The global subscription billing management market is anticipated to reach $47.7 billion by 2032, growing from $6.9 billion in 2022 at a CAGR of 21.7% from 2023 to 2032.
The subscription billing management covers entire lifecycle, including subscription plan design, subscriber onboarding, price management, automated invoicing & payment processing, handling subscription modifications, and revenue tracking. The goal of subscription billing management, as well as a subscription management system, is to assist businesses in successfully monetizing their subscription business models. Although these business models might be challenging to maintain, subscriptions can provide dependable and recurring revenue as compared to traditional sales. In addition to developing products that customers want, businesses also need to establish long-lasting relationships with them. Poorly handled subscriptions can cause increased volatility and damage to the reputation of the company. A subscription billing management platform not only makes it easier to handle all necessary procedures, but it also helps to build enduring relationships with customers by providing personalized products and easy & secure payment processing.
Consumers are spending increasing amounts of time using mobile applications, notably for social networking and texting, in addition to utilizing their cellphones for entertainment and e-commerce. This surging amount of time spent on smartphones can make people purchase goods and services through digital platforms. As the amount of time spent on mobile devices is increasing, the usage of subscription platform is also expected to rise. In the U.S., mobile media consumption is continuing to replace traditional channels' viewership and listenership. To gain and preserve customers for a longer period of time, the companies are providing services based on subscriptions, which is expected to surge the demand for subscription billing management.
The market is susceptible to risks and their effects, such as the difficulty to develop and launch new cloud products across numerous organizations on schedule and in line with consumer expectations due to complexity in various technical settings. The possibility of the product and technology approach failing; customers may not adopt technology platforms, applications, or cloud services quickly enough; they may think about alternative competing products in the market; or the strategy may not match customers' expectations and needs, particularly in the context of extending the product portfolio into new markets. Any one of these events could have a severe negative effect on the business operations, money situation, revenue, and cash flow of the subscription billing management organization.
The pandemic has led to people buying products online through various e-commerce goods and service providers. To stay healthy, people started to buy medicines that boost immunity from pharmacy shops and online healthcare product supplier platforms on a regular basis. With this change in customer behavior, healthcare goods and services providers have also started to shift their focus to providing goods and services on a subscription basis, which necessitated them acquiring an efficient subscription billing management system provider. This habit of buying products on a regular basis is expected to create several opportunities for subscription billing management system providers to acquire new clients for their services.
The COVID-19 pandemic and efforts to control its spread have affected how subscription billing management system providers and their customers, partners, and suppliers are operating their businesses. The COVID-19 pandemic forced governments to issue preventative measures to contain or control the spread of the virus, such as travel restrictions, prohibitions of non-essential activities, quarantines, work-from-home directives, and social distancing orders. These preventative measures resulted in a sharp decrease in demand in certain industries and thus hampered the market growth in the initial stage of the pandemic. Business operations and their demand for subscription-based billing management drastically decreased with the decrease in demand for goods and services due to pandemic restrictions. The pandemic also caused a rise in inflation and the cost of living, which resulted in people buying only the necessary stuff at the time required. People avoided buying products and services repeatedly unless it was very necessary. This impacted people abandoning subscriptions, which directly reduced the business activities of subscription billing management service providers.
The key players profiled in this report include Zuora Inc., Salesforce, Inc., SAP SE, Oracle Corporation, ZOHO Corporation., Chargebee Inc., Chargify LLC., Recurly Inc., 2Checkout, and Apttus Corporation. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
The subscription billing management covers entire lifecycle, including subscription plan design, subscriber onboarding, price management, automated invoicing & payment processing, handling subscription modifications, and revenue tracking. The goal of subscription billing management, as well as a subscription management system, is to assist businesses in successfully monetizing their subscription business models. Although these business models might be challenging to maintain, subscriptions can provide dependable and recurring revenue as compared to traditional sales. In addition to developing products that customers want, businesses also need to establish long-lasting relationships with them. Poorly handled subscriptions can cause increased volatility and damage to the reputation of the company. A subscription billing management platform not only makes it easier to handle all necessary procedures, but it also helps to build enduring relationships with customers by providing personalized products and easy & secure payment processing.
