Global Subscription Billing Management Market Size, Share & Industry Trends Analysis Report By End-use, By Organization Size (Large Enterprises and SMEs), By Deployment Type (Cloud and On-premise), By Component, By Regional Outlook and Forecast, 2022 – 20

Global Subscription Billing Management Market Size, Share & Industry Trends Analysis Report By End-use, By Organization Size (Large Enterprises and SMEs), By Deployment Type (Cloud and On-premise), By Component, By Regional Outlook and Forecast, 2022 – 2028

The Global Subscription Billing Management Market size is expected to reach $14.1 billion by 2028, rising at a market growth of 15.7% CAGR during the forecast period.

An invoice, bill, or tab is a commercial document sent by a seller to a buyer in conjunction with a sale. It details the agreed-upon products, quantities, and pricing for any goods or services given by the seller to the consumer. In most circumstances, the payment conditions are included on the invoice. These can specify the number of days the buyer has to pay, and they may also provide a discount for purchases made in advance of the due date.

The customer may have already paid for the items or services listed on the invoice. Some sellers note in large, capitalized characters on an invoice whether it has been paid to avoid misunderstandings and the subsequent unneeded interactions between buyer and seller. A bill is a sales statement from the perspective of the seller. From the viewpoint of the buyer, a bill is a transaction invoice. The document identifies the buyer and seller, even though the word "invoice" suggests a financial obligation.

In conjunction with recurrent payments, subscription billing refers to the automatic, recurring billing procedure that takes place after a customer joins up to utilize a service. This could involve receiving a bill each month for a subscription to a magazine, streaming service, SaaS item, "box of the month," or other recurring services of a similar nature. Regular charges are made to customers, but they are free to stop at any moment. The amount owing to the client is automatically transferred from their account to the company instead of being harassed for payment regularly. The client receives a receipt, but other than that, nothing happens in the transaction.

COVID-19 Impact Analysis

The economy was severely impacted by the abrupt emergence of the COVID-19 pandemic. Subscription billing companies are persevering to be resilient despite these supply chain limitations, operational setbacks, and a circumstance of a worldwide recession. Additionally, the impact of subscriptions for B2B and B2C software and information services is minimal. However, several industries, such as consumer Internet of Things (IoT), travel and hospitality, commercial IoT services, sports-related assistance, and technology for small businesses are seeing a detrimental impact on their growth. The COVID-19 pandemic is also estimated to have an impact on the market expansion because of the uneven adoption of subscription services across different industries.

Market Growth Factors

Increase in subscription-based business model adoption

There has been an increase in B2B and B2C firms' subscription-based recurring income. Businesses are increasingly using subscription as a service (SAAS) because clients want to rent software rather than purchase it. A majority of online buyers are engaged in subscription programs and get items on a recurrent basis. Notable technological businesses such as Uber, Spotify, Apple, and Google LLC are transitioning from a static and linear product offering to a subscription-based model to promote consistent, predictable, and recurring income. The media and entertainment industry have had the most significant rise in subscriptions over the past few years. This is augmenting the growth of the subscription billing management market.

Customer demand for adaptability of subscription

The demand for greater purchasing freedom among customers has also grown. As the economic effects of the pandemic caused havoc on the finances of many people, it became more important than ever for consumers to be able to purchase and pay for exactly what they wanted and would utilize. Customers looking to save money rushed to product-as-a-service agreements, which strengthened subscription models. However, it also raised the demand for pay-per-use and other utilization subscription options. Under these systems, customers may personalize their purchases to receive only what they need, when they need it. Customers like the versatility; for companies, the reduced initial investment encourages customers to remain and try new things, especially during times of transition.

Market Restraining Factors

Growing Competition among the companies

Subscription billing is an emerging business model that is rapidly gaining the traction of a significant number of people all over the world. It offers a lot of savings as well as convenience to the customer. However, due to the increasing trend and adoption of subscription billing all over the world, the market players entering the sector is also increasing at an exponential rate. There is a large number of service providers penetrating the market, which is beneficial for customers. However, these market players are encountering a number of challenges owing to this. Hence, this factor is playing a major role in impeding the growth of the subscription billing management market.

