms which invested in advanced technologies during this time showed notable enhancements in their operational efficiency and customer engagement metrics. Especially, those utilizing AI and machine learning experienced an average productivity rise of 20%.
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What Long-Term Trends Will Define the Future of the Cloud-Based ERP Market?
Technological progress is substantially influencing the market for cloud-based ERP solutions. Such advancements are bolstering the adoption of cloud-based ERP systems and services. These systems will assist in enhancing workflow efficiency, improving decision-making and communication, fostering better device interaction, assessing employee performance, providing easy access to users, and offering digital support to a company. For example, ELO Digital Office GmbH, a software company headquartered in Germany, introduced three new ERP and CRM system-specific integration solutions in January 2023. These innovative solutions represent a notable expansion of ELO's offerings, with interfaces designed for SAP S/4HANA cloud systems, SmartWe CRM from CAS Software AG, and abas ERP from abas Software GmbH. The purpose of these integrations is to enable smooth communication between ELO's ECM Suite and these popular software platforms, empowering users to store documents, transmit metadata, and start document-related processes directly from their ERP or CRM systems.
Which Segments in the Cloud-Based ERP Market Offer the Most Profit Potential?
The cloud-based erp market covered in this report is segmented -
1) By Component: Solution, Service
2) By Organization Size: Small And Medium-sized Enterprises, Large Enterprises
3) By Development Model: Private Cloud, Public Cloud, Hybrid Cloud
4) By End-Use Industry: Automotive, Aerospace And Defense, Retail, Banking And Financial Services, IT And Telecommunication, Education, Government And Public Sectors, Other End-Use Industries
Subsegments:
1) By Solution: ERP Software, Business Intelligence And Analytics Tools, Customer Relationship Management (CRM) Integration, Inventory And Asset Management Solutions
2) By Service: Implementation Services, Training And Support Services, Consulting Services, Maintenance And Upgrades
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Which Firms Dominate the Cloud-Based ERP Market by Market Share and Revenue in 2025?
Major companies operating in the cloud-based erp market include SAP SE, Microsoft Corporation, Oracle Corporation, IBM Corporation, Infor Inc., Sage Group plc, Aptean, Epicor Software Corporation, Acumatica Inc., Ramco Systems Limited, Deltek Inc., Plex Systems Inc., Syspro, Unit4 N. V., QAD Inc., Workday Inc, Netsuite Inc., Daffodil Software Ltd, Certinia (FinancialForce Inc. ), IQMS (Dassault Systemes SE), Rootstock Software (The Danville Group Inc. ), IFS AB, Genius Solutions Inc., OpenPro Inc., Koch Industries Inc., Sapphire Systems (Kechie ERP), Brahmin Solutions LLC, Method Integration Inc., Deskera Holdings Limited, Blue Link Associates Limited, Brightpearl Limited
Which Regions Offer the Highest Growth Potential in the Cloud-Based ERP Market?
North America was the largest region in the cloud-based ERP market in 2024. The regions covered in the cloud-based erp market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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