Cloud Accounting Software Market By Type (Browser-Based, SaaS, Application Service Providers (ASPs)) , By Enterprise Size (Large Enterprise, SMEs) : Global Opportunity Analysis and Industry Forecast, 2024-2032
Cloud Accounting Software Market
The cloud accounting software market was valued at $3.5 billion in 2023 and is projected to reach $7.0 billion by 2032, growing at a CAGR of 7.8% from 2024 to 2032.
Cloud accounting software is a tool that performs financial auditing activities over the internet. The software resides in an encrypted remote server and allows users to access their financial systems from any place & system with an internet connection. The software is significantly gaining popularity among small business owners as it streamlines collaboration and accounting activities. The key attributes of cloud accounting software include automation, ubiquity, round-the-clock access, high accuracy, and unbreakable code for enhanced security.
The ease of availability, scalability, and cost-efficiency of cloud accounting software are the key drivers of the market. In addition, seamless integration of the software with digital operations of businesses propels the development of the cloud accounting software market. Furthermore, the software witnesses a surge in its adoption due to real-time data processing abilities, assisting businesses in instant decision-making. To assist businesses with financial forecasting & understanding market dynamics, the integration of data analytics and business intelligence capabilities into the software is a notable trend emerging in the market currently. This trend is projected to help businesses in strategically planning their growth and expansion initiatives.
However, complete dependence on the internet is a drawback during network outages and for businesses established in low connectivity areas. This limits adoption and hampers the growth of the cloud accounting software market. Moreover, cloud solutions create the problem of latency over large networks, hindering the development of the market. On the contrary, exponential growth in the number of small- & medium-sized enterprises (SMEs) is anticipated to present lucrative opportunities for the cloud accounting software market. According to OnPay—a cloud-based software firm—approximately 70% of the SMEs manage their finances without the help of an accountant due to high service charges. This is projected to open new avenues for the market as the cloud accounting software performs all the financial tasks with minimal charges.
Segment ReviewThe cloud accounting software market is segmented into type, enterprise size, and region. On the basis of type, the market is divided into browser-based, SaaS, and application service providers (ASPs). Depending on enterprise size, it is bifurcated into large enterprise and SMEs. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of type, the SaaS segment held a high share of the market in 2023.
Depending on enterprise size, the SMEs segment accounted for a high share of the market in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe major players of the global cloud accounting software market include Sage Group PLC, Oracle Corporation, Infor Inc., Workday Inc., Xero Limited, Intuit Inc., Microsoft Corporation, Epicor Software Corporation, Unit4 N.V, and SAP SE. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeBrowser-Based, SaaS
Application Service Providers (ASPs)
By Enterprise SizeLarge Enterprise
SMEs
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market PlayersSage Group plc
Oracle Corporation
Infor Inc.
Workday Inc.
Xero Limited
Intuit Inc.
Microsoft Corporation
Epicor Software Corporation
Unit4 N.V
SAP SE