Dublin, Feb. 15, 2022 (GLOBE NEWSWIRE) -- The "Global Tax Management Market by Component (Software and Services), Tax Type (Indirect Tax and Direct Tax), Deployment Mode (Cloud and On-premises), Organization Size (SMEs and Large Enterprises), Vertical, and Region - Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global tax management market is expected to grow from USD 18.9 billion in 2021 to USD 32.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 11.5%
Factors driving the growth of the tax management market include the increasing volume of financial transactions across verticals due to digitalization, complex nature of existing tax system, and increased vigilance of tax administrators. The COVID-19 pandemic has adversely impacted the tax management market in 2020, resulting in the sudden decline in year-over-year growth of the market.
However, the companies in the market have adopted various strategies to improve the business. They are enhancing their existing products through collaborations and product developments.
Further, the shift from on-premises to cloud-based solutions, a continuous increase in digitization of tax management, and a surge in the demand for business recovery strategies during the COVID-19 pandemic are expected to provide ample opportunities for vendors of this market.
Large enterprises segment to grow at a higher CAGR during the forecast period
The intensely competitive market scenario has encouraged Large Enterprises to adopt tax management software and services for faster and cost-effective compliance. Large enterprises have a larger market size than SMEs, owing to the growing digital transformation among companies and omnipresent adoption across tax platforms.
Many large enterprises have moved towards tax management solutions in order to manage taxes and comply with the complex tax regulations enforced, due to various jurisdictions they operate in. These challenges have further driven the adoption of tax management software and services from SMEs.
Banking, Financial Services and Insurance vertical to hold the highest market share in 2021
Banking, Financial Institutes and Insurance (BFSI) are a vertical characterized by digitalization and an increasing number of customers using various banking applications. This has resulted in the exponential growth of data in the banking and financial services vertical. Government regulations in this sector are complex and sensitive.
BFSI includes domestic and foreign banks, insurance and reinsurance companies, asset management companies, non-banking finance companies. An increasing number of financial transactions is one of the major factors driving the adoption of tax management software in the BFSI vertical.
North America tax management market to grow at the highest CAGR during the forecast period
The high growth of the market in North America is attributed to the increasing adoption of tax management software to match the rapid pace of advancement. However, low awareness about the benefits of tax management software and services poses a big hurdle in tax management software adoption across the region.
The report profiles the following key vendors:
1. Avalara (US)
2. Automatic Data Processing (US)
3. Wolters Kluwer N.V (Netherlands)
4. Thomson Reuters (Canada)
5. Intuit (US)
6. H&R Block (US)
7. SAP SE (Germany)
8. Blucora (US)
9. Sovos Compliance (US)
10. Vertex (US)
11. Sailotech (US)
12. Defmacro Software (India)
13. DAVO Technologies (US)
14. Xero (New Zealand)
15. TaxSlayer (US)
16. Taxback International (Ireland)
17. TaxCloud (US)
18. Drake Enterprises (US)
19. Canopy Tax (US)
20. TaxJar (US)
21. Webgility (US)
22. LOVAT Software (UK)
23. SafeSend (US)
24. EXEMPTAX (US)
25. Sales Tax DataLINK (US)
Premium Insights
- Rising Demand for Advanced Tax Compliance Systems for Tackling Tax Complexities to Drive the Market
- Software Segment to Hold a Larger Market Share in 2021
- Indirect Tax Segment to Hold a Larger Market Share in 2021
- Cloud Segment to Hold a Larger Market Share in 2021
- Large Enterprises Segment to Hold a Larger Market Share in 2021
- Bfsi Vertical to Hold the Largest Market Share in 2021
- Asia-Pacific to Emerge as the Best Market for Investments in Next Five Years
- Market in India to Grow at the Highest Rate During the Forecast Period
Market Dynamics
Drivers
- Increasing Volume of Financial Transactions Across Verticals due to Digitalization
- Complex Nature of the Tax System
- Vigilance by Tax Administrators
Restraints
- Increasing Theft of Confidential Data
- Opportunities
- Use of the Blockchain Technology
Challenges
- Regular Amendments in Tax Laws
- Lack of Standardized Tax Rules
- COVID-19-Driven Market Dynamics
Drivers and Opportunities
Regulations
- General Data Protection Regulation
- Health Insurance Portability and Accountability Act
- Payment Card Industry Data Security Standard
- Gramm-Leach-Bliley Act
- Soc2
Use Cases
- Case Study 1: Integration of Transaction Tax Processes with Other Finance Applications from Different Geographic Locations
- Case Study 2: Implementing Automated Sales Tax Calculation Solution to Comply with Tax Rates of Each Country
- Case Study 3: Addressing Vat/Gst Challenges by Implementing Automatic Vat Recovery and Compliance Solution
Pricing Analysis and Monetization Models
- Scalable Pricing Model
- Pay Per Return Policy
- Freemium Pricing Model
For more information about this report visit https://www.researchandmarkets.com/r/kid1j9
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