Global Accounts Receivable Automation Market Report and Forecast 2024-2032

Global Accounts Receivable Automation Market Outlook

The global accounts receivable automation market size reached a value of approximately USD 3.64 billion in 2023. The market is assessed to grow at a CAGR of 13.9% between 2024 and 2032, reaching a value of around USD 11.76 billion by 2032.

Key Takeaways

• Growing online sales require efficient automated invoice processing to reduce errors and enhance cash flow.

• AI, ML, and cloud computing advancements enable quicker, more accurate invoice handling, reducing manual workload.

• Increasing preference for cloud-based solutions in accounts receivable boosts collaboration, efficiency, and flexibility.

Accounts receivable automation refers to replacing manual tasks of collection of payment and invoice generation for customers with automated systems, which, in turn, allows a company to save costs and enhance time efficiency. The adoption of accounts receivable automation solutions has modernised operations and streamlined financial transactions. Accounts receivable automation also reduces the risk of manual error and frees up human resources for other tasks.

The accounts receivable automation market is poised for significant growth, driven by a focus on reducing Days Sales Outstanding (DSO) and enhancing cash flow. This trend, coupled with the cost and time efficiencies of automated solutions, is propelling the market expansion. Automation addresses the error-prone and costly nature of manual processes, thereby improving liquidity management and credit decision-making.

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Key Trends and Developments

Flourishing e-commerce sector; technological advancements, rising demand for time and cost-efficiency, and surging adoption of cloud-based solutions are positively impacting the market growth

22nd Feb 2023

BlackLine partnered with Kofax to integrate Tungsten Network's e-invoicing into its AR automation solutions, enhancing electronic invoice capabilities.

Oct 10th 2023

BlackLine expanded AR automation solutions with new e-Invoice Presentment and Payment capabilities, following the acquisition of electronic invoicing firm Data Interconnect.

Dec 6th, 2023

Paymerang launched a new Receivables Automation product, enhancing AR processes and offering real-time cash flow insights.

July 24th 2023

Mastercard introduced Receivables Manager, an automated solution developed with Billtrust, to streamline virtual card payments for businesses.

Growing e-commerce sector

Increased online transactions demand efficient, automated invoice processing and payment tracking to reduce errors and speed up cash flow.

Technological advancements

Advancements in AI, ML, and cloud computing enable more accurate, faster invoice processing and payment reconciliation, enhancing efficiency and reducing manual efforts.

Cost and time efficiency offered by automation

Automation in accounts receivable reduces errors, lowers expenses, and enhances efficiency, positively impacting liquidity management and credit decision-making processes.

Rising demand for cloud-based solutions

Cloud-based accounts receivable automation is gaining popularity as it enhances collaboration and increases efficiency, stability, and flexibility in the accounts receivable workflow.

The accounts receivable automation market demand is significantly influenced by the burgeoning e-commerce sector. As online transactions continue to rise, there is an escalating demand for efficient, automated solutions in invoice processing and payment tracking. This automation is crucial in reducing errors and accelerating cash flow, a vital aspect of the fast-paced e-commerce industry. Enhanced efficiency in handling large volumes of transactions not only streamlines operations but also strengthens the financial health of businesses engaging in digital trade.

Simultaneously, technological advancements are playing a pivotal role in shaping the accounts receivable automation market growth. Innovations in AI, machine learning, and cloud computing have revolutionised accounts receivable processes, leading to more accurate and faster invoice processing and payment reconciliation. This technological evolution is significantly reducing the need for manual intervention, thereby enhancing overall operational efficiency.

Moreover, the shift towards cloud-based solutions is evident, driven by their ability to foster better collaboration, provide scalability, and offer increased stability and flexibility in financial workflows. These factors collectively contribute to the robust growth and evolving dynamics of the accounts receivable automation market.

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Market Segmentation

“Global Accounts Receivable Automation Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Solutions

• Services

Market Bifurcation by Deployment Mode

• On-Premises

• Cloud

Market Breakup by Organisation Size

• Small and Medium Enterprises

• Large Enterprises

Accounts Receivable Automation Market Division by End User

• BFSI

• IT and Telecom

• Manufacturing

• Healthcare

• Retail and Consumer Goods

• Transportation and Logistics

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

The increasing demand for cloud-based solutions has substantially propelled the growth of the market

According to the global accounts receivable automation market analysis, companies have been increasingly favouring cloud-based deployment over on-premise solutions. Cloud-based solutions generally require a lower upfront investment compared to on-premise systems. Cloud solutions offer more robust data recovery and business continuity options. Data is stored off-site and can be backed up regularly, reducing the risk of data loss due to local hardware failures or disasters.

Despite these advantages, some larger enterprises and organisations in highly regulated industries (like finance or healthcare) may still prefer on-premise solutions due to their specific requirements for control, security, and compliance.

Increasing emphasis by SMEs on cloud-based efficiency is expected to be a major factor for accounts receivable automation market expansion

SMEs are increasingly adopting AR automation services. The key reasons include the need for efficiency, cost savings, and the ability to compete with larger companies. SMEs are more inclined towards cloud-based AR automation solutions due to lower upfront costs, scalability, and ease of implementation.

Large enterprises typically have more complex financial systems and therefore require AR automation solutions that can integrate seamlessly with their existing ERP and CRM systems. These organisations often need more customisable solutions to fit their unique processes and compliance requirements.

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Competitive Landscape

Some of the major players are integrating advanced technologies to enhance the accuracy and efficiency of their accounts receivable processes

SAP SE:

German multinational specialising in enterprise software for business operations and customer relationship management, known for its ERP solutions.

Oracle Corporation:

American tech giant, renowned for database software, cloud solutions, and enterprise software products, with a strong focus on database management systems.

Kofax, Inc

A leading provider of intelligent automation software for digital workflow transformation, specialising in document management, robotic process automation, and cognitive capture.

Quadient (Yaypay, Inc)

An international company offering digital communication, shipping, and billing solutions, with Yaypay focusing on AI-driven accounts receivable automation.

Other key players in the global accounts receivable automation market are SK Global Software, Corcentric, LLC, HighRadius Corporation, Qvalia Group AB, MHC Software Holdings, Inc, and Bill.com, LLC, among others.

Companies are increasingly integrating AI, machine learning, and data analytics to enhance the accuracy and efficiency of their accounts receivable processes. These technologies help in predictive analytics, risk assessment, and automating routine tasks like invoice generation and payment reminders.

The Asia Pacific is expected to witness exponential growth in the accounts receivable automation market over the upcoming years due to rapid globalisation, economic development, digitalisation, and rising penetration of the internet. Initiatives taken by various governments in the Asia Pacific region for promoting the development of digital infrastructure are also expected to aid the growth of the market for accounts receivable automation in the region.

Other crucial factors propelling the growth of the market in the Asia Pacific region include reduced need for manual labour and improved accuracy in accounting processes.

Key Highlights of the Report

Accounts Receivable Automation Market Report Snapshots

Accounts Receivable Automation Market Size

Accounts Receivable Automation Companies