by Market Overview:
Accounts receivable automation involves the use of software and technologies to streamline and automate accounts receivable processes like invoice presentation, payment processing and application, credit checks and collections. It helps businesses digitize manual paperwork processes and reduces delays. Accounts receivable automation solutions help businesses send digital invoices to customers, accept payments online through gateways, integrate with accounting software for reconciliation and automate reminders. It allows real-time visibility of accounts and improves cash flow.
Market Dynamics:
Growth in digital payments is a major driver for accounts receivable automation adoption. As businesses and customers increasingly prefer contactless and remote payment methods, the need for digital invoicing and payment processing has risen tremendously. Accounts receivable automation allows accepting payments online through debit/credit cards or e-wallets, improving the customer experience. Moreover, the Covid-19 pandemic has accelerated the digital transformation of businesses and demand for remote working tools. Accounts receivable automation solutions allow distributed teams to access accounts data remotely and collaborate better. This has compelled more companies to automate accounts receivable processes to improve visibility and productivity of remote finance teams.
The global Accounts Receivable Automation Market Size is estimated to be valued at US$ 3313.82 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The global accounts receivable automation market can be segmented on the basis of solutions, vertical, and geography. By solutions, the market can be divided into software and services. The services sub-segment is expected to dominate the market over the forecast period. This is due to the increasing need for debt collection services, support and maintenance services, and training and education services to efficiently use accounts receivable automation software.
PEST Analysis
Political: Favorable regulations promoting digitalization of accounts receivable processes across various industries.
Economic: Rising employee costs and need for optimized cash flow management driving demand for AR automation solutions from organizations.
Social: Growing preference towards contactless payment modes and digital billing driving demand.
Technological: Advancements in AI, ML and analytics aiding AR automation solutions in detecting anomalies and frauds.
Key Takeaways
The global accounts receivable automation market is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing digital transformation initiatives across end use industries. The market size for 2023 is estimated to be US$ 3313.82 Mn.
Regional analysis: North America is expected to dominate the global accounts receivable automation market over the forecast period. This is attributed to presence of major players and early adoption of digital technologies across various industries in the region. Europe is also expected to exhibit significant growth in the market led by countries such as the UK and Germany.
Key players operating in the accounts receivable automation market are Esker Inc., SAP SE, Comarch SA, Oracle Corporation, Bill.com Holdings Inc., SK Global Software, MHC Automation, Quadient(YayPay Inc.), Qvalia AB, Kofax Inc., HighRadius Corporation, Workday Inc., and Corcentric LLC. Key players are focusing on new product launches and partnerships with other players to strengthen their market position. For instance, in August 2022, Esker partnered with IRIS Corp to integrate its AR automation solution into IRIS Scan solution to facilitate digitization of invoice processing for businesses.
*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.
