The global accounts receivable automation market involves streamlining the process of invoicing, collections, payments, and reconciliations. This helps organizations in reducing costs and optimizing cash flows by automating routine back-office tasks related to accounts receivable management. Accounts receivable automation solutions provide benefits like faster processing of payments, reduced errors and disputes, improved visibility into cash flows, better control over accounts receivable and improved customer satisfaction through online payment tracking and automated updates. With the growing complexity of business operations and increasing digitalization, the demand for accounts receivable automation solutions from various end-use industries is increasing substantially. The global Accounts Receivable Automation Market is estimated to be valued at US$ 3313.82 Mn in 2023 and is expected to exhibit a CAGR of 13.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends prevailing in the accounts receivable automation market is the increasing adoption of e-Invoicing solutions. E-Invoicing refers to the electronic generation and exchange of invoices between organizations. It helps in streamlining procure-to-pay and order-to-cash processes. It eliminates paper-based manual tasks significantly reducing errors and enables tracking of outstanding invoices in real-time. With the digitization initiatives across industries, regulators in many countries are also mandating the use of e-Invoicing for B2B transactions to promote paperless trading. This is expected to fuel the demand for accounts receivable automation solutions in the coming years. Other key trends include growing popularity of cloud-based AR automation tools and increasing integration of AI and analytics capabilities in accounts receivable software.

Porter’s Analysis

Threat of new entrants: The accounts receivable automation market requires high initial investment for infrastructure development and maintenance which poses moderate threat for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power owing to presence of various solution providers offering customizable accounts receivable automation solutions.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are numerous software solution providers in the market.

Threat of new substitutes: Threat from new substitutes is moderate as manual methods are being replaced by automated accounting solutions.

Competitive rivalry: The market is competitive due to presence of global and regional players offering diversified solutions.

Key Takeaways

The Global Accounts Receivable Automation Market Size is expected to witness high growth over the forecast period. North America is expected to hold the largest share of the market through 2030 owing to presence of major players in the region and early adoption of new technologies.

Regional analysis – North America accounts for the majority share of the global accounts receivable automation market due to presence of major players like Oracle Corporation, SAP SE, and Comarch SA in the region. Early adoption of automated solutions also contributes to the leading position of the region.

Key players – Key players operating in the Accounts Receivable Automation Market are Esker Inc., SAP SE, Comarch SA, Oracle Corporation, Bill.com Holdings Inc., SK Global Software, MHC Automation, Quadient(YayPay Inc.), Qvalia AB, Kofax Inc., HighRadius Corporation, Workday Inc., and Corcentric LLC. These players are focusing on offering advanced solutions to business of all sizes.