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The AP market is influenced by numerous elements that jointly form its dynamics and functionality. The overall economic situation is a key market driver. During economic prosperity, firms typically grow, leading to more transactions and hence bigger accounts payable volumes. Conversely, in times of economic decline, businesses may reduce their budgets, which could result in a decrease in accounts payable (AP) operations.
Technological improvements are essential to influencing the AP industry. Automation and digitalization have transformed how firms handle their account payment procedures. Automated invoicing, electronic payments, and advanced data analytics have improved efficiency and precision in operations. As technology advances, the AP industry is expected to undergo further changes as new solutions continuously alter conventional methods.
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Government rules and compliance standards have a substantial impact on the AP market. Tax rules, financial reporting requirements, and regulatory demands might affect how firms handle their payables. Stringent compliance procedures frequently compel organizations to invest in advanced AP systems to guarantee compliance with regulatory frameworks, promoting openness and accountability in financial activities.
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Globalization is a significant aspect that impacts the AP market. As organizations grow internationally, the intricacy of overseeing cross-border transactions rises. Adaptable accounts payable systems are required due to currency volatility, distinct regulatory environments, and differing business processes in various areas. AP market vendors must provide technologies that can handle global complexities, facilitating smooth financial operations for international firms.
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Vendor interactions in the AP market have a crucial role in shaping its overall structure. Business decisions are influenced by the availability and competitiveness of AP software providers. Product features, price structures, customer support, and solution scalability are crucial factors influencing enterprises' decisions to adopt particular AP systems. Competition in the market encourages innovation as suppliers aim to distinguish themselves by providing advanced solutions to address the changing demands of organizations.
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Businesses' financial well-being is closely connected to the accounts payable market. Financially strong firms are more inclined to invest in advanced accounts payable solutions to enhance their financial operations. During times of financial instability, firms may focus on reducing costs, which could result in postponing the implementation of new accounts payable systems. Assessing the financial stability of businesses is essential for vendors and stakeholders to evaluate the potential growth and demand in the AP market.
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The general business environment also impacts the accounts payable sector. Industries undergoing significant expansion or change may see a rise in the need for sophisticated accounts payable solutions to meet their changing requirements. Sectors experiencing difficulties or declines may adopt a more cautious strategy regarding accounts payable investments. The type of organization, such as manufacturing, service provider, or hybrid model, impacts the complexity of accounts payable procedures and necessary solutions.
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Cybersecurity considerations are becoming crucial in the AP market. Businesses are increasingly focusing on securing their financial data due to the growing number and complexity of cyber threats. Access point solutions with strong cybersecurity features, like secure payment gateways and encryption protocols, are more likely to be successful in the market. Data breaches can have serious ramifications for enterprises; hence, security features are becoming essential components in AP systems.
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ESG factors are becoming increasingly important in various businesses, including the AP market. Businesses are facing growing pressure to implement sustainable and socially responsible operations. AP solutions that promote transparent reporting, ethical financial practices, and reduced environmental impact are more likely to resonate with conscientious enterprises and stakeholders. Â
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Component, Deployment, Enterprise Size, Vertical and Region |
Account Payable Market Highlights:
Account Payable Market Overview
The Account Payable Market size is projected to grow from USD 1.41 Billion in 2024 to USD 2.79 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.83% during the forecast period (2024 - 2032). Additionally, the market size for Account Payable was valued at USD 1.21 Billion in 2023.
Increased AI is increasingly used in the account payable process to automate tasks such as invoice processing and fraud detection is the key market drivers enhancing market growth.
Figure1: Account Payable Market, 2018 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Account Payable Market Trends
Increasing demand for account payable automation for bill generation drives the market growth.
Account payable is important to ensure payment of bills on a timely basis, which improves the company's credit rating. This increasing demand for Account payable bill generation due to the timely payment of invoices ensures an uninterrupted flow of supplies and services. Timely payment avoids overdue payments, penalties, and other late fees among organizations, thus creating huge growth for the account payable automation market. This factor drives the Market CAGR.
Additionally, the growth of digitalization is revolutionizing the interaction between customers and businesses and building a new platform for the interaction of ideas. Digitalization is the process of converting information into digital information by using various data and software. Since 2009, financial institutions have transformed towards digitalization by integrating digital technologies. Digital transformation has provided automation, better services, and efficiency to financial processes. Customers are inclined more toward digital platforms for transacting their financial assets, which has even increased during this pandemic. The increasing need to digitize the payment process and reduce invoice time is thus leading to the growth of the accounts payable automation market. Furthermore, Individual companies are getting more accustomed to Account payable platforms for making transactions for their basic usage, such as gaining basic information, buying goods, or using it as a platform for their business. Thus, driving the Account Payable market revenue.
