How Increased Cloud Spending is going to affect the ERP Market in Coming Years
The Enterprise Resource Planning (ERP) market continues to grow exponentially due to its boundless integration possibilities and high-end synchronization and automation capabilities. Globally, the ERP software market was worth in excess of $35.81 billion in the year 2018 and is briskly growing with an astounding 10.2% CAGR. There are many factors contributing to this upsurge in the adoption of the ERP software & services and the escalating reliance on cloud services is one of the leading ERP growth promoters.
Latest Business Trends: Moving From On-Premises to Cloud
The ongoing trends in the world of business symbolize the amassed influence of cloud-based ERP software and services. Businesses are swiftly transitioning to cloud solutions due to their highly economical implementation and easy maintenance. The ERP market growth statistics from different continents across the globe illustrates the impact of cloud spending on the global market. North America oversaw the greatest rise in the adoption of ERP-based Cloud services in the year 2018 and the Asia-Pacific region is forecasted to grow most rapidly with the CAGR of 13.2% in the next 6 years. The presence of a large number of small and medium-sized business enterprises and their global market trend adoption is the leading reason for such exponential growth in continents with numerous developing countries such as Asia.
The Unceasing Growth of Cloud Market
The global cloud services market is rapidly growing with a 12.6% CAGR and is predicted to surge to $331.2 Billion by the year 2022. This unceasing growth of the cloud market is influencing a business cultural swift and according to Gartner’s annual forecast, more than 30% of tech companies will make a transition to the cloud-only approach replacing the current cloud-first approach. Over the course of the last 12 months, the industry grew with a CAGR of 17.5% to $214.3B and these trends will only cause more acclivity in the forecasts ahead.
The Influence of Mobile Applications and Cloud Services
The simplest way to understand the influence of cloud services on the growing ERP market is by reviewing the IT infrastructure cost reduction with the implementation and application of cloud-based services. This is the reason why businesses are swiftly transitioning to cloud-based application and is also the root cause of the upsurge in the ERP market. The global Enterprise Resource Planning (ERP) market is heavily reliant on business tech trends and their rate of adoption is directly proportional to the ERP market growth.