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Increasing volume of financial transactions across verticals due to digitalization, complex nature of the tax system, and vigilance of tax administrators.
The global tax management market is expected to grow from USD 15.5 billion in 2019 to USD 27.0 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 11.7% 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.
Small and medium-sized enterprises segment to grow at a higher CAGR during the forecast period
The intensely competitive market scenario has encouraged Small and Medium-sized Enterprises (SMEs) to adopt tax management software and services for faster and cost-effective compliance. For instance, the Internal Revenue Service (IRS) estimates that businesses with less than USD 1 million in revenue have to incur almost two-thirds of business compliance costs. Usually, such costs are larger, relative to revenues or assets, for SMEs than for large enterprises. Additionally, due to the complex tax codes, SMEs can understate their revenues and overstate their expenses and thus underpay their taxes. 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 2019
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.
Asia Pacific tax management market to grow at the highest CAGR during the forecast period
The high growth of the market in Asia Pacific (APAC) 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 1–10%, Tier 2–25%, and Tier 3–65%
- 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 tax management market comprises major providers, such as Avalara (US), Automatic Data Processing (US), Wolters Kluwer N.V (Netherlands), Thomson Reuters (Canada), Intuit (US), H&R Block (US), SAP SE (Germany), Blucora (US), Sovos Compliance (US), Vertex (US), Sailotech (US), Defmacro Software (India), DAVO Technologies (US), Xero (New Zealand), TaxSlayer (US), Taxback International (Ireland), TaxCloud (US), Drake Enterprises (US), Canopy Tax (US), and TaxJar (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.
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.
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.