CAGR: 11.2%Current Market Size: USD 3.1 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global accounts payable automation market is expected to grow from USD 3.1 billion in 2022 to USD 7.24 billion by 2030, at a CAGR of 11.2% during the Projection period 2023-2030. The growth of the accounts payable automation market is mainly driven by increasing industrialization.
Payable Automation provides Accounts Dashboards, compliance requirements, account selections, routing regulations, and approvals to help an organisation run more efficiently. The AP automation system's real-time view of invoice status and on-demand reporting features enable organisations to make data-driven decisions for the expansion of their operations. Manual AP processes are expensive, prone to error, and very ineffective. The AP system streamlines payment processes and assists firms in maintaining vendor-supplier relationships. It may be readily integrated with ERP, improving your ability to adapt to changes and increasing the efficiency of payment procedures. The ability to use AP automation solutions can also help businesses gain a higher level of visibility and control over their daily operations, allowing AP departments to focus on more strategic tasks such as identifying additional opportunities for cost savings and fostering the growth of their organisations. These and other factors will drive the account payable automation market forward. One of the primary drivers of industry growth is the demand for limited user access to avoid payment fraud. Furthermore, factors such as the use of AP automation solutions provide businesses with greater visibility and control over daily operations, freeing up AP departments to focus on more strategic tasks such as identifying additional cost-saving opportunities and assisting their organisations in gaining a competitive advantage.
Sample Request: - Global Accounts Payable Automation Market
Market Dynamics:
Drivers:
Payable Automation provides Accounts Dashboards, compliance requirements, account selections, routing regulations, and approvals to help an organisation run more efficiently. The AP automation system's real-time view of invoice status and on-demand reporting features enable organisations to make data-driven decisions for the expansion of their operations. Manual AP processes are expensive, prone to error, and very ineffective. The AP system streamlines payment processes and assists firms in maintaining vendor-supplier relationships. It may be readily integrated with ERP, improving your ability to adapt to changes and increasing the efficiency of payment procedures.
Restraints:
In emerging economies, there is a lack of understanding regarding the benefits of automated accounts payment systems. This lack of information, along with deep-seated apprehension about automating financial services, may restraint market expansion. Insecurity originates from an increase in payment fraud, cyber-attacks, and a lack of digital literacy.
Opportunities:
The growing demand for additional features such as remote access, 24-hour availability, real-time invoice status, and flexible connection with corporate resource planning has resulted in advanced technology. Such cutting-edge technology enable enterprise-specific customization. New innovations have also decreased the cost of these products, allowing the industry to expand; small and medium-sized businesses will fuel this market expansion.
Challenges:
Installation and maintenance of this system necessitate the use of experienced personnel with relevant experience. Because of the software's complexity, there are few takers in the market, resulting in a shortage of experienced workers. Offering lucrative retribution and competent training can help the market efficiently address this dilemma.
Segmentation Analysis:
The global accounts payable automation market has been segmented based on type, component, application, and region.
By Product
The product segment is cloud and on-premise. The on-premise segment led the largest share of the accounts payable automation market with a market share of around 53.56% in 2022. The on-premises AP automation solution is placed on the client organization's server; nevertheless, in order to use the configurable AP automated solution, the user or buyer must purchase a licence. Implementation and integration services are provided by vendors to ensure that the solution is correctly deployed and used at the client's location. Businesses can use the on-premises AP automation solution to automate payables workflow and define criteria for invoice approvals. On-premises AP automation solutions are losing market share because they need significant upfront investments and long-term developer commitment.
By Component
The component segment is managed services, services, solutions, and professional servies. The solutions segment led the largest share of the accounts payable automation market with a market share of around 37.4% in 2022. By giving visibility throughout the whole AP process, from invoice to receipt generation, the AP automation solution provides proper approval, correct allocation, and timely payment and expenditure control. It may also be readily integrated with Enterprise Resource Planning (ERP), improving adaptability and payment process efficiency.
By Application
The application segment is BFSI, IT & telecom, consumer goods & retail, energy & utilities, manufacturing & healthcare and others. The BFSI segment led the largest share of the accounts payable automation market with a market share of around 35.45% in 2022. The global banking sector is becoming more strategically oriented and technologically advanced in order to respond to consumer expectations while defending market share against an increasing number of competitors. AP automation in the BFSI vertical focuses on increasing document efficiency by replacing paper invoices with digital invoicing. The streamlined and automated payment procedure contributes to excellent client service, increased profit, fraud prevention, and regulatory compliance.
Global Accounts Payable Automation Market - Sales Analysis.
The sale of the accounts payable automation market expanded at a CAGR of 8.1% from 2016 to 2022.
Manual AP procedures are inefficient, costly, and prone to errors. The AP system improves payment procedures while allowing businesses to preserve vendor-supplier relationships. The AP automation solution ensures proper approval, accurate allocation, fast payment, and expenditure control across the entire AP process, from invoice to receipt generation. Furthermore, it may be easily connected with Enterprise Resource Planning (ERP), increasing flexibility and improving payment process efficacy. AP automation, which includes dashboards, account options, compliance criteria, routing rules, and approvals, ensures the efficient functioning of an organization's activities.