Consumers are spending increasing amounts of time using mobile applications, notably for social networking and texting, in addition to utilizing their cellphones for entertainment and e-commerce. This surging amount of time spent on smartphones can make people purchase goods and services through digital platforms. As the amount of time spent on mobile devices is increasing, the usage of subscription platform is also expected to rise. In the U.S., mobile media consumption is continuing to replace traditional channels' viewership and listenership. To gain and preserve customers for a longer period of time, the companies are providing services based on subscriptions, which is expected to surge the demand for subscription billing management.
The market is susceptible to risks and their effects, such as the difficulty to develop and launch new cloud products across numerous organizations on schedule and in line with consumer expectations due to complexity in various technical settings. The possibility of the product and technology approach failing; customers may not adopt technology platforms, applications, or cloud services quickly enough; they may think about alternative competing products in the market; or the strategy may not match customers' expectations and needs, particularly in the context of extending the product portfolio into new markets. Any one of these events could have a severe negative effect on the business operations, money situation, revenue, and cash flow of the subscription billing management organization.
The pandemic has led to people buying products online through various e-commerce goods and service providers. To stay healthy, people started to buy medicines that boost immunity from pharmacy shops and online healthcare product supplier platforms on a regular basis. With this change in customer behavior, healthcare goods and services providers have also started to shift their focus to providing goods and services on a subscription basis, which necessitated them acquiring an efficient subscription billing management system provider. This habit of buying products on a regular basis is expected to create several opportunities for subscription billing management system providers to acquire new clients for their services.
The COVID-19 pandemic and efforts to control its spread have affected how subscription billing management system providers and their customers, partners, and suppliers are operating their businesses. The COVID-19 pandemic forced governments to issue preventative measures to contain or control the spread of the virus, such as travel restrictions, prohibitions of non-essential activities, quarantines, work-from-home directives, and social distancing orders. These preventative measures resulted in a sharp decrease in demand in certain industries and thus hampered the market growth in the initial stage of the pandemic. Business operations and their demand for subscription-based billing management drastically decreased with the decrease in demand for goods and services due to pandemic restrictions. The pandemic also caused a rise in inflation and the cost of living, which resulted in people buying only the necessary stuff at the time required. People avoided buying products and services repeatedly unless it was very necessary. This impacted people abandoning subscriptions, which directly reduced the business activities of subscription billing management service providers.
The key players profiled in this report include Zuora Inc., Salesforce, Inc., SAP SE, Oracle Corporation, ZOHO Corporation., Chargebee Inc., Chargify LLC., Recurly Inc., 2Checkout, and Apttus Corporation. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the subscription billing management market analysis from 2022 to 2032 to identify the prevailing subscription billing management market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the subscription billing management market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global subscription billing management market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Type
- Fixed
- Variable
By End-users
- Others
- Entertainment
- Ecommerce
- Fitness
- Publishing
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- UAE
- South Africa
- Argentina
- Rest of LAMEA
Key Market Players
- Zuora Inc.
- Salesforce, Inc.
- SAP SE
- Oracle Corporation
- ZOHO Corporation.
- Chargebee Inc.
- Chargify LLC.
- Recurly Inc.
- 2Checkout
- Apttus Corporation
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: SUBSCRIPTION BILLING MANAGEMENT MARKET, BY TYPE
CHAPTER 5: SUBSCRIPTION BILLING MANAGEMENT MARKET, BY END-USERS
CHAPTER 6: SUBSCRIPTION BILLING MANAGEMENT MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the subscription billing management market was valued at $6.9 billion in 2022, and is estimated to reach $47.7 billion by 2032, growing at a CAGR of 21.7% from 2023 to 2032.The process of managing a customer's subscription over its validity and billing them is known as subscription and billing management. Subscription business models are based on creating lifelong clients. The business model is not the same for every organization type, as starting a subscription business does not ensure that any company will receive the same number of customer base as other models have. Recurring income businesses, such as those that rely on subscriptions, depend on keeping current clients who regularly make on-time payments. Maintaining client engagement in order to increase top-line subscription growth is the aim of subscription management.
