Accounts Receivable & Accounts Payable Automation Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-based and On-premises), By Application (SMEs and Large Enterprises), Regional Forecast To 2031

Updated On: 15 April 2024

ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE AUTOMATION MARKET REPORT OVERVIEW 

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The global accounts receivable & accounts payable automation market size was USD 2548 million in 2021 and to touch USD 6539 million by 2031, at a CAGR of 9.8% during the forecast period. 

The global COVID-19 pandemic has been unprecedented and staggering, with the accounts receivable & accounts payable automation market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Accounts receivable and accounts payable automation services are software solutions that automate the process of managing and tracking financial transactions related to accounts receivable and accounts payable. Accounts receivable and accounts payable automation services use software to streamline the process by automating tasks such as invoicing, payment processing, and collections. These services can also provide real-time visibility into a company's financial performance, allowing businesses to make informed decisions based on accurate and up-to-date financial data.

The market is considered to boom at a significant growth rate in the future due to the increasing demand for efficiency and the growing adoption of cloud computing. Also, the advanced technology has improved the quality of service which initiated an increase in demand for the accounts receivable & accounts payable automation service. Further, the market is segmented by type, by application, and by key players and market development geographically. In terms of application, large enterprises are the biggest segment. Whereas, cloud-based type of service is more prevalent in the market.

COVID-19 Impact: Pandemic Produces Opportunities for Automation Services

The COVID-19 pandemic has increased the demand for automation services as businesses have had to adapt to remote work environments and find ways to maintain operations while minimizing the risk of exposure to the virus. This has led to an increased interest in cloud-based accounting software that can be accessed remotely and used to manage accounts receivable and accounts payable. Consequently, the market has been growing since 2020-2021 and will continue to flourish throughout the projection period.

Latest Trends

"Growing Use of (AI) and (ML) Technologies Expands Market Space"

The market is one of the fastest growing industries which are rendering services to a large number of business industries with their advanced technologies. Further, the latest trend in the accounts receivable and accounts payable automation market is the increasing use of artificial intelligence (AI) and machine learning (ML) technologies. AI and ML are being used to automate complex financial processes, such as invoice matching, payment processing, and cash flow forecasting. Along with this, the accounts receivable and payable automation market is focused on improving efficiency, increasing automation, and providing more comprehensive insights into financial performance which are contributing to expanding the market demand. Also, the growing trend of advanced technology in the market is attributed to augmenting the demand for the service during the forecast which will support to the accounts receivable & accounts payable automation market growth in the coming years.

ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE AUTOMATION MARKET SEGMENTATION 

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• By Type Analysis

According to type, the market can be bifurcated into Cloud-based and On-premises.

• By Application Analysis

Based on application, the market can be divided into SMEs and Large Enterprises.

Driving Factors

"Growing Adoption of Cloud Computing and Financial Services Enhance the Market Growth"

One of the primary driving factors for the adoption of accounts receivable and accounts payable automation services is the adoption of cloud computing, has played a significant role in the growth of the accounts receivable and accounts payable automation service market. Cloud-based solutions offer several benefits, including greater flexibility, accessibility, and scalability. Therefore, these factors will benefit to the expansion of the market in the upcoming years. Additionally, cost savings. By automating many of the manual and repetitive tasks associated with financial management, businesses can reduce the time and resources required to manage their accounts receivable and accounts payable, and potentially reduce errors and delays.

"Increasing Demand for Efficiency & Need for Real-Time Data and Insights Help to the Market Expansion"

Another driving factor is the increasing demand for efficiency in financial management. As businesses seek to improve their operations and streamline their processes, automation services can provide a solution to manage accounts receivable and account payable more effectively. Furthermore, businesses are increasingly looking for real-time data and insights into their financial performance. Since automation services can provide this data and help businesses make informed decisions based on accurate and up-to-date financial information.

Restraining Factors

"Security and Privacy Concerns Can Confine the Market Growth"

The market has some restraining factors that can impact the growth of the accounts receivable and accounts payable automation service market. The increasing amount of sensitive financial data is being managed through automation services. Where security and privacy concerns can be a significant barrier to adopting the service for some businesses, and they may be hesitant to trust their financial data to a third-party provider. Resulted, such factors can constrain the market.

ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE AUTOMATION MARKET REGIONAL INSIGHTS 

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"Asia Pacific Leads the Market with High Demand for Automated & Secured Payable Processes "

According to the market review, geographically, Asia Pacific is the leading region in the market. Due to rapid industrialization and extremely fast-moving economies, the Asia Pacific region is the fastest-growing region for accounts receivable and accounts payable automation services. Besides, with increasing demand for automated and secured payable processes, the accounts receivable and payable automation market has gained momentum in the region.

Key Industry Players

" Key Companies Offer Computerized Receivables Solutions to Increase Profit Revenue"

In respect of key players, the top companies are leading the market with the computerized receivables solution. The notable companies provide excellent service to organizations through which they are able to transform their accounts receivable departments to eliminate manual, paper-based processes. Moreover, some of the key players including SAP Ariba, Beanworks, Sage, Xero, Tipalti, Freshbooks, Stampli, MineralTree, and AvidXchange, are the prominent players which hold the majority of the accounts receivable & accounts payable automation market shares. Based on their profit revenue, these companies stimulate market growth. In March 2022, A partnership has been announced between Esker and Fujitsu Asia, the regional headquarters for Fujitsu's group of companies in ASEAN. Under the agreement, Fujitsu Asia will implement and support Esker's Procure-to-Pay and Order-to-Cash suites for its Singapore customers. As a result of this alliance, Fujitsu Asia will be able to enhance the services it provides in line with Esker's growth strategy.

List of Market Players Profiled

• SAP Ariba
• Beanworks
• Sage
• Xero
• Tipalti
• Freshbooks
• Stampli
• MineralTree
• AvidXchange
• FinancialForce
• Bill.com
• PaySimple
• BlueSnap (Armatic)
• Oracle
• Nvoicepay
• Esker
• SutiSoft
• Emburse (Chrome River)
• Zycus
• FIS
• Bottomline Technologies
• Coupa Software
• Comarch
• Vanguard Systems
• Procurify

Report Coverage

This report defines the accounts receivable & accounts payable automation market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.