Sales Tax Software Market Size Report and Growth Analysis 2027

Sales Tax Software Market to 2027 - Global Analysis and Forecasts by Solution (Tax Filings, Consumer Use Tax Management, and, Others); Deployment Model (Cloud, and On-Premise); Industry Vertical (IT & Telecom, BFSI, Retail, and Transportation)

  • Report Code : TIPRE00003053
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 181
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[Research Report] The sales tax software market accounted to US$ 6.21 Bn in 2018 and is expected to grow at a CAGR of 8.8% during the forecast period 2019 - 2027, to account to US$ 13.13 Bn by 2027.

Among the various geographic regions, North America was the leading sales tax software market, and it is anticipated to be the highest revenue contributor throughout the forecast period. The growth and adoption in North American sales tax software market is primarily driven by the growing demand of sales tax software from various industries such as retail, IT & telecom, transportation, and healthcare among others.

Lucrative Regional Sales Tax Software Market

Lucrative Regional Sales Tax Software Market
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Market Insights

Focus on constantly updating tax laws and regulations across the globe

Sales tax and indirect taxes are major sources of revenue for governments, and efficient as well as elaborate tax laws help authorities collect maximum tax revenue. With increasing cross border trade and online retail around the world, coupled with latest trends such as e-commerce and digitalization, taxation authorities around the world are constantly updating their tax laws and regulations to cover these recent developments in global market places. The effect of tax laws and regulations changes is uncertain and depends on multiple factors, hence, businesses need to invest substantial amount of resources to understand and evolve their sales tax determination calculations. With humans involved, there is a high risk of missing important details which could lead to calculation errors and penalties from authorities. Large enterprises understood this need and are investing in automation of sales tax determination, and filing process in order to reduce chances of human error, however, small and medium sized businesses are still in the process of adapting to the idea of automation and digitization. Hence, continuously changing tax laws and regulations are expected to drive the future growth of sales tax software market.

Increase in digitization if fueling the overall growth in sales tax software market

This digitization revolution around the world presents a massive opportunity for businesses to utilize digital services and automation in order to transform their business models, and existing processes for increasing operational efficiency and revenue. Digital transformation or digitization of businesses is basically the integration of digital technology in various business processes, organizational activities and business models. End to end business process optimization, operational efficiency, reduction of cost and human errors are some of the major drivers for digital transformation in any industry. The paradigm shift of companies from traditional processes to digital and automated processes has reaped multiple benefits for the enterprises, ranging from improved efficiency to reduced cost and increased revenue opportunities. In addition to this, the technological advancements in cloud computing and storage technology, the power of cloud based platforms has increased multi-fold during the last decade. This has further created new opportunities for enterprises to opt for cloud based sales tax software.

Component Insights

The global sales tax software market by component was led by tax determination & filing solutions segment. Compliance document management solutions held the second largest share in sales tax software market in 2018, and is anticipated to increase its shares during the forecast period from 2019 – 2027.

Deployment Type Insights

The global sales tax software market by deployment type was led by cloud segment. Companies are more inclined towards cloud-based sales tax software, as the tax return is automatically backed up secure servers. Cloud-enabled software allows businesses to swiftly expand without making significant investments into their technology infrastructure, as cloud technologies are tremendously adaptive to accelerated rates of change. They are adaptive to dynamic regulatory and reporting environments.

Industry Vertical Insights

The global sales tax software market is segmented by industry vertical as BFSI, retail, IT & telecom, transportation, healthcare, and others. In 2018, retail held the largest revenue share global sales tax software market and is anticipated to continue its dominant position during the forecast period from 2019 – 2027. The other end-user of sales tax software market includes energy, manufacturing, education, and hospitality.

