Accounting Software Market Insights
Global Accounting Software Market size was valued at USD 15.07 Billion in 2022 and is poised to grow from USD 16.28 Billion in 2023 to USD 30.18 Billion by 2031, growing at a CAGR of 8.02% during the forecast period (2024-2031).
Accounting software refers to a solution used to balance accounts for an individual or organization. Growing incidence of financial frauds has led to increased emphasis on financial regulatory compliance around the world, which is projected to directly benefit accounting software demand in the future. Growing number of start-ups around the world are also providing highly lucrative opportunities for accounting software companies. Accounting software developers should also target the integration of advanced technologies such as artificial intelligence to provide automated accounting solutions, which are gaining popularity around the world. On the contrary, complexities in migration, data privacy and security issues, and resistance to change are slated to slow down accounting software demand outlook across the forecast period.
US Accounting Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
USD 15.07 billion
Largest Segment
Commercial accounting software
Fastest Growth
Billing & invoice software
Global Accounting Services Market ($ Bn)
Country Share for North America Region (%)
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Accounting Software Market Segmental Analysis
The Global Accounting Software Market is segmented by Type, Deployment Mode, Component, End User, and Region. Based on Type, the market is segmented into Spreadsheets, Payroll Management Software, Billing & Invoicing Processing Software, Commercial Accounting Software, Enterprise Accounting Software, and custom Accounting Software. Based on Deployment Mode, the market is segmented into On-premises, And Cloud-based. Based on Component, the market is segmented into Solution, And Services. Based on End User, the market is segmented into Retail, BFSI, Manufacturing, IT & Telecom, Government & Public Sector, Energy & Utilities, Media & Entertainment, Pharmaceutical & Healthcare, and Others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Component
Accounting software solutions are projected to be high in demand and hold a major chunk of the global market share. Rising complexities of the financial landscape and the need for better accounting management solutions are also expected to help this segment maintain its dominance. High investments of accounting software companies in the research and development of novel accounting software solutions powered by advanced technologies will also foster market growth going forward.
On the other hand, the demand for services is expected to surge at an impressive pace over the coming years. The rising use of advanced accounting software and solutions is projected to help this segment bolster market growth in the future. Moreover, the requirement of novel accounting services to ensure compliance with financial and tax regulations will also create new opportunities via this segment.
Analysis by Deployment Mode
The on-premises segment is estimated to hold a major chunk of the global market share in the future. Better control over data privacy and security through this deployment is what allows this segment to maintain its dominance. However, the requirement of high capital and human resources to maintain on-premises accounting software will reduce the market share of this segment in the long run.
Meanwhile, the demand for cloud-based accounting software is predicted to surge at an impressive pace across the forecast period and beyond. Reduced operational expenses, subscription-based payments, improved accessibility, and greater flexibility are some key benefits that help this segment boost its market presence through 2031.
Global Accounting Services Market By Component
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Accounting Software Market Regional Insights
Presence of key accounting software providers in the North American region helps it emerge as the dominant region in the world. Presence of a strict regulatory compliance framework for financial management and taxes is also a key factor that makes the United States the leading revenue generator for accounting software companies in this region. Moreover, increasing willingness of businesses to opt for accounting software and services to maintain compliance will also help the market growth in this region.
The Asia-Pacific region is expected to emerge as the most opportune market for accounting software companies over the coming years. Growing emphasis on improving efficiency and promoting proper resource management for organizations operating in this region will create high accounting software demand. The presence of a strong start-up culture allows accounting software companies to target SMEs and get good returns on their investments in this region. India and China are slated to be the top markets in this region going forward.
Global Accounting Services Market By Region
- Largest
- Fastest
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Accounting Software Market Dynamics
Accounting Software Market Drivers
Demand for Small and Medium Enterprises (SMEs)
- The start-up scene is lighting up around the world, resulting in many small and medium enterprises. Ensuring compliance with financial regulations and maintaining proper accounts is necessary for these new companies, which drives market growth.
Implementation of Strict Regulations
- Tax and financial regulations are continuously changing and becoming more and more complex and strict. Accounting software helps businesses and individuals keep track of these regulations and maintain compliance to avoid legal issues.
Restraints
Complexity in Migration
- Migrating from a legacy accounting management system to software is quite a complex task as most legacy systems might not be compatible with advanced software and technologies. This is projected to hinder the adoption of accounting software going forward.
Data Privacy and Security Concerns
- Accounting software manages critical and crucial financial data of individuals and organizations, security and privacy of this data could be compromised through the solution, and this is expected to impede market development.
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Accounting Software Market Competitive Landscape
Accounting software providers are projected to invest in the development of novel solutions using advanced technologies. Automation will also be a key trend for accounting software companies in the future. Developing accounting software with a better user interface that is simple to use and access with good security features will also be a key area of interest for market players. Providing accounting software on a subscription or pay-as-you-use basis will also generate good revenue for accounting software companies in the future
Accounting Software Market Top Player's Company Profiles
- QuickBooks (US)
- Xero (New Zealand)
- FreshBooks (Canada)
- Zoho Books (India)
- Sage Intacct (US)
- NetSuite (US)
- Wave Accounting (Canada)
- KashFlow (UK)
- MYOB (Australia)
- FreeAgent (UK)
- Sage 50cloud (UK)
- Odoo (Belgium)
- Acumatica Cloud ERP (US)
- Microsoft Dynamics 365 (US)
- SAP Business One (Germany)
- Oracle (US)
- Epicor ERP (US)
- Infor ERP (US)
- SYSPRO ERP (South Africa)
- Workday Financial Management (US)
Accounting Software Market Recent Developments
- AccountTECH, a leading accounting software provider for the real estate industry, launched its new enterprise accounting software in April 2024. The new solution is cloud-based and can automate almost all real estate accounting operations.
- In February 2023, Puzzle, a company focusing on developing smart accounting solutions announced that it had raised USD 15 million to build smart accounting software for startups. The company launched this software in 2024.
Accounting Software Key Market Trends
- Customized Accounting Software Development: Developing and offering customized accounting software will be a major trend that will help companies expand their business scope in the long run. Every business and individual has different demand from their accounting software and hence customization and personalization are expected to play a vital role in future market development.
Accounting Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, increasing complexity of financial regulations and high emphasis of organizations on ensuring compliance are projected to be key factors promoting accounting software demand outlook. However, data privacy concerns, complexity in migration, and high costs of implementation are some major restraints that impede accounting software market growth potential. The Asia Pacific region is forecasted to be the fastest-expanding regional market for accounting software providers owing to the presence of strong start-up landscape in countries such as China and India. Offering custom accounting software and services will help market players boost their business scope in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15.07 Billion |
| Market size value in 2031 | USD 30.18 Billion |
| Growth Rate | 8.02% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Methodology
For the Accounting Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Accounting Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Accounting Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Accounting Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
