A new research paper has discovered that India’s cloud computing market is set to see significant growth between now and 2020. In fact, experts predict a compound annual growth rate (CAGR) of 62.1% for the cloud enterprise resource planning (ERP) hybrid market. It comes as cloud sectors around the world become increasingly popular, especially with smaller firms wanting to avoid the significant expenses of traditional ERP solutions.
The cloud ERP sector is still in its early growth stage, with many developers still moving into the field. In India, there are a host of strategic collaborations occurring in a bid to reach India’s small and medium-sized enterprises (SMEs) market in particular. This is partly due to predictions of high growth for the nation’s infrastructure and industrial sector over the coming five years. As a result, a lot of firms are looking to strengthen their presence in this region. This has caused Analyst to predict that revenue in the cloud ERP market will reach $97.8 million by the close of 2016.
One of the main contributors to the cloud computing growth is the manufacturing industry. The “Make in India” initiative set up by the Indian Government has helped boost ERP considerably, with manufacturing now offering almost 24.1% to the nation’s cloud ERP sector. When broken down further, the majority of this revenue comes from the surge in SMEs and their need for accessible and affordable ERP solutions that allow them to compete with larger rivals.
Analyst's Tariq Shaik said: “Large and small players will continue to increase their vertical expertise in ERP industry. They will also try to increase the number of partners in India to maximize their reach and forge partnerships to increase their product portfolio.”
In the new report, it was predicted that the largest chunk of contributions to the sector would continue to stem from the manufacturing vertical, with an estimated CAGR of 19.4% to 2020. It was also discovered that the largest market share, with 70%, is currently held by the private cloud ERP sector. However, hybrid cloud ERP prospects have a larger growth potential, and this is expected to gain by a CAGR of 62.1% until 2020. Currently, the SME sector is utilising private cloud deployments, with this sector set to increase by a CAGR of 20.3%, whilst the SME sector growth rate is expected to experience a CAGR of 30.8%.
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