Account Payable Market Overview
The Account Payable Market Size was valued at USD 1.1 billion in 2022. The Account Payable market industry is projected to grow from USD 1.2199 Billion in 2023 to USD 2.791107736 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.90% during the forecast period (2023 - 2032). Increased AI is increasingly used in the account payable process to automate tasks such as invoice processing and fraud detection is the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Account Payable Market Trends
Increasing demand for account payable automation for bill generation drives the market growth.
Account payable is important to ensure payment of bills on a timely basis, which improves the company's credit rating. This increasing demand for Account payable bill generation due to the timely payment of invoices ensures an uninterrupted flow of supplies and services. Timely payment avoids overdue payments, penalties, and other late fees among organizations, thus creating huge growth for the account payable automation market. This factor drives the Market CAGR.
Additionally, the growth of digitalization is revolutionizing the interaction between customers and businesses and building a new platform for the interaction of ideas. Digitalization is the process of converting information into digital information by using various data and software. Since 2009, financial institutions have transformed towards digitalization by integrating digital technologies. Digital transformation has provided automation, better services, and efficiency to financial processes. Customers are inclined more toward digital platforms for transacting their financial assets, which has even increased during this pandemic. The increasing need to digitize the payment process and reduce invoice time is thus leading to the growth of the accounts payable automation market. Furthermore, Individual companies are getting more accustomed to Account payable platforms for making transactions for their basic usage, such as gaining basic information, buying goods, or using it as a platform for their business. Thus, driving the Account Payable market revenue.
Account Payable Market Segment Insights
Account Payable Component Insights
Based on Components, the Account Payable market segmentation includes Solution, Service-Managed and Professional. The solution segment dominated the market because solutions are the essential Component of Account payable solutions, as they provide the tools and functionality for processing invoices and managing accounts payable. Solutions provide the tools and functionality for processing invoices and managing accounts payable. This is due to the increasing volume of invoices being processed and the need to automate and streamline the accounts payable process.
Account Payable Deployment Insights
Based on Deployment, the Account Payable market segmentation includes On-Premise, Cloud. The cloud segment dominated the market because cloud-based account payable solutions offer several advantages over on-premises solutions. Cloud-based solutions can be easily scaled up or down to meet the changing needs of an organization. Cloud-based solutions are typically more cost-effective than on-premises solutions, as organizations do not have to invest in hardware and software.
Figure1: Account Payable Market, by Deployment, 2022 & 2032(USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Account Payable Enterprise Size Insights
The Account Payable market segmentation, based on Enterprise Size, includes Large Enterprises, Small Enterprises and Medium Enterprises. The large enterprises segment dominated the market because large enterprises typically have a large volume of invoices being processed and need to automate and streamline the accounts payable process. This includes the budget to purchase software and hardware and the staff to implement and manage these solutions.
Account Payable Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Account Payable market area will dominate this market, owing to the rising infrastructure, commercial, and industrial developments that will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: ACCOUNT PAYABLE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Account Payable market accounts for the second-largest market share due to the forefront of technological advancement. This means that they are more likely to adopt new technologies, such as cloud-based Account payable solutions. Further, the German Account Payable market held the largest market share, and the UK Account Payable market was the fastest-growing market in the European Region.
The Asia-Pacific Account Payable Market is expected to grow fastest from 2023 to 2032. This is due to rapidly digitizing and being increasingly aware of the importance of having efficient and effective account payable processes. Moreover, China’s Account Payable market held the largest market share, and the Indian Account Payable market was the fastest-growing market in the Asia-Pacific region.
Account Payable Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Account Payable market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Account Payable industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Account Payable industry to benefit clients and increase the market sector. The Account Payable industry has offered some of the most significant advantages in recent years. Major players in the Account Payable market, including Sage Group plc (UK), Newgen Software Technologies Limited (India), OSAS (US), Esker (France), AvidXchange (US), SutiSoft, Inc. (US), Invoicera (India), SAP (Germany), Comarch (Poland), FIS (US), Vanguard Systems (US), Zycus Inc.(US), Tipalti, Inc. (US), Bottomline Technologies (de), Inc. (US), Beanworks (Canada)., and others, are attempting to increase market demand by investing in research and development operations.
Tipalti is an accounting software financial technology business that provides accounts payable, procurement and payments automation software for businesses. Tipalti partnered with Everflow to provide customers with a single dashboard powered with various features, including complete performance tracking, payouts, and analytics.
Fidelity National Information Services, Inc. is an American multinational corporation offering various financial products and services. FIS signed a definite merger agreement with Worldpay, a leader in eCommerce and payments. Post the merger, FIS enhanced its product portfolio for payment-related offerings and significantly increased Worldpay's distribution footprint.
Key Companies in the Account Payable market include
Account Payable Industry Developments
May 2019: Tipalti partnered with Everflow to provide customers with a single dashboard powered with various features, including complete performance tracking, payouts, and analytics.
March 2019: FIS signed a definite merger agreement with Worldpay, a leader in eCommerce and payments. Post the merger, FIS enhanced its product portfolio for payment-related offerings and significantly increased Worldpay's distribution footprint.
Account Payable Market Segmentation
Account Payable Component Outlook
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Solution
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Service-Managed
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Professional
Account Payable Deployment Outlook
Account Payable Enterprise Size Outlook
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Large Enterprises
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Small Enterprises
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Medium Enterprises
Account Payable Vertical Outlook
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L BFSI,
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Retail & Consumer Goods
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Energy & Utility
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Healthcare
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IT and Telecommunication
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Manufacturing
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other
Account Payable Regional Outlook
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North America
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
Account Payable Market Highlights:
