Market Size of Accounting Software Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 19.74 Billion |
Market Size (2029) | USD 30.66 Billion |
CAGR (2024 - 2029) | 9.20 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Accounting Software Market Analysis
The Accounting Software Market size is estimated at USD 19.74 billion in 2024, and is expected to reach USD 30.66 billion by 2029, growing at a CAGR of 9.20% during the forecast period (2024-2029).
The Accounting Software Market size is estimated at USD 19.74 billion in 2024, and is expected to reach USD 30.66 billion by 2029, growing at a CAGR of 9.20% during the forecast period (2024-2029).
Over the past two decades, the financial and accounting software solution market has witnessed numerous changes. One of the most significant changes is the cloud-based offering of accounting software solutions.
- The accounting software solutions streamline the accounting process, save time, and ensure an error-free transaction between the companies and clients. These systems are designed to increase productivity by archiving, automating, and integrating human resource systems. Implementing accounting software across SMEs helps reduce errors from dealings with clients and companies, thereby improving relationships and reputations while ensuring time to focus on the core business idea.
- The increasing trend of small and medium enterprises collaborating with e-commerce players and integrating with other online applications, such as automated bank feeds and automated billing features, is expected to further drive the adoption of accounting software during the forecast period. It helps increase efficiency, keeping track of all the accounting transactions and managing the money flowing in and out of business. The software has also become a better solution for managing a company's accounts. It can easily manage account payables, account receivables, business payroll, general ledger, and other business modules.
- The market has seen a significant share of vendors with accounting at the core, leveraging the cloud's cost benefits. Additionally, they have been targeting the ever niche "micro and small and medium" businesses. One of the notable strategies exhibited by these new accounting software entrants is the inclusion of advanced features, such as artificial intelligence, for applications, such as planning, learning, problem-solving, and speech recognition.
- For instance, an Australia-based tax, accounting, and other business services software provider's solution, MYOB Advisor, gives natural descriptions of a business's financial position. Accountants and bookkeepers can customize the report based on their SME client's knowledge and experience. Moreover, the insights provided by MYOB Advisor include visualization of cash flow that enables the advisor to help their client see where their cash is going or give a view of top customers and help clients better manage their high-value relationships.
- Also, many companies are extending their partnership programs to increase their market share. Hence, in March 2022, GTreasury has announced a partnership with Infor. Built on the Azure platform, GTreasury will provide Infor customers with a comprehensive Treasury solution that includes cash management, payments, debt and investment management, risk and exposure management, hedge accounting, and reporting functionality that includes dashboards. The acquisition will combine the data from Infor with GTreasury features, enabling Infor customers to handle cash management better.
- Moreover, as multiple countries worldwide have faced the challenge of dealing with the coronavirus outbreak and lockdown, more businesses, tiny businesses, have been working remotely. This has increased the demand for more dynamic and remote access to the business financial records and systems by the individuals who need to work on them and those who must access this timely information accurately to make decisions to manage the financial affairs.
Accounting Software Industry Segmentation
Accounting software processes and records accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It mainly functions as an accounting information system. Moreover, the accounting software also keeps track of cash flows and transactions, performs calculations, and generates reports. Eventually, accounting software may help improve profitability, efficiency, and operations and reduces costs.
The Accounting Software Market is segmented by deployment type (on-premises, cloud-based), organization size (small and medium enterprises, large enterprises), and by Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.
By Deployment Type | |
On-premise | |
Cloud-based |
Organization Size | |
Small and Medium Enterprises | |
Large Enterprises |
Geography*** | |
North America | |
Europe | |
Asia | |
Australia and New Zealand | |
Latin America | |
Middle East and Africa |
Accounting Software Market Size Summary
The accounting software market is experiencing significant growth, driven by the increasing adoption of cloud-based solutions and the need for efficient financial management tools. These software solutions streamline accounting processes, reduce errors, and enhance productivity by automating and integrating various business functions. The trend of small and medium enterprises (SMEs) collaborating with e-commerce platforms and integrating online applications is further propelling the market. The software's ability to manage accounts payable, receivable, payroll, and other financial modules makes it an essential tool for businesses aiming to optimize their operations and focus on core activities. The market is characterized by a moderate level of consolidation, with major players like Oracle, Microsoft, and Intuit holding significant shares, while new entrants often get acquired due to the competitive landscape.
The Asia-Pacific region is anticipated to witness rapid growth in the accounting software market, fueled by the increasing adoption of cloud computing and mobile applications. Government initiatives to promote cloud integration and ease organizational transactions are contributing to market expansion. Countries such as China, Japan, and India are embracing digital technology advancements, which, along with a high preference for cloud-based solutions, are driving demand for accounting software. The market's growth is also supported by the ongoing trend of automation, which reduces the need for manual intervention and enhances resource management. As businesses continue to digitalize and adopt Industry 4.0 practices, the demand for advanced accounting software solutions is expected to rise, helping them stay competitive in a rapidly evolving business environment.
Accounting Software Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Force Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Intensity of Competitive Rivalry
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1.3.5 Threat of Substitute Products
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1.4 Technology Snapshot
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1.5 Assessment of COVID-19 Impact on the Market
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2. MARKET SEGMENTATION
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2.1 By Deployment Type
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2.1.1 On-premise
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2.1.2 Cloud-based
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2.2 Organization Size
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2.2.1 Small and Medium Enterprises
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2.2.2 Large Enterprises
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2.3 Geography***
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia
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2.3.4 Australia and New Zealand
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2.3.5 Latin America
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2.3.6 Middle East and Africa
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Accounting Software Market Size FAQs
How big is the Accounting Software Market?
The Accounting Software Market size is expected to reach USD 19.74 billion in 2024 and grow at a CAGR of 9.20% to reach USD 30.66 billion by 2029.
What is the current Accounting Software Market size?
In 2024, the Accounting Software Market size is expected to reach USD 19.74 billion.