by Accounts receivable automation provides various advantages like improving cash flow, reducing days sales outstanding and collecting payments faster. It helps organizations in automating invoicing, payment reminders, tracking receivables and reconciling payments. With increasing digital transformation across industries, manual and paper-based accounts receivable processes are becoming outdated. Automation solutions adopt technologies like machine learning and artificial intelligence to intelligently route invoices, automatically apply payments and provide self-service payment options to customers. This helps in streamlining the credit control workflow and Collections cycle.
The global Accounts Receivable Automation Market is estimated to be valued at US$ 3313.82 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Implementation of cloud-based AR automation is witnessing high demand as it provides flexibility of accessing receivables data from anywhere. Cloud platforms help integrate Accounts Receivable systems with other critical applications like ERP and accounting software. This facilitates real-time data sharing and automates credit management functions. Companies are also adopting AI and Robotic Process Automation (RPA) within their AR solutions to identify payment patterns, detect anomalies and reduce processing time. Automated customer communication tools like self-service portals and email notifications are improving customer experience. Adoption of mobile invoicing and payment applications allow on-the-go management of receivables. These trends are helping organizations streamline credit control workflow and improve cashflow.
Porter’s Analysis
Threat of new entrants: Low barriers to entry such as relatively low start up investments make threat of new entrants moderate in the accounts receivable automation market.
Bargaining power of buyers: Automation solution buyers have high bargaining power due to availability of various solution providers and options allowing price negotiation.
Bargaining power of suppliers: Leading providers have significant influence on pricing and innovation due to proprietary technology and expertise in automation solutions.
Threat of new substitutes: The emergence of alternative technologies such as AI and cloud-based solutions pose a moderate threat of substitution.
Competitive rivalry: Intense competition exists among established global players to gain market share through product innovations and expansions.
Key Takeaways
The global Accounts Receivable Automation Market Demand is expected to witness high growth.
Regional analysis shows that North America dominates the market currently owing to high adoption of automation solutions across industries in the region. However, Asia Pacific is expected to grow at the fastest pace during the forecast period supported by rapid digitalization and industrialization in countries such as China and India.
Key players operating in the accounts receivable automation market are Aarti Surfactants, Akzo Nobel N.V., Antozyme Biotech Pvt Ltd, ARC Surfactants, Ashland, BASF SE, Behn Meyer, Cargill, Incorporated, Clarient, Croda International Plc, and DuPont Nutrition & Biosciences. These players are focusing on new product launches and partnerships to strengthen their market presence. For instance, in 2022, AkzoNobel partnered with Microsoft to use AI and cloud technologies in developing sustainable coating solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
