The global e-invoicing market value will hit a staggering $15.50 billion by 2027, expanding at a Compound Annual Growth Rate (CAGR) of 16.2 percent through the forecast period, according to ResearchandMarkets.
Factors Fuelling the Global e-Invoicing Market Growth
Mandatory Adoption of e-Invoices by Governments
Compulsory e-invoicing initiatives are the primary reason for the exponential adoption of e-invoices across the world.
Governments in regions such as the European Union, South America, and Australia are pushing the compulsory implementation of electronic invoicing by the private and public sectors.
Plans are also underway in North American countries like the United States and Canada to ensure that all businesses and government organizations fully adopt e-invoices.
In Singapore, the Infocomm Media Development Authority (IMDA) is offering a one-time $200 grant to entice organizations to embrace nationwide e-invoicing.
Further, the successful adoption of e-invoices in Mexico, Brazil, Italy, and Argentina has encouraged various other nations like Serbia to follow suit.
The objective of authorities in these countries is to use e-invoicing to prevent tax evasion and improve fiscal control in B2G, B2C, and B2B segments.
Of course, mandatory adoption and implementation of e-invoicing will continue in the years to come as money nations join the e-invoice bandwagon.
Immense Benefits of e-Invoicing
Electronic invoicing offers a host of advantages, including easy tracking of business transactions, faster payments, reduced carbon footprint, increased cost savings, and low human errors.
The benefits are further complementing the implementation of e-invoices and therefore driving the growth of the electronic invoicing market.
On top of that, the rising of global initiatives such as OpenPEPPOL makes it easy for businesses and governments to connect to e-invoicing networks and, most importantly, enable the exchange of e-invoices in various international formats.
Plus, these initiatives are fuelling the adoption and implementation of flexible cloud-based electronic invoicing solutions.
Easy Accessibility of Mobile Payment Systems
The accessibility and convenience of mobile payment solutions are also fuelling the implementation of electronic invoicing. Mobile-based apps and platforms have simplified billing payments, commercial transactions, and banking.
Nowadays, you can complete processes such as deposits, withdraws, opening and closing accounts, funds transfer digitally via mobile apps powered by BFSI institutions.
Further, governments are substantially investing in financial organizations to encourage them to extend mobile banking services in rural areas. The ripple effect is a rise in digital transactions and penetration of banking services globally, thereby supporting the e-invoice market’s global growth.
Blockchain ensures smoother cash flow management at all invoicing stages, eliminating the need for extra resources and third-party interactions.
Now, businesses can send invoices and make payments using digital currencies such as Bitcoin. That way, the hazard of fraudulent activity is mitigated by verifying the information of all incoming and outgoing invoices secured by blockchain.
E-invoicing Market Segmentation
The segmentation of the e-Invoices market is divided based on deployment, geography, and end-user.
Regarding deployment, the electronic invoicing market is segmented as cloud or on-premise.
Cloud deployment dominates the global e-invoicing market, with e-invoice software providers assisting their clients in meeting legal requirements, complying with tax regulations, and ensuring end-to-end data security.
The adoption of cloud-based e-invoicing solutions is higher than the on-premise option due to easy deployment, high efficiency, cost savings, interoperability, and on-demand features.
The large and expanding SME market across the globe is adding to the demand for cloud-based electronic invoicing.
The end-user segmentation includes B2B, B2G, and B2C.
B2B segmentation has the largest share of the market and covers businesses that sell products and services directly to the consumers.
The population growth, changing customer behavior, rising disposable incomes, and increasing adoption of e-commerce are some of the factors driving the growth of global B2C transactions.
Because of the relatively large number of daily B2C transactions, this segment generates a significant number of invoices compared to B2G and B2B segments.
Cost savings, regulatory compliance, reduced tax evasion, and transaction transparency are some of the elements fuelling the adoption of e-invoices in B2C enterprises worldwide.
Geographically, the electronic invoicing market is segmented into Europe, Asia, North America, South America, Africa, Middle East, and the Asia Pacific.
Mergers and acquisitions are a common strategy adopted by businesses to expand their global footprint to meet their offerings’ global demand.
These tactics are widespread in Europe and North America.
The Impact of Covid-19 on the Global e-Invoicing Market
The global shutdowns caused by the sudden impacted virtually every industry and economy the world over. The travel bans imposed by countries such as North America, Asia Pacific, and Europe affect partnerships and opportunities across all sectors.
The Covid-19 pandemic impacted negatively on the global e-invoicing market growth, especially in the beginning and mid-2020.
Even so, the pandemic has caused a gradual shift from the traditional brick and mortar distribution channels towards e-commerce platforms. This trend is expected to accelerate the demand and subsequent expansion of electronic invoicing in 2021 and beyond.
The Bottom Line
The e-Invoicing market will continue to grow in the next five years as more businesses and governments ditch the use of paper invoices.
Besides, electronic processing invoices are cheaper and time-saving, and almost error-free. As businesses worldwide move towards digitization, e-invoicing will remain a key consideration for companies that want to streamline their payment processes.
Unimaze is happy to be part of this revolution. As a PEPPOL Certified Access Provider, we will always be at the front line to help organizations adopt digitization by linking to the PEPPOL e-invoicing network.