Because it provides 24/7 access, a real-time view of invoice processing, and on-demand reporting capabilities, organisations can use the AP automation system to make data-driven decisions for the success of their operations. Furthermore, the solution enables multiple business stakeholders, such as Chief Financial Officers (CFOs), managers, accountants, and AP staff, to carry out their tasks more effectively, eliminating user-related payment concerns. The increased need to reduce the number of delinquent payments and boost compliance with regulated user access and credentials, resulting in a decrease in fraudulent transactions, are the key factors driving the growth of the accounts payable automation market.
Thus, owing to the aforementioned factors, the global accounts payable automation market is expected to grow at a CAGR of 11.2% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the accounts payable automation market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region dominated the accounts payable automation market and held a 38.2% share of the market revenue in 2022.
Global Accounts Payable Automation Market - Country Analysis:
Germany's accounts payable automation market size was valued at USD 0.75 billion in 2022 and is expected to reach USD 1.19 billion by 2030, at a CAGR of 6% from 2023 to 2030. One of the primary aspects driving market expansion in the region is the increasing demand for limited user access to reduce payment fraud. B2B payments are used by companies and corporations for their clients and suppliers. This, in turn, is likely to assist businesses in sticking to their supply management strategy. The aforementioned causes have increased the usage of accounts payable automation.
China’s accounts payable automation market size was valued at USD 0.78 billion in 2022 and is expected to reach USD 1.26 billion by 2030, at a CAGR of 6.2% from 2023 to 2030. China is expected to be the world's fastest-growing accounts payable automation industry. The market's prominence is attributed to expanding infrastructure, commercial, and industrial advancements in emerging countries such as China.
India's accounts payable automation market size was valued at USD 0.60 billion in 2022 and is expected to reach USD 0.96 billion by 2030, at a CAGR of 6.1% from 2023 to 2030. The region market is likely to be driven by rising demand for accounts payable automation to improve payment processes and reduce invoice processing time. Furthermore, Increasing need to limit the number of late payments is also projected to enhance the market's growth.
Key Industry Players Analysis:
To increase their market position in the global accounts payable automation market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
11.2% |
Market Size |
3.1 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Component, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
SAP Ariba, Zycus, Sage Software, Bottomline Technologies, Tipalti, FreshBooks, Comarch, Vanguard Systems, Bill.com, and Coupa Software. |
By Type |
|
By Component |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Accounts Payable Automation Market By Type:
Global Accounts Payable Automation Market By Component:
Global Accounts Payable Automation Market By Application:
Global Accounts Payable Automation Market By Region:
Global accounts payable automation market is expected to reach USD 7.24 billion by 2030.
The accounts payable automation market is projected to have a CAGR of 11.2%.
Payable Automation provides Accounts Dashboards, compliance requirements, account selections, routing regulations, and approvals to help an organisation run more efficiently. The AP automation system's real-time view of invoice status and on-demand reporting features enable organisations to make data-driven decisions for the expansion of their operations.
Leading market players active in the global accounts payable automation market are SAP Ariba, Tipalti, FinancialForce, Zycus, Bottomline Technologies, Sage Software, Coupa Software, FreshBooks, FIS, and Vanguard Systems. among others.
Political Factors- The current political stability of the country has had an impact on the accounts payable automation sector. Furthermore, the politicians' honesty and predisposition for corrupt behaviour, as the fallout could lead to high-ranking government officials resigning or being impeached. The country's laws, particularly those relevant to trade, such as contract law, because they define what is and is not permitted to accomplish. Some countries, for example, restrict alcohol or have regulations that must be followed, but others have a large bureaucracy that discourages industry.
Economic Factors- The current economic structure of the industry—whether it is a monopoly, an oligopoly, or something more like to a system of perfect competition. The GDP growth rate of the country will decide the rate at which the economy is likely to grow in the near future. The amount that people are willing to borrow and invest is determined by the country's interest rates. Higher interest rates would encourage more investment, which would enhance GDP. The currency rate of the country would have an effect on profitability, especially if it engaged in international trade.
Social Factors- The age and gender distribution of the population has a significant impact on whether or not a given product may be marketed to them. Because makeup is often marketed to women, addressing a male demographic would reach fewer people than addressing a female demographic. It would be difficult to promote a premium product to the broad public if the bulk of people were from the lower class; instead, they would have to concentrate on highly specialised niche markets. Because of educational disparities between marketers and the target market, it may be difficult to relate to and attract the target market.
Technological Factors- The trend in research and development in the selected area or business indicates how forward-thinking organisations are in bringing ground-breaking innovations to market. The liquid sodium aluminate market must grasp how new technical breakthroughs can assist the sector and customers. In markets where disruptive technology is prominent, a significant investment in research and development would be required. The liquid sodium aluminate market must have a long-term perspective and avoid expecting to immediately return R&D investments.
Environmental Factors- The current weather conditions may have a substantial impact on the ability to handle material flow and end product. The delivery dates of the finished product might be affected if there was an unexpected monsoon. Several products would lose value as a result of climate change. Thick winter gear, for example, has a much smaller market in countries where the winter has become very mild due to global warming. Businesses that generate a significant amount of waste may be required by law to control their environmental policies.
Legal Factors- As previously stated, the objective of intellectual property laws and other data protection measures is to protect enterprises that rely only on information's patents and ideas. If there is a chance of data theft, the system will lose its competitive advantage and will virtually likely fail. Anti-discrimination legislation implemented by the government is meant to safeguard workers and ensure that everyone is treated fairly and given equal opportunity, regardless of gender, age, handicap, race, religion, or sexual orientation. Following observing the atrocious working conditions faced by people during and immediately after the industrial revolution, health and safety legislation were enacted.
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