Travel and Expense Management Software Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

The travel and expense management software market size is expected to reach US$ 12.26 billion by 2031 from US$ 3.95 billion in 2023. The market is estimated to record a CAGR of 15.2% from 2023 to 2031. Expanding travel tech companies worldwide is likely to remain a key market trend.

Travel and Expense Management Software Market Analysis

Growing digital transformation, an increasing number of cross-broader activities, and the expanding global presence of several companies result in a rise in the number of business travelers, driving the global travel and related expense management market. The growth of technology-based travel companies and the increase in the adoption of blockchain technology for secure transactions are the key factors expected to create opportunities for the travel and expense management software market growth.

Travel and Expense Management Software Market Overview

Travel and expense management software is a tool that helps users manage their travel-related expenses. It is designed to assist employers with hassle-free claims and reimbursement by tracking all employee receipts. This software typically includes significant features that facilitate travel booking, expense tracking, and reimbursement approval workflows. Users can use their smartphones to save e-copies of their receipts and upload those on a centralized dashboard. These receipts are then routed to the assigned approvers, followed by the scheduling of reimbursement checks for payment. Thus, travel and expense management software solutions help users reduce manual and tedious tasks, along with eliminating the use of paper. Moreover, the software allows businesspeople to obtain a consolidated view of overall expenses made by employees, thereby helping them manage budgets and drive policy compliance. It is also used to analyze and monitor large volumes of expense data on a single platform, which saves time and money. All types of businesses can use travel and expense management software for managing corporate travel expenses. Additionally, travel and expense management software provides businesses with an insight into spending patterns and helps manage their budgets more effectively. The software supports organizing employee travel arrangements and creating itineraries, offering a structured method of data management.

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Travel and Expense Management Software Market: Strategic Insights

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Travel and Expense Management Software Market Drivers and Opportunities

Growing Demand for Real-Time Travel and Expense Tracking Software

Businesses across the globe are highly demanding real-time expense tracking software to maintain agility and transparency in their financial operations. This feature enables proactive budget management by giving businesses instant insight into their spending. The software allows employees to use mobile apps to take pictures of receipts and instantly capture information, allowing them to record and submit expenses instantly. This will not only reduce the possibility of lost receipts but also accelerate the smooth approval and reimbursement process. Moreover, real-time expense tracking software offers up-to-date data to finance teams and allows them to quickly identify any irregularities by monitoring corporate policy compliance. The software also helps finance teams in accurate financial forecasting and offers companies a continuous overview of their financial commitments. The demand for real-time expense tracking software is continuously increasing among businesses worldwide. Nowadays, businesspeople have increased their requirement for an all-in-one travel platform that encourages market players to develop and strengthen their expense management platform based on customer requirements. For instance, in July 2024, BCD Travel Services B.V. introduced GetGoing, the all-in-one travel platform for small and medium-sized businesses. The GetGoing platform enables companies to digitalize their expenses, eliminate the need for paper, and promote hassle-free travel and expense experiences.

Development of AI-Powered Travel and Expense Management Software

The evolution of automation and the integration of artificial intelligence (AI) in travel expense management software are transforming the travel and expense management software market. The integration of AI in travel expense management software supports businesses to automate repetitive tasks, streamline traveling and expense management procedures, and lessen the amount of manual labor required to track and approve expenses. For example, repetitive tasks such as data entry and receipt matching can be automated and completed effectively by reducing errors and giving employees more time to perform other significant tasks. Moreover, AI provides intelligent insights and predictive analytics, forecasts budget requirements, and identifies areas for cost savings by examining spending trends. This increases the adoption of AI among businesses focusing on digital transformation. For instance, in May 2024, Yatra Online Private Limited enhanced its offerings by launching a new expense management solution for small, medium, and large enterprises. The company developed a generative AI-powered expense management solution to guarantee thorough and accurate expense tracking in order to cut down on mistakes and save time. This solution also offers seamless integration of travel booking expense tracking and assists businesses in managing their travel and non-travel expenses. The company plans to develop an expense management solution by using large language models (LLMs) that help users analyze receipts and guarantee precise tracking of expenses. Similarly, in September 2023, Emburse, Inc., a leader in travel and expense management, launched an AI-powered receipt scanning engine to automate expense management. This launch supports Emburse's goal of 100% automated expense management. The solution automated the entire process and supported error-free transactions without requiring human involvement. Hence, by implementing AI powered technologies, businesses can anticipate faster reimbursement cycles, more accurate data management, boost business output, and reduce operational costs.

