Expense Management Software Market Overview
The Expense Management Software Market size is projected to reach approximately USD 16.89 billion by 2032, at a CAGR of 11.80% from 2024 to 2032. An expense management tool is one of the financial management software solutions that help businesses automate and streamline the process of managing and approving expense reports. Employee expenditure reports are submitted, approved, processed, and reimbursed with a significant reduction in time and effort. As a result, small and large businesses are implementing expenditure management software to boost organizational effectiveness by reducing costs and streamlining the expense reporting process. Additionally, expenditure management software offers spending visibility, which supports business growth. This means that the growth prospects for the expense management software market are expected to be greater during the forecast period.
Figure 1: Expense Management Software Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
COVID-19 Impact Analysis
Technology enables businesses to redesign their organization around the customer to create a truly connected and successful firm. The epidemic has prompted big industries to adopt "work from home" policies, which has increased demand for cloud-based deployments. Although businesses in developing nations have been steadily adopting the cloud for a decade, COVID-19 has functioned as a catalyst. Any size organization, whether large or small, can benefit from using cloud-based expenditure management software. It is cost-effective, error-proof, and offers powerful analytics to better understand the company's financial situation. As a result, during the pandemic, market participants saw an increase in revenue, and throughout the anticipated time, additional profitability is anticipated.
Expense Management Software Market Dynamics
In the past, smartphone use has expanded ly due to the high demand and low cost of smartphones, which has raised the demand for multi-platform software. This software was developed to work across multiple platforms while syncing user data. In the market, many companies offer information about users, their history, tickets, and offers to smartphone applications. These trends helped the market to grow.
Market Drivers
Increasing centralization of data related to enterprise expenses
Due to technical improvements that make it possible for firms and individuals to function and perform effectively, the world economy has experienced ongoing changes. However, traditional approaches to finding and fixing spending management issues are distributed over numerous platforms, including email and employee hard drives. Automation, multidimensional analysis, staff communications, file attachments, workflow, audit trails, and records of all activity undertaken to investigate and address issues are all made possible by using a comprehensive, centralized system. Employees of an organization can analyze, monitor, and submit expense reports when they are on the go, thanks to the centralization of all expense-related data and expense management software. It also removes data entry errors, thoroughly evaluates the expense report, and offers insightful information about the cost management software program. Therefore, one of the major factors propelling the market growth during the study period is the centralization of enterprise expense-related data.
Market Restraints
Interoperability issues and security issues
As awareness of the value of digitization grows, more companies are adopting cutting-edge solutions like expense management software. Software for expense management stores information on travel and expenditures for company purposes and employee expense reports. As a result, businesses should choose a cost management system carefully. Phishing, malware, social engineering, and other information-stealing methods are available to hackers and other cybercriminals. The expense management software includes all the employee names and data, corporate credit card numbers, business-related activities, transaction statements, and financial history. Security issues, however, impede the security of data centers and physical gear, which results in improper and haphazard expense management.
Market Opportunities
The rise in predictive analytics integration
Cross-sell opportunities and client responses are predicted using predictive analytics. Predictive models can help businesses find, keep, and expand their most lucrative clients, enhancing operations. Many businesses also utilize predictive algorithms to forecast inventory and manage resources. The most often used applications for expense management are early process irregularity identification and process optimization. Predictive analytics can also help a business discover future possibilities and threats. As a result, predictive analytics has enhanced how financial staff in a business evaluate, process, and keep track of spending data.
Segment Overview
By Type Insights
The expense management software market segmentation, based on type, is PC terminal and mobile terminal. The expense management software market growth was prominently high under the PC in 2021 and will continue to dominate the revenue contribution ly. Users of the cost management software can generate, monitor, and regulate numerous expense reports. One of the factors driving this market during the projected period is the need to increase employee productivity and efficiency by minimizing the time required to create, submit, evaluate, and approve the expenditure report. Besides this, the mobile terminal segment was the fastest-growing segment. Due to the numerous processes involved, including receipt management, reimbursements, audits, and others, expense management for corporate operations or projects is quite complex. By implementing mobile-based expense management software, supervisors can remotely supervise, control, and analyze expense reports.
By End User Insights
Based on end user, the expense management software market segmentation has been divided into small business, midsized business, and large enterprises. The large enterprise segment had a prominent share in 2021. Large business organizations employ more than or equal to 1,000 people. Managing expense reports in a huge organization is fairly difficult compared to small and mid-sized businesses. Since it helps the firm manage the cost management procedures, such as the creation, submission, evaluation, and approval of expense reports, the use of expense management software in major enterprises has grown in recent years. However, midsized business was the fastest growing. Midsized firms are organizations with between 100 and 1,000 employees. The procedure of expense reporting is difficult and time-consuming for mid-sized businesses.
