Global Indirect Tax Management Market Highlights 2022 – 2030
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.
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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.
Major Macro-Economic Indicators Impacting the Market Growth
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.
Global Indirect Tax Management Market Regional Synopsis
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:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis
Market Segmentation
Our in-depth analysis of the global indirect tax management market includes the following segments:
By Deployment Type
- Cloud-Based
- On-Premise
By Vertical
- Banking Financial Services and Insurance (BFSI)
- Information Technology (IT) and Telecom
- Energy & Utilities
- Healthcare
- Government
- Retail
- Others
Growth Drivers
- Increasing Adoption of Electronic Accounting Across the Globe
- Growing Investments in Digital Solutions
Challenges
- Lack of Standardization in Tax Laws
Top Featured Companies Dominating the Market
- SAP SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Wolters Kluwer N.V
- Alvara, Inc.
- Thomson Reuters Corporation
- Sovos Compliance, LLC
- Drake Enterprises, Inc.
- Canopy Tax, Inc.
- DAVO Technologies, LLC
- TPS Unlimited, Inc.
- Intuit Inc.
