ID: MRFR/ICT/8099-CR | April 2020 | Region: Global | 107 pages
Market Research Future (MRFR) presumes the Global Audit Software Market to exhibit a CAGR of 14.48% from 2019–2025 (forecast period). The increase in the adoption of audit software is one of the primary factors expected to trigger market growth during the forecast period. Further, the rising adoption of audit software is due to the increasing importance of auditing in organizations working with regulations and standards. In addition, audit software also provides other benefits, including better performance and improved efficiency.
As the business effect of COVID-19 increases, the global audit software market is projected to have a favorable and high growth rate.
Increasing demand for corporate governance
The market is driven by the increasing demand for corporate governance, regulatory requirements and compliance, and the need to improve the operational efficiency of the organizations. Corporate governance malpractices have been on the rise across the globe in the last few years. For example, Nissan's recent financial mismanagement has raised concerns about the lack of corporate governance practices prevalent in the company. Another highly publicized corporate governance infraction involved Kobe Steel, Ltd. The company confirmed that it had falsified data on some products sold to buyers, such as Boeing, Ford, and Toyota. Mitsubishi Materials, a giant in the manufacturing industry, also admitted to forging data on auto and aircraft parts sold to more than 274 clients.
Increasing adoption of cloud-based services
The growing adoption of cloud-based services and the integration of various technologies like machine learning and artificial intelligence with audit software make it possible to provide multiple features, such as high-quality reports and improved accuracy. These factors are predicted to provide lucrative growth opportunities for players operating in the global audit software market during the forecast period.
Data security concerns
The use of audit software can increase the vulnerability of confidential information to data theft as the software manages the organization's sensitive financial data. Data security issues are, therefore, expected to reduce the growth of the market during the forecast period.
Global Audit Software Industry has been segmented into Components, Deployment Model, Organization Size, and Vertical.
By component, the global audit software market has been segmented into solutions and services.
By deployment model, the global audit software market has been segmented into On-Premise and Cloud.
By organization size, the global audit software market has been segmented into Large Enterprises and Small & Medium Enterprises.
By vertical, the global audit software market has been segmented into BFSI, Food & Beverage, Energy & Utility, Manufacturing, Accounting/CPA firms, Non-Profit Organizations, and Others.
North America to lead the global market
North America earned the largest market share in 2018, with a market value of USD 195.9 million; the regional market is projected to have a CAGR of 15.05% over the forecast period. The increasing need for effective risk management and regulatory compliance, the presence of numerous companies in the region, and investment from small and medium-sized enterprises are some of the factors driving regional market development.
APAC to gain significant share in the forecast period
The Asia Pacific market is projected to expand at a higher CAGR of 16.43% during the projected period. This can be attributed to the increasing need for effective risk management and regulatory compliance, the involvement of multiple companies, and investment by small and medium-sized enterprises in the region.
The global audit software market is identified by the presence of many international, regional, and local vendors. The market is very competitive, with all players vying for market share. Intense competition, technological developments, and frequent reforms in government policies are the main factors that challenge market developments. Vendors compete on the basis of service quality, pricing, and reliability. In order to survive and thrive in a highly competitive market environment, it is necessary for vendors to deliver innovative technologies and value-added services.
As per MRFR analysis, SAP SE, Netwrix, MetricStream, Logic Manager, and AuditDesktop were some of the main players in the global audit software market in 2018. These companies continue to maintain a large international presence through expansions, mergers and acquisitions, strong revenue growth, and a broad portfolio of audit software solutions.
SAP SE is a major player in the global audit software market. The company develops audit management software with advanced features that includes simplified audit planning and management, reconciling tracking, and providing audit results that attract its customers and are at the top of the list as compared to its peers. As part of its growth plan, the company pursues both organic and inorganic growth strategies to succeed in a competitive market scenario.
In April 2017, MetricStream announced the launch of the M7 platform and applications for risk, compliance, audit, IT security, third party management, and other GRC professionals. The M7 platform and applications are designed to help businesses retain their corporate integrity, protect their brand, and deliver outstanding business performance through the GRC, which is simple, widespread, and delivered on the cloud. M7 focuses on enabling high performance by engaging user experience, high degree of configuration, and enhanced mobility.
This study predicts revenue growth at global, regional, and country levels and summarizes the sector's latest developments in each of the sub-sectors from 2019 to 2025. For the purpose of this study, MRFR segmented the Global Audit Software Market report by component, deployment model, organization size, vertical, and region.
By Deployment Model
By Organization Size
Frequently Asked Questions (FAQ) :
The global Audit software is expected to record a significant market valuation by 2027
The expected global Audit software would register a moderate 14.48% CAGR in the forecast period.
As the fastest-growing segment, the BFSI segment is expected to expand.
The on-premise segment is poised to develop as the fastest-growing segment.
Some of the significant market players identified in the global Audit Software market are Netwrix Corporation (US), MetricStream (US), SHLOKLABS (Portugal), Intelex Technologies (Canada), and others.
The demand for regulatory requirements, corporate governance, and compliance and the requirement to raise operational efficiency by the organizations is poised to fuel market growth.
The major strategies adopted by key players to increase the profitability of the market is growing R&D investment towards product enhancement.