Tax Management Market with COVID-19 Impact Analysis, by Component (Software and Services), Tax Type (Indirect Tax and Direct Tax), Deployment Mode (Cloud and On-premises), Organization Size, Vertical and Region - Global Forecast to 2026

Tax Management Market with COVID-19 Impact Analysis, by Component (Software and Services), Tax Type (Indirect Tax and Direct Tax), Deployment Mode (Cloud and On-premises), Organization Size, Vertical and Region - Global Forecast to 2026

The global tax management market is expected to grow from USD 18.9 billion in 2021 to USD 32.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 11.5% during the forecast period. Factors driving the growth of the tax management market include the increasing volume of financial transactions across verticals due to digitalization, complex nature of existing tax system, and increased vigilance of tax administrators. The COVID-19 pandemic has adversely impacted the tax management market in 2020, resulting in the sudden decline in year-over-year growth of the market. However, the companies in the market have adopted various strategies to improve the business. They are enhancing their existing products through collaborations and product developments. Further, the shift from on-premises to cloud-based solutions, a continuous increase in digitization of tax management, and a surge in the demand for business recovery strategies during the COVID-19 pandemic are expected to provide ample opportunities for vendors of this market.

Large enterprises segment to grow at a higher CAGR during the forecast period

The intensely competitive market scenario has encouraged Large Enterprises to adopt tax management software and services for faster and cost-effective compliance. Large enterprises have the larger market size over SMEs, owing to the growing digital transformation among companies and omnipresent adoption across tax platforms. Many large enterprises have moved towards tax management solutions in order to manage taxes and comply with the complex tax regulations enforced, due to various jurisdictions they operate in. These challenges have further driven the adoption of tax management software and services from SMEs.

Banking, Financial Services and Insurance vertical to hold the highest market share in 2021

Banking, Financial Institutes and Insurance (BFSI) is a vertical characterized by the digitalization and an increasing number of customers using various banking applications. This has resulted in the exponential growth of data in the banking and financial services vertical. Government regulations in this sector are complex and sensitive. BFSI includes domestic and foreign banks, insurance and reinsurance companies, asset management companies, non-banking finance companies. Increasing number of financial transactions is one of the major factors driving the adoption of tax management software in the BFSI vertical.

North America tax management market to grow at the highest CAGR during the forecast period

The high growth of the market in North America is attributed to the increasing adoption of tax management software to match the rapid pace of advancement. However, low awareness about the benefits of tax management software and services poses a big hurdle in tax management software adoption across the region.

In-depth interviews were conducted with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the tax management market.
By Company – Tier I–10%, Tier II–25%, and Tier III–65%
By Designation – C-Level Executives–40%, Director Level–35%, and Others–25%
By Region – North America–40%, Europe–30%, and APAC–20%, RoW – 10%

The report profiles the following key vendors:

1. Avalara (US)
2. Automatic Data Processing (US)
3. Wolters Kluwer N.V (Netherlands)
4. Thomson Reuters (Canada)
5. Intuit (US)
6. H&R Block (US)
7. SAP SE (Germany)
8. Blucora (US)
9. Sovos Compliance (US)
10. Vertex (US)
11. Sailotech (US)
12. Defmacro Software (India)
13. DAVO Technologies (US)
14. Xero (New Zealand)
15. TaxSlayer (US)
16. Taxback International (Ireland)
17. TaxCloud (US)
18. Drake Enterprises (US)
19. Canopy Tax (US)
20. TaxJar (US)
21. Webgility (US)
22. LOVAT Software (UK)
23. SafeSend (US)
24. EXEMPTAX (US)
25. Sales Tax DataLINK (US).

The study includes an in-depth competitive analysis of these key players in the tax management market with their company profiles, recent developments, and key market strategies.

Research Coverage

The tax management market revenue is primarily classified into revenues from software and services. The market is also segmented by tax type, deployment mode, organization size, vertical, and region. By the tax type, the market has been segmented into direct tax and indirect tax. By the deployment mode, the market has been classified into cloud and on-premises. By organization size, the market is classified by large enterprises and small and medium enterprises (SMEs). Further, by the vertical, the market is segmented into banking, financial services, and insurance (BFSI); manufacturing; information technology (IT) and telecom; retail; energy and utilities; healthcare and life sciences; media and entertainment; and others (real estate and construction, and transportation and logistics). By region, the market has been segmented into North America, Europe, APAC, MEA, and Latin America.

Key benefits of the report

The report would help market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall tax management market and the subsegments. This report would help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies. The report would also help stakeholders understand the pulse of the market and provide them with information on the key market drivers, restraints, challenges, and opportunities.