The global cloud ERP market is expected to grow from $45.3 billion in 2020 to $101.1 billion by 2025, at an annual compounded growth rate of 17.4 per cent during the forecast period, according to a new report by Research and Markets.
The major factors driving the growth of the cloud ERP industry include growing demand among enterprises to improve operational efficiency and streamline business processes, the impact of COVID-19 pandemic, and increasing adoption of cloud-based solutions.
Finance and accounting are some of the most crucial business processes in any organization. Enterprises take great care while handling the data related to financials. Cloud ERP for finance and accounting is designed to be comprehensive, integrated, and highly scalable for global companies in a wide variety of industries.
It has features such as ledger and analytics, and payables and assets. It manages customer data centrally, creates customer invoices, receives and applies for customer payments, manages customer balances, recognizes revenues and invoices, applies for customer payments, and identifies & tracks bankrupt customers.
Cloud ERP gathers financial data and generates reports, such as ledgers, trail balance data, overall balance sheets, and quarterly financial statements.
Manufacturing Cloud ERP software 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, generate accurate pricing, and calculate total manufacturing costs. Manufacturing companies have been moving their traditional ERP systems to cloud as they realize that their core competency is manufacturing, not managing software and hardware.
Cloud ERP offerings from various prominent vendors are more secure and reliable solutions than most of the 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.
SMEs across the globe are rapidly adopting advanced technologies to create a niche for themselves in the global market. The rapid adoption of digitalization and automation has augmented profits for SMEs and greatly enhanced their business productivity.
Organizations with an employee range between 1 and 1000 are categorized under the SME segment. Cost-effectiveness is an essential need for SMEs, as limited budgets always constrain them. SMEs are investing in cloud ERP solutions to enhance their business processes and compete with large organizations. Cloud ERP solution enables SMEs to improve their overall productivity by helping them reduce the manufacturing time.
The North America region includes the US and Canada. North America witnessed the earliest adoption of cloud and mobile technologies, which has been significantly responsive to the adoption of cloud ERP solutions. Advancements in BYOD, M2M, and mobile and cloud technologies are the major factors responsible that have led to improving the efficiency of business processes.
Hence, to derive benefits from these technologies, large enterprises are adopting cloud ERP solutions rapidly. Also, the integration of cloud ERP solutions with ERP enhances the features or capabilities of solutions.
North America is projected to encourage market growth, as large enterprises and SMEs are focused on developing innovative cloud ERP solutions, which are integrated with technological advancements, such as IoT and predictive maintenance. North America also witnessed an early adoption of cloud and mobility technologies and has an advanced IT infrastructure, which reduces operational expenditure through various advancements in technologies across various verticals.
Currently, North America is the largest revenue contributor as compared to the other regions. However, the COVID-19 outbreak has resulted in the disruption of supply chains across verticals, which has led to a decline in their production capacities. This has led to an increase in demand for cloud ERP services from these verticals.