By Vertical Insights
Based on vertical, the market is divided into BFSI, IT & telecom, transportation & logistics, manufacturing, government & public sector, retail & e-commerce, energy & utilities, and others). The BFSI segment had a prominent share in 2021. This is mostly due to the BFSI industry's increased use of cutting-edge tools. Most businesses in this industry have embraced expense management software and automated business procedures to improve transparency and decrease fraud and errors. Besides this, the IT & telecom segment is anticipated to be the fastest growing. Businesses have also made significant progress in adopting cutting-edge software technologies that streamline operational procedures. Software for expense management helps businesses in the Telecom Expense Management industry monitor, regulate, and comprehend their overall telecom spending. Large amounts of telecom data, including costs, consumption, billing, and administration, are processed and recorded using this program.
Global Expense Management Software Market Share, by Region, 2021 (%)
Expense Management Software Market Overview, by Region
By Regional Insights
By region, the expense management software market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Europe is projected to exhibit the highest CAGR during the forecast period.
North America
North America was the most extensive market share in 2021. This can be largely linked to rising company automation rates and IT spending. Additionally, the existence of market leaders in the nation also contributes to market expansion. The US market is growing primarily due to the BFSI, manufacturing, retail, transportation & logistics, and government sectors.
Europe
Europe was anticipated to encounter the fastest growth rate in 2021. European companies have demonstrated improvements in expenditure management software, including adherence to evolving rules. This is a result of the strict and evolving European financial audit regulations.
Expense Management Software Market Competitive Landscape
The market includes tier-1, tier-2, and local players. The surge in the use of mobile applications to track expenses has led to a large increase in the market for expense management software over the anticipated term. The expense management software industry has several local, regional, and international firms competing for a sizeable portion of the market. For instance, in October 2022, With an additional $15 million from current investors, Center, a software provider that aids businesses in managing employee spending, completed its series B funding round.
Prominent players in the expense management software market research include
Scope of the Expense Management Software Market Segmantation
By Type Outlook
- PC Terminal
- Mobile Terminal
By End User Outlook
- Small Business
- Midsized Business
- Large Enterprises
By Vertical Outlook
- BFSI
- IT & Telecom
- Retail & E-Commerce
- Transportation & Logistics
- Manufacturing
- Government & Public Sector
- Energy & Utilities
By Region Outlook
-
North America
-
Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- India
- Japan
- Australia and New Zealand
- Rest of Asia-Pacific
-
Rest of the World
- South America
- Middle East
- Africa
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Expense Management Software Market Forecast & Size
To identify and estimate the market size for the expense management software market report segmented by type, end user, and vertical by value (in US dollars). Also, to understand the consumption/ demand created by consumers of expense management software market forecast between 2022 and 2030
Market Landscape and Trends
To identify and infer the drivers, restraints, opportunities, and challenges in expense management software market growth
Market Influencing Factors
To find out the factors which are affecting the expense management software market size among consumers
Impact of COVID-19
To identify and understand the various factors involved in the market affected by the pandemic
Company Profiling
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
| Report Attribute/Metric |
Details |
| Market Size |
USD 16.89 billion |
| (CAGR) |
11.80% CAGR (2022-2032) |
| Base year |
2023 |
| Forecast Period |
2024-2032 |
| Historical Data |
2020 |
| Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Product, Age Group, End User, and Application |
| Geographies Covered |
North America, Europe, Asia-Pacific, and the Rest of the World (RoW) |
| Key Vendors |
Braun Melsungen AG, Cook Medical, Medtronic plc, Becton, Abbott Laboratories, Dickinson and Company (BD), Fresenius Kabi AG, Boston Scientific Corporation, CONMED Corporation, Danone Nutricia |
| Key Market Opportunities |
Rising in the number of older adults |
| Key Market Drivers |
Enhanced access to home enteral nutrition |
Expense Management Software Market Highlights:
Frequently Asked Questions (FAQ) :
The enteral feeding devices market forecast period is 2024 - 2032
The market is expected to register a CAGR of 11.80% over the next 10 years, according to the enteral feeding devices market research.
Asia-Pacific is expected to register the highest CAGR during 2024 - 2032
North America held the largest share in 2021
The market size is expected to be USD 16.89 billion by 2032.
Braun Melsungen AG, Cook Medical, Medtronic plc, Becton, Abbott Laboratories, and Dickinson and Company (BD)are the major companies operating in the market.
