An expense management software is a financial management software tool that assists enterprises in automating and streamlining the process of expense report management and approval. It significantly reduces the time and efforts required for submitting, approving, and processing employee expense reports, as well as reimbursing the expenses.
The expense management software market is expected to witness significant growth. The market growth is attributed due to the centralization of enterprise expense-related data. The global economy has witnessed constant alterations due to technological advancements, that enable businesses and employees to function efficiently. Centralizing all-expense-related data along with utilizing expense management software enables employees of an organization to review, monitor, and submit expense reports on the go. It also eliminates data entry errors and examines the expense report quickly and accurately while providing visible insights into the expense management software system.
Centralization of enterprise expense-related data helps overcome challenges related to employee-initiated expenses with the assistance of cloud-based technology. This allows employees of an organization to submit their expenses on web-based expense systems even with the help of mobile applications. According to a study conducted by GovLoop in association with SAP Concur, 16% of employees in the public sector have access to cloud web-based systems and applications to monitor and submit their expenses.
Additionally, the centralization of enterprise expense-related data is beneficial for the growth of organizations as it monitors employee expenditure and controls costs, increases productivity and scalability, and improves financial security. For instance, SAP Concur offers cloud-based technology for the management of expenses, enabling employees to simplify their spending patterns and resolving expense-related issues by maximizing efficiency, transparency, and control. Additionally, SAP Concur examines, monitors, and controls employee-initiated spending which streamlines the workflow of an organization and ensures profitable results. Hence, the centralization of enterprise expense-related data is one of the factors expected to drive the growth of the expense management software market during the forecast period.
However, the lack of interoperability along with security concerns remains a major concern for the growth of the expense management software market during the forecast period.
The global expense management software market is expected to reach USD 6,599.2 million by 2025 growing at a 12.4% CAGR during 2018–2025.
Some of the key players of expense management software market include are IBM Corporation (US), Oracle (US), SAP Concur (US), Sodexo (France), Intuit Inc. (US), Insperity (US), Infor Inc. (US), Workday Inc. (US), Xero Limited (New Zealand), Coupa Software Inc. (US), Zoho Corporation Pvt. Ltd. (India), and Expensify (US).
The global expense management software market has been segmented based on type and end user.
Based on type, the expense management software market has been sub-segmented into PC terminal and mobile terminal.
On the basis of end user, the market has been segmented into small business, midsized business, and large enterprises.
• The global expense management software market is expected to reach USD 6,599.2 million by 2025.
• By type, the PC terminal segment led the market with a larger share and is expected to continue to dominate the segment. The mobile terminal segment is expected to exhibit higher CAGR over the next few years.
• By end user, the large enterprises segment dominated the market accounting for the larger market share, whereas the midsized business segment is expected to exhibit the higher CAGR of 14.3% during 2018–2025.
• Geographically, the US dominated the expense management software market, with the largest market share in 2017 and the market in India is expected to grow with the highest CAGR of 14.1%. However, Europe is expected to account for the second largest market during the forecast period.
Geographically, the global expense management software market has been segmented into the US, Europe, China, Japan, Southeast Asia, and India.
The US dominated the global expense management software market with a share of 39% in 2017. Increasing adoption of mobile applications in organizations and presence of solution providers such as IBM Corporation, Oracle, SAP Concur, Replicon, YourPeople Inc., SumTotal Systems LLC, and Expense Path Inc. The solutions offered by the company include highly differentiated products that improve the customer experience. For instance, GlobalPoint Technologies Inc., one of the leading solution providers of expense management software, commercializes automated expense management software solution for small, medium, and large businesses that help organizations to avoid complexity associated with expense processing.
Additionally, the market in India is expected to grow with the highest CAGR of 14.1% and likely to be the fastest growing market for expense management during the forecast period. According to international financial institutions such as the World Bank, International Monetary Fund (IMF), and Moody’s International, India is one of the fastest growing economies in the world. It is attributed to increased investments from advanced economies, government initiatives to support digitalization, and rising demand for the adoption of mobile-based applications. Also, various digital campaigns led by government to create awareness among people for adopting advanced technologies such as Make in India and Digital India encourage companies around the world to invest heavily in the country. Furthermore, the country offers significant growth opportunities for small and medium enterprises and the solution providers to deliver customized solutions to the commercial sectors particularly retail, BFSI, manufacturing, and IT & telecom among others.
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• research/consultancy firms
• technology solution providers
• government bodies
• financial institutes