Enjoy complimentary customisation on priority with our Enterprise License!
The business accounting software market size is estimated to grow at a CAGR of 7.96% between 2023 and 2028. The market size is forecast to increase by USD 3.01 billion. The growth of the market depends on several factors, including the increased regulatory compliance to protect customer data from breaches, the high focus on sustainability using green IT, and the increased need to improve the agility of accounting. Business accounting software helps organizations record, process, and track their internal financial transactions. The software takes care of the core financial functions such as accounts receivable, general ledger, accounts payable, payroll, and reporting.
This business accounting software market report extensively covers market segmentation by deployment (cloud-based and on-premises), end-user (large enterprises and SMEs), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
For More Highlights About this Report, Download Free Sample in a Minute
A high focus on sustainability using green IT is the key factor driving market growth. The efficient use of computers and IT resources with an environmentally friendly approach is directed to as green IT. Some of the methods to achieve green IT include adopting cloud computing, virtualization, software automation, and multi-tenancy. Moreover, the adoption of cloud-based business accounting software saves energy costs by lowering the number of internal servers and enhancing application management efficiency.
Furthermore, the adoption of cloud, virtualization, software automation, and multi-tenancy helps organizations achieve energy efficiency and sustainability. The adoption of the cloud is increasing as all organizations seek sustainability to remain competitive in the market, hence expanding the growth of the global business accounting software market during the forecast period.
The introduction of optical character recognition (OCR) is the primary trend shaping market growth. OCR technology in business accounting software has attained popularity over the past few years. This technology converts /images into readable and editable text. The need for manual entry of handwritten forms, checks, or printed receipts is no longer required. OCR technology uploads handwritten receipts onto an online accounting platform and extracts all the relevant text and data simultaneously. Some of the leading players in OCR technology are Receipt Bank, Expensify, and Hubdoc.
For example, the technology could be used in scanning bills and receipts. Major companies, such as Google and Microsoft, are investing in the technology for data identification and categorization in documents such as cheques. Overall, OCR technology is expected to play a significant role in reducing the time to process documents, which will consequently drive the growth of global business accounting software during the forecast period.
Software compatibility issues with different online platforms is a challenge that affects market growth. Business accounting software has compatibility issues with various platforms, such as Mac, Windows, and Android devices. Most business accounting software applications are mainly designed for a desktop. In some cases, the software will be compatible with Windows and Android but not with Mac. It is also common for business accounting software for Mac to have many unnecessary features. This results in a suite of complex and confusing tools instead of what the business really needs.
Furthermore, quality checks to confirm that the data is error-free, cleaning up unnecessary or unwanted data, and adopting rectification measures for any technical glitches are important. The process could be time-consuming. In addition, training users on the new software and ensuring compliance with the new system are also necessary. As a result, the rising software compatibility issues will impede the growth of the market during the forecast period.
The market share growth by the cloud-based segment will be significant during the forecast period. The cloud-based business accounting software has regular payments rather than big one-time investments and unexpected expenses for maintenance and updates. Some hosted solutions may affect a larger portion of the cost upfront, with smaller annual support payments to follow. The growing adoption of cloud-based solutions is because of the extensive use of the Internet and the advantages that cloud-based services provide.
Get a glance at the market contribution of various segments Download the PDF Sample
The cloud-based segment showed a gradual increase in the market share of USD 2.83 billion in 2018. Many organizations choose cloud-based business accounting software over on-premises traditional business accounting software due to its low deployment cost. On-premises software provides control over critical data, but it is comparatively expensive. In this model, organizations incur additional expenses to monitor, maintain, upgrade, and provide training and support to end-users. This is in addition to the high implementation cost. This trend of using cloud-based solutions will drive the growth of the market during the forecast period.
One of the most significant end users of business accounting software is the large enterprise segment. Large enterprises have many operations, a large number of resources, and a complex set of financial management requirements. In addition, large enterprises often need custom financial reports, including department- or location-specific profitability analysis, cost-center reports, or consolidation financial statements. Accounting software's ability to generate these reports in a timely and accurate manner saves time and provides insights for decision-making. Thus, these factors under the large enterprise end-user segment will expand the growth of the global business accounting software market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US is an early adopter of business accounting software. The need to accelerate business growth and automation of financial and accounting processes are the key drivers for the adoption of business accounting software. The adoption of business accounting software in North America is comparatively high in SMEs compared with large enterprises.
In addition, the banking, financial services, and insurance (BFSI), retail, e-commerce, and telecommunication sectors are the major adopters of business accounting software. Cost reduction is a primary factor in the adoption of cloud computing services. Regulatory and compliance issues are the primary concerns among enterprises that are planning to implement cloud-based business accounting software. Hence, such factors are expected to drive market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the business accounting software market in North America. However, various information Technology (IT) companies such as Meta, Amazon, Microsoft, etc., offered the work-from-home facility to their employees and gradually started opting for cloud-based business accounting software to manage their remote workforce. Furthermore, with the resumption of business activities post-2021, the demand for on-premises business accounting software has increased. This, in turn, is expected to drive the growth of the regional business accounting software market during the forecast period.
The Business Accounting Software Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Business Accounting Software Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The business accounting software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2022.
|
Business Accounting Software Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
170 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 7.96% |
|
Market Growth 2024-2028 |
USD 3.01 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
7.26 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 31% |
|
Key countries |
US, China, India, UK, and Germany |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Epicor Software Corp., Expensify Inc., FreshBooks, Gridlex Inc., H and R Block Inc., Intuit Inc., Kashoo, Microsoft Corp., NatWest Group plc, Oracle Corp., Priority Software Ltd., Roper Technologies Inc., Rydoo NV, Sage Group Plc, Salesforce Inc., SAP SE, Xero Ltd., ZipBooks, Zoho Corp. Pvt. Ltd., and Red Wing Software Inc |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
