Pune, India., Nov. 03, 2023 (GLOBE NEWSWIRE) -- According to a new report on “Tax Software Market Size and Forecast (2020–2030), Global and Regional Share, Trends, and Growth Opportunity Analysis – by Product (Software and Service); Tax Type (Sales Tax, Income Tax, Corporate Tax, and Others); Deployment Type (Cloud and On-premise); End User (Individual and Commercial Enterprises); Enterprise Size (Large Enterprises, Medium Enterprises and Small Enterprises); Vertical (BFSI, IT & Telecom, Healthcare, Government, Retail and Others), and Geography” the market in terms of revenue was estimated to be worth $20.95 billion in 2022 and is poised to reach $46.90 billion by 2030, growing at a CAGR of 10.6% from 2022 to 2030.
The growth of the tax software market is driven by increase in digitization of tax systems and rise in adoption of tax software. However, rising integration of advanced technologies is emerging as a future trend in the industry.
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Global Tax Software Market Scope:
| Report Coverage | Details |
| Market Size Value in | USD 20.95 Billion in 2022 |
| Market Size Value by | USD 46.90 Billion by 2030 |
| Growth rate | CAGR of 10.6% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
| Segments covered | Product, Tax Type, Deployment Type, End User, Enterprise Size, Vertical, and Geography. |
| Regional scope | North America, Europe, Asia Pacific, Middle East & Africa, South & Central America. |
| Country scope | Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States |
| Report coverage | Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends |
Growth in Tax Industry Drives Global Tax Software Market:
The tax industry is flourishing with the increasing collection of corporate tax, VAT, and GST. The governments of various countries are constantly investing in providing essential and enhanced services to citizens, further widening the scope of the tax industry. In addition, government policies such as incentives to SMEs and startups encourages emerging market players to start their business. Thus, the formation of new businesses further drives the requirement to file taxes. The growing digitalization is one of the significant factors fueling industries such as BFSI, retail, healthcare, and IT & telecom, further propelling the tax software market size.
A fair tax system further ensures that the individual and businesses pay their fair share. In addition, digitalization in the tax industry encourages tax compliance among firms by prompting the digitalization of their processes. Many accounting firms and industries are taking advantage of cloud technologies to assist users in filing GST, VAT, and corporate tax. Besides, strong relationships between financial service institutions and clients are creating a positive impact on the growth of the tax software market. Accountancy firms are adopting the software for handling invoicing and billing, payroll, reporting, and bookkeeping. The accountancy profession contributes significantly to the economy via specialist accounting practices and in-house accountants existing in all industries. Moreover, the accounting and legal firms are pivotal to the country's financial and professional services ecosystem. Thus, all these factors are anticipated to boost the market growth in the coming years.
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 the 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 tax software 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. Therefore, tax automation in the retail sector is encouraging tax software providers to cater to more retail markets, thereby fueling tax software market size.
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. Further, retailers that have adopted cloud tax technology benefit 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 tax software market growth.
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Global Tax Software Market: Segmental Overview
Based on component, the tax software market is segmented into software and services. The software segment held the largest tax software market share in 2022, with the highest CAGR in the tax software market during the forecast period.Based on deployment, the tax software market is segmented into cloud and on-premise. The cloud segment held the largest tax software market share in 2022, with the highest CAGR in the tax software market during the forecast period. Based on tax type, the tax software market is segmented into sales tax, income tax, corporate tax and others. The sales tax segment held the largest tax software market share in 2022, whereas the income tax segment is expected to record the highest CAGR in the tax software market during the forecast period. Based on end user, the tax software market is segmented into commercial enterprises and individual.
The commercial enterprise segment held the largest tax software market share in 2022. In contrast, the individual segment is expected to register the highest CAGR in the tax software market during the forecast period. The commercial segment in the tax software market is subsegmented by enterprise size into large enterprises, medium enterprises and small enterprises. The large enterprise segment held the largest tax software market share in 2022, with the highest CAGR in the tax software market during the forecast period.The commercial segment in the tax software market is subsegmented by vertical into IT & telecom, retail, bfsi, government, healthcare, and others. The IT & telecom segment held the largest tax software market share in 2022, whereas the retail segment is expected to record the highest CAGR in the tax software market during the forecast period.
Global Tax Software Market: Competitive Landscape
Sage Group Plc, Thomson Reuters Corp, Xero Ltd, IRIS Software Group Ltd, Wolters Kluwer NV, Intuit Inc, HRB Digital LLC, Wealthsimple Technologies Inc, SAP SE, and CloudTax Inc are a few of the key companies operating in the global tax software market. The global tax software market players focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
Recent Developments:
- In February 2023: Pagero and Thomson Reuters announced a go-to-market partnership to help tax departments simplify their e-invoicing processes. With this partnership, both the firms will now offer Pagero’s Smart Business Network to customers for e-document exchange and Continuous Transaction Controls (CTC) compliance and Thomson Reuters’s ONESOURCE Indirect Tax products jointly.
- In June 2023: Thomson Reuters Corp announced its plan to buy SurePrep LLC, a US-based provider of tax automation software and services, for US$ 500 million in cash. More than 23,000 tax professionals use the products and solutions of SurePrep.
- In December 2022: Intuit, the global financial technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced its latest updates to products and services for the upcoming tax tear 2023. The product ans services includes Intuit Tax Advisor, Intuit ProConnect Tax, Intuit Link, Intuit ProSeries Tax, and Intuit Lacerte Tax.
Go through further research published by The Insight Partners:
Sales Tax Software Market - Global Analysis and Forecast to 2027
Tax Compliance Software Market - Global Analysis and Forecast to 2030
Tax Management Market - Global Analysis and Forecast to 2030
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