Segments - Cloud Accounting Software Market by Type (Software as a Service [Custom Accounting Software, ERP, and Tax Management], Application Service Providers, and Browser-based), Enterprise Size (Large Enterprises, Small & Medium Size Enterprises), End-user (IT, BFSI, Telecommunications, Healthcare, and Government & Public Sector), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
The global cloud accounting software market size was valued at USD 4.64 Billion in 2022 and is likely to reach USD 7.97 Billion by 2031, expanding at a CAGR of 6.2% during the forecast period, 2023–2031. The market growth is attributed to the rising adoption of cloud-based solutions by small and medium enterprises for efficiency and cost-saving benefits.
Cloud accounting software solutions offer access to accounting software services from third-party cloud computing solutions providers. With the deployment of cloud accounting software, organizations did not need to deal with time-consuming software, or other tasks, as they are accessing the software over the Internet. A capable cloud accounting solution removes the need for employees to manually enter and verify data and saves time spent tracking physical documents, hence creating market possibilities for the cloud accounting software industries.
Account management, budgeting, inventory management, transactions, invoicing, and billing are some of the major services that can be accessed with cloud accounting software solutions. Research shows that around 67% of accountants prefer cloud accounting to locally installed software as it reduces labor costs by up to 50%. Moreover, the updates and additions can be easily availed which saves time and increases productivity.
The key advantages provided by online accounting enterprise software are cost-friendliness, flexibility of use, and integration of modern technology such as Artificial Intelligence (AI), Big Data, and data analytics tools among others.
The implementation of artificial intelligence (AI) in accounting is presenting new opportunities for business owners and Certified Public Accountants (CPAs). AI further simplifies client needs by reducing errors and increasing accuracy. According to research about out 80% of IT developers said AI and machine learning are expected to replace a considerable amount of ERP processes soon. AI tools allow CPAs to gain a thorough understanding of customer behavior which they would not have been able to understand on their own. Professionals now are more capable of predicting future trends with the help of real-time data.
The market report finds that the COVID-19 pandemic impact was favorable for the cloud accounting software market growth. Global organizations owing to lockdowns adopted work-from-home or remote work models to continue operations. The demand for cloud-based solutions including accounting software increased significantly, which consequently supported the market growth.
The global cloud accounting software market report has up-to-date insights that help in formulating a strategic roadmap about the estimated market scenario and performance from 2023 to 2031.
Small and medium enterprises and businesses are adopting cloud-based solutions which is one of the key drivers boosting the cloud accounting software market growth. Organizations are able to save time and cost significantly as cloud accounting software can be easily purchased with nominal fees. Moreover, it helps private and public platforms with tax compliance by providing financial statements, and yearly tax returns.
Moreover, the rapidly growing trend of digitization and automation in various departmental works is increasing the demand for cloud accounting solutions. The presence of several players in the market is enabling SMEs and SMBs (small & medium businesses) to gain budget-friendly cloud solutions, enabling substantial market growth during the projection period. Nowadays, companies are implementing and deploying cloud accounting software as it is less expensive and provides convenience.
Data security and privacy concerns coupled with the slow migration of data are some of the major challenges for cloud accounting software growth. In a recent survey, 43% of respondents revealed planning to upgrade IT and data security to lessen corporate risks. The failure of access to data due to lapses in connection can have a significant impact on an organization’s operations and can even stall the operations. Additionally, several organizations also have concerns about the privacy and security of data. These factors are likely to act as restraints for the market. This becomes even more important when moving to and operating in a cloud enterprise resource planning (ERP) environment to drive continuous innovation.
Enterprises are benefitting from gaining access to advanced technology solutions on cloud platforms, which presents significant growth opportunities for the market players in the years to come. The rising use of mobile wallet for transactions and other financial activities are increasing growth prospects for the market all over the globe.
The adoption of web-based accounting enterprise software is enabling organizations to have real-time access to data and insights from any location on mobile and laptop devices. The ease of access and advantages of visual analytics tools are anticipated to further boost the demand for web-based accounting solutions in the coming years.
The global cloud accounting software market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes |
Details |
Report Title |
Cloud Accounting Software Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016–2021 |
Forecast Period |
2023–2031 |
Segmentation |
Type (Software as a Service [Custom Accounting Software, ERP, and Tax Management], Application Service Providers, and Browser-based), Enterprise Size (Large Enterprises, Small & Medium Size Enterprises), and End-user (IT, BFSI, Telecommunications, Healthcare, and Government & Public Sector) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Cloud Accounting Software Market Size and Analysis, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
Epicor Software Corporation; SAP; Intuit Inc.; Sage Group plc; Oracle; Xero Limited; Microsoft; Acclivity Accounting Services; Infor; Dropbox; Workday, Inc.; Intuit Inc.; Unit4; Zoho Corporation Pvt. Ltd.; YONYOU (HONGKONG) COMPANY LIMITED; Kingdee International Software Group (Hong Kong) Co., Ltd.; FreshBooks; MEGI Cloud Accounting Software; Reckon Limited; KashFlow Software Ltd; Carbonite; Apptivo Inc; FinancialForce; and Wave Financial Inc. |
Based on type, the cloud accounting software market is segregated into Software as a Service (SaaS), Application Service Providers (ASPs), and browser-based. The Software as a Service (SaaS) segment is further trifurcated into custom accounting software, ERP, and tax management expected to expand at a robust growth rate during the projection period.
