Zion Market Research released a report about the accounts payable software market on Wednesday (March 20), estimating the market will reach about $1,567 million by 2025, according to a release by the company.
The report said the market was valued at $988 million in 2018, and is expected to have a compound annual growth rate of just above 6.8 percent between 2019 and 2025.
“Accounts payable software enables the enterprises to improve the accuracy of their financial data, save time on various business methods, and allow the staff to work on other tasks,” Zion said. “It allows the companies to maintain accurate financial records and track vendors and suppliers activities with ease. This software is ideal for calculating and tracking short-term debts. The software is perfect for small businesses and startups that are looking to control their cash flow and manage their finances.”
One of the major factors that will move growth of global accounts software forward is the adoption of the software by small and medium-sized businesses (SMBs). Cloud-based technology will also be a factor that spurs growth in some countries.
There could be some security issues related to the authentication of data, and that could potentially hamper growth, but the fact that the software will be affordable and easy to maintain will open new avenues around the globe, according to the report.
“The global accounts payable software market is segmented on the basis of type and application. Based on the type, the market is categorized into Cloud/SaaS/Web-based and installed,” Zion said. “Cloud/SaaS/Web-Based type is expected to hold the largest market share over the projected years, owing to its online services that are becoming profitable options for small and medium-sized businesses.”
North America had the largest share of the market in 2018, but Europe, the Asia Pacific and Latin America are all expected to see huge growth.
“The Middle East and Africa is expected to witness moderate growth in the future, owing to the higher adoption of accounts payable software solutions in the real estate sector to track the day-to-day transactions,” the company said.