Market Overview:
The accounts receivable automation market includes solutions that help organizations automate billing, collection processes, and accounting tasks associated with tracking money owed by clients or customers. These solutions automate accounts receivable processes such as invoice delivery, payment tracking and reconciliation, credit limit management, billing disputes, credit checks and cash application. It helps businesses eliminate manual tasks, speed up revenue recognition, reduce days sales outstanding and turn receivables into cash faster. It provides accurate sales transaction records, timely tracking of payments receipts, efficient management of collection process and improved customer experience.
Market key trends:
One of the key trends in the accounts receivable automation market is rising adoption of cloud-based solutions. Cloud-based accounts receivable automation solutions are gaining popularity as they offer benefits such as easy accessibility, flexibility, scalability and low maintenance costs. These cloud-based solutions can be easily accessed from any internet-enabled device and location. It also helps in easy collaboration from distributed office locations. Cloud deployment reduces upfront licensing and infrastructure costs and provides pay-as-you-go model. These benefits are encouraging more organizations to switch from on-premise to cloud-based accounts receivable automation solutions.
The global Accounts Receivable Automation Market Size is estimated to be valued at US$ 3313.82 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the accounts receivable automation market already has the dominance of established players. However, new entrants can disrupt the market with technological innovations and customized solutions.
Bargaining power of buyers: The bargaining power of buyers is high as many options are available for accounts receivable automation solutions. Buyers can negotiate on pricing and functionality.
Bargaining power of suppliers: The bargaining power of suppliers is low. Major established players have developed their own technical capabilities to offer integrated solutions.
Threat of new substitutes: The threat of new substitutes is low as there are limited direct substitutes to accounts receivable automation solutions. Some alternatives include in-house developed solutions but they lack the integration and functional capabilities.
Competitive rivalry: High competition exists among key players to gain market share through product enhancement, partnerships, and geographical expansion.
Key Takeaways
The global Accounts Receivable Automation Market is expected to witness high growth, exhibiting a CAGR of 13% over the forecast period, due to the increasing need to streamline workflow and reduce manual errors.
The global market size for accounts receivable automation in 2023 was US$ 3313.82 Mn. By 2030, the market size is estimated to reach US$ 8352.24 Mn indicating substantial growth opportunities over the forecast period. North America dominated the market in 2023 with over 33% share owing to the early adoption of automation technologies among enterprises. Asia Pacific is expected to witness the fastest growth during the forecast period led by China, India, and other emerging economies.
Key players operating in the accounts receivable automation market are Esker Inc., SAP SE, Comarch SA, Oracle Corporation, Bill.com Holdings Inc., SK Global Software, MHC Automation, Quadient(YayPay Inc.), Qvalia AB, Kofax Inc., HighRadius Corporation, Workday Inc., and Corcentric LLC. Major players are focusing on product innovation and geographical expansion to enhance market share. For instance, in 2022, HighRadius Corporation launched new AI-powered receivables modules to streamline collections and improve cash flow.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