Account Payable Market Segment Insights
Account Payable Component Insights
Based on Components, the Account Payable market segmentation includes Solution, Service-Managed and Professional. The solution segment dominated the market because solutions are the essential Component of Account payable solutions, as they provide the tools and functionality for processing invoices and managing accounts payable. Solutions provide the tools and functionality for processing invoices and managing accounts payable. This is due to the increasing volume of invoices being processed and the need to automate and streamline the accounts payable process.
Account Payable Deployment Insights
Based on Deployment, the Account Payable market segmentation includes On-Premise, Cloud. The cloud segment dominated the market because cloud-based account payable solutions offer several advantages over on-premises solutions. Cloud-based solutions can be easily scaled up or down to meet the changing needs of an organization. Cloud-based solutions are typically more cost-effective than on-premises solutions, as organizations do not have to invest in hardware and software.
Figure 2: Account Payable Market, by Deployment, 2022 & 2032(USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Account Payable Enterprise Size Insights
The Account Payable market segmentation, based on Enterprise Size, includes Large Enterprises, Small Enterprises and Medium Enterprises. The large enterprises segment dominated the market because large enterprises typically have a large volume of invoices being processed and need to automate and streamline the accounts payable process. This includes the budget to purchase software and hardware and the staff to implement and manage these solutions.
Account Payable Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Account Payable market area will dominate this market, owing to the rising infrastructure, commercial, and industrial developments that will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: ACCOUNT PAYABLE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Account Payable market accounts for the second-largest market share due to the forefront of technological advancement. This means that they are more likely to adopt new technologies, such as cloud-based Account payable solutions. Further, the German Account Payable market held the largest market share, and the UK Account Payable market was the fastest-growing market in the European Region.
The Asia-Pacific Account Payable Market is expected to grow fastest from 2023 to 2032. This is due to rapidly digitizing and being increasingly aware of the importance of having efficient and effective account payable processes. Moreover, China’s Account Payable market held the largest market share, and the Indian Account Payable market was the fastest-growing market in the Asia-Pacific region.
Account Payable Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Account Payable market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Account Payable industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Account Payable industry to benefit clients and increase the market sector. The Account Payable industry has offered some of the most significant advantages in recent years. Major players in the Account Payable market, including Sage Group plc (UK), Newgen Software Technologies Limited (India), OSAS (US), Esker (France), AvidXchange (US), SutiSoft, Inc. (US), Invoicera (India), SAP (Germany), Comarch (Poland), FIS (US), Vanguard Systems (US), Zycus Inc.(US), Tipalti, Inc. (US), Bottomline Technologies (de), Inc. (US), Beanworks (Canada)., and others, are attempting to increase market demand by investing in research and development operations.
Tipalti is an accounting software financial technology business that provides accounts payable, procurement and payments automation software for businesses. Tipalti partnered with Everflow to provide customers with a single dashboard powered with various features, including complete performance tracking, payouts, and analytics.
Fidelity National Information Services, Inc. is an American multinational corporation offering various financial products and services. FIS signed a definite merger agreement with Worldpay, a leader in eCommerce and payments. Post the merger, FIS enhanced its product portfolio for payment-related offerings and significantly increased Worldpay's distribution footprint.
Key Companies in the Account Payable market include
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OSAS (US)
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Esker (France)
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AvidXchange (US)
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SutiSoft Inc. (US)
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Invoicera (India)
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SAP (Germany)
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Comarch (Poland)
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FIS (US)
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Vanguard Systems (US)
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Zycus Inc.(US)
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Tipalti, Inc. (US)
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Bottomline Technologies (de), Inc. (US)
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Beanworks (Canada)
Account Payable Industry Developments
May 2019: Tipalti partnered with Everflow to provide customers with a single dashboard powered with various features, including complete performance tracking, payouts, and analytics.
March 2019: FIS signed a definite merger agreement with Worldpay, a leader in eCommerce and payments. Post the merger, FIS enhanced its product portfolio for payment-related offerings and significantly increased Worldpay's distribution footprint.
Account Payable Market Segmentation
Account Payable Component Outlook
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Solution
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Service-Managed
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Professional
Account Payable Deployment Outlook
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On-Premise
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Cloud
Account Payable Enterprise Size Outlook
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Large Enterprises
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Small Enterprises
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Medium Enterprises
Account Payable Vertical Outlook
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L BFSI,
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Retail & Consumer Goods
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Energy & Utility
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Healthcare
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IT and Telecommunication
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Manufacturing
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other
Account Payable Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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