Int'l : +1-503-894-6022 | Toll Free : +1-800-792-5285 | help@alliedmarketresearch.com
A16018 | Pages: 315 | Charts: 71 | Tables: 209 |
The global accounting software market was valued at $11.9 billion in 2020, and is projected to reach $70.2 billion by 2030, growing at a CAGR of 19.6% from 2021 to 2030.
Increase in adoption of innovative technology to increase business productivity and rise of virtual chief financial officer (CFO) to enhance business operation of small-scale to medium (SMEs) industry impact the growth of the market. In addition, increase in trend of automation in accounting process to enhance efficacy and eliminate manual task drives the growth of the market. Furthermore, the availability of advanced and robust IT infrastructure opens up numerous possibilities for accounting software.
In addition, increase adoption of mobile and app-based accounting software among enterprises and individuals is expected to provide lucrative growth opportunities for the accounting software market in the upcoming years. In addition, rise in investment for artificial intelligence (AI)-oriented accounting software is anticipated to provide numerous opportunities for the market growth. However, data security & privacy concerns and additional cost associated with accounting software hamper the market growth.
The accounting software provides a variety of advantages, including account receivable and payable, tax compliance, cash flow analysis, trial balance, balance sheet, invoicing, income & expanses statements, and payroll. In addition, it saves time & money and reduces the number of errors due to automation of process, which would provide the lucrative growth opportunities for the market. Furthermore, rise in investments in the industry such as BFSI, healthcare, retail, & e-commerce and increase in deployment of cloud-based accounting applications further propel the growth of the market.
On the basis of on component, the software segment dominated the accounting software market size in 2020, and is expected to continue this trend during the forecast period. The adoption of accounting software provides numerous benefits to the industry such as streamline the business process, eliminate the manual process, and reduce the time & cost, which further fuel the growth of the market.
However, the services segment is expected to exhibit the highest market share in the upcoming years. This is attributed to the fact that numerous benefits are associated with accounting services such as easy tax filing, cash flow analysis, trial balance, balance sheet, invoicing, income & expense statements, and payroll. In addition, these services enhance software implementation, maximize the value of existing installation by optimizing, and minimize the deployment cost & risks.
[COMPONENTGRAPH]
On the basis of deployment mode, the on-premise segment captured the largest accounting software market share in 2020, and is expected to continue this trend during the forecast period. This is attributed to numerous advantages offered by this on-premise deployment such as high level of data security and safety. Companies prefer on-premise model, owing to high data security and less data breach as compared to cloud-based deployment models, which further drives the demand for on-premise deployment model within the public and private sectors.
However, the cloud segment is expected to witness the highest growth in the upcoming years, owing to rise in adoption cloud-based accounting software, due to low cost and easier maintenance. In addition, it provides flexibility and scalability to boost business process, which propel the growth of the accounting software market.
[DEPLOYMENTMODEGRAPH]
On the basis of region, the North America region dominated the overall accounting software industry in 2020 and is expected to continue this trend during the forecast period. In North America, businesses are investing in their emerging technologies to streamline work processes. Moreover, due to the developed IT infrastructure in this region, cloud-based accounting software has seen widespread acceptance. Furthermore, increase in usage of accounting software in banking and finance to improve businesses and the customer experience, will provide lucrative growth opportunities for the accounting software market in this region.
[REGIONGRAPH]
The global accounting software market is segmented on the basis of component, by deployment mode, by type, organization size, industry vertical, and region. By component, the market is bifurcated into software and services. By deployment mode, it is segregated into cloud and on-premises. On the basis of type, it is fragmented into spreadsheets, commercial accounting software, enterprise accounting software, and custom accounting software. Depending on industry vertical, it is segregated into BFSI, retail & e-commerce, manufacturing, IT & telecom, healthcare, government & public sector, energy & utilities, media & entertainment, and others. By organization size, it is categorized into small to medium enterprise (SMEs) and large-scale enterprise. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report focuses on the growth prospects, restraints, and accounting software market analysis. The study uses Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and bargaining power of buyers on the accounting software market trends.
The demand for cloud-based accounting software is increasing for better security and real-updates. With the help of cloud-based accounting software, businesses can receive accounting-related services anytime, anywhere, on any device. In addition, it makes easier to collaborate and access all financial information from anywhere. Moreover, transparency and accountability in accounting services are now much easier to establish due to cloud technology. Furthermore, cloud-based accounting software provides flexibility and scalability in order to boost business operations. Thus, surge in demand for cloud-based accounting software notably contributes toward the accounting software market size growth.
The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. The global COVID-19 pandemic drastically affected businesses across the world. It has positively impacted the adoption of accounting software due to lockdown imposed by governments of different countries. Governments and businesses are increasingly asking employees to work from home or are shifting work to employees in less affected areas to maintain business continuity during the pandemic. However, the situation accelerated the adoption of advanced technologies such as AI-powered solution, automation accounting, big data, and analytics to control costs while improving the customer experience.
Furthermore, organizations may now transform unstructured and semi-structured data into structured and relevant data due to the advent of big data and analytics. This data can be used by business accounting software to help enterprises speed up data management, process & analyze data, and improve the efficiency of financial processes. In addition, artificial intelligence (AI) integration aids in the extraction of new insights from existing data to improve credit decisions, financial risk management, and consumers experience via intelligent chatbots. As a result, the growing requirement to modernize finance operations is expected to propel accounting software market growth globally post COVID-19 pandemic.
For instance, on April 2021, Marg Erp launched the digital accounting software "Marg Books." Its customization features allow users to create descriptive categories according to their business profiles. In addition, its bank-to-bank payment system, which connects consumers with across 140 banks where payments can be accepted or sent without any hassle of logging into the bank portal. Furthermore, this software was created to help during COVID-19 pandemic, so that accounting, digital payments, inventory, as well as offering delivery services and calculating the tax returns required by businesses, can be easily operated online without any hassle.
Key Market Segments
Key Market Players