Tax Management Market Statistics: 2030
The global tax management market size was valued at $16,455.20 million in 2020, and is projected to reach $56,531.80 million by 2030, growing at a CAGR of 13.6% from 2021 to 2030.
The surge in demand among businesses for a single tax solution which can help them to solve business problems propels the growth of the tax management market. Organizations are increasingly using tax management software, which integrates variety of applications such as sales and billing software, purchases software, accounting and employee payroll system and other financial applications and can be customized for specific business needs and can be deployed across corporate networks on a variety of platforms. As firms grow, companies demand business-oriented tax management tax management that encode corporate policies, rules, and processes and are built in compliance with specific business requirements. With the growing number of employees in the office, and expanding business, these solutions can help accountants to perform better. This also aids in the improvement of gathering financial insights, increases corporate efficiency, and allows accounts manager to monitor and reduce excess tax which will result in increase in revenue.
On the basis of organizational size, the large-scale enterprise segment dominated the overall enterprise application industry in 2020, and is expected to continue this trend throughout the forecast period. This is due to an increase in the adoption of tax management software by enterprises to gain strategic and a competitive advantage over their competitors. Furthermore, it enables large-scale industry verticals to gain quick & easy-insights of financial condition and tax planning. Customers use tax management software to discover new tax and financial insights on large-scale diverse data, including historical and recent data. However, the small and medium scale enterprise segment is expected to grow the most, and this trend is expected to continue during the forecast period. The small and medium scale businesses are shifting their business to a digital platform, small scale businesses are using tax management solutions for a number of uses and it is helping them to become more productive, smarter, and efficient.
Depending on the deployment model, the on-premise segment captured the largest share in 2020 and is expected to continue this trend during the forecast period. This is due to the numerous advantages offered by this on-premise deployment such as a high level of data security and safety this will create tax management market growth in future. However, the cloud segment is expected to witness the highest growth in the upcoming years. As a cloud deployment requires no investment in IT infrastructure as all data is stored on cloud server, which increases the demand for tax management software in small and medium scale organizations.
The report focuses on the growth prospects, restraints, and opportunities of the tax management market analysis. The study provides Porter’s five forces analysis of tax management industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the tax management market trends.
Segment Review
The tax management industry is segmented into component, tax type, deployment, organization size, industry vertical, and region. By component, it is divided into software and service. By tax type, it is bifurcated into direct tax and indirect tax. By deployment, it is segregated into on-premise and cloud. By organization size it is bifurcated into large enterprises and small and medium size enterprises. By industry vertical, it is segregated into manufacturing, BFSI, healthcare, retail and e commerce, telecom & IT, government and public sector, media & entertainment and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA
By Component
Service segment is projected as one of the most lucrative segments.
Impact of COVID-19
The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. The market is expected to grow rapidly after the pandemic owing to rise in adoption of work-from-home culture across the
globe which can boost the use of tax management software in the market. The tax management software market has witnessed significant growth in the past few years owing to growing implementation of lockdown by governments in majority of the countries and the shutdown of travel across the world to prevent the transmission of virus. The tax management industry is projected to grow rapidly in the upcoming years after the recovery from the COVID-19 pandemic. This factor accelerates the market growth globally.
By Deployment Mode
Cloud segment is projected as one of the most lucrative segments.
Top Impacting Factors
Top impacting factors such as continuous rise in digital financial transition volume and increase in complexity of tax laws drive the growth of the tax management market globally. Furthermore, surge in use of advanced technology for monitoring the tax payers and strict government policies related to collection of taxes will create lucrative opportunities for the market during the forecast period. However lack of skilled resources and increase in data security concerns hinder the growth of the market globally.
Increase in Digital Financial Transitions Volume
Technological advancement in finance sector and digital innovation has brought major improvements in connectivity of systems, in computing power and cost, and in newly created and usable data. These improvements have reduced the transaction costs and introduced new business models and new entrants in the tax management market. Technology has increased information exchange and reduced the transaction cost, which further increases the rate of transactions. It is possible for each and every person to make financial transaction very easily form their smart phone and tablets due to increase in use of mobile and tablets. Moreover, advent use of web based e-commerce and banking solutions increases the amount of online transaction globally. This increase in online digital transaction is projected to create demand for various tax management solutions for sales tax, gods and service tax which is anticipated to drive the growth of the market globally.
By Region
Asia-Pacific is projected as one of the most significant region.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the tax management market share along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the tax management market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the tax management market.
- The quantitative analysis of the tax management market share from 2020 to 2030 is provided to determine the tax management market potential.
Tax Management Market Report Highlights
| Aspects | Details |
 By Component |
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 By Tax Type |
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 By Deployment Mode |
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 By ORGANIZATION SIZE |
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 By Industry Vertical |
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 By Region |
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 By KEY MARKET PLAYERS PROFILED IN THE REPORT OF ENTERPRISE APPLICATION |
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Analyst Review
According to CXO, tax management software is increasingly being implemented by businesses to boost their profitability and working capital. Enterprises must integrate their business functions, resources, and important business processes to the tax management software for monitoring probability to boost efficiency and productivity. The use of tax management software enable businesses to integrate their operations with sophisticated financial management services. However, the selection of an ideal tax management software varies depending on the company outfit and procedure. Further, cloud-based tax management (SaaS model) is gaining popularity over traditional on-premise tax management, which can provide the lucrative opportunities in the future. It has gained widespread popularity among the end users owing to numerous advantages connected with cloud-based technology. Tax management application is anticipated to witness increased adoption and usage in the future, as it allows the organization to improve its performance and productivity.
Furthermore, increase in use of technology and major shift toward digital transitions have altered the consumer technology environment. Mobile usage has exceeded desktop usage, and this trend will only increase in the future. Also the emerging economy such as India and Japan implementing new tax method such as goods and service tax which eliminate other hidden taxes such as tax on purchases, sales tax, octroy tax, and excise duty to simplify tax management is anticipated to increase the demand for tax management system.
Nevertheless, prominent market players are exploring new technologies and applications to meet the increasing customer demands. Ongoing product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and expand their presence in different regions.
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