Segmentation by Deployment Type (Cloud-Based, and On-Premise); and by Vertical (Banking Financial Services and Insurance (BFSI), Information Technology (IT) and Telecom, Energy & Utilities, Healthcare, Government, Retail, and Others) – Global Demand Analysis & Opportunity Outlook 2030
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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:
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.
Our in-depth analysis of the global indirect tax management market includes the following segments:
By Deployment Type
By Vertical
Growth Drivers
Challenges
· October 2019- Wolters Kluwer announced the launch of its redesigned CCH SalesTax use tax and sales compliance platform, which is a robust cloud-based tax solution. It is designed to help companies effectively manage indirect tax regulatory requirements in North American continent.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major growth drivers for the market are increasing adoption of electronic accounting across the globe and growing investments in digital solutions.
Ans: The market is anticipated to attain a CAGR of ~12% over the forecast period, i.e., 2022 – 2030.
Ans: Lack of standardization in tax laws is estimated to hamper the market growth.
Ans: 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.
Ans: The major players in the market are SAP SE, Wolters Kluwer N.V, Alvara, Inc., Thomson Reuters Corporation, and others.
Ans: 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.
Ans: The market is segmented by deployment type, vertical, and by region.
Ans: 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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