Accounting Software Market Size 2024-2028: Growth Drivers and Trends

The accounting software market is forecast to grow by USD 6.29 billion, expanding at a compound annual growth rate (CAGR) of 8.8% between 2023 and 2028. The market is experiencing substantial growth due to the increasing adoption of IT and telecommunication solutions across various industries. Small and Medium-sized Enterprises (SMEs) are increasingly adopting cloud-based accounting software due to its cost-effectiveness and ease of use, with e-commerce integration becoming a key factor. Despite this, concerns over data privacy and data security continue to challenge market expansion. In industries like oil and gas and healthcare, strict regulations demand heightened security measures. However, overall, financial software providers are innovating to address evolving business needs.

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Market Segmentation

The market research covers the following segments, with comprehensive data from 2018-2022 and forecasts for 2024-2028:

• Deployment

  • On-premises
  • Cloud

• Geography

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • UK
    • Italy
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Middle East and Africa
  • South America
    • Brazil

By Deployment Insights 

The on-premises segment is projected to witness significant growth during the forecast period. On-premises accounting software is installed on a business's IT infrastructure, providing secure access and offering long-term cost efficiency. However, businesses must consider the one-time installation and license purchase. Cloud-based software, offering remote access and real-time collaboration, continues to be popular for distributed teams and scalability.

Market Dynamics

• Drivers

  • Increasing Demand for Cloud-based Accounting Software: Cloud solutions provide real-time financial visibility through dashboards, reporting applications, and integrations like CRM, supply chain management, and payroll. Medium and large enterprises are adopting cloud-based solutions for their extensive system requirements.

• Trends

  • Rising Penetration of E-commerce Platforms: The rapid growth of e-commerce is driving businesses, especially SMEs, to integrate accounting software with e-commerce platforms. This trend is crucial for businesses seeking efficient financial management and streamlined operations, especially during events like Amazon’s Prime Day.

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• Challenges

  • Data Privacy and Security Concerns: The shift to cloud-based systems introduces heightened security risks due to the processing and storage of sensitive financial data. Cybersecurity threats, such as data breaches and financial fraud, remain significant challenges for providers and users alike.

Key Players

• Acumatica Inc.
• Assist Cornerstone
• Epicor Software Corp.
• Infor Inc.
• Intuit Inc.
• Kingdee International Software Group Co. Ltd.
• Microsoft Corp.
• MYOB Group
• Oracle Corp.
• Reckon Ltd.
• Red Wing Software Inc.
• Saasu Pty Ltd.
• Sage Group Plc
• SAP SE
• Tally Solutions Pvt. Ltd.
• Unit4 Group Holding B.V.
• Xero Ltd.
• YonYou Network Technology Co. Ltd.
• Zeta Softwares Pvt. Ltd.
• Zoho Corp. Pvt. Ltd.

Future Market Insights

As the demand for efficient and automated accounting solutions continues to rise, the accounting software market is expected to grow substantially during the forecast period. Cloud-based solutions will remain a key growth driver, especially as more businesses seek to integrate accounting with e-commerce platforms and other enterprise systems. However, cybersecurity measures will be critical to ensure the protection of sensitive financial data as the market expands globally.