Accounts receivable automation refers to the digitalization of billing, invoice processing and collection processes within an organization. These solutions allow enterprises to automate billing, invoice delivery and payment reminders while enabling customers to view bills and make payments digitally. They help improve operational efficiency by reducing manual data entry errors, streamlining workflows and enabling real-time visibility into cash flows.

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 Opportunity:

Improving operational efficiency presents a major market opportunity for accounts receivable automation. By digitizing manual and paper-based processes, these solutions help organizations reduce costs associated with inefficient payment collection and processing of invoices. They optimize workflows through features such as automatic payment reminders, bill presentment and streamlined payment approval processes. This improves turnaround times and allows finance teams to focus more on strategic tasks rather than administrative work. Accounts receivable automation enables real-time visibility into cash flows and payment cycles, helping businesses better manage working capital and make informed decisions. This is driving increased adoption of these solutions across industry verticals.

Porter's Analysis

Threat of new entrants: The accounts receivable automation market requires high initial capital investments to develop software and solutions. In addition, established players have strong brand recognition which creates barriers for new entrants.

Bargaining power of buyers: Buyers in this market have moderate bargaining power due to the presence of many solution providers. However, switching costs associated with changing providers limits their power to some extent.

Bargaining power of suppliers: Key inputs include software developers, consultants and infrastructure providers. The presence of many such suppliers reduces their bargaining power over technology providers in this market.

Threat of new substitutes: There are limited substitutes for accounts receivable automation solutions. Emerging technologies like AI and machine learning are gradually becoming substitute but are not direct replacements currently.

Competitive rivalry: The market is dominated by global players and fragmentation is low. Intense competition exists between providers on capabilities, features, services and pricing.

SWOT Analysis

Strengths: Automation reduces DSO and collection costs. It enhances cash flow reporting and forecasts.

Weaknesses: High initial investment requirements. Integration challenges with legacy systems currently in use.

Opportunities: Growing adoption across mid-sized businesses. Increased uptake of cloud-based offerings. Leveraging analytics for actionable business insights.

Threats: Economic downturns affecting customer cash flows. Stringent data security and privacy regulations.

Key Takeaways

The Global Accounts Receivable Automation Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by increased digitization across business processes. The market size for 2023 is estimated at US$ 3313.82 Mn and is expected to reach over US$ 6900 Mn by 2030 at a CAGR of 13%.

Regional analysis

North America currently dominates the market owing to large presence of technology providers and early technology adoption. The region is estimated to hold over 35% market share in 2023. Asia Pacific is emerging as the fastest growing regional market with double digit CAGR led by countries like China, India and South Korea. Growing e-commerce sector and SMEs are fueling demand. Adoption across Europe is also supported by initiatives towards cashless payments and GST compliance.

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. Esker Inc and SAP SE currently hold the leading positions attributed to their dedicated focus and comprehensive product portfolios spanning AR automation, cash application and collections management.
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