Accounts Receivable Automation is Estimated to Witness High Growth Owing to Opportunity to Reduce Operational Cost
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| Accounts Receivable Automation Market |
Accounts receivable automation
provides digital solutions that allows businesses to efficiently manage the
accounts receivable processes and streamline workflows. It offers various
functionalities like invoice generation, payment collection, reconciliation
reporting and others. This helps organizations in reducing time spent on manual
tasks and boosts productivity of employees. 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 Opportunity:
The opportunity to reduce
operational costs significantly contributes to the high growth of the accounts
receivable automation market. By automating repetitive tasks related to invoicing,
payment collection and reporting, organizations can reduce time spent by
employees on manual activities. This helps in optimizing workforce and lowering
operational expenses for businesses. Accounts receivable automation streamlines
processes, improves visibility and monitoring of cash flows. All these benefits
help companies boost efficiency, minimize costs associated with managing
accounts receivable and gain competitive advantage over peers not leveraging
such digital solutions. The operational cost savings is a major driver
propelling increased adoption of accounts receivable automation tools and
services globally.
Porter's Analysis
Threat of new entrants: The
Accounts Receivable Automation market presents high barriers for new entrants
due to the presence of established players and considerable investment required
for R&D.
Bargaining power of buyers: The
bargaining power of buyers is moderate since buyers have several options to
choose from. However, switching costs are low.
Bargaining power of suppliers:
The bargaining power of suppliers is low due to the availability of substitute
raw materials.
Threat of new substitutes: The
threat of substitutes is low since accounts receivable automation solutions
provide unique benefits to businesses.
Competitive rivalry: The
competitive rivalry is high given the presence of established players competing
based on product features and pricing.
SWOT Analysis
Strengths: Accounts receivable
automation provides benefits like improved efficiency, reduced costs and
errors, and better cash flow management.
Weaknesses: High initial
investment and risks associated with switching from manual to automated
systems. Lack of in-house expertise may also act as a challenge.
Opportunities: Growing adoption
of cloud-based solutions and increased demand from SMEs present lucrative
growth prospects.
Threats: Cybersecurity concerns
and dependence on third party service providers can hamper market growth.
Key Takeaways
The Global
Accounts Receivable Automation Market Size is expected to witness high
growth over the forecast period supported by growing digital transformation
across industries. Increased focus on working capital optimization and
streamlining receivables processes will drive adoption.
Regionally, North America dominates
currently due to advanced technologies and established early adopters. However,
Asia Pacific is expected to grow at the fastest pace considering ongoing
digitalization initiatives and increasing spends on innovative solutions by
businesses in countries like 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 to consolidate their market positions.
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