Invoice Processing Software Market 2023-2030 – by by Solution (Invoice Processing Software, Services), Enterprise Size (SMEs, Large Enterprises) – Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Information Technology | Pages : 168 Pages | Published On : Jul 2023
The revenue of the invoice processing software market reached US$ 22 billion in 2022. It is projected to reach US$ 25.3 billion by 2030, growing at a CAGR of 18% from 2023 to 2030. Automation of accounts payable processes is becoming increasingly crucial for businesses. A future is emerging where invoice processing will no longer be limited to a tactical back-office function within organizations. Customer experience is also gaining importance in both B2C and B2B relationships, particularly in electronic invoicing processes and their execution.
According to the IOFM's 2018 Future of Accounts Payable Study, it is anticipated that by 2021, 51% of paper invoices received by accounts payable departments will be eliminated through electronic processing. A survey by IOFM revealed that nearly a third of practitioners expect to eliminate 25 to 50 percent of paper invoices from suppliers in the near future. Automation of invoice processing provides accounts payable with new opportunities to approach the company strategically by offering value through rewards programs, early payment discounts, longer-term payment terms, and better expenditure control.
The adoption of e-invoicing in the European Union (EU), supported by legislation, has led to economic benefits, reduced manual work, decreased tax evasion, increased efficiency, and wider adoption of digital technology. E-invoicing has become a common format in Europe and is bringing benefits to countries. Consequently, many countries are implementing legislation for e-invoicing in B2G, B2B, and B2C transactions. For instance, France is preparing to implement mandatory B2B e-invoicing through the government system called Chorus Pro by the end of 2024. In Italy, it has been mandatory for businesses, industries, and individuals to use e-invoicing since 2019.
The demand for online invoices has surged in recent years, and it is expected to continue growing. By 2026, it is projected that spending on e-invoicing services will reach $20 billion. The market for online invoices is expanding rapidly due to the numerous advantages they offer. China introduced the E-Fapiao Program in 2023, a fully digitalized version of the e-invoicing system adopted from Taiwan. Several provinces in China will be able to issue fully digitalized e-fapiao to eligible taxpayers.
Scanning software for invoices has a promising future. With advancements in technology, scanning software capabilities are expected to improve in accuracy and efficiency. Invoice processing will become faster, more efficient, and cost-effective for businesses. Cloud-based solutions are becoming more prevalent, allowing companies to access and utilize scanning software from various locations, enabling efficient invoice management. Advancements in artificial intelligence and natural language processing will enhance the accuracy and efficiency of scanning software, automating invoice-processing tasks and reducing manual data entry. New scanning tools are being developed to provide businesses with convenient storage and retrieval of electronic invoices, facilitating timely and effortless data utilization.
Invoice Processing Software automates tasks related to invoice processing, helping companies reduce manual work and eliminate human errors. It offers an overview of the entire invoice cycle, from invoicing to receipt production, accurate allocation, and expense management. Integration with enterprise resource planning software enhances payment process efficiency.
Invoice Processing Software Market Forecast and CAGR
The invoice processing software market is projected to grow at an expected CAGR of 15%, according to the latest research. The increasing need for secure payments to reduce fraud and the adoption of cloud-based services are driving the demand for invoice processing software.
What is Driving Demand for Invoice Processing Software?
The adoption of cloud-based solutions is enabling enterprises to outperform growing start-ups by generating profitable revenue streams with minimal investment. Cloud-based solutions also provide flexibility for enterprises to quickly expand and customize their applications, creating digital transformation and growth opportunities.
The market is witnessing a new trend of adopting cloud-based invoice processing solutions. These solutions help companies reduce infrastructure and resource costs, such as IT personnel, while providing access to all the features offered by on-premise software.
Prominent vendors like SAP SE, Zoho Corporation, and others, who have been offering cloud-based quality and invoice processing solutions in the global market for over a decade, have experienced significant growth in demand for cloud-based solutions in recent years.
Cloud-based invoice processing software allows users to receive real-time business updates and take immediate actions. Urgent payment-related issues can be addressed in real time through the adoption of cloud-based solutions. Additionally, digital wallets and invoicing through mobile apps have become integral parts of the cloud-based invoicing process.
Invoicing Using Blockchain Technology
The adoption of blockchain technology in the invoicing process is on the rise, driven by its potential to revolutionize transaction validation, invoice issuance, and payment methods. By leveraging blockchain in invoicing, users can facilitate seamless payments from customers' digital wallets to businesses. Transactions are easily monitored, tracked, and the entire exchange history can be retrieved from the blockchain.
Blockchain technology eliminates the manual steps traditionally involved in invoice processing, leading to a shift towards paperless transactions as blockchain adoption increases. With transaction information stored in the blockchain, all relevant parties can access and verify the processes, and it can be combined with artificial intelligence to identify payment profiles and assess the risk of debtors.
South Asia & Pacific Invoice Processing Software Demand Outlook
Invoice processing solution vendors can capitalize on the growing demand for innovative invoice processing solutions in South Asia & Pacific countries, where businesses seek to automate the invoicing process and reduce human errors. The market for invoice processing solutions is experiencing rapid growth due to increasing business complexities and evolving regulatory requirements.
Companies should prioritize the analysis of regulatory requirements, policies, and obligations, considering the growing need in the region. Additionally, government initiatives mandating the use of invoice processing software are facilitating the expansion of this technology in the region.
Outlook for the Invoice Processing Software Market in North America:
The adoption of invoice processing solutions in North America is witnessing growth, driven by the increasing adoption of these solutions among small and medium-sized businesses. Furthermore, the invoice processing solutions offered in the region are equipped with analytical tools such as Machine Learning (ML), artificial intelligence, and blockchain technology, enabling organizations to derive actionable insights and focus on reducing organizational risks.
Key Providers of Invoice Processing Software:
Prominent providers of invoice processing software in the region include:
- SAP SE
- Sage Group PLC
- Chrome River
- Zoho Corporation
- Concur Invoice
- Invoicera, among others.
These vendors have implemented various strategies, such as product launches, to offer innovative invoice processing solutions and expand their customer base globally and locally. Significant investments are being made in product research and development to address the unmet needs of customers. Additionally, many companies are pursuing inorganic strategies by acquiring small and mid-sized organizations operating in this market.
The report is a comprehensive compilation of firsthand information, qualitative and quantitative assessments by industry analysts, inputs from industry experts, and participation from stakeholders across the value chain. It provides an in-depth analysis of market trends, macroeconomic indicators, governing factors, and market attractiveness across segments. The report also assesses the qualitative impact of various market factors on market segments and geographical regions.
- Invoice Processing Software
- Integration & Implementation
- Consulting Services
- Support & Maintenance
By Enterprise Size:
- Large Enterprises
- IT & Telecom
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- East Asia
- South Korea
- South Asia & Pacific
- Australia & New Zealand
- Rest of South Asia & Pacific
- Middle East & Africa
- GCC Countries
- South Africa
- North Africa
- Rest of Middle East & Africa
Table and Figures
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