The Global Subscription & Billing Management market is expected to increase due to factors such as an increasing number of customers adopting subscription-based models across various sectors. Businesses are currently having difficulty detecting higher customer churn rates, or accessing new clients as opposed to existing ones.
At a compound annual growth rate of 16.7%, the size of the worldwide Subscription & Biling Management market is projected to reach USD 13.8 billion in 2029.
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Covid-19 Impact & Market Status
Business models are being thoroughly revised to align with current business dynamics and appropriately address all the challenges that have sprung amidst the ongoing Covid-19 pandemic and its associated implications. COVID-19 is an unprecedented global public health crisis that has impacted practically every business, and its long-term repercussions are expected to have an influence on industry growth during the forecast period. The analyst's continual research adds to their research framework, ensuring that underlying COVID-19 concerns and potential solutions are included. The research examines COVID-19 in light of changes in consumer behaviour and demand, purchasing patterns, supply chain analytics re-routing, market dynamics, and government involvement. The updated study considers the influence of COVID-19 on the market and provides insights, analysis, estimates, and forecasts.
The IT vertical will have the greatest market size over the forecast period, according to vertical.
During the projected period, the IT vertical is expected to have the greatest market size. The rapid rate of transfer of traditional software and technology enterprises to a subscription-based model is credited with this increase. The acceptance and shift from the traditional license-based approach to a subscription model has increased in the last two years. In the Business analytics market, emerging software businesses have been using usage-based billing for some time. This has led in widespread use of subscription and billing management software, particularly cloud-based subscription and billing management software.
The SMEs segment is expected to develop at a greater CAGR during the projection period, based on organisation size.
Small and Medium-sized Enterprises (SME) refers to businesses with fewer than 1,000 employees (SMEs). Companies who don't have their own cloud services partner with other cloud service providers to offer SMEs cloud-based subscription and billing management software. The availability of low-cost capabilities aids SMEs in surviving and thriving in the service sector. This allows SMEs to enhance client engagement and sales by delivering effective services and perks.
North America is expected to hold the greatest share of the subscription and billing management market during the projected period.
Because of the presence of the world's largest telecom service providers and subscription & billing management suppliers in North America, the subscription & billing management market is likely to generate optimum revenue prospects for vendors. With the rise in acceptance of Bring Your Own Device (BYOD) and cloud-based applications, subscription processes have become more automated. As a result, large businesses in North America are willing to invest more in subscription and billing software. With the growing use of mobile devices, countries such as the United States and Canada have been aggressively deploying subscription billing software. The widespread adoption of cloud-based solutions by large organisations and SMEs, notably in the United States, is the most significant growth driver in this area.
Subscription and billing management systems enable businesses to provide perks to their consumers and improve service delivery, making it more personalised, which can help retain existing customers. As a result of their ability to reduce customer churn, several businesses are turning to these solutions for their billing and subscription needs. This has supported the market's expansion.
Subscription billing is software that automates the collection of subscription fees (also known as subscription management software). Subscription billing software allows businesses to bill customers repeatedly for products and services based on their subscription status. Subscription billing is a sort of payment in which a business establishes a relationship with a customer and charges and invoices them on a regular basis. It also keeps track of standard and special offers, feed packaging, and discounts to ensure invoicing accuracy.
In order to do so, customers must enrol in 'auto-pay,' give payment information, and authorise vendors to charge their accounts. Both business and individual clients can benefit from subscription billing. For example, Salesforce, a SaaS technology company, charges large and small business clients per month for CRM and related services. Individual users pay monthly membership fees to streaming platforms such as Amazon Prime, New York Times, Netflix, and others.
Subscription agreements allow companies to charge whatever they need to in order to maintain consistent cash flow and meet customer demands. The majority of subscription billing is handled via automatic online payments, making billing cycles very easy to manage for all parties involved. The rise of a new generation of business models has been aided by subscription charging. Before subscriptions were popular, companies had to charge high prices to pay upfront development costs, which hampered growth in many industries.
