In 2023, the global Cloud ERP software market surged to $32.7 billion, growing by 8%. The top 10 vendors commanded a significant 63.1% market share, with Oracle leading at 20.6%, followed by SAP, Intuit, athenahealth, and RealPage.
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We ask the simple question: Who’s buying Cloud ERP applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Cloud ERP applications market size is expected to reach $46.5 billion by 2028, compared with $32.7 billion in 2023 at a compound annual growth rate of 7.3%.
| Exhibit 2: Worldwide Cloud ERP Software Market 2023-2028 Forecast, $M | |||
|---|---|---|---|
| Year | 2023 | 2028 | 2023-2028 CAGR, % |
| Total | 32706 | 46494 | 7.3% |
Source: Apps Run The World, July 2024
Forecast Assumptions
Deceleration of the Cloud ERP applications market is becoming more evident since the heady days of 2022 following massive investments in Cloud applications to ward off the pandemic effects.
Inflationary pressures as well as geopolitical fallout from a spate of election results in 2024 could put an additional damper on the growth of Cloud ERP market in the mid-range of our forecast.
Major players have been scaling back their ambitions. Oracle’s Fusion Cloud ERP experienced a 14% growth in its latest quarter, down from 33% eight quarters earlier. SAP S/4 HANA Cloud was estimated to grow under 50% in its latest quarter, down from 84% two years earlier.
Similarly, the Cloud ERP applications market for small and midsized companies saw a noticeable deceleration as Intuit QuickBooks Online posted a 19% increase in its latest quarter, down from high twenties and mid-thirties for much of its fiscal years between 2021 and 2023.
Xero also experienced a slowdown in its Cloud ERP subscription dropping to as low as 11% in its latest half year period, a full 11-point decrease from first half of 2019.
What these retreats suggest is that the post-pandemic withdrawal is happening as companies need to rebalance their IT priorities from cybersecurity to Generative AI initiatives, all of which could come at the expense of core system overhaul and/or cloud ERP migration. That could leave many Cloud ERP applications vendors with single-digit growth rates through the forecast period.
Industry-specific Cloud ERP solutions may fare better given that the large number of legacy systems that need to be modernized in order to appeal to a new generation of users.
That is particularly pronounced among certain industries like oil and gas, government, healthcare, and utility, all of which are facing talent shortages. Eager to adopt modern solutions that can be used by different key stakeholders with more attractive user interface and reduced maintenance costs, these organizations are under pressure to replace legacy ERP systems designed primarily for automating specific business processes from financials to domain specific operations as well as exceptions through extensive and expensive modifications. However, these system changes will proceed much slower than those in the commercial sector because of security, compliance and regulatory concerns and challenges.
Tyler Technologies, which sells ERP applications to public sector organizations, projects its Cloud ERP sales to stay in the low twenties through 2024. That compares with a CAGR of 28% since 2019.
Green shoots are expected to be apparent in the latter part of our forecast as maintenance deadlines and sunset mandates of on-premise ERP vendors like Microsoft and SAP start kicking in, triggering a wave of Cloud ERP migration through the end of the decade.
Top 10 Cloud ERP Software Vendors
ERP Financial Management software covers finance-specific business processes such as accounts payable, accounts receivable, general ledger, and fixed asset accounting, as well as online functions such as invoicing, factoring, electronic payments and financial reporting. FM applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise.
ERP Services and Operations Management covers integrated applications suites designed to automate a range of business processes from back-office operations to financial management and from sales order capture to customer information management. Currently ERP also covers functions not being addressed by other functional markets. Examples include Environment and Health and Safety, Governance, Risk and Compliance, as well as industry-specific applications for 21 verticals.
Buoyed by NetSuite, Workday and Xero, the Cloud ERP Financial Management market has never looked more promising, but incumbents are fighting back with quick conversion toolkits, GL upgrades and embedded analytics for easy reporting.
Industry-specific Cloud ERP applications continue to exert considerable influence over direction of enterprise applications market, but growth remains muted because of entrenched presence of legacy systems.
Here are the rankings of the top 10 Cloud ERP software vendors in 2023 and their market shares.
Source: Apps Run The World, July 2024
Other ERP software providers included in the report are: ACI Worldwide, Acumatica, Adobe, Allscripts, Amadeus, Aptean, Asseco Group, athenahealth, Avalara, Blackbaud, BlackLine, Blue Yonder, Bottomline Technologies, Capita Software, CDK Global, Cegid, CGI Group Inc., Cision, CompuGroup, CoStar Group, Cox Automotive, CSG Systems International, DATEV, Ellucian, Epic Systems, Epicor, Ericsson, Exact Holding BV, Exela Technologies, FICO, FinancialForce, Finastra, GE Digital, Greenway Health, Guidewire, HealthStream, IBM, IFS, Jack Henry & Associates, Kingdee, LexisNexis, MYOB, NCR Corporation, NextGen Healthcare, OBIC Co. Ltd., RealPage, Reynolds and Reynolds Company, Roper Technologies, SABRE Corp, Sage, Salesforce, SAP, Sapiens, Sopra Steria Group SA, SS&C Technologies, Temenos Group AG, Tieto, TOTVS, Trimble, Tyler Technologies, UNIT4, Visma, Wolters Kluwer, Workday, Xero, Yardi, Yonyou, Zoho Corp., Zuora.
Custom data cuts related to the Cloud ERP Applications market are available:
- Top 200 Cloud ERP Applications Vendors and Market Forecast 2023-2028
- 2023 Cloud ERP Applications Market By Industry (21 Verticals)
- 2023 Cloud ERP Applications Market By ERP Segments and Categories
- 2023 Cloud ERP Applications Market By Country (USA + 45 countries)
- 2023 Cloud ERP Applications Market By Region (Americas, EMEA, APAC)
- 2023 Cloud ERP Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2023 Cloud ERP Applications Applications Market By Customer Size (revenue, employee count, asset)
- 2023 Cloud ERP Applications Market By Channel (Direct vs Direct)
- 2023 Cloud ERP Applications Market By Product
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like Analytics and BI, Collaboration, eCommerce, PPM and TRM, where first movers remain less established than those that for decades have been entrenched in functional areas like Content Management and CRM.
Cloud ERP Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Cloud ERP systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Cloud ERP software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these ERP customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
List of Cloud ERP Customers
Source: Apps Run The World, July 2024
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) ranked by their 2019-2023 product revenues.
Their 2023 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
