Increased online transactions in the retail and a rise in demand for online accounting systems are some of the reasons why the Online Accounting Software Market is growing at a rapid pace.
Covid-19 Impact & Market Status
The Online Accounting Software market size was taken a hit due to the advent of Covid-19. Covid 19 has forced many companies in the online accounting software market to stop their business operations in order to fulfill new government regulations. This has resulted in impacting the revenue flow for the companies. However, more and more companies have now realized how important accounting software is for them. It helps in analyzing revenue and makes things better for businesses; hence the demand has increased post-pandemic, the companies are now coming back on track due to increased demand and new strategies being adopted.
The existing market, regulatory considerations, possible prospects, and difficulties in various market segments are all examined in this Online Accounting Software Market analysis. The study also includes a comprehensive analysis of the competitive environment.
Cloud-Based Accounting software to Emerge as the Most Lucrative Segment
Based on deployment, the cloud-based accounting software contributed to the highest market share, accounting for a large percentage of the global Online Accounting Software. This is because of the benefits offered by these software solutions. It helps in real-time distribution, reduced errors, improve processes, and simplifies the accounts. In recent years, businesses have favoured flexible cloud-based deployment due to the system's transparency.
High Adoption by Small & Medium Enterprises
The small & medium enterprises are expected to have a high adoption rate throughout the forecast period. Because SMEs are increasingly partnering with e-commerce players and connecting with other online apps, this is the case. The software has helped these SMEs to effectively manage their accounting process and has improved profitability due to better hints on capital allocation.
BFSI Segment will generate the highest revenue
The industry was led by the BFSI segment in 2020 accounting for the majority of the revenue. and is projected to maintain its dominance during the forecast period. This is because of the rise in the number of banks and as the economy grows, the banking system has to grow. Additionally, the most basic software for bankers is accounting software to keep a check of ledgers, bookmaking and ensure that everything with millions of accounts is right.
North America to render ample Investment Opportunities
By region, North America is expected to have the greatest share of the pie throughout the forecast period owing to a high number of industrial sectors. The Online Accounting Software market is expected to be strongest in North America also because of the huge demand in the region and huge technological advancements taking place every year.
The Asia Pacific region is expected to have the highest CAGR throughout the forecast period because of the high population in the region which means higher demand. Additionally, improving technology is also responsible for a great CAGR.
The growing desire to streamline the accounting process, save time, and ensure error-free transactions between businesses and their customers is propelling the Online Accounting Software market forward.
Accounting software is beneficial because it aids productivity by automating, archiving, and integrating human resource systems. It allows businesses to make their accounting processes far more efficient and error-free. The benefits like reduced human errors made in the accounting ledger and stability improvement in the accounting process have resulted in the growth of the Online Accounting Software Market.
Rapid Urbanization, supportive policies are some of the factors that are helping this market grow at a rapid pace. The increase in population and a rapid rise in e-commerce purchases, further the need for maintaining different types of bills such as bills of accounts, online bills, promoting future growth. These factors collectively influence the global Online Accounting Software market, ensuring an overall market size of 23.05 billion by 2028 with an annual growth rate of 8.5% through the forecast span.
The rise in the adoption of technology and growth in digitization among industries to improve efficiency and reduce complexities is one of the reasons why this market is gaining importance. The unique feature of this system is that it results in maximized efficiency, minimized manpower, fewer human errors, and managed records.
Improvements in AI technology, the rise in the usage of machine learning can play an important role in the growth of this market. Additionally, increased adoption of accounting software among SMEs is also one factor that is likely to help in providing interesting opportunities for this market.
However, security concerns in the accounting software hamper the growth of this market. Nevertheless, Online Accounting Software Market has growth prospects, because of the increasing need for highly efficient systems to reduce complexities.
The major players in this market are Oracle (NetSuite), Microsoft, Intuit, Sage, SAP, Infor, Epicor, Yonyou, Kingdee, Workday, Unit4, Xero, Acclivity, FreshBooks, Aplicor, Red wing, Intacct, Assit cornerstone, and Tally Solutions Pvt. Ltd. Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Online Accounting Software market. By applying technology, the R&D teams of the companies must try to mitigate the risks associated with security concerns. The Graphic User Interface i.e., ease of use, size of the software, and useful features will prove to be essential factors determining the dominant player in the market.
Latest Innovations in the Online Accounting Software Market: A Snapshot
• In February 2020, Intuit, the company behind TurboTax, QuickBooks, and Mint, has also agreed to buy Credit Karma. This merger brings together industry heavyweights. IUSUS
Online Accounting Software Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 23.05 billion|
|Growth Rate||CAGR of 8.5 % during 2021-2028|
|Segment Covered||Deployment, Organization, End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Oracle (NetSuite), Microsoft, Intuit, Sage, SAP, Infor, Epicor, Yonyou, Kingdee, Workday, Unit4, Xero, Acclivity, FreshBooks, Aplicor, Red wing, Intacct, Assit cornerstone, and Tally Solutions Pvt. Ltd. Product launches, acquisitions, and R&D|
Key Segments of the Online Accounting Software Market
Online Accounting Software Market on the basis of Deployment Overview, 2018-2028 (USD billion)
Organization Size Overview, 2018-2028 (USD Billion)
- Small & Medium Enterprises
- Large Enterprises
End User Overview, 2018-2028 (USD Billion)
- IT and Telecom
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa