Rising adoption of subscription business models to drive the demand for subscription & billing management software
MarketsandMarkets forecasts the global subscription & billing management market size to grow from USD 4.0 billion in 2020 to USD 7.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 14.0% during the forecast period. Major factors expected to drive the growth of the subscription & billing management 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. However, data synchronization complexities might hinder the growth of this market.
Based on organization size, the SMEs segment to grow at a higher rate during the forecast period
Companies without their own cloud services are partnering with other cloud service organizations to provide cloud-based subscription & billing management software to the SMEs. The availability of low-cost capabilities helps Small and Medium-sized Enterprises (SMEs) sustain and give stiff competition in the service market space. This enables SMEs to increase customer engagement by providing efficient services and benefits to increase their sales. The increasing focus on providing better customer experience and the growing need to automate manual accounting and financial processes is increasing subscription & billing management software adoption. The low cost and high adoption of cloud-based software is boosting the market growth.
Based on deployment type, the cloud segment to hold a larger chunk of the subscription & billing management market share during the forecast period
The cloud deployment type is expected to hold a higher market share, with an increase in the adoption of the cloud deployment model by the Software as a Service (SaaS) enterprises. Low set-up costs and high Return on Investment (RoI) are also driving the growth of the cloud segment. The cloud deployment model provides the instant accessibility of billing information from anywhere, thereby boosting the growth of the cloud segment. Cloud-based software increases agility and assists in rapidly launching new subscription services to meet customer demands. Therefore, the adoption of cloud is increasing at a rapid pace.
Among regions, Asia Pacific to grow at the highest CAGR during the forecast period
The APAC subscription & billing management market is expected to record the highest growth rate during the forecast period, the rapid development of IT in APAC, and growing technological advancements in this region. The developed countries in APAC, namely, Australia, Malaysia, Japan, and Singapore have expansively considered the usage of subscription & billing software to cater to the unparalleled needs of organizations in the region. The adoption of Machine-to-Machine (M2M) solutions in various industry verticals such as transportation, manufacturing, energy and utilities, and retail has further opened the doors for advanced subscription & billing management software.
In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, innovation and technology directors, and executives from various key organizations operating in the subscription & billing management market.
The breakup of the profiles of the primary participants is given below:
• By Company Type: Tier 1 – 20%, Tier 2 – 35%, and Tier 3 – 45%
• By Designation: C-Level – 40%, Directors – 20%, Managers–15%, and Others -25%
• By Region: North America – 35%, Europe – 30%, APAC – 20%, and RoW – 15%
The following key subscription & billing management vendors are profiled in the report:
• 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)
• Fusebill Canada)
Research Coverage
The subscription & billing management market is segmented by component (software and services), organization size, deployment type, vertical, and region. A detailed analysis of the key industry players has been undertaken to provide insights into their business overview; services; key strategies; new service and product launches; partnerships, agreements, and collaborations; business expansions; and competitive landscape associated with the subscription & billing management market.
Reasons To Buy the Report
The report would help the market leaders and new entrants in the following ways:
• It comprehensively segments the subscription & billing management market and provides the closest approximations of the revenue numbers for the overall market and its subsegments across different regions.
• It would help stakeholders understand the pulse of the market and provide information on the key market drivers, restraints, challenges, and opportunities.
• It would help stakeholders understand their competitors better and gain more insights to enhance their positions in the market. The competitive landscape section includes competitor ecosystem, new product developments, partnerships, and expansions.