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The global market for SaaS-based enterprise resource planning (ERP) was valued at approximately USD 72.15 billion in 2023 and is projected to reach around USD 170.12 billion by 2032. This represents a compound annual growth rate (CAGR) of approximately 10.00% between 2024 and 2032.
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The term "Software as a Service" (SaaS) Enterprise Resource Planning (ERP) refers to a paradigm of software delivery in which ERP software programs are hosted in the cloud and users access them over the internet, often on a subscription basis. Users can access the ERP system remotely through a web browser or application interface in this approach. This contrasts the traditional paradigm, which involves acquiring and installing ERP software on-premises.
ERP solutions that are hosted on the cloud offer several benefits that traditional on-premises ERP systems do not, including the following:
- Cost-effectiveness: The startup costs of a SaaS-based enterprise resource planning system are often cheaper than those of a traditional ERP system because there is no requirement to purchase pricey software licenses or hardware. On the other hand, users must pay a membership fee, which often encompasses support, maintenance, and updates.
- Scalability: Enterprise resource planning (ERP) solutions that are SaaS-based are extremely scalable, which enables firms to simply adapt their consumption and resources as their requirements change. As a result of this scalability, SaaS-based ERP is particularly well-suited for corporate organizations that are expanding or that experience variable demand.
- Accessibility: Because software as a service (SaaS) enterprise resource planning (ERP) systems are hosted in the cloud, users can access the system from any location with an internet connection as well as from a variety of devices, including laptops, tablets, and smartphones. Accessibility like this makes it possible for scattered teams to operate remotely and collaborate.
- Flexibility and agility: SaaS-based enterprise resource planning (ERP) solutions are typically more adaptable and adjustable in comparison to traditional on-premises systems. Users can simply add or remove features, combine the system with other software applications, and modify the system to be in accordance with their business requirements.
- Automatic updates and maintenance: SaaS-based ERP vendors are accountable for managing and maintaining the underlying infrastructure, in addition to delivering regular updates and patches to the software. This responsibility extends to offering automatic updates and maintenance. Consequently, this frees organizations from the stress of managing their information technology infrastructure and guarantees that they will always have access to the most recent features and advancements to their security.
Managing essential company activities like finance, human resources, supply chain management, and customer relationship management may be accomplished in a manner that is contemporary, cost-effective, and flexible with the use of an enterprise resource planning (ERP) system that is based. It is becoming increasingly popular among companies of all kinds that are looking to streamline their processes, enhance their efficiency, and drive growth.
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The global SaaS-based enterprise resource planning (ERP) market is led by players like:
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The enterprise resource planning (ERP) market that is based on software as a service (SaaS) is enjoying rapid expansion, which is driven by several major factors:
- Cost-effectiveness: SaaS-based enterprise resource planning (ERP) solutions provide an alternative to traditional on-premises ERP systems that is more cost-effective. Businesses have the potential to realize significant cost savings by utilizing pricing models that are based on subscriptions, reducing the requirement for physical infrastructure, and lowering the upfront transaction costs.
- Scalability: ERP solutions that are based on software as a service (SaaS) are extremely scalable, which enables organizations to simply scale their operations up or down according to their requirements. As a result of this scalability, SaaS-based ERP is particularly appealing to firms that are expanding or that have demand that is continuously fluctuating.
- Accessibility: In terms of accessibility, cloud-based enterprise resource planning (ERP) solutions allow for remote access from any location with an internet connection. This makes it easier for distributed teams to collaborate and also makes it possible to operate remotely. This accessibility is especially valuable in today's work situations, which are becoming increasingly digital and distant.
- Flexibility and Customisation: When compared to traditional on-premises ERP systems, SaaS-based ERP solutions typically offer greater flexibility and customization options. Businesses can simply modify the program to match their particular requirements, customize it to include or exclude features according to their needs, and combine it with other cloud-based apps.
- Rapid deployment: SaaS-based enterprise resource planning (ERP) solutions often have quicker deployment timelines compared to traditional ERP systems. This enables firms to quickly integrate the software and begin reaping the benefits of using it. Businesses that want to streamline their processes and create efficiency benefits would benefit tremendously from this speedy implementation.
- Continuous innovation: SaaS-based enterprise resource planning (ERP) vendors are accountable for the management and maintenance of the underlying infrastructure, in addition to the provision of consistent software updates and enhancements. This guarantees that companies will always have access to the most recent features, functionalities, and security advancements, which in turn drives continual innovation and improvement.
- Globalization and Market Expansion: As organizations expand their operations to new areas and operate in markets that are becoming increasingly competitive, the demand for enterprise resource planning (ERP) systems that are scalable, accessible, and cost-effective becomes more obvious. ERP solutions that are based on software as a service (SaaS) provide the flexibility and agility that are necessary to support worldwide operations and increase business growth.
- Compliance and Regulatory Requirements: Enterprise resource planning (ERP) solutions that are based on software as a service (SaaS) typically come with built-in compliance features and sophisticated security measures, which assist firms in meeting government regulations and industry standards. The healthcare industry, the financial sector, and the manufacturing sector are all highly regulated, making this a particularly significant point to consider.
The capacity of the SaaS-based ERP market to provide solutions that are cost-effective, scalable, flexible, and accessible is the primary factor that is driving its expansion. These solutions are designed to satisfy the ever-changing requirements of modern organizations operating in the digital economy of today.
The global SaaS based enterprise resource planning (ERP) market is segmented as follows:
- Hybrid Cloud
- Private Cloud
- Public Cloud
- BFSI
- Retail
- Healthcare
- Manufacturing
- Others
- North America - The U.S., Canada
- Europe- France, The UK, Spain, Germany, Italy, Rest of Europe
- Asia Pacific - China, Japan, India, South Korea, Southeast Asia, Rest of Asia Pacific
- Latin America - Brazil, Mexico, Rest of Latin America
- Middle East & Africa- GCC, South Africa, Rest of the Middle East and Africa
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