Travel and Expense Management Software Market Report Segmentation Analysis

Key segments that contributed to the derivation of the travel and expense management software market analysis are deployment mode, organization size, and industry.

• Based on deployment mode, the market is divided into cloud and on-premise. The cloud segment held a larger market share in 2023.
• Based on organization size, the market is segmented into large enterprises and small and medium enterprises. The large enterprises segment held a larger travel and expense management software market share in 2023.
• In terms of industry, the market is divided into BFSI, IT and telecom, manufacturing, healthcare, government and defense, retail, transport and logistics, and others. The BFSI segment held the largest travel and expense management software market share in 2023.

Travel and Expense Management Software Market Share Analysis by Geography

The travel and expense management software market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and Asia Pacific.

The North America travel and expense management software market is segmented into Canada, the US, and Mexico. In the past decade, IT and telecom, manufacturing, and tourism industries in North America have seen tremendous growth, owing to factors such as the implementation and advancement of technologies, an increase in demand for digitization and online services, and the deployment of several advanced software across the region. The increase in national and international visits by employees and hassle-free claims and reimbursement through travel and expense management software drive the market's overall growth.

Europe has several well-developed countries that favor adopting and applying new technologies. Also, the presence of established industries such as IT & Telecom, manufacturing, retail, and transportation & logistics explains the increased penetration of travel and expense management software in this region. The Europe travel and expense management software market is growing due to strong data protection regulations, regional compliance needs, cross-border business operations, GDPR compliance, and International business travel. The Asia Pacific travel and expense management software market is projected to witness impressive growth during the forecast period. Asia Pacific is undergoing rapid expansion as a result of a variety of economic, technological, and business factors. As Asia Pacific becomes a worldwide economic powerhouse, the demand for travel and expense management software is continuously growing.

Travel and Expense Management Software Market Regional Insights

The regional trends and factors influencing the Travel and Expense Management Software Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Travel and Expense Management Software Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Travel and Expense Management Software Market Report Scope

Travel and Expense Management Software Market Players Density: Understanding Its Impact on Business Dynamics

The Travel and Expense Management Software Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Travel and Expense Management Software Market are:

1. Basware Corporation
2. Coupa Software Inc.
3. DATABASICS Inc.
4. Expensify, Inc.
5. Infor Inc.
6. GB Business Global

Disclaimer: The companies listed above are not ranked in any particular order.

Travel and Expense Management Software Market News and Recent Developments

The travel and expense management software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the travel and expense management software market are listed below:

• Coupa, the leading AI-driven platform that helps users to operate smarter and grow faster, announced that QNB Group, the largest financial institution in the Middle East and Africa, has selected Coupa to completely digitize the company's procurement and finance operations. With Coupa's unified AI-driven platform, QNB benefits from complete visibility and control over all spending in a single system. They can access real-time finance data instantly and make more informed decisions to improve working capital. (Source: Coupa Software, Press Release, March 2024)
• DATABASICS announced a strategic partnership and integration with TransferMate, a prominent global business-to-business (B2B) payments technology firm. This collaboration enhances DATABASICS' Expense solutions by incorporating TransferMate's advanced global payment capabilities. (Source: Databasics, Press Release, March 2023)

Travel and Expense Management Software Market Report Coverage and Deliverables

The "Travel and Expense Management Software Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Travel and expense management software market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Travel and expense management software market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Travel and expense management software market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the travel and expense management software market
• Detailed company profiles