The global accounts receivable automation market size is expected to grow from USD 1.7 billion in 2019 to USD 3.0 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 12.1% during the forecast period.
Growing focus on the improvement of cash flow and reduction in days sales outstanding and reduced accounting cycle time are the major factors driving the growth of the accounts receivable automation market.
The solution segment expected to hold a higher market share during the forecast period
Accounts receivable automation solutions are widely adopted by various end users, such as financial institutions, retail, manufacturing, healthcare providers, government agencies, and telecom and utilities to automate and improve their cash collection efficiency. Manual processes for accounts receivable processes are expensive, error-prone, and highly inefficient.
The accounts receivable solution automates payment receivable processes and enables enterprises to maintain a vendor-supplier relationship. The accounts receivable automation solution offers visibility of entire accounts receivable processes such as invoicing, receipt, and timely payment collection management. Moreover, it can be easily integrated with the Enterprise Resource Planning (ERP), thereby providing enhanced ability to adopt changes and increase the efficiency of payment processes. Accounts receivable automation provides dashboards, account selections, compliance policies, routing rules, and approvals to deliver seamless proficiencies for an organization's operation.
Cloud-based deployment type expected to have a significant growth in the accounts receivable automation market during the forecast period
Several vendors in the market are providing payment collection solutions through the public and private cloud. Cloud-based solutions are available in various subscriptions and pay-per-use models. Organizations are looking forward to having their solutions deployed on the cloud, as it offers various advantages, such as scalability, flexibility in capacity, enhanced collaboration, and cost-efficiency. The implementation of the cloud-based accounts receivable automation solution facilitates enterprises to focus on their core competencies, rather than IT processes. Cloud-based accounts receivable automation solutions are significantly gaining traction due to their unprecedented deployment flexibility benefits and global availability.
North America expected to have the largest market size during the forecast period
North America has been a frontrunner in adopting innovative technologies. The accounts receivable automation market in North America is competitive due to the presence of a large number of solution providers. The market in this region is already at a mature stage, and therefore, it is expected to witness slower growth as compared to the other regions.
The well-developed economy in North America and the growing adoption of automation solutions are the key factors contributing to the growth of the accounts receivable automation market in this region. The enterprises operating in the region are increasing their IT spending to automate the financial process. Enterprises with a large volume of data and transactions have already realized the need for an accounts receivable automation solution to carry out error-free, on-time transactions.
Metro cities, such as New York, San Francisco, and Washington, have a large pool of skilled accounts receivable automation professionals who use the accounts receivable automation solution to get on-time payments for achieving business growth. The US and Canada are the key countries considered for market analysis in this region.
The major accounts receivable automation market vendors include Sage, Oracle, SAP, Workday, Bottomline Technologies, Comarch, Esker, Kofax, Zoho, HighRadius, FinancialForce, Emagia, VersaPay, Rimilia, and YayPay.