The Cloud Billing Market was valued at USD 5.69 billion in 2019, at a CAGR of approximately 23% during the forecast period (2020 - 2025). With the growing instances of adoption of cloud computing, the demand for cloud billing solutions is also increasing. The major benefits provided by cloud billing solutions are cost benefits, higher scalability, secured services, and improved efficiency in operations.
- As the industry's technological landscape is changing, businesses are looking for cost-effective ways to increase their competitiveness in the market. Cloud billing solutions are cost-efficient as they help in reducing the cost of resources and the IT infrastructure, thus driving the demand for the cloud billing system.
- Also, the massive growth in e-commerce and virtualized workplaces is increasing the need for simplified operations and transparency in billing processes, which is further driving the market growth. Also, the growth of the cloud-based POS system is giving rise to cloud billing in the retail sector.
- For instance, in August 2019, Future Group, one of India's largest retailers, is to launch a new point-of-sale (PoS) system, with payments technology company LivQuik. LivQuik, in turn, has partnered with US-based Poynt, an open commerce platform. These initiatives by the retailers as well as e-commerce platforms are expected to further stimulate market growth.
- However, the transition from on-premises to cloud-based billing solutions, especially in small and medium firms, is expected to hinder the market growth. This is majorly due to the costs involved with the transformation and also privacy and data security issues related to cloud billing solutions.
Scope of the Report
Cloud Billing refers to the process of generating bills from resource usage data using a set of predefined billing policies. Cloud-based billing solutions manage the difficulty associated with the delivery of digital and non-digital services and provide robust support for integration. The purpose of a cloud billing solution is to provide an interface for generating usage bills.
Key Market Trends
Retail Sector Expected to Show Maximum Application
- The rise of e-commerce giants has resulted in a substantial surge in the sales of the products and services over the online platform, in turn, increasing the number of digital documents such as invoices and bills. This has made it imperative for the e-commerce players to have solutions like cloud billing that enables them to effectively and efficiently manage the resources and operations, thereby enabling them to provide a smooth experience to their consumers.
- In November 2019, Alibaba Group Holding Ltd. logged more than USD 38.3 billion of purchases during its Singles' Day bonanza exceeding the last year's record haul after a 24-hour shopping marathon. This is expected to boost the adoption of cloud billing over the forecast period.
- Walmart, one of the largest retailer in the world in February 2018, has undergone digital transformation that involves building the world's largest private cloud system, which is expected to have the capacity to manage 2.5 petabytes of data every hour. Also, in July 2018, it signed a deal to use Microsoft's cloud and artificial intelligence technology to make shopping quicker and easier for customers. Such instances are indicative of the fact that cloud billing vendors have a potential opportunity ahead.
North America Expected to Dominate the Market
- North America is expected to dominate the cloud billing market during the forecast period, owing to the presence of major solution providers in the region. Also, the region has always remained at the forefront of technology adoption.
- Also, North America has always remained a market leader in cloud adoption for various business processes across end-user industries. For instance, as per the RightScale's State of the Cloud Report 2018, over 80% of North American and European companies are using a complex deployment model in the cloud, i.e., 51% of the hybrid and 21% implementing a multi-cloud strategy, with an average of 5 cloud providers.
- Moreover, various organizations are consistently innovating solutions for enhanced productivity and cost-effectiveness. For instance, Priority Software Ltd., a business management solutions provider, announced in October 2019, the availability of Priority Zoom in North America, providing a comprehensive range of products for SMBs at all levels of market maturity. A cloud-based solution, Priority Zoom enables small businesses to streamline routine operational tasks and save time and resources by efficiently managing company financials, inventory, sales, and customer relationships.
The competitive landscape of the cloud billing market is gradually moving towards fragmentation, owing to the presence of various solution providers across the globe. However, due to the increased instances of cloud adoption in various regions and end-user industries, the market competitiveness amongst the players is also increasing. Also, new and emerging players are also entering the market, hence diluting the market share. Moreover, many existing major players are forming new strategies and partnerships to stay ahead of the competition in the market.
- November 2019 - Aria Systems, the helps enterprises grow subscription- and usage-based revenue, recently announced that FirstEnergy Corp., a Fortune 500, Akron-based public utility serving six states, has selected Aria's cloud billing platform to support the company's new eCommerce initiative that features a portfolio of products and services.
- February 2019 - Majesco, a cloud core insurance software provider, released a new digital online billing and payments app, Electronic Billing & Payments (EBP). The app is powered by the cutting-edge cloud-native Majesco Digital1st Platform and integrated with CyberSource, Visa's payment management platform, which is now available on the Majesco Digital1st EcoExchange.
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