Global Accounts Receivable Automation Market Outlook to 2030

Global Accounts Receivable Automation Market Overview

• The Global Accounts Receivable Automation Market was valued at USD 3 billion in 2023. The growth of this market is primarily driven by the increasing demand for automation in financial processes to improve efficiency, reduce errors, and enhance cash flow management.
• The key players in the Global Accounts Receivable Automation market include HighRadius Corporation, Billtrust, Rimilia Holdings Ltd., Esker, Inc., and YayPay. These companies are at the forefront of technological innovation, offering a wide range of solutions from automated invoicing and payment matching to advanced analytics and AI-driven cash flow forecasting.
• In 2023, HighRadius Corporation launched its new AI-powered Receivables Management solution, designed to provide real-time insights into accounts receivable, automate complex processes, and reduce the days sales outstanding (DSO). This system allows businesses to optimize their working capital and improve overall financial health.
• The United States dominates the market, attributed to the high level of technological adoption and the presence of major financial institutions, where automation is increasingly becoming a critical component in financial operations.

Global Accounts Receivable Automation Market Segmentation

The Global Accounts Receivable Automation market is segmented by Solution Type, Deployment Type, Organization Size, and Region.

• By Solution Type: The global accounts receivable automation market by solution type is segmented into Invoicing, Payment Processing, Credit & Collections Management, Cash Deployment Type, and Others. In 2023, Invoicing dominated the market due to the widespread adoption of automated invoicing solutions in various industries, which helps reduce manual errors and improve payment cycles.

• By Deployment Type: The accounts receivable automation market is segmented by deployment type into On-Premise and Cloud-Based. In 2023, Cloud-Based deployment dominated the market segment, driven by the increasing demand for scalable and cost-effective solutions that offer remote accessibility.
• By Region: The accounts receivable automation market by region is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. In 2023, North America held the dominant market share, attributed to the early adoption of financial technologies and the strong presence of key market players.

Global Accounts Receivable Automation Market Competitive Landscape

• HighRadius Corporation: In 2023, HighRadius Corporation introduced an AI-powered Receivables Management solution to provide real-time insights, automate complex processes, and reduce days sales outstanding (DSO). The platform aims to help businesses optimize working capital and improve financial health by automating tasks and enabling data-driven decisions. HighRadius emphasizes the potential to save over $100,000 in hard costs.
• Billtrust: In mid-2023, Billtrust announced a strategic partnership with Mastercard to deliver the Mastercard Receivables Manager solution, aimed at streamlining virtual card payments. The collaboration enhances Billtrust's capabilities in payment processing and reflects the company's commitment to advancing financial automation technologies, providing customers with seamless payment solutions.

Global Accounts Receivable Automation Market Analysis

Global Accounts Receivable Automation Market Growth Drivers:

• Increased Adoption of Financial Automation: The global accounts receivable automation market is experiencing substantial growth due to the increased adoption of financial automation technologies. By 2024, businesses are projected to invest heavily in automation initiatives, contributing to a market size expected to reach more than $6 billion by 2027. The U.S. market will play a key role in driving demand for efficiency in financial operations.
• Growing Emphasis on Cash Flow Management: Global investment in cash flow management technologies, including accounts receivable automation, is projected to grow substantially, with the accounts receivable automation market valued at $2.5 billion in 2023. This surge is driven by the need to optimize working capital, improve liquidity, and enhance financial stability, particularly in the wake of economic uncertainties.
• Expansion of E-Invoicing: South Korea has had compulsory e-invoicing for an increasing part of private sector companies since 2014. The threshold was further reduced to KRW 100,000,000 in July 2023. The expansion of e-invoicing mandates across Europe and Asia-Pacific is expected to drive the adoption of accounts receivable automation solutions. With regulatory bodies pushing for digitization, companies are increasingly turning to automated solutions to comply with new standards.

Global Accounts Receivable Automation Market Challenges:

• High Implementation Costs: The high cost of implementing advanced accounts receivable automation solutions is a substantial challenge for the market. Comprehensive automation systems can cost between $140,000 and $400,000 to build, depending on the complexity and scope of integrations. While ongoing operational costs and additional features can increase overall expenses, the high initial investment may be prohibitive for small and medium-sized enterprises (SMEs).
• Lack of Integration with Legacy Systems: According to the U.S. Government Accountability Office, $95 billion is spent on IT annually, with $74 billion dedicated to operating and maintaining existing systems, highlighting the ongoing challenges posed by legacy technology. The lack of integration with existing legacy systems poses a substantial challenge. Many companies continue to struggle with outdated financial systems that are incompatible with modern automation technologies, leading to implementation delays and additional costs.

Global Accounts Receivable Automation Initiatives:

• EUs E-Invoicing Directive: In 2024, the European Union's E-Invoicing Directive aims to standardize electronic invoicing across member states, mandating its use for public procurement. This initiative is expected to accelerate the adoption of accounts receivable automation across Europe. With the European Commission's reforms, which will allow member states to implement e-invoicing mandates more easily, the shift towards digital invoicing is projected to enhance efficiency and reduce costs for businesses engaged in public procurement.
• Indias Digital Payment Initiative: The Government of Indias Digital Payment Initiative, launched in 2016 and extended through 2024, aims to promote digital payments and enhance financial inclusion. This initiative has increased digital transactions, from 2,071 crore in FY 2017-18 to 9,192 crore in FY 2022-23. While it encourages the adoption of automated invoicing and payment systems, specific incentives for businesses remain less defined in the available information.

Global Accounts Receivable Automation Market Outlook

The Global Accounts Receivable Automation market is expected to continue its growth trajectory in the coming years. The market is likely to shift towards more advanced AI-driven solutions, with established players expanding their offerings to cater to a broader range of industries.

Global Accounts Receivable Automation Market Trends:

• Rising Demand for AI and Machine Learning: By 2028, the demand for AI and machine learning in accounts receivable automation is expected to grow substantially. These technologies will become integral in predicting payment behaviors, automating decision-making processes, and optimizing cash flow management.
• Growth in Cloud-Based Solutions: By 2028, cloud-based solutions are projected to dominate the accounts receivable automation market, driven by the growing demand for scalable, flexible, and cost-effective platforms that offer remote access. The global cloud computing market is expected to witness growth during this period, with SaaS solutions leading the way in providing businesses with advanced tools for streamlining their financial processes and enhancing decision-making capabilities.