E-invoicing Market is expected to reach US$ 62.68 billion by 2031

According to our latest study on “E-invoicing Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Deployment, End-User, Application, Type, and Geography,” the market was valued at US$ 12.47 billion in 2023 and is expected to reach US$ 62.68 billion by 2031; it is estimated to record a CAGR of 22.4% from 2023 to 2031.

The report includes growth prospects in light of current e-invoicing market trends and driving factors influencing market development. The US, Canada, and Mexico are the major contributors to the e-invoicing market in North America. The US is a developed country in terms of modern technology and infrastructure. Technological advancements have led to highly competitive markets across North America. The region hosts several technological giants that invest significant amounts in the development of robust technologies. More than 200 e-invoicing network operators are present in the US. Invoices are considered under business documents as the country has a sales tax system instead of VAT. Due to this factor, e-invoicing network operators are well-known in the US market. With the continuous increase in transactions in B2C, B2B, and B2G, the number of operators is projected to grow in the future. A large number of enterprises are showing interest in e-invoicing solutions. According to Comarch, global changes in the digitization of documents have substantially impacted American companies that not only run international businesses but also strive to optimize costs related to invoicing. Thus, the benefits of e-invoicing, including enhanced security, improved efficiency, increased accuracy, cost savings, and better visibility into financial transactions, are propelling the e-invoicing market growth in the region.

E-invoicing Market – by Region, 2023 and 2031

Source: The Insight Partners Analysis

In the global e-invoicing market, various types of models are being used for e-invoice exchange. Commonly used models include supplier-direct and buyer-direct models which are on-premise based. Outsourced direct models such as Software as a Service (SaaS) and Platform as a Service (PaaS) are cloud-based. The huge diversity of business and financial transactions across sectors such as B2B, B2C, and B2G is driving the demand for efficient and flexible e-invoicing solutions across countries. The on-premise model, where a company installs e-invoicing solutions and related infrastructure within its premises, is popular among large enterprises and high-volume industries such as telecom and e-commerce. Such companies provide e-invoices to their customers through email, SMS, company portals, mobile apps, and other means. In general, the on-premise deployment type solutions are majorly procured by large enterprises with well-balanced financial resources. The setup may get costly based on the size of the company’s operations and clientele. Despite being a secure and well-established deployment type, the growth rate is anticipated to be lower than that of cloud solutions over the forecast period. With the growing popularity of cloud-based e-invoicing solutions and their increasing benefits, the demand for cloud-based deployments is expected to rise at an impressive pace, especially among small and medium-sized enterprises (SMEs).

Based on geography, the e-invoicing market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The market in North America is segmented into the US, Canada, and Mexico. The US accounted for the largest e-invoicing market share in 2023. The US is a technologically developed country; hence, there has been a high adoption of electronic invoicing. Being technologically advanced helps attract large companies to digitize their business structure for the benefit of employees and the masses. In the US, e-invoicing is allowed but currently not mandatory. Acceptance of e-invoicing in the country is driven by the presence of Fortune 1500 and above companies, which are looking forward to automating their accounts payable (AP) and accounts receivable (AR) processes to have efficiency and fast processing while reducing costs. Electronic invoice implementation is rising in the country, driven by significant investments in on-the-cloud systems by organizations. In addition, in 2022, a pilot was carried out in the US, aiming to build and test a virtual network that allows different types of businesses to exchange e-invoices with each other by establishing a secure, open framework. It aimed to build an operational framework for exchanging B2B invoices for the North American market in 2023.

E-invoicing Market Report Segmentation and Scope:

The e-invoicing market analysis has been carried out by considering the following segments: deployment, end-user, application, type, and geography. By deployment, the market is divided into on-premise and cloud-based. The cloud-based segment held a larger e-invoicing market share in 2022. Large organizations have been using on-premise e-invoicing solutions for many years, but the limited scalability of these solutions has restricted the mass rollout of e-invoicing among SMEs and other sectors. Setup, regular maintenance, and upgrade of on-premise solutions increase the operational cost for companies, which acts as a restricting factor for the growth of on-premise e-invoicing solutions among end users. Hence, various service providers are now offering cloud-based e-invoicing solutions, and customers are increasingly adopting them. These service providers develop, maintain, and manage the solution on behalf of the customers; customers pay a fixed fee for integration and volume/time used. The cloud solution providers support legal requirements and tax compliance and ensure end-to-end data security. Major reasons for the growing adoption of cloud-based solutions in various industries include easy deployment, interoperability, cost savings, high efficiency, and on-demand features. In addition to the advantages of cloud solutions, the large and still growing number of SMEs worldwide is driving the demand for cloud-based e-invoicing solutions. The rise in initiatives by global associations such as ConnectONCE, OpenPEPPOL, EESPA, and GS1 to improve interoperability among various international e-invoicing formats is further driving the e-invoicing market growth for the cloud-based segment.

Cegedim SA, Sage Group Plc, Comarch SA, Nipendo Ltd, Tradeshift, Transcepta LLC, Basware Corporation, Coupa Software Inc, International Business Machines Corp, and SAP SE are among the prominent players profiled in the e-invoicing market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem.

E-invoicing Market Recent Developments: 

The e-invoicing market forecast is estimated on the basis of various secondary and primary research findings, such as key company publications, association data, and databases. Companies operating in the market highly adopt inorganic and organic strategies such as mergers and acquisitions. As per the company press releases, below are a few recent key developments:

• From July 1, 2024, the obligation to receive invoices in electronic format will be mandatory for all companies in France when their supplier is required to issue an invoice in electronic format. Considering these changes, Comarch took a step further to ensure it was in line with French requirements by joining the Forum National de la Facture Electronique (FNFE).
• In 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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