Enterprise Resource Planning or ERP promises high efficiency and productivity. It also has a high initial price for setting up, which sometimes makes it difficult for small and medium scale enterprises to implement it. 

Sometimes, organizations that are large and financially strong also find it difficult and tedious to adopt ERP as it requires expertise. Currently, there’s a shortage of Cloud ERP professionals in the IT sector of the industry. 

Since trained employees are required to handle ERP, there aren’t many companies who are well equipped with the requirements for the same, because any wrong training may produce the opposite result. Therefore, though this technology has not yet achieved the kind of recognition it should have, recent trends show that there’s massive scope for an increase in the direction of the ERP software market until 2026. 

North America dominated the cloud based ERP Software Market in 2018 and projects to remain dominant during the forecast period. Several factors evolve as a result of this, such as the rise of new industries, the growth in the economy, and others.

Aside from this, there is a transition in business, in this region, from on-premise to cloud ERP software, because of its low-cost implementation and maintenance. A large number of cloud ERP solution vendors have been present across the U.S as well as Canada. They expect to provide lucrative opportunities for the market. 

The software market of cloud ERP, which has been existing on a global level, was valued at $35.81 billion in 2018 and is expected to reach $78.40 billion by 2026. It is growing at a CAGR of 10.2% from 2019 to 2026. By the year 2020, the global cloud based ERP app will reach $226.9 billion with cloud platform services of $70 billion. Aside from this, the ERP market which is in a phase of rapid expansion and growth has a total market size that is expected to exceed $49.5 billion by 2024.

The on-premise segment dominated the overall ERP software market in 2018, based on the deployment model. There are expectations concerning this continuous trend during the forecast period.

The Cloud Based ERP System can be categorized into:

1. Public Cloud
2. Private Cloud

Concerning segmentation based on application, the Cloud Based ERP Software market divides into: 

1. BFSI
2. Manufacturing
3. Aerospace Defence
4. Telecom
5. Healthcare
6. Others

The manufacturing industry dominated the Cloud ERP system in 2018. There have been expectations concerning the continuation of this trend. 

There has been a rise in the number of entrants in the pharmaceutical, automotive, garment, and consumer electronics manufacturing markets as a result of this attribute. Nonetheless, the highest CAGR expects to witness growth in the healthcare industry during the forecast period.

Transparency in the process of business, rise in demand for data-driven decision making, etc., are several factors which expect to fuel the market growth. There is also an expectation concerning the surge in adoption of cloud as well as a mobile application, which will drive the development of the web-based ERP software market. 

There has been an increase in demand for cloud based ERP among small as well as medium-sized enterprises. Lucrative opportunities for growth in the market are supposed to be provided as a result of the technological advancements in enterprise resource planning software. 

Mobile ERP software provides many advantages for users: 

1. Improved productivity
2. Fast data capture, even in the field
3. More accurate data capture
4. Competitive advantage
5. Less staff frustration
6. Increased agility
7. On-the-go access to necessary data

The Mobile ERP applications reflect a simple way to save time and money as well as reduce the time-consuming processes, saving time and money as well as freeing staff to concentrate on more critical tasks. 

A few benefits provided by cloud ERP are:

1. End-to-end control of software
2. Maintaining IP within the organization 
3. Significant customization and implementation as and when required by the organization

Due to these factors, there are a large number of enterprises across the globe who opt for on-premise deployment models for storing and securing their data. 

The highest contributor to the cloud-based wrap software market in 2018 was the finance business function. It is predicted to remain dominant during the forecast period, concerning the increase in the need for maintenance of the financial data in a uniform manner. 

In the upcoming years, several businesses anticipate implementing a financial ERP module to improve their business productivity. Thus, it provides ample opportunities for growth in the cloud ERP software market. 

The highest growth has been expected to be witnessed, from the human resource (HR) module due to an increase in adoption of the same in IT industries, as well as BPOs to perform HR activities smoothly, efficiently, and quickly. 

The ERP HR module compels it to be adopted alongside the ongoing business expansion in developing economies for easy integration and management of all the required information of the present as well as another workforce.

A few Key Findings of The Cloud ERP Software Market are:

1. The cloud ERP software segment accounted for the highest revenue in 2018, based on components. 
2. The on-premise segment dominated the ERP software market by deployment mode. 
3.  The finance segment had the highest revenue in 2018, based on business function. 
4. There have been expectations concerning a significant growth of the manufacturing segment in the upcoming years by the industry vertical.
5. The large enterprises produced the highest revenue in 2018, whereas the medium enterprises expect to witness a high growth rate soon. 
6. If we look at countries, in the upcoming years, Bangladesh expects to witness significant growth. 

All areas of business are covered by cloud ERP, which includes automated reports, inventory, and supply chains, project management, human resource functions, and sales and marketing. 

More SMBs are now looking for shorter implementation times and more optimized plans as a result of a greater interest in ERP as a mechanism for implementing process transformations that create long-term value. 

From 2020 onwards, trends show an inclination and focus towards cloud adoption, Al integration in cloud based ERPs, the continued growth of the ERP industry, more outstanding analytics capabilities, and a greater focus on security. 

With the evolution and changing needs of professionals, comes the need for software that supports these needs. Most companies are currently looking for quick responses, broad access, easy use, mobile capability, communication, and more efficiency. When ERP business collaboration takes place, businesses can reach greater heights.

Final Thoughts: 

Several trends in business have reflected and shown that one can bring about improvement only through reinvention. The older systems are replaced by the evolution and emergence of a new technology, where the former becomes obsolete and outdated. 

Stationary hardware is something that is currently becoming obsolete due to the continuous growth in mobile solutions and software. To have a significant business advantage, one needs to stay ahead of these shifts in technological trends. 

As companies phase out many forms of hardware, there’s an increasing demand for simple accessibility from phones, tablets, and laptops alongside a process of simple application-this will grow.  

A huge selling point becomes the ease of use, and this is for a good reason. Team’s need to have access and they need to understand complex data faster. Employee training over here is necessary. An increase in the popularity of intelligent software will be there, that includes configurable dashboards, full integration, and analysis from all perspectives. 

Another trend for the future, In addition to simplicity, is solutions that can expand to an international scale. What becomes more desirable, is a Software which is capable of functioning not only across multiple currencies and languages but also legislations and physical requirements. A cloud based ERP software encompasses all these functions and ends up becoming one of the most advanced systems to date.  By the integration of cloud systems into one’s business, there are higher chances for it to flourish. If you are seeking to integrate a high-end cloud system, then exactllyERP will serve your purpose. As you Contact Us, we will present you with Free Demos for better understanding.