The global indirect tax management market is estimated to garner a hefty amount of revenue by growing at a CAGR of ~12% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing adoption of electronic accounting, and growing investments in digital solutions. Along with these, rising volumes of financial transactions across several verticals as a result of digitization, and escalating vigilance of tax administrators around the world are also expected to drive market growth in the upcoming years. In 2019, it was calculated that there are approximately 2 billion digital buyers around the world. eCommerce purchases are predicted to rise up to 22 percent in 2023. Furthermore, the world is witnessing a need to automate taxation formalities as it can significantly minimize human efforts. This in turn is projected to be a crucial factor offering lucrative opportunities to the market growth in the near future.
The market is segmented by vertical into banking financial services and insurance (BFSI), information technology (IT) and telecom, energy & utilities, healthcare, government, retail, and others, out of which, the BFSI segment is anticipated to hold the largest share in the global indirect tax management market. This can be ascribed to the increasing number of customers who utilize digital banking services in the BFSI industry, and imposition of stringent government regulations in the sector. In addition, the retail segment is predicted to observe the highest growth over the forecast period in view of the fact that the retail industry needs to be adhered to a complex taxation system to raise spending on infrastructure and decrease exports. Moreover, by deployment type, the cloud-based segment is evaluated to grab the largest share by the end of 2030, owing to the high preference of businesses to implement tax management software in cloud. CLICK TO DOWNLOAD SAMPLE REPORT
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
On the basis of geographical analysis, the global indirect tax management market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific region is estimated to witness noteworthy growth over the forecast period on the back of the growing usage of tax management software, and rapid growth of the BFSI industry. According to the Indian Brand Equity Foundation, during FY16-FY20, deposits grew at a CAGR of 13.93% and reached USD 1.93 trillion by FY20, and bank credit and deposits stood at USD 1.48 trillion and USD 2.08 trillion respectively. Apart from these, frequent regulatory changes in India and China are also expected to drive the region’s market growth in the future. Additionally, the market in North America is projected to grab the largest share over the forecast period, which can be credited to the continuous changes in tax regulations, well-developed IT infrastructure, and presence of prominent market players in the region.
The global indirect tax management market is further classified on the basis of region as follows:
Our in-depth analysis of the global indirect tax management market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major growth drivers for the market are increasing adoption of electronic accounting across the globe and growing investments in digital solutions.
The market is anticipated to attain a CAGR of ~12% over the forecast period, i.e., 2022 – 2030.
Lack of standardization in tax laws is estimated to hamper the market growth.
Asia Pacific will provide more business opportunities for market growth owing to the growing usage of tax management software, and rapid growth of the BFSI industry.
The major players in the market are SAP SE, Wolters Kluwer N.V, Alvara, Inc., Thomson Reuters Corporation, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by deployment type, vertical, and by region.
The cloud-based segment is anticipated to hold largest market size in value and is estimated to grow at a robust CAGR over the forecast period and display significant growth opportunities.
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