Component Outlook

On the basis of Component, the Subscription Billing Management Market is divided into Software and service. The software segment acquired the largest revenue share in the subscription billing management market in 2021. It is because when firms have a monthly subscription plan, it is even more remarkable. Multiple spokes subscription prevention, invoicing, invoicing and accounting, online payment processing, fraud control, etc. are held together by billing software used by subscription-based businesses.

Software Type Outlook

Based on the Software, the Subscription Billing Management Market is segmented into Credit and Collection Management, Receivables Management, Quote and Pricing Management, Subscription Order Management, Dispute Management, and Others. The subscription order management segment procured the biggest revenue share in the subscription billing management market in 2021. The goal of subscription order management is to reduce the churn rate of customers by finding the right mix of products and projects, recurring and one-time services, and usage charges for customers.

Deployment Outlook

By Deployment, the Subscription Billing Management Market is classified into Cloud and On-premise. The ability of cloud-based billing solutions to adapt to change and effectively handle the organization's altering demands will be a crucial element driving this segment's development in the coming years. The advantages of cloud-based billing include automated procedures, flexibility, scalability, support for company operations, and end-to-end customer life cycle management.

Enterprise Size Outlook

Based on the Enterprise size, the Subscription Billing Management Market is bifurcated into Large Enterprises and SMEs. The large enterprise segment acquired the largest revenue share in the subscription billing management market in 2021. Large organizations have a dispersed client base, and as a result, they are actively engaging in subscription billing management systems to increase customer retention. These technologies help major organizations in managing their customers' portfolios by enhancing the customer experience.

End-User Outlook

On the basis of End-User, the Subscription Billing Management is divided into BFSI, Retail & E-Commerce, IT & Telecom, Media & Entertainment, Healthcare, and Others. The retail & e-commerce segment registered a substantial revenue share in the subscription billing management market in 2021. Changing customer preferences and purchasing patterns are transforming the retail and e-commerce market. Retailers are opting for automatic subscription billing systems as a result of the increased usage of online channels for purchasing consumer products.

Regional Outlook

Region-Wise, the Subscription Billing Management Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2021, North America accounted for the highest revenue share of the subscription billing management market. The rise in the growth of the segment is attributed to an expanding number of market players operating in the region. Numerous key market players in this sector are concentrating on the development of subscription billing management systems designed to improve customer service. Therefore, these factors are propelling the growth of the regional subscription billing management market.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; SAP SE and Oracle Corporation are the forerunners in the Subscription Billing Management Market. Companies such as Zuora, Inc., GoTransverse and Recurly, Inc. are some of the key innovators in Subscription Billing Management Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Oracle Corporation, SAP SE, Zuora Inc., BluSynergy, Recurly, Inc., Gotransverse, Cleverbridge GmbH, LogiSense Corporation, Aria Systems, Inc., and Conga (Thoma Bravo, LP).

Recent strategies deployed in Subscription Billing Management Market

Partnerships, Collaborations & Agreements

Mar-2022: Aria Systems came into a partnership with EXA Infrastructure, the largest digital infrastructure platform. Through this partnership, Aria would continue to deliver ongoing consultative services via its Technical Account Management services, operating in partnership and as an attachment of EXA’s technology team to assist optimize their usage of Aria. However, EXA intends to utilize the robust abilities and flexibility of the Aria platform to investigate new subscription and usage-based billing ideas.

Nov-2021: Oracle came into a partnership with Bharti Airtel, India’s exclusive communications solutions provider. This partnership aimed to support the development of India’s digital economy by obtaining a range of industry-leading cloud solutions. Additionally, Organisations are shifting to cloud-based applications to propel their digital transformation journeys.

Oct-2021: Oracle formed a partnership with Wipro, an Indian multinational corporation. Through this partnership, the companies aimed to launch Wipro Tollway Transportation and Billing solution to enhance commuters’ experience while enhancing revenue for tollway management. Additionally, the platform contains toll-tag accounts, consumer portals, financial systems, commercial and operational back-office modules, and third-party payment gateways.

