What is the Historical Analysis of the AP/AR Automation Market Size?
The ap/ar automation market has seen considerable growth due to a variety of factors.
• In recent periods, the AP/AR automation market has witnessed a solid upswing in size. The projected growth is estimated to move from $2.4 billion in 2024, up to $2.61 billion in 2025, experiencing a Compound Annual Growth Rate (CAGR) of 8.6%. Factors fueling this growth during the historic timeframe include inefficiencies in paper-based processes, issues with manual data entry, complexities in invoice processing, goals of reducing costs, an expansion in transaction volumes, the necessity for immediate visibility, expectations of vendors and customers, and concerns about data security.
What Is The Projected Growth Of The AP/AR Automation Market?
The AP/AR Automation market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, the AP/AR automation market is projected to undergo swift expansion, with its size expanding to $3.95 billion by 2029 and a 11.0%.
compound annual growth rate (CAGR). This growth over the forecast period can be ascribed to factors such as advanced analytics offering enhanced financial intelligence, mobile accessibility, improved user interfaces, integration with payment pathways, consistent compliance management and heightened precision in financial reporting. Key trends anticipated during this forecast period encompass comprehensive process automation, ERP system integration, sophisticated data extraction methodologies, supplier collaboration interfaces, emphasis on fraud prevention measures, predictive analytics to enhance cash flow management, automated payment procedures and real-time reporting alongside dashboards.
What Are The Key Drivers Fueling Growth In The AP/AR Automation Market?
A rise in the need for automated and protected payment measures is anticipated to spur the growth of the AP/AR automation market. Automated and secure payable procedures reduce human participation and exclude dangerous tasks in the trade or account payable process. This type of automation lessens the necessity for data entry, expedites processes like payment and invoice matching, and curtails significant costs such as document storage and postage. An example is a study conducted by the Institute of Financial Operations & Leadership (IFOL), a UK-based financial operations educational institution, which found that as of February 2023, 9% of accounts payable departments had been fully automated. This number is expected to increase considerably, with the majority of finance professionals predicting full automation of their AP departments by 2025. Consequently, the escalating demand for automated and secure payable procedures is projected to drive the growth of the AP/AR automation market.
What Are The Principal Market Segments In The Global AP/AR Automation Industry?
The AP/AR automation market covered in this report is segmented –
1) By Component: Invoice Management, Electronic Purchase Order, E-Invoicing, Approval And Workflow, ERP Integration, Electronic Payment, Analysis And Reporting, Services
2) By Organization Type: Large, Small And Medium Enterprises (SMEs)
3) By End User: Banking, Financial Services And insurance (BFSI), Manufacturing, Energy And Utilities, Construction, Food And Beverages, Consumer Goods And Retail, IT Ad Telecom, Healthcare, Other End Users
Subsegments:
1) By Invoice Management: Invoice Capture, Invoice Processing, Invoice Approval
2) By Electronic Purchase Order: Purchase Order Creation, Purchase Order Tracking
3) By E-Invoicing: E-Invoice Generation, E-Invoice Delivery, E-Invoice Archiving
4) By Approval And Workflow: Workflow Automation, Approval Routing, Task Management
5) By ERP Integration: Integration With ERP Systems, Data Synchronization
6) By Electronic Payment: Automated Payment Processing, Payment Reconciliation, Payment Tracking
7) By Analysis And Reporting: Financial Analytics, Performance Reporting, Compliance Reporting
8) By Services: Consulting Services, Implementation Services, Support And Maintenance Services
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Which Emerging Market Trends Are Altering The AP/AR Automation Industry?
One of the emerging trends in the AP/AR automation market is the rise of technological advancements. This trend is fueled by primary players in the AP/AR market, who are concentrating on debuting revolutionary and technologically superior products to maintain their market dominance. For example, in August 2023, Blaze was launched by Financial Software & Systems (FSS), a global payment systems company from India. Blaze was developed specifically to cater to the needs of banks and financial organizations. It offers these institutions the capacity to deliver their clients with unparalleled and advanced payment experiences. The platform's features such as scalability, security, and adaptability make it aptly prepared to pioneer the next generation of payment technologies. Also, this payments technology platform allows banks to achieve enhanced TPS, in response to the country's increasing acceptance of digital commerce.
Who Are the Key Players In The AP/AR Automation Market?
Major companies operating in the AP/AR automation market include:
• 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.
What Are The Regional Insights Into The AP/AR Automation Market?
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.