Using subscription management, customer is able to instantly purchase and change their membership online. Subscription management performs a number of tasks in the background, including consolidating customer data, replacing fragmented solutions with a single platform for every department, and implementing automation and AI-powered analytics. A subscription management system enables subscription-based goods and service providers to provide a smooth client experience. Behind-the-scenes procedures and technologies automate the data flow across the catalog of product management, order management, fulfillment, and invoicing to power this experience for the service provider companies. Moreover, as companies expand their offerings and reach, they often encounter diverse payment methods and global customers. Subscription billing management systems streamline the payment process by supporting various payment gateways and handling international transactions, reducing conflict for both businesses and customers. In addition, subscription billing management systems provide valuable insights through data analytics. This data-driven approach enables businesses to analyze customer behavior, identify trends, and make informed decisions to optimize pricing strategies and improve overall subscriber retention.
However, if the subscription management system platform that is provided to a company is not user-friendly, or has complex billing procedures, it becomes difficult to handle, and may negatively impact the companies using that subscription billing platform as well as the end-use customers. In addition, most of the subscription billing data is stored and operated through cloud computing, which exposes this subscription billing management software to severe cyberattacks. Considering the increasing number of billing frauds through these platforms, customers may get rid of subscription billing, which directly forces the company to think of a better alternative to online subscription billing. This is expected to impact the growth of the subscription billing management system provider in the upcoming years.
The integration of consumer data across every stage of the subscription purchase experience is enabled by automation. All of the manual transactions between sales and finance are replaced, which prevents mistakes and avoids poor customer service. As subscription services continue to grow in popularity, there is a demand for automated billing solutions. Developing software or platforms that streamline subscription management, automate invoicing, and handle payment processing can be a lucrative opportunity. In addition, building analytics tools that provide insights into customer behavior, subscription trends, and revenue projections can help businesses make informed decisions and optimize their subscription models. Additionally, the wider the 5G coverage, the greater will be the utilization of subscription-based services by people across the world. This may create a huge demand for a subscription-based billing management system in the upcoming years. As the 5G network reaches from urban areas to rural areas, the number of 5G customers can reach a renowned number. This may result in more people using Internet-based services, which is expected to increase the demand for subscription-based services and thus increase the revenue generation owing to increasing customer base. The reach of the existing 4G network has given subscription-based services a boom. Further introduction and adaptation of the 5G network is anticipated to take this to another level in the future.
The subscription billing management market share is segmented on the basis of type, end user, and region. By type, it is classified into fixed and variable. By end user, it is classified into entertainment, ecommerce, fitness, publishing, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America.
The key players profiled in the subscription billing management market report include Zuora Inc., Salesforce, Inc., SAP SE, Oracle Corporation, ZOHO Corporation., Chargebee Inc., Chargify LLC., Recurly Inc., 2Checkout, and Apttus Corporation.
The report offers a comprehensive analysis of the global subscription billing management market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.
Impact of COVID-19 on the Global Subscription Billing Management Industry
The pandemic forced people to stay at home for longer periods, which resulted in people buying subscriptions for over-the-top services for entertainment. Therefore, the entertainment industry saw a huge boom during the pandemic due to the increase in subscriptions. This created a need for OTT platforms to effectively manage their subscription billing which increased the sales of subscription billing management service providers even during the pandemic.
The pandemic also had severe repercussions on purchasing power of both the companies as well as end-use customers. The decreased purchasing power resulted in giving up on subscriptions to manage expenditures.
Key Findings of the Study
Based on type, the fixed sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest growing during the forecast period.Based on end user, the entertainment sub-segment emerged as the global leader in 2022 and the fitness sub-segment is predicted to show the fastest growth in the upcoming years.
Based on region, North America registered the highest market share in 2022 and is projected to maintain its position during the forecast period.
Companies Mentioned
- Zuora Inc.
- Salesforce, Inc.
- SAP SE
- Oracle Corporation
- ZOHO Corporation.
- Chargebee Inc.
- Chargify LLC.
- Recurly Inc.
- 2Checkout
- Apttus Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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