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The Europe E-Invoicing Market size is projected to increase by USD 6.13 billion, at a CAGR of 18.59% between 2023 and 2028. The growth rate of the market depends on several factors, including the convenience and easy accessibility of mobile payment systems, the stringent regulatory requirements and government initiatives promoting the adoption of e-invoicing and shift from capital expenditure model to operational expenditure model. E-invoicing is an electronic version of bills or invoices, which was previously available as hard copies. The use of the Internet and software has transformed the invoicing process as data is recorded in computers and saved in databases. Therefore, the process of invoices is easy, less prone to errors, trackable, and makes the auditing process easier.
The report offers extensive research analysis on the Europe E-Invoicing Market, with a categorization based on End-user, including B2B and B2C. It further segments the market by Deployment, encompassing cloud-based and on-premises. Additionally, the report provides Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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One of the key factors driving the Europe E-invoicing market growth is the stringent regulatory requirements and government initiatives promoting the adoption of e-invoicing. Stringent regulatory regulations and government initiatives have been critical in fuelling the adoption of e-invoicing by European firms. In addition, European governments have mandated the use of electronic invoicing to increase transparency, minimize fraud, and improve overall fiscal control. For instance, the European Union implemented Directive 2014/55/EU, which made e-invoicing mandatory for public procurement processes
Moreover, these regulations have established a framework that compels firms to shift from traditional paper-based invoicing to electronic formats, thereby promoting compliance with regulatory standards. Furthermore, the push for compliance not only ensures legal conformity but also increases operational efficiency by streamlining invoicing procedures, minimizing errors, and enabling seamless connection with financial systems. Therefore, companies that use e-invoicing not only comply with regulatory requirements but also improve the efficiency and standardization of their financial procedures. Hence, such factors are positively impacting the market. Thus, it is driving the Europe e-invoicing market growth during the forecast period.
A key factor shaping the Europe E-invoicing market growth is the elimination of human intervention. The Europe e-invoicing market is aiming to minimize the amount of manual intervention and replace it with the increased automation of procedures for improved efficiency and accuracy. In addition, in invoicing workflows, advanced technologies such as optical character recognition (OCR), artificial intelligence (AI), and machine learning (ML) are being used to automate data extraction, validation, and even decision-making.
Moreover, AI-powered solutions, for example, may recognize patterns, evaluate invoice data against predefined rules, and indicate inconsistencies, minimizing the need for manual reviews. In addition, organizations in Europe are aiming to improve speed, decrease errors, and achieve seamless end-to-end automation by minimizing the need for human intervention, ultimately optimizing the full e-invoicing lifecycle for enhanced productivity and cost-effectiveness. Hence, such factors are positively impacting the market. Thus, it is driving the Europe e-invoicing market growth during the forecast period.
Inaccuracies in invoicing are one of the key challenges hindering the Europe E-invoicing market growth. E-invoicing aims to improve the accuracy and transparency of the entire billing process. Therefore, organizations that adopt e-invoicing need to ensure that the required protocols are followed while digitalizing the billing process. Furthermore, while undertaking e-invoicing, it is important for organizations to have accurate master data, which will be used to generate digital invoices.
For instance, e-invoicing errors is caused when products have incorrectly allocated tax slabs. In addition, products such as steel and crude oils have dynamic tax rates, which change daily. Hence, organizations need to change these values in their master data for these changes to be reflected in the e-invoice. Therefore, inaccurate invoicing is likely to hinder the growth of the Europe e-invoicing market during the forecast period.
The B2B segment is estimated to witness significant growth during the forecast period. The growth of the B2B segment is fuelled by increasing globalization and the presence of IT, banking, financial services, insurance (BFSI), and retail companies in Europe, which require centralized systems for billing/invoicing through the Internet (e-invoicing). In addition, stringent regulations in the banking and retail sectors, the rising popularity of e-commerce, and the emergence of alternative ways of payment due to digitization fuel the growth of this segment.
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The B2B segment was the largest segment and was valued at USD 1.88 billion in 2018. Moreover, the acceptance of e-invoicing is high in sectors including retail, automotive, and manufacturing, as they were the first-stage developers of e-invoicing. In addition, electronic data interchange (EDI) and extensible markup language dominate this market. In addition, as mid-sized and small companies increasingly adopt e-invoicing, the volume of PDF bills has increased significantly. Therefore, archiving PDF bills is easy and requires limited storage space. Hence, such factors are fuelling the growth of this segment which in turn drives the Europe e-invoicing market growth during the forecast period.
The increasing adoption of the cloud-based segment will increase the market growth. Several e-invoicing companies in the region have started delivering e-invoicing technology as a service to leverage the growing demand for cloud-based e-invoicing solutions, which allow IT departments of various enterprises to implement an e-invoicing solution at lower costs. In addition, cloud-based e-invoicing does not require the installation of any software, as the software is maintained at the company's data center, from where it can be accessed by the end-user on a subscription basis. Moreover, due to the growing demand for cloud-based e-invoicing in Europe, companies are forming strategic alliances, which help them enhance their cloud-based solutions and gain capabilities that will enable them to cater to the growing demand from their customers and gain a competitive edge in the market. Hence, such factors are fuelling the growth of this segment which in turn drives the Europe e-invoicing market growth during the forecast period.
The Europe E-invoicing 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.
Europe E-Invoicing 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.
American Express Co: The company offers e invoicing solution through its subsidiary Nipendo Ltd.
Aruba Spa: The company offers E invoicing solution for large businesses and can be integrated with professional, operational and ERP applications, as well as other services, to provide customised, multi level solutions.
Avalara Inc: The company offers e invoicing solution namely Avalara E Invoicing.
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 Europe e-invoicing market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Europe E-Invoicing Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.59% |
Market Growth 2024-2028 |
USD 6.13 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
16.56 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Express Co., Aruba Spa, Avalara Inc, Basware Corp., Billit BVBA, Cegedim SA., Comarch SA, Coupa Software Inc., Dooap Inc., EDICOM CAPITAL S.L., Esker SA., International Business Machines Corp., Kofax Inc., Sage Group Plc, SAP SE, Sovos Compliance LLC, Syngenta Crop Protection AG, TradeShift Holdings Inc., Unimaze ehf, and PAGERO AB |
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 End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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