by Accounts receivable automation involves streamlining and automating invoicing, collections, cash application, and other AR processes with the help of cloud-based software solutions. This enables organizations to process invoices and manage customer payments electronically. Accounts receivable automation solutions help companies reduce paperwork, speed up the billing-to-cash cycle, improve customer satisfaction, and gain real-time insights into cash flow. Industries such as healthcare, manufacturing, retail, and banking are widely adopting accounts receivable automation to enhance accounts receivable efficiency and gain competitive advantage.
The global Accounts Receivable Automation Market is estimated to be valued at US$ 3313.82 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The adoption of cloud-based solutions is one of the major drivers of the accounts receivable automation market. Cloud-based AR automation tools provide benefits such as scalability, mobility, collaboration, and lower upfront costs. They offer real-time access to payment details and dashboards from any location. Small and medium enterprises in particular are increasingly adopting cloud-based accounts receivable solutions as they eliminate the need for expensive on-premise systems and reduce IT maintenance costs.
As highlighted in the heading, adoption of cloud-based AR solutions is flourishing the accounts receivable automation market. Cloud models offer simplicity, accessibility and cost benefits which are driving many organizations to migrate from legacy systems to cloud-based receivables management solutions. This transition to the cloud is a key factor propelling the growth of accounts receivable automation market over the forecast period.
Segment Analysis
The accounts receivable automation market is segmented on the basis of component, deployment mode, organization size, and vertical. The solutions sub-segment is dominating the component segment owing to increasing need to streamline the complete accounts receivable process and enable seamless invoice-to-cash management.
PEST Analysis
Political: Regulatory compliance with privacy and data protection laws is increasing the demand for accounts receivable automation solutions.
Economic: Changing global economic conditions is making organizations focus on efficiently managing their cash flows and reducing days sales outstanding (DSO), thus driving the adoption of accounts receivable automation tools.
Social: Growing digital transformation trend is enabling organizations to leverage modern technologies for automating repetitive manual tasks and improving productivity.
Technological: Advancements in AI, ML and RPA technologies are enabling the development of automated accounts receivable solutions with enhanced capabilities such as predictive analysis, smart workflow, and intelligent capture.
Key Takeaways
The global Accounts Receivable Automation Market Demand is expected to witness high growth owing to the growing need for streamlining receivables management and optimizing cash flows. From a regional perspective, North America dominated the market and held the largest market share in 2024 owing to growing adoption of automation solutions across industries in the US and Canada.
Regional analysis: The Asia Pacific region is projected to grow at the fastest rate during the forecast period. This can be attributed to rising digitization, increasing outsourcing of financial processes to third-party firms, and growing adoption of cloud-based solutions in countries such as China, India, Japan and Singapore.
Key players operating in the accounts receivable automation market are Aarti Surfactants, Akzo Nobel N.V., Antozyme Biotech Pvt Ltd, ARC Surfactants, Ashland, BASF SE, Behn Meyer, Cargill, Incorporated, Clariant, Croda International Plc, and DuPont Nutrition & Biosciences. These players are focusing on developing innovative automation solutions integrated with advanced technologies to gain a competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
