Accounts Receivable Automation Market Forecasts to 2030 - Global Analysis By Component (Services and Solutions), Deployment Mode (Cloud and On-premise), Organization Size, End User and By Geography

According to Stratistics MRC, the Global Accounts Receivable Automation Market is accounted for $3.83 billion in 2023 and is expected to reach $10.96 billion by 2030 growing at a CAGR of 16.2% during the forecast period. Accounts Receivable Automation is the practise of managing and collecting payments from clients in an efficient and effective manner via the use of software and technology. Accounts receivable-related operations like as invoice production, payment processing, reconciliation, and reporting are all included in this automation. Automated systems can match incoming payments to the appropriate invoices automatically. It enhances the accuracy, efficiency, and effectiveness of financial operations inside businesses, resulting in improved cash flow management and more solid client connections.

According to recent research conducted by an accounts receivable automation vendor, it was found that 64% of firms are shifting away from physical invoices, and 67% are receiving more payments digitally.

Market Dynamics:

Driver:

Increasing adoption of cloud computing and AI

Businesses are shifting their workloads to the cloud more frequently because it offers greater data recovery and risk reduction. Accounts receivable automation is enhanced by the usage of cloud computing since it offers a safe, adaptable, and affordable infrastructure for handling financial operations. It gives organisations the freedom to take use of automation's advantages without being constrained by conventional on-premises technologies. Cloud-based automation enables consistent access to and control of accounts receivable operations across several locations and time zones for businesses with a worldwide presence. These elements are accelerating the market's expansion.

Restraint:

Lack of monitoring and oversight

Accounts receivable automation that is not monitored and overseen can have a number of detrimental effects on a company. It's possible that automation systems can't always tell when something is unusual or abnormal and needs human involvement. Customers may therefore skip or make late payments as a result. Errors in data input, processing, or computations might go undetected in the absence of adequate monitoring. Financial records and reporting that contain these flaws may be erroneous. It may result in errors, sluggish financial reporting, and compliance procedures that hamper market demand.

Opportunity:

Rising use of AR automation in small and medium enterprises (SMEs)

Growing use of AR automation in small and medium-sized businesses (SMEs) to accelerate and streamline accounts receivable processes, reduce manual labour, and free up staff to concentrate on higher-value tasks is one of the main factors boosting the accounts receivable automation market growth globally. Automating the creation, amendment, and distribution of invoices to clients, helps to reduce errors in the billing and invoicing processes. This, together with the release of mobile apps that make it easier for remote teams, paints a positive picture for the market.

Threat:

Privacy & compliance concerns

Privacy and compliance concerns are significant considerations when implementing accounts receivable automation. Automation systems handle a wealth of sensitive financial data, including customer payment information. Proper measures must be in place to ensure the confidentiality and security of this information. Addressing these privacy and compliance concerns that hinders the market growth is crucial for organizations implementing accounts receivable automation.

COVID-19 Impact:

Businesses prioritised and accelerated the use of accounts receivable automation as a result of the COVID-19 outbreak. It emphasised how crucial digital transformation is to preserving operational continuity and resilience during emergencies. The epidemic brought to light the flaws in manual, paper-based procedures. Automation made it possible for organisations to switch to digital processes, which minimised the need for paper documents and permitted remote access. Around 64% of global firms shifted from the physical mode of invoices, and nearly 67% of firms are receiving more payments digitally.

The cloud segment is expected to be the largest during the forecast period

The cloud segment is estimated to have a lucrative growth. Cloud is a cost-effective and efficient way of managing big data issues. Cloud-based accounts receivable automation solutions facilitate various advantages, including scalability, adaptability, easy deployment, and cost-effectiveness, which promote the adoption of cloud deployment across organizations. The low cost and ease of implementation have made the cloud a highly desirable delivery mode among organizations.

The banking, financial services & insurance (BFSI) segment is expected to have the highest CAGR during the forecast period

The banking, financial services & insurance (BFSI) segment is anticipated to witness the fastest CAGR growth during the forecast period. Through the simplification and improvement of numerous financial operations, accounts receivable automation plays a significant role in the BFSI sector. It speeds up payment processing and lessens human error that comes with manual data entering and processing. The accounts receivable process may be automated to help financial institutions better understand their cash flow trends. The category growth is rising due to its operational effectiveness, decreased risks, improved customer experience, and provision of insightful data.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to its strong economic growth, globalisation, digitization, and growing internet penetration. There is also greater competitiveness between the regional players. Accounts receivable automation solutions are becoming increasingly popular in the region as a result of government measures to support digital infrastructure, the rising need for precise accounting procedure control, and on-time payment processing.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. North America has a well-established economy, better adoption and uptake of cutting-edge technology, and higher levels of regional rivalry. The region's market for accounts receivable automation has grown as a result of the rising need for automated and secure payment operations. Additionally, the presence of several well-known market competitors in the area, including Oracle Corporation, Workday, BlackLine, and Bottomline Technologies, is a major driver of the industry's expansion and the need for these solutions there.

Key players in the market:

Some of the key players profiled in the Accounts Receivable Automation Market include: Oracle Corporation, SAP SE, HighRadius Corporation, Workday Inc., Comarch SA, SK Global Software, Qvalia AB, Quadient (YayPay Inc.), Esker Inc., Kofax Inc., Bill.com Holdings Inc., Zoho Corporation, MHC Automation, Corcentric LLC, Bottomline Technologies, Sage Software Solution, BlackLine, Microsoft Corporation, VersaPay Corporation and Emagia Corporation.

Key Developments:

In September 2023, Oracle expanded its Oracle Banking Cloud Services portfolio to help banks quickly launch comprehensive transaction banking offerings spanning cash management, liquidity management, and virtual account management. Oracle also introduced new enhancements to its Oracle Banking Accounts Cloud Service and Oracle Banking Enterprise Limits and Collateral Management Cloud Service.

In May 2023, Sage, the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, announced a major step forward in the development of connected accounting at its Partner Summit, LV23. The advanced automation offered by Sage Network eliminates the need for manual data processing between companies, thereby enhancing data accessibility to support better decision-making regarding the use of working capital.

In March 2022, Esker announced a partnership with Fujitsu Asia, the regional headquarters for the Fujitsu group of companies in ASEAN. As part of the agreement, Fujitsu Asia would provide consultation, implementation, and support for Esker's Procure-to-Pay and Order-to-Cash suites to its customers in Singapore.

In January 2022, BlackLine acquired FourQ Systems. With the acquisition, the company aims to improve and strengthen its accounting automation capabilities and market position by accelerating the seamless automation of accounting procedures & improving modernization.

Components Covered:

• Services
• Solutions

Deployment Modes Covered:

• Cloud
• On-premise

Organization Sizes Covered:

• Small Enterprises
• Medium Enterprises
• Large Enterprises

End Users Covered:

• Healthcare
• Banking, Financial Services & Insurance (BFSI)
• Manufacturing
• IT & Telecom
• Transportation & Logistics
• Consumer Goods & Retail
• Energy & Utilities
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances