What is the Historical Analysis of the Accounting Software Market Size?
The accounting software market has seen considerable growth due to a variety of factors.
• In recent times, the market size for accounting software has seen significant growth. It's projected to escalate from $18.4 billion in 2024 to $20.18 billion in 2025, indicating a compound annual growth rate (CAGR) of 9.7%.
The expansion during the historic period is primarily due to the adoption by small and medium-sized enterprises (SMEs), tax compliance necessitation, and the integration with various business systems.
How Will The Accounting Software Market Size Evolve In The Foreseeable Future?
The accounting software market is expected to maintain its strong growth trajectory in upcoming years.
• The dramatic expansion of the accounting software market is projected in the forthcoming years, with an expected scale of $33.72 billion by 2029, experiencing a compound annual growth rate (CAGR) of 13.7%.
The forecasted acceleration is attributed to improvements in analytics, reporting, multi-currency support, globalization, mobile accessibility, and industry-focused solutions. Key trends predicted to influence market growth during the forecast period encompass integration of artificial intelligence (AI) and machine learning (ML), advancement in mobile accounting applications, collaboration with fintech services, emphasis on user experience (UX) and attractive designs, along with enhanced security through blockchain.
What Main Forces Are Fueling Expansion In The Accounting Software Market?
The surge in automation needs for accounting procedures is propelling the expansion of the accounting software market. Rising requests from worldwide finance and accounting experts to enhance the effectiveness of accounting processes trigger an increased desire for accounting software. A 2022 study by Airbase, a platform for spending management that includes roughly 200 finance and accounting experts in the US, indicated that 78% of participants concurred that automation would positively influence their growth. Further, 47% stated the absence of automation was financially consuming and time-wasting. Hence, the growing emphasis on automation within accounting procedures amplifies the growth of the accounting software market.
What Are The Core Segments Of The Globa Accounting Software Market?
The accounting software market covered in this report is segmented –
1) By Component: Solution, Services
2) By Type: Spreadsheets, Commercial Accounting Software, Enterprise Accounting Software, Custom Accounting Software
3) By Deployment Mode: On-Premise, Cloud
4) By Enterprise Size: Large Enterprises, SMEs
5) By Industry Vertical: BFSI, Retail and Ecommerce, Manufacturing, IT and Telecom, Healthcare, Government and Public Sector, Energy and Utilities, Media and Entertainment, Other Verticals
Subsegments:
1) By Solution: Cloud-Based Solutions, On-Premise Solutions, Mobile Accounting Solutions
2) By Services: Implementation Services, Support And Maintenance Services, Consulting Services
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Which Emerging Trends Are Reshaping The Accounting Software Market Size?
Leading corporations in the accounting software market are prioritizing the introduction of innovative solutions like cloud-based accounting systems to offer customers more straightforward access to their financial information, enhance cooperation, and minimize expenses. A cloud-based accounting system is a software mechanism that enables companies to handle their financial transactions, accounting, and reporting via the internet. It facilitates real-time access, collaboration, and updates from anywhere, eliminating the requirement for local installation or maintenance. For example, in September 2022, QuickBooks Online Advanced was introduced in the UK by Intuit, a financial software firm based in the US. Designed especially for accounting experts and growing small businesses, this cloud-based product incorporates advanced features such as customizable performance monitoring, automatic backup and restoration, and improved reporting tools that utilize AI to provide actionable insights. As a result, users can simplify their financial management procedures and enhance operational efficiency.
Who Are the Key Players in the Accounting Software Market?
Major companies operating in the accounting software market include:
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Intuit Inc.
• Infor Inc.
• The Sage Group plc
• BKE Solutions LLC
• Epicor Software Corporation
• Xero Limited
• Zoho Corporation Pvt. Ltd.
• Blackbaud Inc.
• Unit4 Business Software Limited
• MYOB Group Pty Ltd
• FreshBooks Inc.
• Wave Financial Inc.
• Tipalti Inc.
• FreeAgent Central Ltd.
• Reckon Limited
• Red Wing Software Inc
• Deskera Holdings Limited
• Cougar Mountain Software Inc.
• Aplos Software LLC
• AccountMate Software Corporation
• Patriot Software LLC
• Multiview Financial Software Inc.
• Acclivity Group LLC
• Saasu Pty Ltd.
• Billy Solutions Inc.
• Kashoo Cloud Accounting Inc.
• ZarMoney Inc.
• Plooto Inc.
• 2ndsite Inc.
What are the Regional Insights into the Accounting Software Market?
North America was the largest region in the accounting software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
