by Automation in accounts receivable using tools like invoice processing software and payment automation solutions have become essential as they help reduce costs and increase efficiency of the financial operations of organizations. Accounts receivable automation solutions allow organizations to digitally capture and process invoices, automatically apply payment, reconcile accounts, and retrieve past transaction records with ease. This has streamlined billing, collection of payments and cash flow management for businesses. The global Accounts Receivable Automation Market provides solutions for processing and managing invoice documentation, credit approvals, payments and integration with accounting software in real-time. With automation, businesses can now handle high invoice volumes, enable self-service capabilities for customers and enhance data security.
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 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends seen in the accounts receivable automation market is the increased adoption of cloud-based solutions. Cloud-based accounts receivable automation software offers flexibility, scalability and reduces upfront capital costs for organizations. It allows real-time access to financial data from any location and integrates easily with other applications. With work from anywhere becoming the new normal, cloud-based AR automation solutions have gained immense popularity as they facilitate remote working capabilities. Moreover, integration of advanced technologies like artificial intelligence and machine learning is also transforming accounts receivable processes. AI delivers enhanced data analytics, streamlines invoice processing, predicts payment patterns, detects fraud and reduces DSO (days sales outstanding) for businesses.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the accounts receivable automation market is moderate. While technology costs remain high for new entrants, the overall industry growth provides opportunities.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various product options from different vendors in the market. However, switching costs are relatively low.
Bargaining power of suppliers: A few large companies dominate the supply market. However, the availability of substitutes limits suppliers’ power.
Threat of new substitutes: Substitutes remain a moderate threat as new technologies can disrupt existing solutions. However, switching costs act as a barrier.
Competitive rivalry: The market has the presence of numerous small and large players. Increased competition is driving vendors to enhance functionality.
Key Takeaways
The Global Accounts Receivable Automation Market Size is expected to witness high growth over the forecast period owing to digitization initiatives undertaken by organizations across industries.
Regional Analysis: North America is expected to dominate the market over the forecast period. The high demand for automation and digital transformation across industries in the US and Canada will drive market growth.
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 product launches and partnerships to gain market share.
