Invoice Processing Software Market Outlook (2023 to 2033)
The invoice processing software market revenue for 2022 was valued at US$ 22 billion. The market is estimated to reach US$ 25.3 billion by 2033, as it is expected to grow at a CAGR of 18% from 2023 to 2033. Automating accounts payable is becoming more and more important to businesses. A future is slowly emerging where invoice processing will no longer represent a tactical back-office function within an organization. Similarly, customer experience has become an increasingly important aspect in both B2C and B2B relationships, especially when it comes to electronic invoicing processes and how they are carried out.
Based on the IOFM's 2018 Future of Accounts Payable Study, it has been found that by the year 2021, 51% of the paper invoices received by a department's accounts payable department will be able to be eliminated by their department because the majority of invoices will be able to be processed electronically. A survey by IOFM found that nearly a third of practitioners expect to eliminate 25 to 50 percent of paper invoices from suppliers in the near future. Through automation of invoice processing, accounts payable will have new opportunities to approach the company more strategically in order to offer more value to the company through rewards programs, early payment discounts, longer-term standard payment terms, and better control of expenditures.
A large amount of e-invoicing was adopted in the EU with the assistance of European legislation, which made it easier for governments to work with the public sector. This resulted in a boost in economic benefits, a reduction in manual work, a reduction in tax evasion, an increase in efficiency, and wider adoption of digital technology. In Europe, e-invoicing has now become a common format and brings benefits to countries. In response, many countries are now introducing legislation governing e-invoicing for B2G, B2B, and B2C transactions. In France, a new government system called Chorus Pro, which handles B2B2G processes, is already being prepared to implement mandatory B2B e-invoicing by the end of 2024. It has been mandatory for businesses, industries, and individuals to use e-invoicing since the coming of 2019 in Italy.
In the past few years, the demand for the use of online invoices has surged. By 2026, based on one study, there is expected to be an increase in the amount of money spent on E-invoicing services to reach $20 billion. Due to the endless advantages that online invoices provide, there is no doubt that the market for these invoices is expanding rapidly. China introduced the E-Fapiao Program in 2023, which is a fully digitalized version of the e-invoicing system that was previously taken from Taiwan to China. With the beginning of January 28, 2023, Chongqing, Qingdao, Dalian, Tianjin, and Shaanxi provinces will be able to issue fully digitalized e-fapiao to some taxpayers who are residents of those provinces.
Software that scans invoices has a bright future. The capabilities of scanning software are expected to continue to improve as technology advances and becomes more accurate and efficient. The process of processing invoices will be faster, more efficient, and less costly for businesses. Additionally, as cloud-based solutions are becoming more prevalent, companies will be able to access and take advantage of scanning software from a variety of places, enabling them to manage invoices proficiently. Consequently, invoices can be managed more securely in the future.
Several experts expect that advancements in artificial intelligence and natural language processing will make scanning software capable of dealing more accurately with invoices as they will be able to extract information from the invoice with more precision and efficiency. Invoice-processing tasks will be automated, so businesses will be able to reduce the amount of time they need to spend on manually entering data into invoices for processing. Additionally, new scanning tools are now being developed to provide businesses with more ease and convenience in storing and retrieving their electronic invoices, enabling them to make use of the data on time and with ease.
Data Points
Key Statistics
Estimated Base Year Value (2022)
US$ 22 Billion
Expected Market Value (2023)
US$ 25.3 Billion
Anticipated Forecast Value (2033)
US$ 132.4 Billion
Projected Growth Rate (2023 to 2033)
18% CAGR
Invoice Processing Software is a software that helps companies to automate the task that are related to invoice processing. Enterprises use invoice processing software for reducing the manual work and eliminating human error.
Invoice processing software offers an overview of whole invoice cycle right from invoicing to receipt production, accurate allocation, & expense management. This software can be easily integrated with enterprise resource planning software for increasing the efficiency of payment process.
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Invoice Processing Software Market Forecast and CAGR
According to latest research, invoice processing software market is estimated to grow with a expected CAGR of 15%. Increasing need for secure payments to reduce frauds and adoption of cloud-based service is increasing the demand for invoice processing software.
What is Driving Demand for Invoice Processing Software?
The cloud based solution is helping enterprises to stay above of growing start-ups by gaining profitable revenue streams with minimum investment. The cloud based solution also help enterprises to quickly extend and customize their applications while creating opportunities for enterprises to transform and grow digitally.
Adoption of cloud-based invoice processing solution is a new trend in the market. Cloud-based solutions help companies to reduce their infrastructure and resources (IT personnel) costs, while at the same time allowing them access to all features as offered by on-premise software.
Various vendors such as SAP SE, Zoho Corporation and others that have been providing cloud-based quality and invoice processing solutions in the global market for over a decade have witnessed significant growth in terms of demand for cloud-based solution in the past few years.
Cloud-based invoice processing software enables users to receive real-time business updates and take required actions. Urgent issues regarding payments are being addressed in real time due to adoption of cloud based solution. Digital wallets and invoicing through mobile apps have also become a part of cloud based invoicing process.
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Invoicing Using Blockchain Technology
Adoption of blockchain technology in invoicing process is increasing as blockchain technology has a potential to revolutionize how transactions are validated, invoices issued and payments made. Using blockchain in invoicing process helps user to make seamless payments from customer’s to businesses digital wallet. Transaction are easy to monitor and track and the entire history of exchange can be downloaded from blockchain.
Blockchain technology eliminates the manual steps involved in invoice processing and the transaction are becoming paperless as the adoption of blockchain is increasing. As the transaction information is stored in blockchain all relevant parties can view and verify the processes and it can be used with artificial intelligence for identifying payment profiles and risk of end debtors.
South Asia & Pacific Invoice Processing Software Demand Outlook
Invoice processing solution vendors can focus on expanding their businesses across countries in South Asia & Pacific region where there is increasing demand of innovative invoice processing solution to automate the invoicing process and avoid human errors in the process. Invoice processing solution market is growing rapidly due to growing business complexities and changing regulatory requirements.
Therefore companies need to focus on the growing need to analyze regulatory requirements, polices, and obligations. Also, government initiatives that are mandating the use of invoice processing software is facilitating the growth of invoice processing software in the region.
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North America Invoice Processing Software Market Outlook
Adoption of invoice processing solution is growing in the region due to rising adaptation of the solution in small and medium size businesses. Moreover, invoice processing solutions offered in the region are integrated with analytical tools like Machine Learning (ML), artificial intelligence, blockchain technology that enable organizations get actionable insights and thereby focus on reducing organizational risks.
Some of the key players in the region are following product launch strategy in order to offer innovative invoice processing solution.
Who are the Key Providers of Invoice Processing Software?
Some of the leading Invoice Processing Software providers include
SAP SE
Sage Group PLC
Chrome River
Spendesk
Coupa
Zoho Corporation
Koufax
Concur Invoice
and Invoicera among others.
These vendors have adopted various key strategies, to enhance the customer base globally and locally. Companies are also spending millions of dollars into product R&D to fulfill the unmet needs of their customers. Furthermore, many companies are focusing on inorganic strategies by acquiring small and mid-sized organizations present in this market.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
