Summary
Major players in the AP/AR automation market are AvidXchange Holdings, Bill.com Holdings Inc., Bottomline Technologies Inc., Coupa Software, FinancialForce., Freshbooks, Nvoicepay Inc., Sage Group plc, Oracle Corporation, SAP SE, Kofax Inc., YayPay Inc., SK Global Software, Comarch, Paysimple Private Limited, and Armatic Technologies.
The global AP/AR automation market is expected to grow from $2.03 billion in 2022 to $2.23 billion in 2023 at a compound annual growth rate (CAGR) of 9.7%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The AP/AR automation market is expected to grow to $3.19 billion in 2027 at a CAGR of 9.4%.
The AP/AR automation market includes revenues earned by entities by AP/ AR solutions that are used to improve customer/supplier connections, automate cash flow management, and minimize mistakes and inefficiencies.The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
AP/AR automation refers to a method for minimizing human involvement and getting rid of risky tasks from the trade payables or accounts payables process by utilizing accounts payable software connected with a digital trading partner network.
Asia-Pacific was the largest region in the AP/AR automation market in 2022. The regions covered in the AP/AR automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main components of AP/AR automation are invoice management, electronic purchase orders, e-invoicing, approval and workflow, ERP integration, electronic payment, analysis and reporting, and services.Solutions in AP/AR automation refer to the automated process from invoice capture through payment processing where bills are received digitally (and stay that way throughout the process), and data is automatically and smartly collected.
The various organizations involved are large and small and medium enterprises that are used by several end users such as banking, financial services and insurance (BFSI), manufacturing, energy and utilities, construction, food and beverages, consumer goods and retail, it and telecom, healthcare, others.
Increasing demand for automated and secured payable processes is expected to propel the growth of the AP/AR automation market going forward.The automated and secured payable process refers to a method for minimizing human involvement and getting rid of risky tasks from the trade payables or accounts payables process.
AP/AR automation reduces the amount of data entry required and speeds up other procedures such as payments and invoice matching and reduces hard expenditures including document storage, postage, and other expenses.For instance, according to a The Future Payables Process study conducted in the UK among 160 accounts Payable professionals from 12 countries by The Institute of Financial Operations and Leadership (IFOL), a UK-based educational institute within financial operations, 5% more respondents from 2021 believed their department would be totally automated within the next 6–12 months compared to the results from previous year.
Therefore, increasing demand for automated and secured payable processes is expected to propel the demand of the AP/AR automation market.
Technological advancements are a key trend gaining popularity in the AP/AR automation market.Major companies operating in the AP/AR market are focused on introducing innovative and technologically advanced products to sustain their position in the market.
For instance, in May 2020, HighRadius, a US-based fintech enterprise SaaS company launched RadiusOne A/R Suite, a software to automate accounts receivable for mid-sized businesses.The solution supports HighRadius’ investment in innovation and goal to make accounts receivable automation a key catalyst for business success by providing a more straightforward user experience and shorter time-to-value.
By providing an eInvoicing & Collections App, a Cash Reconciliation App, and a Credit Risk App to assist mid-sized firms in utilizing accounts receivable automation technologies, RadiusOne A/R Suite uniquely positions itself in an underdeveloped and underserved sector.
In August 2022, FLEETCOR Technologies Inc., a US-based provider of fuel cards and workforce payment products and services acquired Accrualify Inc. for an undisclosed amount. This acquisition is expected to enhance the capabilities of FLEETCOR’s payments platform and broaden the range of payment solutions it offers. This deal would help FLEETCOR Technologies in completing the process to execution AP payment solution set by offering the workflow and process automation software that AP departments need. Acrualify Inc. is an India-based accounts payable (AP) automation software company that offers cloud-based automation solutions.
The countries covered in the AP/AR automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The AP/AR automation market research report is one of a series of new reports that provides AP/AR automation market statistics, including AP/AR automation industry global market size, regional shares, competitors with AP/AR automation market share, detailed AP/AR automation market segments, market trends, and opportunities, and any further data you may need to thrive in the AP/AR automation industry. This AP/AR automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