Global Sales Tax Software Market by Deployment Type

Global Sales Tax Software Market
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

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Sales Tax Software Market: Strategic Insights

Sales Tax Software Market

  • CAGR (2018 - 2027)
    8.8%
  • Market Size 2018
    US$ 6.21 Billion
  • Market Size 2027
    US$ 13.13 Billion

Market Dynamics

GROWTH DRIVERS
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FUTURE TRENDS
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OPPORTUNITIES
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Key Players

  • Apex Analytix
  • Avalara, Inc.
  • Ryan, LLC
  • The Sage Group PLC
  • Sovos Compliance LLC.
  • Taxjar
  • Thomson Reuters Corporation
  • Vertex, Inc.
  • Wolters Kluwer (CCH Incorporated)

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Solution
  • Tax Filings
  • Consumer Use Tax Management
  • Others
Deployment Model
  • Cloud
  • On-Premise
Industry Vertical
  • IT & Telecom
  • BFSI
  • Retail
  • Transportation
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

The market players present in sales tax software market are mainly focusing on product enhancements by implementing advanced technologies. By signing partnership, contracts, joint ventures, funding, and inaugurating new offices across the world permit the company to maintain its brand name globally. Few of the recent developments in the global sales tax software market are listed below:

2019:Sovos Compliance and Tytho signed a strategic partnership agreement to reinforce the position in tax leadership and also to assist with the implementation of Sovos Compliance solutions and promote its product as well.
2017:TaxJar closed US$ 60 Mn in Series A funding round from Insight Venture Partners. The most recent funding of US$ 2Mn was led by Rincon Venture Partners and Daher Capital in 2014. The funding would allow the company to focus on product development and business development strategies.
2018:Ryan extended the scope of alliance with Avalara to provide advisory services for motor fuel companies which are looking to switch ERP systems to gain efficient tax determination and reporting.

GLOBAL SALES TAX SOFTWARE MARKET – MARKET SEGMENTATION

By Component

  • Tax Determination & Filing Solutions
  • Compliance Document Management Solutions
  • Services

By Deployment Type

  • Cloud
  • On-Premise

By Industry Vertical

  • BFSI
  • IT and Telecom
  • Retail
  • Healthcare
  • Transportation
  • Others

By Geography

  • North America

    • U.S.
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • UK
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific (APAC)

    • South Korea       
    • China
    • India
    • Japan
    • Australia
    • Rest of APAC
  • Middle East & Africa (MEA)

    • Saudi Arabia
    • South Africa
    • UAE
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM

Company Profiles

  • APEX Analytix
  • Avalara, Inc.
  • Ryan, LLC
  • The Sage Group Plc
  • Sovos Compliance LLC
  • Taxjar
  • Thomson Reuters Corporation
  • Vertex, Inc.
  • Wolters Kluwer (CCH Incorporated)
  • Xero Limited

Sales Tax Software Market Report Scope

Report Attribute Details
Market size in 2018 US$ 6.21 Billion
Market Size by 2027 US$ 13.13 Billion
Global CAGR (2018 - 2027) 8.8%
Historical Data 2016-2017
Forecast period 2019-2027
Segments Covered By Solution
  • Tax Filings
  • Consumer Use Tax Management
  • Others
By Deployment Model
  • Cloud
  • On-Premise
By Industry Vertical
  • IT & Telecom
  • BFSI
  • Retail
  • Transportation
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Apex Analytix
  • Avalara, Inc.
  • Ryan, LLC
  • The Sage Group PLC
  • Sovos Compliance LLC.
  • Taxjar
  • Thomson Reuters Corporation
  • Vertex, Inc.
  • Wolters Kluwer (CCH Incorporated)
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Solution ; Deployment Model ; Industry Vertical

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

    The List of Companies - Sales Tax Software Market

    1. Apex Analytix
    2. Avalara, Inc.
    3. Ryan, LLC
    4. The Sage Group PLC
    5. Sovos Compliance LLC.
    6. Taxjar
    7. Thomson Reuters Corporation
    8. Vertex, Inc.
    9. Wolters Kluwer (CCH Incorporated)
    10. Xero Limited

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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