Market Overview: The subscription and recurring payment market consists of software and services that help companies charge subscription and recurring payments for products and services. It helps companies to manage subscriptions for customers and allows customers to manage their subscription plans and payment details online.
The global Subscription and Recurring Payment Market is estimated to be valued at US$ 154.05 Bn in 2023 and is expected to exhibit a CAGR of 18 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends in the subscription and recurring payment market is the growing adoption of subscription business models across various industries. industries. Traditionally, companies adopted one-time purchase or pay-per-use models. However, with technologies like artificial intelligence and analytics, companies are able to offer tailored subscription plans to customers. Customers also prefer the convenience of subscribing to services and products. They like the flexibility of pay-as-you-go plans without large upfront costs. This has boosted the growth of subscription models globally. Another major trend is the rise in contactless and digital payment solutions. With the COVID-19 pandemic accelerating digital transformation, customers are opting more for online shopping and digital transactions. This has increased the scope of recurring and subscription payments through digital modes.
Segment Analysis
The subscription and recurring payment market is segmented into subscription and recurring billing, recurring payments, and license and services renewals. The subscription and recurring billing segment dominated the market in 2022 and is expected to continue its dominance over the forecast period. The growing adoption of subscription models by SaaS and cloud-based services is the major factor driving the growth of this segment. Companies are opting for recurring billing as it provides steady cash flow and increases customer retention by eliminating hassles of repetitive payments.
Key Takeaways
The global subscription and recurring payment market is expected to witness high growth, exhibiting a CAGR of 18% over the forecast period, due to the growing popularity of subscription models across various industries like media streaming, gaming, telecom, and e-commerce. Regionally, North America dominated the market in 2022 due to the presence of major players and early adoption of subscription services in the region. Key players like PayPal, Stripe, Square, Recurly, Chargebee, and Razorpay captured the major market share due to their advanced payment solutions catering to recurring billing needs.
The global subscription and recurring payment market size was valued at US$ 154.05 billion in 2023 and is expected to reach US$ 527.02 billion by 2030 as more businesses are embracing subscription models. Regionally, Asia Pacific is expected to be the fastest-growing market during the forecast period due to the increasing internet and smartphone penetration in emerging economies like India and Indonesia.
Key players operating in the subscription and recurring payment market are PayPal, Stripe, Square, Recurly, Chargify, Zuora, FattMerchant, Payment Depot, PaymentEvolution, FastSpring, Chargebee, Spreedly, ChargeOver, Chargent, Vindicia, Chargify, Razorpay, Cashfree, CCAvenue, and BillDesk. Major players are focused on introducing innovative recurring billing solutions to help businesses monetize their services through subscriptions. They are also expanding their geographical footprint through strategic partnerships. For instance, in 2022, Chargebee partnered with LendingFront to provide embedded financing solutions to its merchants.
