Global Asset Finance Software Market Size, Share & Industry Trends Analysis Report By Asset Type (Hard Assets, Soft Assets, and Others), By Organization Size, By Deployment Type, By Vertical, By Regional Outlook and Forecast, 2023 - 2030

Global Asset Finance Software Market Size, Share & Industry Trends Analysis Report By Asset Type (Hard Assets, Soft Assets, and Others), By Organization Size, By Deployment Type, By Vertical, By Regional Outlook and Forecast, 2023 - 2030

The Global Asset Finance Software Market size is expected to reach $8.5 billion by 2030, rising at a market growth of 11.6% CAGR during the forecast period.

Significant price increases on cars and other expensive items have prompted businesses to finance or borrow money rather than make direct purchases. Therefore, banks segment would generate $350.2 million revenue in the market in 2022. Particularly in the banking industry, cloud computing enables quicker and simpler access to data for financial services such as regulatory reporting, risk mitigation, analytics, deep learning, and discovering risk management can scale to accommodate varying data volumes, and users can rely on the cloud to remove blind spots brought on by data silos; the end effect is cleaner, contextualized data structures. Some of the factors impacting the market are growing demand for more efficient financial processes, adoption of technology in financial processes and high installation costs of software.

Finance software is essential for many firms since it enables them to manage their financial operations efficiently and effectively. This market is driven by businesses looking to optimize resource allocation, enhance overall financial planning and reporting, and cut expenses. Asset tracking, leasing management, and depreciation calculations are just a few of the processes that asset finance software automates. Automated asset tracking enables optimal management of assets by providing real-time visibility into their location and state. By outsourcing these procedures, asset finance software can boost operational effectiveness and cut costs. Accounting reconciliations, ledger maintenance, financial statement creation, and budgeting are easily automated using asset financial software. Additionally, Businesses looking to optimize asset finance operations are drawn to this technological transition, which increases the demand for specialized software solutions to address these changing needs, including usage-based pricing and support for risk-free interest rate products and a thorough UI overhaul to enhance user experience and boost operational effectiveness. Therefore, these benefits of asset finance software increase their demand and adoption and these factors are expected to present the market with lucrative growth potential.

However, the high price tag of this software can be incredibly challenging for smaller businesses or those with limited financial resources. Asset finance software typically involves licensing fees, which can vary depending on factors such as the software provider, the scope of features, and the number of users. These upfront costs can be substantial, particularly for enterprise-level solutions. Customizing the software to align with an organization's unique workflows and processes often requires additional development work, which can increase implementation costs. Integration with existing systems, databases, and third-party applications can also add complexity and cost to the implementation process. As a result, it is expected that these limitations will significantly impact the potential growth of the market.

Asset Type Outlook

Based on asset type, the asset finance software market is categorized into hard assets and soft assets. In 2022, the soft assets segment witnessed a significant revenue share in the asset finance software market. The soft assets segment is expected to experience constant growth due to the rising number of startups in Asia Pacific, the Middle East & Africa, and South America. This growth has created a need for soft assets, such as software and light equipment, which are required to set up these startups. As a result, the demand for soft investments is expected to expand significantly.

Organization Size Outlook

Based on organization size, the market is characterized into large enterprises and small & medium enterprises. In 2022, the large enterprise segment witnessed the maximum revenue share in the market. Asset finance software enables large organizations to track and manage a vast array of assets, including equipment, machinery, vehicles, and more, across multiple locations. The software automates complex financing processes, such as lease origination, contract management, and payment processing, reducing manual workloads and errors. Large organizations can also leverage asset finance software for accurate budgeting, financial forecasting, and expense tracking related to asset portfolios. Asset financing could make it easier to raise funds for additional financing requirements. Spreading out the costs of an asset helps maintain a company's cash flow.

Deployment Type Outlook

Based on deployment type, the market is divided into on-premise and cloud. In 2022, the cloud segment recorded a substantial revenue share in the market. Cloud-driven deployment has numerous benefits, such as minimal maintenance, reduced costs, faster distribution, and increased scalability. Among the various cloud services available, SaaS is the most widely adopted by financial institutions. Cloud solutions also enable vendors to connect their services, resulting in a smooth process throughout every phase of a lease or loan. For instance, during origination, necessary steps like credit checks or digital signatures can be integrated into a seamless process that multiple vendors deliver.

