At 24.5% CAGR, Asia Pacific E-Invoicing Market is Projected to be worth US$ 13,731.19 million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Asia Pacific e-invoicing market was valued at US$ 2,373.85 million in 2023 and is expected to reach US$ 13,731.19 million by 2031, registering a CAGR of 24.5% from 2023 to 2031. Rise in e-invoicing related compliance requirements and digital transformation across industries are among the critical factors attributed to drive the Asia Pacific e-invoicing market growth.

The number of both government and industry compliances is growing at a fast pace across countries. Governments in various countries receive ~30% of revenue from collecting sales tax and VAT. Tax evasion and tax fraud are serious concerns for governments in various countries. Adopting digital solutions such as e-invoicing helps them efficiently track business and financial transactions among various parties. Hence, countries including India have adopted e-invoicing mandates for various segments such as B2G, B2B, and B2C. For instance, in October 2020, the GST e-invoice/IRN System, India’s e-invoicing system, was launched on a mandatory basis. Advantages offered by e-invoicing, such as easy tracking of business transactions, reduced payment process time, fewer human errors, and increased cost savings, are further boosting the growth of the e-invoicing market across various regions. In addition, the rising initiatives by global associations such as ConnectONCE, OpenPEPPOL, EESPA, and GS1 to improve the interoperability among various international e-invoicing formats are further anticipated to fuel the adoption of flexible cloud-based e-invoicing solutions.

Government bodies and public administrators are the key enablers for the growth of e-invoicing in various geographies. To meet and maintain various regulatory compliance, companies need to be updated with ongoing developments in order to avoid any penalties or fines. With the trend of various governments mandating e-invoicing to do business in specific countries, businesses need to adopt e-invoicing compulsorily. In such countries, businesses need to meet various government compliances for receiving and sending e-invoices. Hence, e-invoicing solution providers are offering various solutions with benefits, such as compliance features. These solutions allow users to tackle complex country regulations and protect them from any risk related to regulatory compliances that affect “order to cash” and “procure to pay” business processes. Hence, the increasing focus of governments on mandating e-invoicing acts as a driver for the e-invoicing market growth.

On the flip side, challenges related to mass adoption of e-invoicing hamper the growth of Asia Pacific E-Invoicing Market.

Based on deployment, the Asia Pacific e-invoicing market is bifurcated into on-premise and cloud-based. The cloud-based segment held 62.6% market share in 2023, amassing US$ 1,486.39 million. It is projected to garner US$ 8,794.01 million by 2031 to register 24.9% CAGR during 2023–2031.

In terms of end user, the Asia Pacific e-invoicing market is segmented into retail and E-commerce, government, IT and Telecom, BFSI, and others. The government segment held 34.6% share of Asia Pacific e-invoicing market in 2023, amassing US$ 821.05 million. It is anticipated to garner US$ 4,494.19 million by 2031 to expand at 23.7% CAGR during 2023–2031.

In terms of application, the Asia Pacific e-invoicing market is segmented into B2B, B2C, and B2G. The B2B segment held 47.1% share of Asia Pacific e-invoicing market in 2023, amassing US$ 1,117.07 million. It is anticipated to garner US$ 6,755.69 million by 2031 to expand at 25.2% CAGR during 2023–2031.

In terms of type, the Asia Pacific e-invoicing market is bifurcated into non-PO invoices and PO invoices. The non-PO invoices segment held 67.7% share of Asia Pacific e-invoicing market in 2023, amassing US$ 1,606.06 million. It is anticipated to garner US$ 9,582.24 million by 2031 to expand at 25.0% CAGR during 2023–2031.

Based on country, the Asia Pacific e-invoicing market is categorized into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 26.6% share of Asia Pacific e-invoicing market in 2023. It was assessed at US$ 631.21 million in 2023 and is likely to hit US$ 3,936.73 million by 2031, registering a CAGR of 25.7% during 2023–2031.

Key players operating in the Asia Pacific e-invoicing market are Cegedim SA, Sage Group Plc, Comarch SA, Nipendo Ltd, Tradeshift, Basware Corporation, Coupa Software Inc, International Business Machines Corp, and SAP SE, among others.

• In January 2020, Cegedim announced the acquisition of Ximantix; with this acquisition, the company further expanded its foothold globally in order to enhance its development to meet the requirements of its international clients.

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