The accounts receivable automation market is expected to have a register a CAGR of 10.8% from 2022 to 2032. The overall market is projected to reach USD 7,333.1 million by 2033, from USD 2,621 million in 2023.
Factors Driving the Market Growth Include:
The practices of workflow automation are rose in various sectors. This resulted in the automaton in account receivable processes. These solutions aids in cash flow improvement and reduces accounting cycle time.
Every end user businesses are augmenting their business efficacy due to nonstop changing environment. This can be attained by better management of account receivables including digital invoices and payments. This is another factor responsible for boosting the market growth in the projected timeframe.
| Attributes | Details |
|---|---|
| Accounts Receivable Automation Market Valuation in 2022 | USD 2,400.2 million |
| Estimated Global Market Share in 2023 | USD 2,621 million |
| Forecasted Global Market Size by 2033 | USD 7,333.1 million |
| Projected Global Market Growth Rate from 2023 to 2033 | 10.8% CAGR |
As per the previous market records, the bet worth of total accounts receivable services adopted globally in the year 2018 was USD 1,716.1 million. In the following years between 2018 and 2022, the overall market progressed at 8.7% CAGR and reached USD 2,400.2 million by its end.
Some factors are acting as obstacles and are hindering the growth of the global market during the forecast period. Data security concerns and the reluctance of enterprises toward automating processes are some factors that are expected to hamper the growth of the global market during the forecast period.
The high price of these systems and complexities of the accounts receivable automation like complex financial systems, and less standardization are other factors that are anticipated to hinder the growth of the market.
One of the key challenges which organizations are facing is the complex implantation process of this software. As manual accounts are generally easier to set up and can be more flexible than computerized accounting. Hence the organizations probably need some initial help while setting up the accounting software and thus the accountant may charge for this which can result in high initial costs
Account receivable management helps organizations to reduce the time spent prioritizing and preparing for calls. In addition, it helps them to reduce the time spent on managing disputes and increase the time they spend soliciting customers for payment which is expected to drive the growth of the market.
It provides several benefits such as cost savings, reduced time, less manual work, and others which are expected to increase the demand for an account receivable automation system. Many key players operating in the market are offering payment collection solutions through the private and public clouds. These solutions are available in different subscriptions and pay-per-use models.
Enterprises are increasingly deploying account receivable automation solutions on the cloud, as it provides numerous advantages. Such as flexibility, scalability, enhanced collaboration, cost-efficiency, and others that fuel market growth.
It also facilitates enterprises to focus on their core competencies, rather than IT processes. Cloud-based solutions are gaining popularity mainly due to their unprecedented deployment flexibility benefits and global availability which is increasing their adoption among small and medium enterprises.
The market is categorized on the basis of component, deployment mode, organization size, and vertical. In component segment, solution category is expected to acquire high share with CAGR of 10.2% through 2033. The services in component segment are further divided into consulting and implementation services, and support & maintenance services.
By deployment mode, the market is divided into cloud and on-premises. According to FMI, on-premises segment is projected to dominate registering a CAGR of 10%. Businesses mainly prefer deployment of accounts receivable solutions. Since this solutions allows businesses to control their businesses accounts and transaction records completely.
The on-premises deployment mode also provides enterprises with full control over the infrastructure and assets, as well as enhances their online security measures. By vertical, manufacturing is expected to be a significant contributor to the accounts receivable automation market during the forecast period.
| Category | By Component |
|---|---|
| Top Segment | Solution |
| Market Share in Percentage | 29.1% |
| Category | By Deployment Mode |
|---|---|
| Top Segment | On-premise |
| Market Share in Percentage | 57.4% |
The manufacturing industry is always on the foothold of overdue credit collection. Enterprises are seeking methods to reduce the burden of payment collection by adopting adequate solutions. This results in the improvement of accounts receivable.
The manufacturing industry emphasize on improving their production process and helps workforce in simplifying work without compromising accuracy. It also focuses on creating new and pioneering products.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| North America | 30.1% |
| Europe | 22.3% |
The Asia Pacific region dominates the global overall market, attributed to the growing demand for precise management of accounting procedures and timely processing of payment processes from customers, Moreover, accounts receivable automation is adopted by enterprises to boost payment collection. In addition, the APAC market has gained traction, owing to the rising demand for automated and secured payable processes.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| United States | 19.2% |
| Germany | 10.2% |
| Japan | 6.5% |
| Australia | 2.2% |
The sales of accounts receivable automation in the United States was estimated at USD 0.9 billion in 2022. The receivable automation market in country is expected to reach market revenue of USD2.5 billion by 2033. United States is estimated to grow at a 10.5% CAGR. Further, in 2033, China is projected to reach market size of USD 450.1 with CAGR of 10.0% by 2033.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 8.2% |
| China | 9.1% |
| India | 13.2% |
Japan and the United Kingdom are expected to reach the same market size of USD 363 million and USD 278.3 million in 2033. Representing growth forecasts of 8.9% and 9.7% respectively, throughout the forecast period. South Korea, on the other hand, is expected to reach a market size of USD 226.5 million in 2033, representing a CAGR of 8.2%, during the forecast period.
SAP, Oracle, SK Global Software, Quadient, Kofax, Workday, Corcentric, HighRadius, Qvalia, MHC Automation, Comarch, and Esker among others are the top companies in this market. With a sizable accounts receivable automation market share, these main firms are concentrating on growing their consumer base in new countries. Businesses are adopting strategic collaborations to augment their profits and market share.
Moreover, mid- and small businesses are entering into new markets and gaining contracts to expand their presence. This is attained with the continuous product development with modern technologies.
Recent Developments
The market is expected to reach USD 2,621 million in 2023.
The market is anticipated to expand at a CAGR of 10.8%.
Increasing focus on cash flow improvement and better customer communication.
High cost of these systems and complex implantation process.
Provision of payment collection solutions via private and public models.
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Accounts Receivable Automation Market
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