MarketsandMarkets estimates the worldwide tax management market is expected to grow from USD 15.5 billion in 2019 to USD 27.0 billion by 2024, in a Compound Annual Growth Rate (CAGR) of 11.7% during the forecast period.
Factors driving the development of the taxation management market include the increasing volume of financial transactions across verticals because of digitalization, the complex nature of the existing tax system, and increased vigilance of tax administrators.
Factors like the use of blockchain technology will also be expected to create ample opportunities for tax management vendors.
Software Segment to Hold a Larger Market Size During the Forecast Period.
The tax management market by component covers software and solutions. Tax management software is seeing a growing demand because of the continuously evolving tax and accounting laws in a variety of countries.
Enterprises need to keep up with the latest and current tax filings and compliance procedures throughout the globe.
Tax management software helps large organizations actively monitor business activities and provide alerts, while establishing tax duties in new places, according to their individual nexus laws.
Indirect Tax to Hold a Larger Market Size During the Forecast Period
Indirect taxes are paid more often than direct taxes; hence, they require advanced software for faster and more accurate calculations.
Tax management software for indirect taxation provide a standard, single system to manage taxes and determine compliance responsibilities.
Vendors have started supplying calculation-to-compliance indirect tax options that deliver indirect tax rates, policy, logic, and rules from a worldwide perspective.
Vendors are providing web-based, Value Added Tax (VAT), Goods and Services Tax (GST), and sales and use tax compliance solutions, which covers multiple countries, such as Brazil, India, along with the Gulf Co-operation Council (GCC).
Cloud Deployment Model to Hold a Larger Market Size During the Forecast Period
Cloud-based tax management solutions help reduce the overall costs while providing highly scalable and flexible access to solutions through the Information Technology (IT) infrastructure hosted by the Cloud Service Provider (CSP).
Hence, enterprises prefer deploying tax management solutions in the cloud to improve mobility and decentralize data computing and storage.
Banking, Financial Services, and Insurance vertical to maintain the largest market size during the forecast period.
BFSI consists of domestic and foreign banks, insurance and reinsurance companies, asset management companies, and non-banking finance companies.
The Banking, Financial Services, and Insurance (BFSI) vertical is characterized by digitalization and an increasing number of customers using various banking applications.
This has caused the exponential growth of data from the banking and financial services vertical. Government regulations in this sector are sensitive and complex.
An increasing number of financial transactions is one of the significant factors driving the adoption of tax management software at the BFSI vertical.
North America to Account for the Largest Market Size During the Forecast Period
The worldwide tax management market by region covers five major geographic regions: North America, Asia Pacific (APAC), Europe, Middle East, and Africa (MEA), and Latin America.
North America is expected to account for the largest market size during the forecast period due to continuous reforms in tax regulations and rules in the region.
Key Market Players
The major players in the tax management market are 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 research includes a comprehensive competitive analysis of these key players from the tax management market by using their company profiles, recent developments, and key market strategies.
Scope of the Report
|Market size available for years||2017–2024|
|Base year considered||2018|
|Forecast units||Million (USD)|
|Segments covered||Component, Tax Type, Deployment Mode, Organization Size, Vertical, and Region|
|Geographies covered||North America, APAC, Europe, Latin America, and MEA|
|Companies covered||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).|
Based on Components, the Tax Management Market Has Been Segmented as Follows:
Based on Tax Type, the Tax Management Market Has Been Segmented as Follows:
- Direct Tax
- Indirect Tax
Based on Deployment Mode, the Tax Management Market Has Been Segmented as Follows
Based on Organization Size, the Tax Management Market Has Been Segmented as Follows:
- Large Enterprises
- Small and Medium-sized Enterprises (SMEs)
Based on Vertical, the Tax Management Market Has Been Segmented as Follows
- Energy and Utilities
- Healthcare and Life Sciences
- Media and Entertainment
- Others (real estate and construction, and transportation and logistics)
- Banking, Financial Services and Insurance (BFSI)
- Information Technology (IT) and Telecom
Based on Region, the Tax Management Market Has Been Segmented as Follows:
- South Africa
- Saudi Arabia
- Rest of MEA
- Latin America
- Rest of Latin America
- North America
- United States (US)
- United Kingdom (UK)
- Rest of Europe
In February 2019, Avalara acquired Index, the provider of a smart platform, which helps businesses in the analysis and visualization of information related to the products from various industries.
In December 2019, Wolters Kluwer introduced CCH Axcess Knowledge Coach, an audit module under its cloud-based tax preparation, compliance, and workflow management platform, CCH Axcess.
This new solution provides auditors the flexibility of anywhere, anytime access, and improves the overall quality of auditing.
Critical Questions the Report Answers:
Which are the opportunities in the tax management market?
Which are new market segments to focus over the next 2–5 years to prioritizing the investments and efforts?
What’s the competitive landscape on the market?
What will be the trends in direct and indirect taxation?
Which region would offer a higher growth for those vendors on the market?
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