Pune, India, August 2021, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Global Expense Management Software Market.
The expense management software market is predicted to reach USD 7,306.7 million by 2027, registering a 11.5% CAGR during the forecast period, 2021–2027. In this report, Market Research Future (MRFR) includes the segmentation and dynamics of the market to offer a better glimpse of the market in the next few years.
One of the major aspects of driving market growth is the need to manage and curtail enterprise expenses systematically and efficiently. As a result, small and medium-sized enterprises and large enterprises are adopting expense management software to increase organizational efficiency by controlling expenses and automating the process of expense reporting. In addition, expense management software provides expense visibility, which enhances the growth of enterprises. Hence, the expense management software is projected to show better growth prospects during the forecast period. Some of the factors driving the expense management software market include the increasing adoption of mobile applications to monitor expenses and the centralization of expense-related data in enterprises. Integration with predictive analytics is likely to be a future growth prospect responsible for the growth of the expense management market over the forecast period.
The expense management software market has been classified based on type, end user, vertical, and region.
Based on type, the expense management software market has been segmented into PC terminal and mobile terminal. The expense management software is designed to support the organization by managing all the processes related to expense reporting of business operations. The expense management software involves various tasks that include submission, approval, and audit of the expense report. The replacement of manual method, i.e., a paper-based system, with automated expense management software helps enhance the profitability and efficiency of the organization. Moreover, it also minimizes the risk of human error. Expense management software is offered for PC and mobile terminals, described in the following sections. The PC terminal segment accounted for the larger market share of 71.8% in 2019, with a market value of USD 2,308.1 million; it is expected to register a CAGR of 10.5% during the forecast period. In 2019, the mobile terminal segment was valued at USD 907.7 million; it is projected to register the higher CAGR of 13.8%. The expense management software is a tool that helps the organization by automating the entire process of managing costs associated with the business operations or projects.The expense management software allows users to create, control, and manage multiple expense reports. The expense management of the business operations or projects is highly complex as it involves various processes that include receipt management, reimbursements, audits, and others. Adopting mobile-based expense management software helps supervisors control, manage, and analyze the expense report remotely.
Based on end user, the expense management software market has been segmented into small businesses, midsized businesses, and large enterprises. The large enterprises segment dominated the global expense management software market, accounting fora market share of 66.1% in 2019. The market is predicted to grow at USD 4,642.6 million by the end of 2027 and is growing with a CAGR of 11.0% by the end of the forecast period. In comparison, the midsized businesses segment is expected to grow at USD 1,703.9 million by the end of 2027, with a 12.8% CAGR over the assessment period. Small businesses include enterprises with employee strength of less than or equal to 100. Expense management software provides a common platform to manage the process associated with expense management. The deployment of expense management software in small businesses helps the organization manage expense reports quickly, conveniently, and accurately from anywhere and at any time. Midsized businesses are companies with employee sizes of more than 100 and less than 1,000. For mid-sized companies, the process involved in expense reporting is complex and time-consuming. The integration of automated expense management software helps the midsize business avoid the complexity associated with expense reporting. Large business firms are companies with employee sizes more than or equal to 1,000. Managing expense reports in a large business is quite complex and tedious compared to small and midsized companies. In recent years, the deployment of expense management software in large businesses has increased as it helps the organization manage the processes involved in expense management, including creation, submission, review, and approval of the expense report
Based on vertical, the global market has been classified into BFSI, IT & telecom, retail & e-commerce, transportation & logistics, manufacturing, government & public sector, energy & utilities, and others. The BFSI segment dominated the global expense management software market, accounting fora market share of 22.1% in 2019. The market is predicted to grow at USD 1,534.9 million by the end of 2027 and is growing with a CAGR of 10.8% by the end of the forecast period. At the same time, the IT & telecom segment is expected to grow at USD 1,222.0 million by the end of 2027, with an 11.3% CAGR over the assessment period. BFSI sector is emerging as a promising sector for the expense management software market in recent years. This can be mainly attributed to the increased adoption of advanced tools in the BFSI sector. IT & telecom isa rapidly growing sector, contributing a major share to the global GDP. Businesses are also far ahead in terms of the adoption of advanced software tools to streamline business processes. The retail and e-commerce sector has several challenges regarding unnecessary expenditure and fraud & errors. Paperless expense management not only consumes time but also increases errors which are not beneficial for businesses. With expense management software, businesses can reveal actual savings and reduce expenditure across all the ways expenditure occurs. Transportation & logistic sector employees work outdoor; thereby, using the paper-based traditional approach, expense reporting becomes more complicated. Manufacturing is unlike other types of businesses. Retailers sell stock and service companies sell their time, but only manufacturers create new products from scratch, leading to expense-related problems, with businesses having to account for raw materials and processing costs and work out the value of the finished items created. The government & public sector is also the largest segment for expense management software. This can be attributed to an increased demand for automated AI-driven software solutions to smooth the spending processes. Expense management is the most challenging task for the energy & utilities sector organizations’ payroll department. Other industry verticals are simplifying their expense management by using advanced tools.
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The key players of the global expense management software market include IBM Corporation, Oracle Corporation, SAP SE (SAP Concur), Sodexo, Intuit Inc., Insperity, Infor, Workday Inc, Xero Limited, Coupa Software Inc, ZOHO Corporation Pvt Ltd, Expensify Inc., Certify Inc., Gusto, Receipt Bank, Apptricity Corporation, PaySimple, Nexonia, ExpensePath Inc, GlobalPoint Technologies Inc, SumTotal Systems LLC, Replicon, Yourpeople Inc.(Zenefits), and Torqus.
The global expense management softwaremarket has been categorized into—the US, Europe, China, Japan, Southeast Asia, and India. The US led the global management software market in 2019, whereas the market in Indiais predicted to register the highest growth rate during the study period. Europe is anticipated to hold the second spot in the expense management softwaremarket in terms of market share during the forecast period, 2021–2027.