AP/AR Automation Market Report 2025

The AP/AR automation market size has grown strongly in recent years. It will grow from $2.4 billion in 2024 to $2.61 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to paper-based process inefficiencies, manual data entry challenges, invoice processing complexity, cost reduction goals, growing transaction volumes, need for real-time visibility, vendor and customer expectations, data security concerns.

The AP/AR automation market size is expected to see rapid growth in the next few years. It will grow to $3.95 billion in 2029 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to advanced analytics for financial insights, mobile accessibility, enhanced user experience, integration with payment gateways, continuous compliance management, improved accuracy in financial reporting. Major trends in the forecast period include end-to-end process automation, integration with ERP systems, advanced data extraction techniques, supplier collaboration portals, focus on fraud prevention, predictive analytics for cash flow optimization, automated payment processing, real-time reporting and dashboards.

The rising demand for automated and secure payable processes is projected to drive growth in the AP/AR automation market in the coming years. An automated and secure payable process minimizes human involvement and eliminates risky tasks from the trade payables or accounts payables workflow. AP/AR automation decreases the need for data entry and accelerates procedures such as payments and invoice matching while reducing overhead costs related to document storage, postage, and other expenses. For example, a report from the Institute of Financial Operations & Leadership (IFOL), a UK-based educational institution in financial operations, revealed that as of February 2023, only 9% of accounts payable (AP) departments were fully automated. This number is expected to grow significantly, with two-thirds of finance professionals predicting their AP departments will achieve full automation by 2025. Consequently, the increasing demand for automated and secure payable processes is anticipated to boost the AP/AR automation market.

The increasing trading activities are projected to drive growth in the AP/AR automation market in the future. Trading activities involve the buying and selling of financial instruments such as stocks, bonds, currencies, and commodities, aimed at generating profits in financial markets. As businesses expand globally and engage in higher transaction volumes, the demand for streamlined and efficient Accounts Payable (AP) and Accounts Receivable (AR) processes has intensified. Automating these financial workflows allows organizations to manage increased trading activities with greater speed and accuracy, minimizing the risk of errors and enhancing operational efficiency. The need for faster invoice processing, improved cash flow management, and adaptability to diverse and evolving financial ecosystems further highlights the critical role of AP/AR automation solutions in addressing the requirements of a dynamic and expanding trading environment. For example, the World Trade Organisation (WTO) forecasts that the volume of world merchandise trade is expected to grow by one percentage point in 2023, compared to a growth rate of 3.5% in 2022. Therefore, the rising trading activities are anticipated to propel the growth of the AP/AR automation market.

Technological advancements represent a prominent trend gaining traction in the AP/AR automation market. Key companies in this market are dedicated to introducing innovative and technologically advanced products to maintain their competitive edge. For example, in August 2023, Financial Software & Systems (FSS), an India-based global payment systems company, introduced Blaze, a cutting-edge payments technology platform tailored for financial institutions. Blaze offers banks the capability to provide their customers with advanced payment experiences by offering scalability, security, and adaptability. This innovative platform is poised to pave the way for the next wave of payment technologies, meeting the evolving demands of digital commerce in the nation.

Major companies operating in the AP/AR automation market are focusing on innovative products, such as accounts receivable tool, to drive revenues in their market. An accounts receivable tool, is a specialized financial. A software or solution designed to streamline and manage the accounts receivable process within a business is an essential tool for optimizing financial operations. For example, in June 2023, Unanet, a US-based company specializing in project-based enterprise resource planning (ERP) and professional services automation (PSA) solutions, introduced a dedicated accounts receivable tool. Tailored for clients in the engineering and architecture sectors, this tool incorporates automation features that enhance collections' visibility and accuracy while minimizing manual tasks associated with invoicing, such as printing and mailing. Moreover, customers benefit from improved payment convenience, as they can easily settle invoices using ACH or credit cards.

In August 2022, FLEETCOR Technologies Inc., a US-based provider of fuel cards and workforce payment products and services, completed the acquisition of Accrualify Inc. The acquisition, made for an undisclosed amount, signifies a strategic move by FLEETCOR to bolster its payments platform capabilities and expand its array of payment solutions. With this acquisition, FLEETCOR aims to bolster its suite of AP payment solutions, providing advanced workflow and process automation software vital for streamlining AP department operations. Accrualify Inc., an India-based company specializing in cloud-based AP automation solutions, has contributed significantly to FLEETCOR's quest to offer comprehensive and efficient payment solutions in the market.

Major companies operating in the AP/AR automation market are AvidXchange Holdings Inc., Bill.com Holdings Inc., Bottomline Technologies Inc., Coupa Software Inc., FinancialForce Inc., 2ndSite Inc., Nvoicepay Inc., The Sage Group PLC, Oracle Corporation, SAP SE, Kofax Inc., YayPay Inc., SK Global Software LLC, Comarch SA, Paysimple Private Limited, Armatic Technologies Inc., Fidelity National Information Services Inc., Tipalti Inc., Zycus Inc., Esker Inc., HighRadius Corporation, Yooz Inc., MineralTree Inc., Versapay Corporation, Anybill Inc., Beanworks Solutions Inc., Corcentric LLC, Dooap Inc., Goby Inc., Medius AB, Stampli Inc., Tradeshift Inc., Workday Inc., Xero Limited, Zervant Oyj, BlackLine Inc., Concur Technologies Inc.

Asia-Pacific was the largest region in the AP/AR automation market in 2024. The regions covered in the ap/ar automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ap/ar automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

AP/AR automation is a method aimed at minimizing human involvement and mitigating risks in the trade payables or accounts payables process. This is achieved by leveraging accounts payable software connected with a digital trading partner network.

The primary components of AP/AR automation encompass invoice management, electronic purchase orders, e-invoicing, approval and workflow, ERP integration, electronic payment, analysis and reporting, along with associated services. Solutions in AP/AR automation entail an automated process from invoice capture to payment processing, where invoices are received digitally and remain in that format throughout the entire process. Data is collected automatically and intelligently, streamlining the overall workflow. The organizations involved vary in size, including both large enterprises and small to medium-sized enterprises. End-users of AP/AR automation solutions span sectors such as banking, financial services and insurance (BFSI), manufacturing, energy and utilities, construction, food and beverages, consumer goods and retail, IT and telecom, healthcare, and others.

The AP/AR automation market research report is one of a series of new reports that provides AP/AR automation market statistics, including AP/AR automation industry global market size, regional shares, competitors with AP/AR automation market share, detailed AP/AR automation market segments, market trends, and opportunities, and any further data you may need to thrive in the AP/AR automation industry. This AP/AR automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The AP/AR automation market includes revenues earned by entities by AP/ AR solutions that are used to improve customer/supplier connections, automate cash flow management, and minimize mistakes and inefficiencies. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.