Report : E-invoicing Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Type (Cloud and On-Premise); End User (B2B, B2C, and Others); and Geography
According to our latest market study on “E-invoicing Market to 2027-COVID-19 Impact and Global Analysis by Type (Cloud and On-Premise); End-User (B2B, B2C, and Others); and Geography,” the market was valued at US$ 4.84 billion in 2019 and is projected to reach US$ 15.50 billion by 2027; it is expected to grow at a CAGR of 16.2% from 2020 to 2027.
The number of government regulations and industry compliances is growing at a fast pace across countries. Governments in various countries receive ~30% of revenue from the collection of sales tax and VAT. Tax evasion and tax fraud are serious concerns faced by them, and the adoption of digital solutions such as e-invoicing helps them inefficiently track business and financial transactions among various parties. Hence, countries such as Brazil, Mexico, Argentina, Chile, and Italy have been following the e-invoicing mandates in B2G, B2B, and B2C operations, among others. Government bodies and public administrators are the key enablers of the growth of e-invoicing in various geographies. For instance, there are explicit European Directives which outline various guidelines for European countries to adopt e-invoicing. Every country has distinct set of regulations, and to meet various regulatory compliances, companies need to be updated with ongoing developments to avoid any penalties or fines. The trend of various governments mandating the e-invoicing to do business in specific countries has boosted the adoption of e-invoicing.
The growing digital transformation trend across industries, rising e-invoicing-related compliance requirements, and favorable government initiatives to boost e-invoicing adoption are among the key factors driving the growth of the e-invoicing market. However, there are few issues/concerns related to e-invoicing solutions, which may restrain the mass adoption of these solutions in the coming years. Despite some limitations, the rising demand for cloud-based solutions and the adoption of advanced technologies such as Blockchain in the global e-invoicing market is anticipated to fuel the growth of this market during the forecast period. Despite the positive growth outlook, the ongoing COVID-19 outbreak is anticipated to affect the global economy, thus hampering the business activities and revenues worldwide. The business lockdowns, travel bans, event cancellations, and supply chain disruptions in various countries would also downgrade the growth of the global e-invoicing market, especially in 2020 and 2021.
Based on geography, South America holds a significant market share and is expected to grow at a high CAGR during the forecast period. The top companies operating in the field of e-invoicing include Basware Corporation, Cegedim SA, Comarch SA, Coupa Software Inc., IBM Corporation, Nipendo Ltd., SAP SE, The Sage Group Plc, Tradeshift, and Transcepta LLC. Various other companies operating in the market and are coming up with advance e-invoicing solutions, which is fueling the expansion of the e-invoicing market in terms of revenue.
Impact of COVID-19 on E-Invoicing market
According to latest situation report (26th April 2020) from World Health Organization (WHO), the US, Spain, Italy, France, Germany, the UK, Turkey, Iran, China, and Russia are among the worst-affected countries due to COVID-19 outbreak. The outbreak began in China in December 2019, and since then, it has spread at a fast pace around the globe. As per the latest WHO figures, there are ~2.8 million confirmed COVID-19 cases globally with ~194,000 total deaths. The global factory shutdowns, travel bans, and border lockdowns to combat and contain the outbreak have impacted every industry and economy worldwide. The technology, media, and communications sector is one of the major sectors suffering serious disruptions due to this pandemic. Technology events and industry meet cancellations, factory and office shutdowns, and reduced business activities are among the major effects faced by the sector. The global travel bans imposed by countries in Europe, Asia Pacific, North America, and others are affecting the business collaborations and partnerships opportunities across industries. All these factors are anticipated to negatively impact the growth of the global e-invoicing market, especially in 2020 and 2021, depending on the duration of the outbreak.
The report segments the global e-invoicing market as follows:
By End User