Accounts receivable automation refers to the use of technology to digitize and automate the traditionally paper-based accounts receivable processes. This includes invoice processing, collections, cash application and customer inquiries. Accounts receivable automation helps businesses to improve efficiency by streamlining workflows, reducing processing times and costs. It allows real-time visibility into accounts receivable data and customer payment status. Many accounts receivable automation solutions come with integrated features like electronic invoice presentment and payment, customer self-service portals, and automated reminders.
The global accounts receivable automation market is estimated to be valued at US$3817.53 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The growth of the accounts receivable automation market is driven by the growing demand for streamlining accounts receivables. Accounts receivable automation enables businesses to centralize receivables data, process invoices and payments faster. It eliminates manual data entry errors and provides a consolidated view of cash flows. This helps credit control teams to quickly identify payment issues and take informed collection decisions. Additionally, accounts receivable automation improves customer experience through self-service payments, mobile invoicing and 24/7 support. The integration of accounts receivable solutions with other financial applications like ERP further enhances process efficiency. These benefits are encouraging more organizations to adopt accounts receivable automation solutions.
Segment Analysis
The accounts receivable automation market is dominated by the cloud-based sub-segment. Over 90% of companies in different industry verticals are adopting cloud-based accounts receivable automation solutions as it provides benefits such as reduced cost of ownership, 24/7 accessibility from anywhere, automatic software updates, scalability, and reduced IT overhead. The on-premise segment is also gaining traction among large enterprises who want more control over critical data and applications but its market share is declining rapidly with shift towards cloud-based solutions.
PEST Analysis
Political: Government regulations around data privacy and security are pushing companies to automate their accounts receivable processes to securely manage customer records and payment information. Economic: Rising costs of manual receivable processes and need to optimize cash flows are encouraging businesses to invest in automation solutions. Social: Younger workforce expects seamless digital experiences across touchpoints, pushing organizations to modernize legacy receivable systems. Technological: Advancements in AI, predictive analytics, mobility and cloud computing are enabling the development of sophisticated automation platforms for real-time visibility and actionable insights into receivables.
Key Takeaways
The global Accounts Receivable Automation Market Demand is expected to witness high growth driven by the growing digital transformation of finance departments across industry verticals. The global Accounts Receivable Automation Market is estimated to be valued at US$ 3817.53 Mn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
North America currently dominates the market owing to rapid adoption of new technologies by organizations in the region. However, Asia Pacific is poised to be the fastest growing regional market with increasing automation spending by companies in countries like China and India.
Key players operating in the accounts receivable automation market are Aarti Surfactants, Akzo Nobel N.V., Antozyme Biotech Pvt Ltd, ARC Surfactants, Ashland, BASF SE, Behn Meyer, Cargill, Incorporated, Clarient, Croda International Plc, and DuPont Nutrition & Biosciences. Key players are focusing on partnerships, new product launches and mergers & acquisitions to strengthen their product portfolios and gain higher market shares. For instance, in 2022 BASF SE partnered with SAP to launch a cloud-based solution for automating accounts receivable processes.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
