The global cloud-based financial management software market size was USD 2.56 Bn in 2022 and is likely to reach USD 12.68 Bn by 2031, expanding at a CAGR of 19.40% during 2023–2031. The market growth is attributed to the rising adoption of cloud-based solutions and the increasing demand for integrated financial management software.
Financial management software offers a wide range of features such as banking, insurance, investment, budgeting, forecasting, and cash flow management that are used to manage expenses, income, and assets in an organization. It involves strategic planning, evaluating, invoicing, billing, and controlling all financial activities, which allows users to manage all retail-related activities under one roof.
Financial management software is an essential tool for business as it helps in daily financial operations. This software utilizes all financial data as input and can be implemented for various tasks including bank records management, financial transactions, budget management, and investment tracking.
This software is beneficial for both individuals and corporations as it helps to track expenses, budgets, and revenue. It maximizes profits and ensures long-term enterprise sustainability. It optimizes cash flow by reducing accounting errors.
The COVID-19 pandemic positively impacted on the cloud-based financial management software market, due to the rising popularity of mobile banking. Many banks and FinTech industries introduced several banking strategies during the pandemic to ease the flow of transactions. However, online and mobile payment activities increased among consumers and end-users, which boosted the market growth.
Cloud-Based Financial Management Software Market Dynamics
Major Drivers
Growing usage of cloud-based services is a major factor driving the market growth in the coming years. The demand for cloud-based solutions increases, due to the increasing requirement for timely and efficient management of work. Cloud computing technology offers scalability and flexibility. Furthermore, the rising trend of digital transformation across various industries boosts the market growth.
Rising adoption of banking and insurance systems in developing countries is another major factor driving the growth of the market. Cloud-based financial management software offers several benefits for banks such as increased security and faster processing speeds. However, the rapid expansion of several small & medium-sized businesses, commercial banks, and insurance companies demands for financial management software, due to the growing requirement for operational efficiency & transparency in business processes.
Existing Restraints
Higher investment and maintenance costs associated with cloud-based software hinder the market growth during the projected period. Moreover, a lack of awareness among consumers regarding financial management software and the wide availability of free and open sources may restrain the growth of the market at a certain limit.
Emerging Opportunities
Increasing technological advancement and the emergence of several payment-related apps create an immense growth opportunity in the market. Rising internet penetration activities and the rapid expansion of corporate banks encouraged prominent players to launch an innovative financial management solution to streamline the payment process.
Scope of Cloud-Based Financial Management Software Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Cloud-based Financial Management Software Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2020–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Web-based Software and Mobile-based Software), Application (Payroll Management Systems, Billing & Invoice Systems, Enterprise Resource Planning Systems, Revenue Management, Account Management, and Others), Enterprise (Small & Medium Enterprises and Large Enterprises), End-user (Corporate, Government, Investment Institutions, and Individuals)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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SAP; IBM; Microsoft; Oracle; Tyler Technologies; Intuit Inc.; Infor; SAS Institute Inc.; Sage Group plc; FinancialForce.com; SYSPRO; NetSuite Inc.; CountAbout®; Moneyspire Inc.; YNAB; Epicor Software Corporation; FreshBooks; OneStream; and Wave Financial Inc.
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Cloud-Based Financial Management Software Market Segment Insights
On the basis of type, the cloud-based financial management software market is bifurcated into web-based software and mobile-based software. The mobile-based software segment is projected to register a considerable CAGR in the coming years, owing to the rising usage of mobile banking. It allows users to access the company’s financial data from remote locations.
The ease of use and faster operation of this software encouraged consumers to use mobile-based software. Growing adoption of smart devices is anticipated to boost the segment growth. However, the web-based segment is expected to grow at a rapid pace as it offers easier access to data and improved security.
Based on application, the market is segmented into payroll management systems, billing & invoice systems, enterprise resource planning systems, revenue management, account management, and others. The account management segment is estimated to expand at a sustainable growth rate during the projected period, due to its ability to track transaction activities. The segment growth is further attributed to the growing requirement for maintaining accurate investment records and reporting on investment gains and losses.
The revenue management segment is expected to expand at a rapid pace in the coming years, owing to the rising demand from large enterprises. Revenue management software enables to adjust the prices across various distribution channels. It helps to maximize revenue and profitability. Increasing need to calculate the profit and losses boosting the segment growth.
On the basis of enterprise, the cloud-based financial management software market is divided into small & medium enterprises and large enterprises. The small & medium enterprises segment holds a large market share, due to the rapid expansion of small-scale businesses in developing countries. Financial management software helps in managing the money flowing in and out of business. Rising demand for automated billing features from small-scale businesses accelerates the market growth in the coming years.
Based on end-user, the market is fragmented into corporate, government, investment institutions, and individuals. The corporate segment is anticipated to account for a key share of the market during the projection period. Expansion of commercial banks and insurance companies across the globe fuels the market at a rapid pace. The segment growth is further attributed to the increasing security concerns and the need for disaster recovery from the corporate sector.
In terms of region, the global cloud-based financial management software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, due to the rising demand for financial advisors to reduce unnecessary taxes.
Financial management gaining traction in developed countries such as US and Canada, owing to the rising disposable income, which creates potential growth opportunities for the market in the region. Furthermore, growing internet penetration activities and the existing access to several insurance policies have increased the usage of financial management software, which accelerates the regional market growth.
The market of Asia Pacific is expected to register a robust growth rate during the projection period. Increasing government initiatives towards digitization encouraged consumers to adopt digitalized financial services. Moreover, rising demand from small and mid-sized businesses in developing countries fuels the market growth.
Segments
The cloud-based financial management software market has been segmented on the basis of
Type
- Web-based Software
- Mobile-based Software
Application
- Payroll Management Systems
- Billing & Invoice Systems
- Enterprise Resource Planning Systems
- Revenue Management
- Account Management
- Others
Enterprise
- Small & Medium Enterprises
- Large Enterprises
End-user
- Corporate
- Government
- Investment Institutions
- Individuals
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- SAP
- IBM
- Microsoft
- Oracle
- Tyler Technologies
- Intuit Inc.
- Infor
- SAS Institute Inc.
- Sage Group plc
- FinancialForce.com
- SYSPRO
- NetSuite Inc.
- CountAbout®
- Moneyspire Inc.
- YNAB
- Epicor Software Corporation
- FreshBooks
- OneStream
- Wave Financial Inc.
Competitive Landscape
Key players competing in the global cloud-based financial management software market are SAP; IBM; Microsoft; Oracle; Tyler Technologies; Intuit Inc.; Infor; SAS Institute Inc.; Sage Group plc; FinancialForce.com; SYSPRO; NetSuite Inc.; CountAbout®; Moneyspire Inc.; YNAB; Epicor Software Corporation; FreshBooks; OneStream; and Wave Financial Inc.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,
- On December 7, 2022, Wave launched a new financial playbook to help 7 million population of America who are part of the creator economy. The playbook is designed as a resource to help educate creators regarding business setup, cash flow, and tax strategies and to keep new businesses headed in the right direction.
- On August 18, 2022, Sage launched Sage People Payroll in the US and UK. This innovative cloud-based HR and payroll solution offers enhanced payroll capabilities and enables small and medium-scale businesses to complete a secure and accurate payroll process in a matter of minutes.
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