At 10.7% CAGR, Europe Tax Software Market is Projected to be Worth US$ 14,349.80 Million by 2030, says Business Market Insights

According to Business Market Insights research, the Europe tax software market was valued at US$ 6,374.73 million in 2022 and is expected to reach US$ 14,349.80 million by 2030, registering a CAGR of 10.7% from 2022 to 2030. Increase in digitization of tax systems and rise in adoption of tax software are among the critical factors attributed to the Europe tax software market expansion.

The retail sector has experienced a tremendous transformation with the growing trend of online shopping. According to the National Retail Federation (NRF), in 2023, retail sales are expected to increase by 4-6% compared to 2022. In 2021, the retail sales grew over 7% compared to 2020. Thus, the rise of online shoppers has led to the continuous introduction of various advanced technological solutions that help retailers increase their efficiency. Companies in the tax software market catering to retail sector maintain an enormous quantity of sensitive data that varies from financial statements, invoices, and legal contracts to e-mails and receipts. Retailers face vast pressures from stakeholders to gain higher returns. With advancements in solutions offering and pricing being no longer a barrier, they are increasingly adopting automated systems to enhance order accuracy, optimize business, and maximize throughput. Tax automation is a key part of operations in the retail sector; it helps retailers compile sales data from different systems and keep up with retail sales tax requirements. Automation helps them bring convenience to their operations and ensure compliance with minimal human efforts. Moreover, introducing digitalization in retail rules out the need for tax printouts and receipts, as governments have started to accept digital records instead of paper records for VAT submissions. Therefore, the growing scope of digitalization and tax automation in the retail sector is encouraging tax software providers to cater to more retail markets. The retail sector is among the rapidly evolving and essential sectors. Increasing penetration of supply chain technologies, changing competitive landscapes, rising sustainability concerns among customers, and growing regulatory pressure are facilitating transformation in the retail sector. With the help of tax automation, retailers can increase efficiency and lower the risk associated with manual tax management. It also assists them to enter new markets and establish sales channels that drive growth. Many retail companies are opting for cloud-based services. Cloud tax technology offers benefits such as business continuity management (BCM) and cost-reduction, which leads to a lower total ownership cost and disaster recovery benefits. In addition, retailers that have adopted cloud tax technology are benefitted from cross-channel support (point-of-sale, e-commerce, mobile, etc.), speedy implementation, and scalability as additional advantages. Therefore, the adoption of tax software, especially cloud-based solutions, in the retail sector drives market growth.

On the contrary, high software and training cost hampers the growth of Europe tax software market.

Based on product, the Europe tax software market is bifurcated into software and services. The software segment held 85.2% share of Europe tax software market in 2022, amassing US$ 5,430.49 million. It is projected to garner US$ 12,565.94 million by 2030 to expand at 11.1% CAGR during 2022-2030.

In terms of deployment type, the Europe tax software market is bifurcated into cloud and on-premise. The cloud segment held 75.9% share of Europe tax software market in 2022, amassing US$ 4,840.62 million. It is projected to garner US$ 11,142.21 million by 2030 to expand at 11.0% CAGR during 2022-2030.

Based on tax type, the Europe tax software market is segmented into sales tax, income tax, corporate tax, and others. The sales tax segment held 48.1% share of Europe tax software market in 2022, amassing US$ 3,064.57 million. It is projected to garner US$ 6,217.00 million by 2030 to expand at 9.2% CAGR during 2022-2030.

Based on end user, the Europe tax software market is bifurcated into commercial enterprises and individual. The commercial enterprises held 82.3% share of Europe tax software market in 2022, amassing US$ 5,247.45 million. It is projected to garner US$ 11,648.42 million by 2030 to expand at 10.5% CAGR during 2022-2030. Further, commercial enterprises segment is categorized into enterprise size (large enterprises, medium enterprises, and small enterprises) and vertical (IT & Telecom, retail, BFSI, government, healthcare, and others).

By country, the Europe tax software market has been categorized into Germany, the UK, France, Italy, Russia, and the Rest of Europe. Our regional analysis states that the Rest of Europe captured 32.6% share of Europe tax software market in 2022. It was assessed at US$ 2,076.49 million in 2022 and is likely to hit US$ 5,269.11 million by 2030, exhibiting a CAGR of 12.3% during 2022-2030.

Key players operating in the Europe tax software market are Sage Group Plc, Thomson Reuters Corp, Xero Ltd, IRIS Software Group Ltd, Wolters Kluwer NV, Intuit Inc, HRB Digital LLC, and SAP SE, among others.

• In March 2023, The Federal Tax Authority (FTA) has signed a memorandum of understanding with global technology company SAP, which specialises in enterprise software solutions and cloud computing, to collaborate towards advancing the FTA's standing in the international tax sector, in addition to underlining its role in driving sustainable financial diversification, leading digital transformation efforts, and efficiently implementing Innovation and smart technology plans.
  
  

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