Accounts Payable Automation Market is Segmented By Component (Solution, Services, Professional Services, Managed Services), By Deployment Type (On-Premises, Cloud-based), By Industry Vertical (Consumer Goods & Retail, Banking, Financial Services and Insurance (BFSI), Information Technology (IT) and Telecom, Manufacturing, Healthcare, Energy and Utilities, Others), AND BY REGION (NORTH AMERICA, LATIN AMERICA, EUROPE, ASIA PACIFIC, MIDDLE EAST, AND AFRICA) – SHARE, SIZE, OUTLOOK, AND OPPORTUNITY ANALYSIS, 2024-2031
Market Overview
The Global Accounts Payable Automation Market reached US$ 2.1 billion in 2022 and is projected to witness lucrative growth by reaching US$ 5.1 billion by 2031. The market is growing at a CAGR of 11.9% during the forecast period 2024-2031. Organizations are increasingly adopting digital technologies to streamline their financial processes, reduce manual errors and enhance operational efficiency. Accounts payable automation plays a vital role in this digital transformation journey. Organizations are increasingly adopting digital technologies to streamline their financial processes, reduce manual errors and enhance operational efficiency. Accounts payable automation plays a vital role in this digital transformation journey. On-premises deployment type segment held approximately 45.9% of the global share in 2022 and China, among all countries in Asia-Pacific, dominates the regional market with more than 50.5% of the regional market share.
Market Scope
| Metrics | Details |
| CAGR | 11.9% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Component, Deployment Type, Industry Vertical and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
Market Dynamics and Trends
Increasing Adoption Of Cloud-Based Software
Adopting cloud-based software is a major global account payable automation market driver. Cloud-based software is becoming more popular due to its scalability, flexibility and lower cost. This trend is expected to continue as more and more companies move their financial processes to the cloud.
One of the key advantages of cloud-based accounts payable automation solutions is that they can be accessed from anywhere with an internet connection. This is particularly important for companies with multiple locations or remote workers, as it allows them to collaborate more effectively and efficiently.
Another advantage of cloud-based solutions is that they can be easily scaled up or down as needed. Companies can add or remove users and features based on their changing needs without making major infrastructure investments. Therefore, these advantages drive global market growth.
Upfront Cost Of Implementation And Ongoing Maintenance
The upfront cost of implementation and ongoing maintenance is one of the factors that can restrain the growth of the global accounts payable automation market. Accounts payable automation can save money in the long run, but implementing it can be pricey, especially for smaller businesses on tight budgets.
The cost of implementation can vary widely depending on the complexity of the solution, the size of the organization and the level of customization required. Regular maintenance and support for accounts payable automation can be costly, which can slow down the market's progress.
Market Segmentation Analysis
The global accounts payable automation market is segmented based on component, deployment type, industry vertical and region.
Owing To Its Lower Upfront Costs And Wide Scalability, The Cloud-Based Segment Dominates The Global Market
The cloud-based deployment type segment is a major contributor to the growth of the global accounts payable automation market. Cloud-based solutions typically require lower upfront costs than on-premise solutions, as companies do not need to purchase and maintain their own hardware and software. This can make accounts payable automation solutions more accessible to smaller companies with limited budgets, thereby expanding the potential customer base for vendors.
Cloud-based solutions can easily scale up or down to meet changing business needs, making them more flexible and adaptable than on-premises solutions. This can help companies better manage their accounts payable processes as they grow and change over time.
Therefore, the cloud-based deployment type segment accounts for most global fund payable automation market shares. Cloud-based deployment type segment captures over 55.1% of the worldwide share in 2022 and is expected to dominate during the forecasted period.
Market Geographical Share
Owing To The High Adoption Rate And Advanced Technology Infrastructure, North America Is Controlling The Global Market
The high adoption rate and advanced technology infrastructure in North America has enabled the region to control the global accounts payable automation market in several ways. The increased adoption rate of accounts payable automation solutions in North America has created a large and mature market, with many regional companies implementing such solutions.
This has created a high level of competition among vendors, which has helped to drive innovation and improve the quality of solutions available in the market.
The advanced technology infrastructure in North America has enabled vendors to develop more advanced and sophisticated accounts payable automation solutions. This has enabled companies to achieve greater efficiency and accuracy in their financial processes, leading to significant cost savings and productivity gains. Furthermore, these factors contribute to the growth of the North American accounts payable automation market. North America is the largest region in revenue generation for the global accounts payable automation market, generating almost 1/3rd of the worldwide revenue in the year 2022 and expected to hold the majority of the market in coming years as well.
Companies and Competitive Landscape
The major global players include SAP Ariba, Tipalti, Zycus, Sage Software, Bottomline Technologies, Coupa Software, FreshBooks, FIS, FinancialForce and Vanguard Systems.
COVID-19 Impact on Accounts Payable Automation Market
COVID Impact
The COVID-19 pandemic has significantly impacted the global accounts payable automation market. Due to the disruptions caused by the pandemic, organizations across various industries have accelerated their digital transformation efforts, including adopting automation technologies for accounts payable processes.
AI Impact
AI-powered automation technologies, such as machine learning and natural language processing, can significantly improve the efficiency of accounts payable processes. These technologies can automate data extraction from invoices, match invoices with purchase orders and receipts and perform error detection and correction tasks. By streamlining these processes, AI can reduce manual efforts, accelerate invoice processing times and increase overall operational efficiency.
Russia-Ukraine War Impact
The war and geopolitical tensions between Russia and Ukraine can create economic disruptions in the region. Instability and uncertainty can affect business operations, including accounts payable processes. Companies operating in or doing business with the affected areas may face challenges in invoice processing, payment delays and supply chain disruptions.
In response to the conflict, governments may impose new regulations or sanctions that can affect international trade and financial transactions. Changes in trade policies and restrictions can impact cross-border payments, import/export processes and compliance requirements, potentially influencing accounts payable automation solutions.
Key Developments
- On May 14, 2023, OpenEnvoy, an AI company that developed the premier accounts payable (AP) automation system, recently revealed that it has raised US$15 million in Series A funding, which was led by RRE Ventures and included Coelius Capital, Hack VC, Riot Ventures and Uncorrelated Ventures.
- On February 6, 2023, Repay Holdings Corporation, a top supplier of vertically integrated payment solutions, announced a new partnership with HelloGM, an analytics and automation platform that unifies operations and performance data from guest review websites, accounting and labor services, as well as property management and management.
- On January 12, 2023, The leading AP Software in the market, Stampli, announced that it is currently integrated with Acumatica Cloud ERP. As a result of the thorough connection, Stampli's AP Automation software may now be used to streamline any manual invoicing or payment process carried out by mutual customers in Acumatica.
Why Purchase the Report?
- To visualize the global accounts payable automation market segmentation based on component, deployment type, industry vertical and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous accounts payable automation market-level data points with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Accounts Payable Automation Market Report Would Provide Approximately 61 Tables, 61 Figures And 180 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
