Accounts Payable Software Global Market Report 2024

The account payable software market size has grown strongly in recent years. It will grow from $1.4 billion in 2023 to $1.53 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth during the historic period can be attributed to several factors, including increased automation and efficiency in accounts payable processes, adherence to regulatory compliance requirements, a rise in the volume of invoices processed, the demand for real-time visibility into financial data, and an increased focus on sustainable practices by manufacturers.

The account payable software market size is expected to see strong growth in the next few years. It will grow to $2.16 billion in 2028 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to a growing demand for cost reduction and efficiency improvement, as well as an increasing need to streamline accounts payable operations. Additionally, rising government initiatives and a growing desire to minimize payment delays are contributing factors. Furthermore, there is a growing demand for reducing manual errors in accounts payable processes. Major trends expected during this period include the adoption of automation and digitization in financial processes across industries, advancements in technology such as artificial intelligence, machine learning, and robotic process automation. Major manufacturers are likely to integrate cutting-edge technologies into their operations, and there will be innovation in virtual events and a broader adoption of cloud-based solutions across the board.

The upward trend in the number of startups is expected to drive the expansion of the market for accounts payable software in the foreseeable future. Startups typically represent newly established ventures, often initiated by entrepreneurs seeking to develop innovative products or services with significant growth potential. The surge in startup activity can be attributed to a vibrant entrepreneurial environment, a demand for adaptable solutions, and an increasing focus on entrepreneurship education. Accounts payable software plays a pivotal role for startups by facilitating the streamlining of accounts payable processes, optimizing cash flow management, and enabling informed financial decision-making. This allows startups to concentrate on propelling their business growth and achieving success. For instance, Startups.co.uk reported in February 2024 that new business registrations in the UK experienced a notable uptick of 19.5%, totaling 39,966 in 2023, marking a 6.5% increase compared to the previous year. Hence, the burgeoning population of startups is propelling the growth of the accounts payable software market.

Key players in the accounts payable software market are focusing on developing cutting-edge technological solutions, such as Gen AI-based solutions, to enhance automation and enhance the accuracy and efficiency of financial management processes. Gen AI-based solutions are engineered to produce innovative outputs, including images, text, or music, based on patterns and insights gleaned from extensive datasets. For example, in April 2024, High Radius, a prominent manufacturing company based in the US, introduced Accounts Payable Automation, a pioneering accounts payable solution designed with a focus on finance teams to meet evolving needs. This solution is tailored to bolster supplier relationships and reduce costs for accounts payable teams by automating tasks such as invoice processing and supplier communication, leveraging advanced technologies such as artificial intelligence and machine learning.

In May 2024, Basware, a technology company headquartered in Canada, completed the acquisition of AP Matching Inc. for an undisclosed sum. This strategic move aims to enhance Basware's capabilities in automation and invoice processing, empowering customers to elevate their accounts payable automation processes and enhance financial record accuracy. AP Matching Inc., based in the UK, specializes in offering accounts payable software solutions.

Major companies operating in the accounts payable software market are Microsoft Corporation, Oracle Corporation, SAP SE, Intuit inc., Sage Group Plc, Zoho Corporation Pvt. Ltd., Epicor Software Corp., Coupa Software Inc., Xero Ltd., AvidXchange, Tipalti inc., Freshbooks, Tradeshift Inc., Acumatica Inc., QuickBooks, Stampli, MineralTree Inc., Nipendo, Brightpearl, Nvoicepay Inc., Lightyear AI Inc., FinancialForce Pty Ltd., Acclivity Group LLC, Micronetics, Norming Software International Ltd.

North America was the largest region in the accounts payable software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the accounts payable software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the accounts payable software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Accounts payable (AP) software is a specialized financial tool designed to manage and streamline the handling of a company's unpaid bills or invoices. This software optimizes the accounts payable process, helping businesses reduce processing time and costs, minimize errors and fraud risks, and improve overall financial management and supplier relationships.

The main deployment types of accounts payable software are on-premises and cloud-based solutions. On-premises software is installed and operated from the organization's in-house server and computing infrastructure. These solutions cater to various applications, including large enterprises, small and medium-sized enterprises, and are utilized across industries such as retail, manufacturing, healthcare, information technology and telecommunications, and banking, financial services, and insurance (BFSI).

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

The account payable software market consists of revenues earned by entities by providing invoice processing, vendor management, workflow automation and integration with accounting systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The account payable software market also includes sales of standalone software, integrated ERP systems, and open-source software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.


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