Vertical Outlook

Based on vertical, the market is classified into banks, transportation, construction, IT & related services, healthcare, agriculture, and others. In 2022, the healthcare segment attained a significant revenue share in the market. The need to purchase or modify new equipment is one of the most frequent needs these organizations and enterprises must meet. Healthcare asset financing can be utilized for growth, machinery acquisition, and other infrastructure needs, whether for a new MRI machine or a batch of motorized hospital beds.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America segment recorded the largest revenue share in the market. North America has assumed a significant role in deploying technology and infrastructure. The existence of major IT firms and the expanding digitization in the United States and Canada are the key market drivers. The market is expected to develop due to the increased use of connected, innovative, and secure technologies for asset-centric applications.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Oracle Corporation, CGI, Inc., Fidelity National Information Services, Inc., CHG-MERIDIAN AG, Banqsoft A/S (KMD A/S), NETSOL Technologies, Inc., Odessa Technologies, Inc., Alfa Financial L.L.C, Intelligent Environments Europe Ltd (Parabellum Investments) and Lendscape Limited (Bowmark Capital LLP).

Strategies Deployed in Asset Finance Software Market

Mar-2023: Lendscape Limited entered into partnership with Simply Asset Finance Operations Ltd, a provider of equipment finance for UK SMEs, to provide Simply Asset Finance with Lendscape’s new contract management system. Lendscape's contract management software would facilitate effective customer engagement by offering features such as loan book management and data provision for strategic oversight, enhancing overall efficiency.

Oct-2022: NETSOL Technologies, Inc. unveiled Flex, an API-based, ready-to-use calculation engine that would ensure precise calculations at every phase of the contract lifecycle, supporting multiple calculation types. This pure-play SaaS product would not be limited to the global finance and leasing industry but, through native integrations, can provide solutions for various products, services, systems, and industries.

Sep-2022: Fidelity National Information Services, Inc. launched Worldpay for Platforms, to embed payments and finance solutions through software providers. With Worldpay for Platforms, SMBs of all types would have the capability to accept hundreds of currencies and popular payment methods globally, encompassing online, mobile, and point-of-sale transactions. The companies would also be able to handle subscriptions, billing, and invoices efficiently.

Sep-2022: Alfa Financial L.L.C has launched Version 5.7 of Alfa Systems, the company’s software platform for asset finance. The updated cloud-based Alfa Systems would enhance connectivity with other systems and provide users with a seamless and hassle-free experience.

Feb-2022: Fidelity National Information Services, Inc. took over Payrix Solutions, LLC, an innovative fintech company that specializes in enabling SaaS-based platforms to embed payments and financials, to enhance its embedded payments strategy. This acquisition aligns and aids FIS in its future strategy of expanding its e-commerce offerings to companies. FIS intends to achieve this by incorporating payment capabilities within Software-as-a-Service platforms.

Jan-2022: Lendscape Limited revealed that Lendscape Asset Finance, the company would assist banks and lenders in simplifying their administrative responsibilities. Landscape technology enables lenders to enhance their digitalization initiatives and update workflows, regardless of their existing infrastructure or data formats.

Oct-2021: CGI, Inc. formed a partnership with the National Bank of Canada and BMO Financial Group to conduct a pilot program focused on deploying intelligent process automation for the capture, identification, and categorization of documents within the CGI Trade360 global trade platform's transaction processes. This automation is expected to enhance the efficiency of their trade finance operations, bolster compliance measures, and optimize relationship management.

Jun-2021: Oracle Corporation came into partnership with Deutsche Bank AG, one of the world’s largest financial services organizations, to modernize its database technology and expedite its digital transformation efforts. This move would establish a specialized platform to bolster and expand the bank's essential functions and services, encompassing areas such as trading, payment processing, risk management, capital planning, and regulatory reporting.

May-2021: Oracle Corporation teamed up with Mashreqbank PSC, one of the United Arab Emirates' leading financial institutions. Mashreq would integrate Oracle's Transaction Banking platform, incorporating digital banking, payment solutions, trade finance, liquidity management, and virtual accounts. Oracle's state-of-the-art transaction banking technology would empower the company to introduce innovative offerings, broaden the company's presence in various industries, and strengthen customer connections.

Scope of the Study

Market Segments covered in the Report:

By Asset Type

• Hard Assets
• Soft Assets

By Organization Size

• Large Enterprises
• Small & Medium Enterprises

By Deployment Type

• On-premises
• Cloud

By Vertical

• Transportation
• Construction
• Banks
• Agriculture
• Healthcare
• IT & Related Services
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Oracle Corporation
• CGI, Inc.
• Fidelity National Information Services, Inc.
• CHG-MERIDIAN AG
• Banqsoft A/S (KMD A/S)
• NETSOL Technologies, Inc.
• Odessa Technologies, Inc.
• Alfa Financial L.L.C
• Intelligent Environments Europe Ltd (Parabellum Investments)
• Lendscape Limited (Bowmark Capital LLP)

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