What Is The Current and Historic Market Size Analysis Of The Tax Management Software Market?
The tax management software market has seen considerable growth due to a variety of factors.
• The rapid growth of the tax management software market size has been observed in the recent past. The market's worth is anticipated to increase from $21.69 billion in 2024 to $24 billion in 2025, experiencing a compound annual growth rate (CAGR) of 10.7%.
Factors such as intricate tax laws, digital transformation, worldwide transactions, efficacy, cost reduction, and a heightened emphasis on data precision have contributed to its growth during the historic period.
What Are The Predictions for The Tax Management Software Market Size In The Coming Years?
The tax management software market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for tax management software is predicted to expand quickly in the coming years, reaching a value of $40.24 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 13.8%.
This growth during the forecast period is due to factors such as heightened security protocols, emphasis on adaptability and scalability, and seamless integration with pre-existing systems as well as ensuring data precision and reliability. Key trends projected for the forecast period encompass collaboration and workflow efficacy, attention to data security, customization and scalability, integration with Enterprise Resource Planning (ERP) and accounting systems, and user-friendly interfaces along with superior User Experience (UX).
Which Key Drivers Are Propelling The Tax Management Software Market's Growth?
The surge in online digital transactions is predicted to accelerate the development of the tax management software market. Due to the necessity to augment tax compliance and revenue accumulation for public goods and services provision, several governments are leaning towards automation and digital transactions in tax administration. This is aimed at facilitating successful and durable tax reforms, appropriate taxation of the digital economy, and lowering compliance obstructions. A report by Mint, an Indian financial newspaper, manifest that digital payments in India have grown by 33% year-on-year (YoY) in the fiscal year 2021–2022. A total of 7,422 crore ($933 million) digital payment transactions was noted during this timeline, a rise from 5,554 crores ($698.24 million) transactions witnessed in FY 2020–21. Thus, the swelling online digital transactions are fuelling the demand for growth in the tax management software market.
What Are The Key Segments Within The Global Tax Management Software Market?
The tax management software market covered in this report is segmented –
1) By Component : Software, Professional Services
2) By Tax Type: Direct Taxes, Indirect Taxes
3) By Deployment Mode: On-Premises, Cloud
Subsegments:
1) By Software: Tax Compliance Software, Tax Planning Software, Tax Preparation Software, E-filing Software
2) By Professional Services: Consulting Services, Implementation Services, Support And Maintenance Services
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How Are New Trends Impacting The Size Of The Tax Management Software Market?
Progress in technology is becoming a prominent trend in the tax management software market. To bolster their market dominance, primary firms in this sector are concentrating on creating technologically progressive products. For example, in March 2024, Bloomberg Tax & Accounting, headquartered in the US, unveiled the Bloomberg Tax Workpapers. This advanced automation solution is specifically designed to simplify the tax workpapers process, integrating data prep, spreadsheets, and tax advice. This innovation tool directly tackles significant issues in tax workflows by enabling automation of tasks like cleansing trial balances and performing M-1 flux analysis.
Who Are the Key Players in the Tax Management Software Market?
Major companies operating in the tax management software market include:
• Avalara Inc.
• Shoeboxed Inc.
• SAXTAX Inc.
• H&R Block Inc.
• CrowdReason LLC
• Drake Software
• Bolt
• Beanstalk Data LLC
• Avantax Wealth Management
• TaxSlayer LLC
• Wolters Kluwer N. V.
• Intuit Inc.
• Sovos Compliance LLC
• Sailotech Private Limited
• Vertex Inc.
• Paychex Inc.
• TPS Unlimited Inc.
• Thomson Reuters Holdings Inc.
• Automatic Data Processing Inc.
• AccurateTax Inc.
• Bloomberg Industry Group
• Corptax Inc.
• Taxware Systems Inc.
• Xero Limited.
• The Sage Group plc.
• TaxCloud LLC.
What are the Regional Insights into the Tax Management Software Market?
North America was the largest region in the tax management software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tax management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
