FOCUS ON CONTROL TECHNOLOGIES
Connected manufacturing and Industry 4.0 technologies . by the analyst . It projects North America to dominate the worldwide Cloud ERP market . The cloud-based ERP market in Asia-Pacific is expected to grow the fastest , followed by Latin America and the Middle East . In Asia-Pacific , the demand for transparent and modernised manufacturing processes is expected to drive the growth of cloud-based ERP software during the forecast period .
ERP software market
According to analyst Grand View Research , the global ERP software market size was valued at US $ 54.76 billion in 2022 and is expected to expand at a compound annual growth rate ( CAGR ) of 11 % from 2023 to 2030 .
“ The growing need for operational efficiency and transparency in business processes , the increase in demand for data-driven decisions and the rise in mobile and cloud applications adoption are key factors propelling ERP software market growth . However , the growing availability of open-source applications and higher initial investment and maintenance costs are poised to restrain market growth . An increase in demand for cloud-based ERP solutions since the COVID-19 pandemic , especially from small and medium-sized businesses , is further anticipated to offer numerous opportunities for the stakeholders in this market over the forecast period ,” it explained .
The rising number of SMEs in developing economies ( especially China , India and Brazil ) is expected to boost product demand over the next seven years . In addition , penetration of IT technologies in these regions is expected to change consumer behaviour , leading to the increased adoption of ERP software instead of manual operations .
“ Low infrastructure costs and the ability to integrate with mobile devices are projected to increase the market for cloud services . Mobile is an integral part of the working culture , and enterprises are ready to spend on cloud-connected mobile applications . It allows synchronisation , update and control of documents to individual users . A surge in the adoption of cloud and mobile applications is positively impacting the growth of the ERP market ,” added the analyst .
Any system – MRP ( Manufacturing Resource Planning ) or ERP – also needs to provide security at user level to ensure that the right employees have access to the right information .
Cloud ERP
According to Vantage Market Research , the global post COVID-19 market size of the Cloud- ERP market is expected to grow from US $ 18,523.50 million in 2021 to US $ 47,760.01 million by 2028 ( at a CAGR of 17.10 % during the forecast period ).
“ The need for a high ROI ( return on investment ) and lower upfront costs , combined with an increasing organisational need to improve employee productivity and efficiency , have been major drivers of the Cloud ERP market ' s growth during the forecast period . The increasing adoption of cloud-based solutions , as well as the introduction of Big Data and analytics , are driving global demand for the Cloud ERP market . Furthermore , rising government initiatives , technological advances and demand for Cloud ERP market technology in industries around the world are expected to drive market growth in the upcoming years ,” explained the analyst .
Cloud ERP allows businesses to bridge the gap between legacy systems and modern applications and deploy ERP solutions . Various technological advancements and digitalisation are creating high-growth opportunities , boosting end-use industries such as banking and financial services , retail , government and public sectors as well as automotive , during the forecast period ,” added the analyst .
The Cloud ERP market was estimated to be worth roughly US $ 18,523.50 million in 2021 and is expected to reach US $ 47,760.01 million by 2028 , based on primary research
Market shifts
According to analyst Grand View Research , the large enterprise segment held the largest ( over 39 %) share of the ERP software market in 2022 . The rising need of large enterprises to maintain and align complex processes such as production planning ; inventory management ; procurement ; order fulfilment and shipping , among others , is attributed as one of the key factors driving the segment ' s growth . The high spending capacity of large-sized enterprises on implementing modern technology and software solutions also facilitates the adoption of cloud-based ERP software in the market .
However , it expects the medium enterprise segment to witness significant growth and dominate the market by 2030 .
“ Factors including cloud-based ERP ; increased operational efficiency ; reduced production cost and on-time product delivery are expected to augment demand over the forecast period . In addition , the expansion of firms requires proper management of databases which is expected to propel market demand further . Compliance with stringent government regulations in various industries has facilitated the utilisation of ERP software , increased productivity and reduced operational complexity in numerous sectors ,” explained the analyst .
Mainstream manufacturing companies and ERP software vendors in North American and European markets are engaging in numerous partnerships , contributing to segment growth . Rising automation and digital transformation processes across the manufacturing industries in the emerging countries of the Asia-Pacific are also anticipated to offer numerous opportunities to the ERP market .
“ Additionally , the growing need for businesses to make quick strategic decisions to enhance the productivity and profitability of the industry allows companies to deploy ERP solutions that generate reports based on realtime insights into market conditions , thereby contributing to market growth ,” explained the analyst .
“ North America dominated the ERP software market with a share of over 35 % in 2022 . The Asia-Pacific market is expected to grow due to the booming manufacturing sector and growing small and medium enterprises ,” it added .
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ismr . net | ISMR December 2022 / January 2023