Online Accounting Software Market By Enterprise Size (Large Enterprise, Small and Medium-sized Enterprise) , By Deployment Mode (On-premise, Cloud) By End User (BFSI, IT and Telecom, Government, Automotive, Retail and Consumer Goods, Manufacturing, Healthcare, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Online Accounting Software Market
The online accounting software market was valued at $3.2 billion in 2023 and is projected to reach $9.5 billion by 2034, growing at a CAGR of 10.3% from 2024 to 2034.
Online accounting software is a cloud-based tool designed to facilitate financial transactions, reporting, and records for businesses & individuals. The software is easily accessible over the internet and allows users to access their financial data such as expense tracking, invoicing, payroll processing, and tax at any time & place. Automation of several accounting activities and saving time by lowering the risk of human error are the key attributes of online accounting software. The software easily integrates with business tools and financial institutions, thereby offering real-time financial insights with high efficiency. Features such as data encryption and regular backups ensure the safeguard of sensitive financial information in the software.
The continuous technological innovations in cloud computing, automation, and AI are the major drivers of the online accounting software market. In addition, the rapid inclination of businesses toward digitalization to accomplish several tasks is boosting the demand for online accounting software. Blockchain technology is one of the recent trends in the market as it helps in decentralizing the ledger accounts and simplifying the process of maintaining the record of transactions.
However, the threat of data breach remains a major restraint for the market despite the security measures implemented. The software remains highly vulnerable to unauthorized access and leak of sensitive data. For instance, Flagstar Bank in the U.S. underwent a major data breach attack on June 2022, compromising the personal details, banking data, and social security number of approximately 1.5 million customers. The cyberattack occurred due to lack of implementation of robust security protocols by the bank.
Segment ReviewThe online accounting software market is segmented into enterprise size, deployment mode, end user, and region. On the basis of enterprise size, the market is bifurcated into large enterprise and small & medium-sized enterprise. By deployment mode, it is divided into on-premise and cloud. As per end user, it is classified into BFSI, IT & telecom, government, automotive, retail & consumer goods, manufacturing, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Key FindingsOn the basis of enterprise size, the large enterprise segment held the highest market share in 2023.
By deployment mode, the on-premise segment acquired high stakes in 2023.As per end user, the BFSI segment was the highest shareholder in 2023.
Region wise, Asia-Pacific was the highest revenue generator in 2023.
Competition AnalysisThe major players operating in the global online accounting software market include Intuit Inc., Xero Limited, Freshbooks Inc., Zoho Corporation Pvt. Ltd., Sage Group plc, Oracle Corporation, Wave Financial Inc., KashFlow Software Ltd, MYOB Australia Pty Ltd, and FreeAgent Central Limited. These players have adopted various key developmental strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the market.
Key Market SegmentsBy Enterprise SizeLarge Enterprise
Small and Medium-sized Enterprise
By Deployment ModeOn-premise
Cloud
By End UserBFSI
IT and Telecom
Government
Automotive
Retail and Consumer Goods
Manufacturing
Healthcare
Others
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of Latin America
Middle East and Africa
GCC Countries
South Africa
Rest of Middle East and Africa
Key Market PlayersIntuit Inc.
Xero Limited
Freshbooks Inc.
Zoho Corporation Pvt. Ltd.
Sage Group plc
Oracle Corporation
Wave Financial Inc.
KashFlow Software Ltd
MYOB Australia Pty Ltd
FreeAgent Central Limited