According to our latest study on "E-Invoicing Market Size and Forecast (2021-2031), Global and Regional Share, Trend, and Growth Opportunity Analysis - by Deployment, Type, End-User, Application," the E-invoicing market size was valued at US$ 12.47 billion in 2023 and is expected to reach US$ 62.68 billion by 2031; it is estimated to record a CAGR of 22.4% from 2023 to 2031.
Rise in Demand for Cloud-Based Solutions to Provide Lucrative Opportunities for E-Invoicing Market Growth During Forecast Period
Cloud computing is becoming the driving force for digital transformation across industries. The demand for cloud-based solutions across businesses is growing at an unprecedented rate owing to the advantages offered by these solutions over on-premise deployment. Major advantages of cloud-based solutions include easy deployment, interoperability, cost savings, high efficiency, and on-demand features. Services such as Infrastructure as a Service (IaaS) and Software as a Service (SaaS) are growing rapidly. However, the adoption of cloud-based solutions varies across geographies and businesses depending on multiple factors such as regulatory environment and competitive scenarios. The demand for cloud-based solutions is high in small and medium enterprises owing to the cost benefits related to these solutions. Most large organizations are still using on-premise solutions as implementing new processes across large organizations and their networks is a complex task and requires changes in traditional work practices. However, with the increasing capabilities and benefits of cloud-based solutions in terms of technology integrations such as the Internet of Things (IoT), artificial intelligence (AI), blockchain, big data, and predictive analytics, the demand for these solutions is expected to grow at an impressive rate over the forecast period of 2024 to 2031. In addition to this, the large and fast-growing number of small and medium-sized enterprises (SMEs) across the world is projected to fuel the demand for cloud-based e-invoicing solutions. The growing popularity of cloud-based e-invoicing solutions and their benefits are expected to fuel their deployments at an impressive pace, especially among SMEs. Hence, the rising demand for cloud-based solutions is anticipated to offer ample growth opportunities for e-invoicing solution providers over the forecast period.
Key Findings of E-Invoicing Market Study:
Based on type, the E-invoicing market is segmented into PO and Non-PO invoices. The Non-PO invoices segment held significant e-invoicing market share in 2023. A non-PO invoice does not have a corresponding PO. It is also known as an expense invoice and usually indicates any indirect purchases made by an enterprise. Owing to the nature of indirect procurement, non-PO invoices are generally not pre-approved. They are also used to make payments to suppliers when a particular invoice is within the business's spending limit. Common non-PO invoices include reimbursement for employee travel expenses, service invoices, and reimbursement for employee parking or driving fees. The e-invoices for the non-PO invoices help eliminate repetitive, error-prone operations and further help enhance efficiency and control of the accounts payable process.
A PO invoice has a purchase order (PO) attached to it. These invoices are created after the approval of a PO. PO invoices hold details about the goods or services procured and a matching PO number. When PO invoices are received by the account payable (AP) department, they are matched against the corresponding purchase order. This ensures that there is no mismatch between the original purchase order and the PO invoice. PO invoices are usually pre-approved. Examples of PO invoices include vendor invoices and invoices for goods received. The e-invoices for the PO help with inventory and financial management accuracy. Market players provide solutions for e-invoices that help the stakeholders of various businesses to efficiently manage financial transactions, which further drives the market for the segment. For example, SAP's Ariba Network is a web-based trading community. It connects leading global organizations such as Arla Foods with their trading partners and provides a broad platform for all key business collaboration needs. It supports everything, from trading partner discovery and e-procurement to e-invoicing and working capital management, allowing participants to buy, sell, and manage cash rapidly and effectively.
The report includes e-invoicing market forecast by deployment, application, end-use, type, regions, and countries from 2021 to 2031. The geographic scope of the e-invoicing market report focuses encompasses North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Further, the e-invoicing market report includes company positioning and concentration to evaluate the performance of competitors/players in the market.
Germany held significant e-invoicing market share in 2022. Engineering service firms in Germany play a crucial role in infrastructure development, offering expertise in the design, planning, and consulting of various infrastructure projects. This includes the development of transportation infrastructure, water management systems, and other critical infrastructure components. The private sector, including construction contractors, transport infrastructure developers, and real estate developers, are major customers of E-invoicing in Germany. The private segment is expected to register substantial growth, driven by investments in the construction, maintenance, and operation of social infrastructure.