Sep-2021: Zuora signed an agreement with Microsoft, an American multinational technology corporation. This agreement aimed to combine several Microsoft products within Zuora which would reinforce Zuora’s core offerings: boosting innovation and improving the subscriber experience. Moreover, the focus is to boost the growth of the subscription economy and automate business revenue recognition.

Jun-2021: Oracle signed an agreement with Deutsche Bank, one of the world’s biggest financial services associations. Under this agreement, Deutsche Bank would boost its current database systems and relocate the bulk of its Oracle Database estate to Oracle Exadata Cloud @Customer, an on-premises deployment choice of the Oracle Exadata Cloud Service, to sustain applications that either would not transfer to the public cloud or may in the future.

Apr-2021: Aria Systems signed an agreement with GTT Communications, a foremost global cloud networking provider to multinational customers. Under this agreement, Aria’s billing and monetization platform would be deployed within the business’s Infrastructure division. Moreover, Aria’s speed of scalability, deployment, and ease of implementation makes it perfect for any new enterprise entity in need of a modern and nimble billing platform.

Mar-2021: Conga formed a partnership with Zilliant, the industry head in intelligent B2B price optimization. With this partnership, Zilliant and Conga consumers would aid from complicated pricing optimization and a smooth, error-free operation when it comes to configuring complicated services and products, providing precise quotes, and forming deals with the most up-to-date product and pricing details.

Oct-2020: Gotransverse signed an agreement with Snowflake, the cloud data platform. This agreement would create Gotransverse’s Premier Data Access add-on available via the Snowflake Data Marketplace. Additionally, premier Data Access provides consumers direct access to Gotransverse billing data reserved on Snowflake’s cloud data platform for progressive visualization, reporting, and analytics.

Aug-2020: Gotransverse joined hands with TM Forum, a non-profit global enterprise. Through this collaboration, Gotransverse intends to transfer its expertise in flexible, intelligent billing systems to donate to TM Forum’s Open Digital Framework and promote new enterprise solutions.

Product Launches & Product Expansion

Mar-2022: Recurly introduced Recurly Partner Connect, a distinctive gateway integration technology. The Recurly Partner Connect permits payments partners to get approved and build connections to Recurly’s API, streamlining it propel integration and it permits partners to customize integrations straight to their current APIs, providing payments partners secure, open access to its platform.

Feb-2022: SAP introduced new features in SAP Subscription Billing. The new subscription now sustains the following standard partner functions for a consumer such as sold-to party, bill-to party, ship-to party, and payer. Additionally, when users create the subscription with the Subscriptions API, they can select the ship-to party, bill-to party, and payer, whereas the consumer stays the sold-to party.

Sep-2021: Zuora introduced the Unified Monetization solution at The Journey to Usership. The Unified Monetization would deliver the flexibility to seamlessly bill for all subscriptions, products, and services on a single platform, and if selected, a single invoice. Moreover, this would eradicate tedious back-end combination and data reconciliation measures present today delivering the quick agility to monetize water-as-a-service on a single platform.

May-2021: Oracle introduced the CX platform to support deeper subscriptions for B2C and B2B consumers. The Oracle CX delivers easily set up subscriptions and conducts analytics on subscriptions in the process to indicate which clients might not continue so they can be offered attention and inspired to renew their subscriptions.

Geographical Expansion

Feb-2022: Recurly expanded its geographical footprints by establishing subscription management operations & new features in Europe. The expansion would power consumer consent and development possibilities in-region.

Scope of the Study

Market Segments covered in the Report:

By End-use

• BFSI
• Retail & E-Commerce
• Media & Entertainment
• IT & Telecom
• Healthcare & Life Sciences
• Others

By Organization Size

• Large Enterprises
• SMEs

By Deployment Type

• Cloud
• On-premise

By Component

• Software
• Subscription Order Management
• Quote & Pricing Management
• Credit & Collection Management
• Receivables Management
• Dispute Management & Others
• Service

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
• SAP SE
• Zuora Inc.
• BluSynergy
• Recurly, Inc.
• Gotransverse
• Cleverbridge GmbH
• LogiSense Corporation
• Aria Systems, Inc.
• Conga (Thoma Bravo, LP)

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