The software as a Service segment is expected to dominate the market during the forecast period. The growth of the segment is attributed to a wide range of productivity and cost-saving advantages facilitated by cloud-based SaaS accounting solutions for global businesses. The importance of SaaS solutions is rising across the globe due to flexibility and smooth data flow benefits.
SaaS accounting is based on a subscription model with recurring fees after a specified time period. The companies that provide SaaS solutions are able to offer subscription plans for nominal costs, which can be easily paid by businesses. With ERP in SaaS solutions organizations can manage these resources and develop separate departments such as financials, accounting, sales, and others through a centralized application and interface.
A survey of ERP users indicated 64% of companies use SaaS, 21% use cloud ERP, and only 15% use on-premises. It is indicated that cloud deployments account for 44% of all implementations in manufacturing and distribution.
The browser-based cloud accounting software segment is projected to hold a considerable share of the market during the projection period. The web-based applications do not require to be separately installed. These software solutions can be easily accessed with a simple login process, which enables high flexibility and ease of use.
On the basis of enterprise size, the global market is segregated into large enterprises and small & medium size enterprises. The large enterprises segment is projected to hold a key share of the market during the forecast period owing to the increasing adoption of cloud computing solutions in this end-user category.
The segment held more than 30% share of the market in 2022 and is projected to substantial growth in the years to come. The integration of different technology packages to enhance analytics and automation within large enterprises is expected to boost segment growth in the market.
The cloud-based accounting solutions are beneficial for SMEs and SMBs to streamline budgeting, invoicing, billing, inventory management, and mobile payment requirements. It is estimated that 82% of small businesses use of cloud accounting for their financial management. With the support of cloud accounting solutions, SMEs are able to match the efficiency and operations pace required for competing in the modern business arena.
Based on end-user, the global market is classified as IT, BFSI, Telecommunications, Healthcare, and Government & Public Sector. Based on end-user, the global market is classified as IT, BFSI, Telecommunications, Healthcare, and Government & Public Sector. Information technology has several use cases in accounting such as trading financial instruments, providing the earnings reports of a business, and others.
With the implementation of cloud accounting software in IT, organizations are now able to smoothen their work pressure as it makes the task simpler than ever before. Moreover, with the help of accounting software companies are able to reduce issues including money laundering and others.
In terms of region, the global cloud accounting software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to be the largest region for the cloud accounting enterprise software market during the projection period owing to the increasing adoption of cloud computing solutions by enterprises from various sectors. Research reveals that firms including KPMG, PWC, EY, and Deloitte are expected to earn one-half of the revenue in the region which is USD 56 billion. The demand for advanced technology solutions is major in the region from SMEs and large enterprises.
Moreover, the presence of major players from the cloud computing industry is also significantly supporting the market growth in the region. The leading key players including Deloitte, KPMG, PriceWaterhouseCoopers, and EY are running the majority of forensic accountancy businesses in the US. There are nearly 37,596 forensic accountants present in the US, with an average of 6 employees per service. Around 75% of accounting tasks are automated using accounting software. Intuit QuickBooks is the most used accounting software used in the region with almost 70.2% of business implementations.
Asia Pacific is growing rapidly in the global cloud accounting software market due to rising industrialization and the high presence of SMEs and large corporations in the region. The SMEs from the majority of sectors such as Banking, financial services and insurance (BFSI), transportation, manufacturing, retail, and e-commerce, among others are contributing to the highest demand for cloud accounting solutions. The advantage of affordability and improved efficiency factors are playing a vital part in fueling the market growth in the Asia Pacific.
The global cloud accounting software market has been segmented on the basis of
Key players competing in the cloud accounting software market are Epicor Software Corporation; SAP; Intuit Inc.; Sage Group plc; Oracle; Xero Limited; Microsoft; Acclivity Accounting Services; Infor; Dropbox; Workday, Inc.; Intuit Inc.; Unit4; Zoho Corporation Pvt. Ltd.; YONYOU (HONGKONG) COMPANY LIMITED; Kingdee International Software Group (Hong Kong) Co., Ltd.; FreshBooks; MEGI Cloud Accounting Software; Reckon Limited; KashFlow Software Ltd,; Carbonite; Apptivo Inc; FinancialForce; and Wave Financial Inc.
Some of these enterprises have adopted growth strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. The competitive landscape in the market report covers key insights into such growth strategies adopted by major market players.
The range of cloud accounting software is estimated from USD 3 per month to USD 999 per user per month
The global cloud accounting software market size was USD 4.64 Bn in 2022 and is likely to reach USD 7.97 Bn by 2031.
The cloud accounting software market is projected to expand at a CAGR of 6.2% during 2023–2031.
The market growth is attributed to the rising use of cloud-based solutions by small and medium enterprises for efficiency and cost-saving benefits.
For regional analysis, North America is expected to dominate the global cloud accounting software market during the projection period.
The key players in the global cloud accounting software market are Epicor Software Corporation; SAP; Intuit Inc.; Sage Group plc; Oracle; Xero Limited; Microsoft; Acclivity Accounting Services; Infor; Dropbox; Workday, Inc.; Unit4; Zoho Corporation Pvt. Ltd.; and YONYOU (HONGKONG) COMPANY LIMITED.