Accounts Receivable Automation Market

Global Accounts Receivable Automation Market:

The global accounts receivable automation market size reached US$ 2.5 Billion in 2023. Looking forward, the market is expected to reach US$ 6.1 Billion by 2032, exhibiting a growth rate (CAGR) of 10.1% during 2024-2032. The widespread focus on M&A, the expanding use of online banking apps, and the increasing acceptance among SMEs are stimulating the market.

Accounts Receivable Automation Market Analysis:

• Major Market Drivers: The increasing adoption of AR automation in small and medium enterprises (SMEs) in order to expedite and streamline accounts receivable procedures, minimize manual labor, and free up employees to concentrate on higher-value work is propelling the market.
• Key Market Trends: The elevating need for AR automation in the retail industry to help merchants efficiently handle collection procedures and computerize the sending of payment reminders to clients for past-due bills, which speeds up the collection of unpaid invoices, is a significant growth-inducing factor.
• Competitive Landscape: Some of the prominent players in the market include BlackLine Inc., Bottomline Technologies Inc., Comarch SA, Esker SA, HighRadius Corporation, Invoiced Inc., Oracle Corporation, Sage Group plc, SAP SE, ScienceSoft USA Corporation, VersaPay Corporation, Yaypay Inc. (Quadient), and Zoho Corporation Private Ltd., among many others.
• Geographical Trends: North America is currently dominating the market as a result of the escalating prevalence of cloud-based solutions, which provide more scalability and flexibility.
• Challenges and Opportunities: The integration of legacy systems hinders the market. However, employing customizable solutions that offer seamless compatibility and phased adoption to reduce interruption and enable easier transitions will continue to catalyze the market during the forecast period.
   

Accounts Receivable Automation Market Trends:

Rising Artificial Intelligence Integration

AI-powered technologies such as predictive analytics and machine learning are being integrated into accounts receivable automation, enabling smarter forecasting, better decision-making, and more accurate credit risk assessments, assisting firms in optimizing cash flow and reducing payment delays. In March 2024, Celonis, the global leader in process mining, announced the launch of the new Sailfin Accounts Receivable (AR) app suite, developed in collaboration with Sailfin Technologies.

Growing Need for Customization and Integration

The demand for solutions that work smoothly with existing corporate systems, such as ERP and CRM platforms, is increasing. Customizable accounts receivable automation technologies enable firms to integrate the software with their own workflows and industry needs. In January 2024, Canadian FinTech company Nuvei launched its first integration into Microsoft Dynamics 365 Business Central, integrating payments and accounts receivable automation to streamline financial workflows and enhance payment processing capabilities within the platform. This is contributing to shaping the accounts receivable automation market dynamics.

Increasing Cloud-Based Adoption

The expanding popularity of cloud-based accounts receivable automation systems provides scalability, cost-effectiveness, and remote access. This trend enables real-time updates and cooperation, making it desirable to firms looking for flexible and adaptive financial management solutions. In July 2024, U.S. Bank introduced a comprehensive accounts receivable (AR) platform to help suppliers accelerate cash flow, cut costs through automation, and deliver better payment experiences.

Global Accounts Receivable Automation Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the market forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, deployment, organization size, and vertical.

Breakup by Component:

• Solution
• Services
   

Solution currently holds the largest accounts receivable automation market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services. According to the report, solution represented the largest market segmentation.

The solutions streamline billing, decrease human mistakes, and increase real-time receivables tracking, allowing organizations to improve cash flow management and operational efficiency.

Breakup by Deployment:

• On-premises
• Cloud-based
   

The report has provided a detailed breakup and analysis of the market based on the deployment. This includes on-premises and cloud-based.

As per the accounts receivable automation market analysis, on-premises solutions provide better control over data and infrastructure, which appeals to businesses with unique security requirements. Cloud-based solutions, on the other hand, are becoming increasingly popular due to their scalability, cost-effectiveness, and accessibility, allowing organizations to simplify procedures and improve remote collaboration. 

Breakup by Organization Size:

• Large Enterprises
• Small and Medium-sized Enterprises
   

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes large enterprises and small and medium-sized enterprises.

Large enterprises seek automation for managing large transactions and increasing efficiency. Meanwhile, small and medium-sized enterprises are rapidly using these solutions to improve cash flow, minimize human errors, and gain a competitive edge by automating financial processes without requiring significant infrastructure expenditures.

Breakup by Vertical:

• Consumer Goods and Retail
• BFSI
• Manufacturing
• IT and Telecom
• Healthcare
• Energy and Utilities
• Others
   

Among these, BFSI holds the largest share of the AR automation market

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes consumer goods and retail, BFSI, manufacturing, IT and telecom, healthcare, energy and utilities, and others. According to the report, BFSI represented the largest market segmentation.

In the BFSI sector, automation is critical for speeding up payment operations, increasing accuracy, and improving regulatory compliance. Automating receivables allows BFSI organizations to manage big transaction volumes more effectively, lowering operating costs and enhancing cash flow visibility.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America currently dominates the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

As per the accounts receivable automation market outlook, North America exhibits a clear dominance in the market driven by the rising emphasis on regulatory compliance, which boosts demand for automated solutions that assure accurate financial reporting and audit preparedness.

Competitive Landscape:

The research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• BlackLine Inc.
• Bottomline Technologies Inc.
• Comarch SA
• Esker SA
• HighRadius Corporation
• Invoiced Inc.
• Oracle Corporation
• Sage Group plc
• SAP SE
• ScienceSoft USA Corporation
• VersaPay Corporation
• Yaypay Inc. (Quadient)
• Zoho Corporation Private Ltd.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

 Accounts Receivable Automation Market Recent Developments:

• July 2024: U.S. Bank introduced a comprehensive accounts receivable (AR) platform to help suppliers accelerate cash flow, cut costs through automation, and deliver better payment experiences.
• March 2024: Celonis, the global leader in process mining, announced the launch of the new Sailfin accounts receivable (AR) app suite, developed in collaboration with Sailfin Technologies.
• January 2024: Canadian FinTech company Nuvei launched its first integration into Microsoft Dynamics 365 Business Central, integrating payments and accounts receivable automation to streamline financial workflows and enhance payment processing capabilities within the platform.

Accounts Receivable Automation Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the accounts receivable automation market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global accounts receivable automation market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the accounts receivable automation industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.