The expanding prevalence of electronic media and devices, as well as the high demand for improved subscription management tools and billing software, are two main reasons driving the global subscription billing software market. Subscription and billing management solutions are typically in high demand in the utility, media, and entertainment industries, as well as the public sector. These industries require service providers and organisations to provide high-quality services and timely billing, which the global Subscription Billing Software Market is aiming to achieve.
Rising security issues and concerns about the use of internet platforms are putting pressure on the sector, perhaps making billing systems more open to outside cyber-attacks. Simultaneously, clients are deterred from implementing advanced procedures due to the high expenses of updating and maintaining old billing systems.
Key and emerging subscription & billing management market players include 2Checkout (US), Apttus (US), Aria Systems (US), BillingPlatform (US), Chargebee (US), Chargify (US), cleverbridge (Germany), Gotransverse (US), Recurly (US), SaaSOptics (US), Sage Intacct (UK), Salesforce (US), SAP (Germany), Vindicia (US), Zuora (US), Digital River (US), NetSuite (US), FastSpring (US), JustOn (Germany), Zoho (US), and Fusebill (Canada). These players have adopted various strategies to grow in the market. The companies are focused on inorganic and organic growth strategies to strengthen their market position.
Latest Developments
- Radiuz, a global Mobility-as-a-Service (MaaS) platform provider, teamed with Zuora in January 2020 to replace Radiuz's in-house billing system with Zuora Billing.
- BillingPlatform improved their platform in December to optimise it and provide consumers with the most natural user experience possible.
- Aria Systems announced the launch of their Aria Crescendo Monetization Platform on Microsoft Azure in November of this year.
- Sage Intacct, a financial management software, was released in the UK in November 2019.
- Gotransverse announced the opening of a new multi-tenant manufacturing environment in Frankfurt, Germany, in October 2019.
Subscription & Biling Management Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2029 |
| Study Period | 2018-2029 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2029 | USD 13.8 billion |
| Growth Rate | CAGR of 16.7% during 2019-2029 |
| Segment Covered | By Component, By Organization Size, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Oracle Corporation,Sage Plc,com,SAP SE,Zuora,Digital River,Checkout,Aria Systems,Chargify,Apttus,Amdocs (Vindicia),BillingPlatform,Chargebee,Cleverbridge,Gotransverse,FastSpring,JustOn,Zoho,Fusebill |
Key Segments of the Global Subscripition and Biling Management Market
Product Overview (USD Billion)
- Services
- solutions
Payment Overview (USD Billion)
- Fixed
- variable
Industry Overview (USD Billion)
- Aerospace & Defense
- Automotive & Transportation
- Banking, Financial Services & Insurance
- Building, Construction & Real Estate
- Consumer Goods & Retail
- Education
- Energy & Utilities
- Government & Public Sector
- Healthcare & Life Sciences
- Information Technology
- Media & Entertainment
- Telecommunication
- Travel & Hospitality
- Others
Deployment overview (USD Billion)
- On cloud
- On premises
Regional Overview (USD Billion)
North America
- U.S
- Canada
- Mexico
Europe
- Germany
- France
- UK
- France
- Itlay
- Netherlands
- Qutar
- Russia
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Austrelia
- South Korea
- Indonesia
- Malaysia
- Thailand
- Rest of Asia Pacific
South America
- Mexico
- Brazil
- Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
Major factors expected to drive the growth of the market include rising adoption of subscription business models, increasing demand for reducing subscriber churn and improving customer retention, growing need for adhering to compliances, and increasing need for upgrading legacy system
Oracle Corporation,Sage Plc,com,SAP SE,Zuora,Digital River,Checkout,Aria Systems,Chargify,Apttus,Amdocs (Vindicia),BillingPlatform,Chargebee,Cleverbridge,Gotransverse,FastSpring,JustOn,Zoho,Fusebill
Global Subscription & Billing Management Market is segmented based on Organization Size, Product Vertical, and Geography.
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