According to the Market Statsville Group (MSG), the global accounts payable automation market size is expected to grow from USD 2335.6 million in 2022 to USD 7288.6 million by 2033, at a CAGR of 10.9% from 2023 to 2033. The global accounts payable automation market is witnessing growth and shall continue to expand at a high pace on account of the rising disposable income of people across nations coupled with the growing demand for automation in the financial sector. The coronavirus pandemic has led to a rapid rise in the demand for account payable automation. The countries' lockdowns have compelled people to stay at home and forced companies to allow their employees to work at home to contain the spread of the epidemic. Cloud technology helps employees access the system and application from home. People staying at home have increased the usage of the internet as well as an increase in the e-commerce sector, which result in rising demand for digital invoices. This has surged the demand for account payable automation solutions and services in every sector. Technological advancements and market players are relying on strategic alliances, and product launches are augmenting the growth of the accounts payable automation market globally.

COVID-19 Impact on the Global Accounts Payable Automation Market

Accounts payable automation is a burgeoning market, fast gaining popularity in a world battling the COVID-19 pandemic. With advanced technology arming, this sector, like robotic process automation (RPA) and artificial intelligence (AI) are gaining attention in account payable automation for handling repetitive and labor-intensive tasks. Due to the COVID-19 pandemic, more and more consumers are looking online, e-commerce is booming, and it provides the potential for SMBs to transform and build on the digitization of their businesses.

Global Accounts Payable Automation Market Dynamics

Drivers: The rising demand for the acceleration in the payment process and reduction while invoice processing time

With the rapid phase of digitalization, tremendous demand has been noticed for the acceleration in the payment process as well as large and small & medium-sized companies are expecting to perform their accounting task in a couple of seconds, which result in increasing the demand for accounts payable automation software or platform. Further automation payable solution providers are adding self-service functionality to their toolsets, which reduces invoice processing time.

The organization integrated account payable automation as a self-service supplier management feature that can centralize supplier data and enable suppliers to upload invoices, check on payment statuses and update the payment information on a self-service portal. These will consolidate all queries onto one platform, reducing manual work, increasing time and cost savings, and enhancing transparency among all parties. Thus, integrating the APA solution will lead to better visibility and communication, improving both supplier relationships and supply chain operations as a whole.

Restraints: Insufficient data encryption and security

Organizations or business entities have always faced numerous financial processes and security risks from external as well as internal threats. These include data breaches, fraud, hacking, skimming, check to tamper, and incorrect expense reimbursement, mainly caused due to outdated, old or unpatched computer systems, malware & ransomware, device theft, and others. This will further negatively impact the organization’s finances and reputation. For instance: as per Insurance Information Institute, the business sector faced the highest number of breaches in the United States, with around 644 data breaches in 2019 as compared to 575 data breaches in 2018. Thus, there should be end-to-end security checks along the entire AP process to escape such malpractices.  

Opportunities: Technological advancements in account payable automation

Technological advancements like robotic process automation (RPA) and artificial intelligence (AI) are gaining attention in account payable automation for handling repetitive and labor-intensive tasks, thereby creating a lucrative growth opportunity for the market. Robotic process automation (RPA) technology in accounts payable will control and automate rule-based processes without the need for any human intervention, including automated cash application, collections, and deduction management. In other words, it will be able to automate manual, repetitive tasks and eliminate errors and discrepancies. Various organizations are adopting and seeking advanced technological AP solutions for flexibility, adaptability, and high configurability of workflows.

Scope of the Global Accounts Payable Automation Market

The study categorizes the accounts payable automation market based on component, organization size, deployment, and application area at the regional and global levels.

By Component Outlook (Sales, USD Billion, 2019-2033)

• Solutions
• Services

By Organization Size Outlook (Sales, USD Billion, 2019-2033)

• Small & Medium
• Large

By Deployment Outlook (Sales, USD Billion, 2019-2033)

• On-premise
• Cloud

By Application Outlook (Sales, USD Billion, 2019-2033)

• BFSI
• IT & Telecommunication
• Manufacturing
• Healthcare
• Retail & Consumer Goods
• Energy & Utilities
• Others

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Solution segment accounts for the largest market share by component

By component, the segment is divided into solutions and services. The solution segment is expected to hold the largest market share during the forecast period due to it provides visibility of the entire accounts payable processes from invoicing to receipt generation, proper approval, correct allocation, and confirming timely payment and spend management. Moreover, these solutions offer 24/7 availability and real-time vision of the invoice status coupled with reporting capabilities as required to allow businesses to make data-driven decisions for business development.

North America is projected to account for the highest market share by Region

Based on the regions, the global accounts payable automation market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America is expected to witness the highest market share in 2021. It is the dominant region owing to the developed digital economy along with the presence of large number of services and solution providers in the region. The United States accounts payable automation market is primarily driven by the introduction of account payable automation solutions and services by various market players in the country. For instance: in August 2020, US-based Palette Software introduced account payable automation technology, especially for construction and engineering industries. This technology will process supplier invoices quickly and efficiently on the cloud and further, it automates and streamlines the AP process with technology that helps to reduce the stress of inputting large volumes of supplier invoices every month.

Key Market Players in the Global Accounts Payable Automation Market

The accounts payable automation market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global accounts payable automation market are:

• Tipalti
• SAP SE
• FreshBooks
• Zycus Inc.
• FIS
• Sage Group Plc
• Bottomline Technologies, Inc.
• Comarch
• FinancialForce
• Coupa Software Inc.
• AvidXchange, Inc.

Recent Developments

• In February 2021, Bottomline extended corporate treasury capabilities as a part of its integrated Payments and Cash Lifecycle Platform and announced a business acquisition with TrasuryExpress to offer comprehensive solutions across the overall cash management lifecycle. Combining these strategies, the company aims to create expertise in unparallel innovations.
• In January 2021, AvidXchange acquired Core Associates to expand product offerings associated with account payable automation for the construction industry. Through this acquisition, the company is becoming one of the foremost AP automation providers in the entire construction sector. This acquisition creates a new customer base that will significantly impact the company’s growth.
• In September 2020, AcidXchange unveiled a new Boost your Business Program to aid many companies in quickly and cost-effectively automating their account payable and delivering an overall invoice-to-pay solution that replaces obsolete paper-heavy AP processes. This will facilitate the company to create additional capacity for revenue generation and increase profitability margins.

Key Issues Addressed

• What is the market size by various segmentation of the accounts payable automation by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the accounts payable automation market?
• What are the key opportunities and trends for manufacturers involved in the accounts payable automation supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of accounts payable automation in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.