The global E-invoicing market is anticipated to grow at a CAGR of 16.2% during 2022 - 2027. As a result, the market is expected to value at USD 15.5 billion by 2027.
E-invoice is an electronic document of a transaction between a buyer and seller. The E-invoicing system has ended the paper-based system and reduced costs and human errors. E-invoicing has been practiced for many years and now manages more than ten crore business transactions yearly. Due to the advantages associated with E-invoicing, such as affordability, faster billing, more accuracy, and efficient tracking, the market for E-invoicing is expected to see significant growth during the forecast period.
The incidence of tax evasion is growing significantly across the world. Fighting tax evasion and financial fraud turned out as a challenge to the government bodies. According to United States Sentencing Commission, in 2021, the U.S. Sentencing Commission handled an estimated 57287 cases, of which 470 cases with tax fraud. Hence, the growing number of tax invasion cases among various government organizations is one of the major factors fuelling the growth of the E-invoicing market. The eCommerce industry is on a boom and growing rapidly, which is anticipated to favor the growth rate of the E-Invoicing market. An estimated 5 billion people worldwide are using the Internet and will make 5.2 trillion USD worth of online transactions in 2021. IT adoption has increased among industries such as BFSI, telecommunications, and others, which is predicted to fuel the growth rate of the E-Invoicing market in the coming years.
The usage of E-invoicing has seen a spike among various segments such as B2G, B2C, and B2B in various parts of the world, which is also expected to rise further in the coming years, thus, boosting the market growth. The possibility of cost reduction by automating E-invoicing is another major factor propelling the market growth. The involvement of cloud computing in E-invoicing is expected to positively impact the market's growth rate.
High costs associated with implementing and maintaining E-invoicing are a significant barrier to market to market growth. The insufficiently skilled workforce required to handle the E-invoicing systems in some parts of the world further inhibits market growth. By looking at the high initial costs, companies do not prefer to enter the market, hampering the market expansion and limiting the market’s growth rate.
Integrating technological advancements such as blockchain and Artificial Intelligence to enhance security and provide services with greater efficiency is anticipated to offer lucrative growth opportunities to the E-invoicing market. In addition, the booming digital transformation is expected to open more growth opportunities to market participants during the forecast period.
The World Health Organization (WHO) announced COVID-19 as a pandemic in April 2020. Countries from North America and Europe were affected the most due to coronavirus. To control the spread of the virus, many nations worldwide announced lockdowns and closed their borders. As a result, many industries were badly affected because no business activity existed. The E-Invoicing market enjoyed consistent growth year-over-year until COVID-19 arrived. The sudden outbreak of COVID-19 caused a significant downfall in the E-invoicing market between 2020 to 2021 owing to situations raised such as travel bans, nationwide lockdowns, a slump in the economy are supply chain disruptions. However, considering the stabilizing situations, the market for E-invoicing is expected to bounce back and register healthy growth during the coming years.
Market Segmentation Analysis
Based on the deployment model, the cloud segment had the major share of the global E-invoicing market in 2021, and the domination is anticipated to continue throughout the forecast period. Implementing an E-invoicing solution in the cloud is easy, affordable, and flexible compared to on-premises. On the other hand, the on-premises segment accounted for a substantial share of the global E-invoicing market in 2021.
Based on the business function, the B2C segment dominated the E-invoicing market accounting for the largest share of the market in 2021. However, the B2B segment is expected to register the highest CAGR among all the segments during the forecast period. The growth of the B2B segment is anticipated to be driven by the growing adoption of E-invoicing by big-sized companies. B2G and G2B are included in the other segment, which is predicted to grow at a moderate CAGR during the forecast period.
Geographically, Europe, the Middle East, and Africa collectively accounted for more than 50% of the global market share in 2021. Regions such as the Americas and APAC accounted for a substantial share of the global market in the past. However, the APAC region is anticipated to rise at a promising CAGR during the forecast period. The European region is expected to grow at a CAGR of 17.1% during the forecast period. The Latin American region had a prominent global market share in 2021 and is expected to register a healthy CAGR during the forecast period. Many countries in Latin America are adopting E-invoicing, which is further boosting the market growth in this region. The Middle East and Africa are predicted to showcase notable growth in the coming days. In the Middle East and Africa, Oman in 2023 and Bahrain in 2024 are planning to make the e-invoicing mandate. The North American region is predicted to showcase a healthy growth rate during the forecast period. The growing volume of the transaction from the eCommerce industry and increasing adoption levels of E-invoicing in North American countries are primarily propelling the market growth.
Global E-Invoicing Market Key Players:
Companies operating in the E-invoicing market are using the introduction of advanced e-invoicing solutions, acquisitions, and collaborations are their primary strategies to maintain and strengthen their position in the market. The leading players in the market are investing significant amounts in research and development to develop e-invoicing solutions that can satisfy all types of requirements of their customers.
The worldwide E-invoicing market is estimated to grow at a CAGR of 16.2% from 2022 to 2027and is expected to value USD 15.5 billion by 2027.
Growing adoption of E-invoicing and increasing incidence of tax evasion are primarily boosting the E-invoicing market.
Based on business function, the market is segmented into B2B, B2C, and others.
Europe and MEA held more than 50% of the share in the global market in 2021.
Basware Corporation, Cegedim SA, Comarch SA, Coupa Software Inc., IBM Corporation, Nipendo Ltd., SAP SE, The Sage Group Plc, Tradeshift, and Transcepta LLC are a few of the notable players in the global e-invoicing market.
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