Accounts Receivable Automation Market To Reach USD 6.74 Billion by 2032

According to a new report published by Introspective Market Research, titled, Accounts Receivable Automation Market by Component, Deployment, Organization Size, and Industry Vertical, The Global Accounts Receivable Automation Market Size Was Valued at USD 2.70 Billion in 2023 and is Projected to Reach USD 6.74 Billion by 2032, Growing at a CAGR of 10.7%. The Accounts Receivable (AR) Automation Market encompasses software and solutions designed to streamline and automate the entire accounts receivable process, from invoicing and collections to payment reconciliation. These systems leverage technologies such as artificial intelligence, machine learning, and cloud computing to transform manual, labor-intensive AR tasks into efficient, digital workflows.

AR automation offers significant advantages over traditional, manual methods, including reduced operational costs, improved cash flow, enhanced accuracy, and quicker payment cycles. It eliminates common pain points such as human error in data entry, delayed invoicing, and inefficient dispute resolution. Major industries such as manufacturing, retail, healthcare, IT & telecom, and banking, financial services, and insurance (BFSI) are increasingly adopting these solutions to optimize their financial operations and maintain healthy liquidity.

One key growth driver for the Accounts Receivable Automation Market is the escalating need for operational efficiency and cost reduction across enterprises. Businesses are constantly seeking ways to optimize their financial processes to remain competitive. AR automation platforms significantly reduce the time and resources spent on manual tasks like invoice generation, payment tracking, and collection reminders, thereby lowering operational costs and allowing finance teams to focus on strategic initiatives rather than repetitive administrative work. This drive for efficiency is further fueled by the desire to accelerate cash conversion cycles and improve working capital management.

A significant market opportunity for Accounts Receivable Automation lies in the expanding adoption by Small and Medium-sized Enterprises (SMEs). Historically, advanced automation solutions were primarily accessible to large enterprises, but the advent of cloud-based, scalable, and affordable AR automation platforms has opened the door for SMEs to reap similar benefits. SMEs often grapple with limited resources and lack the dedicated personnel for robust AR management, making them ideal candidates for automated solutions that can streamline operations, reduce errors, and improve cash flow without a substantial upfront investment. The growing awareness among SMEs regarding these benefits represents a vast untapped market.

Accounts Receivable Automation Market, Segmentation

The Accounts Receivable Automation Market is segmented on the basis of Component, Deployment, Organization Size, and Industry Vertical.

Component

  • The Component segment is further classified into Solution and Services. Among these, the Solution sub-segment accounted for the highest market share in 2023. This sub-segment includes the core software platforms and applications that facilitate AR automation, such as invoicing software, payment gateways, dispute management tools, and cash application solutions. The dominance of the solution segment is driven by the direct need for robust, integrated software to perform automated AR functions, offering end-to-end management of the AR lifecycle and providing the foundational technology for process transformation.

Deployment

  • The Deployment segment is further classified into On-premise and Cloud. Among these, the Cloud sub-segment accounted for the highest market share in 2023. Cloud-based AR automation solutions are gaining immense popularity due to their flexibility, scalability, and cost-effectiveness. They eliminate the need for significant upfront infrastructure investments and allow businesses to access their AR systems from anywhere, facilitating remote work and distributed operations. The ease of deployment, automatic updates, and subscription-based pricing models also make cloud solutions particularly attractive to a wide range of organizations.

Some of The Leading/Active Market Players Are-

  • SAP SE (Germany)
  • Oracle Corporation (USA)
  • Bill.com Holdings, Inc. (USA)
  • HighRadius Corporation (USA)
  • BlackLine, Inc. (USA)
  • Sage Group plc (UK)
  • Quadient (France)
  • Versapay Corporation (Canada)
  • Esker S.A. (France)
  • YayPay (Quadient) (USA)
  • FIS Global (USA)
  • Deloitte Touche Tohmatsu Limited (UK)
  • Kofax Inc. (USA)
  • FinancialForce (USA)
  • Bottomline Technologies, Inc. (USA)
  • other active players.

Key Industry Developments

  • In January 2023, Versapay, a leader in Accounts Receivable Automation and Collaborative Commerce Network, announced its acquisition of DadeSystems. This acquisition expanded Versapay's solutions for middle-market and enterprise clients, enhancing their capabilities in automating and streamlining complex payment processes. The move significantly strengthened Versapay's position in the AR automation landscape by integrating DadeSystems' advanced payment processing and cash application technologies.
  • In October 2022, HighRadius, a leading provider of autonomous finance platforms, introduced its AI-powered cash forecasting solution. This innovation aimed to provide finance teams with more accurate and real-time visibility into future cash positions, leveraging machine learning to analyze historical data and predict cash flows. This development highlighted the growing trend of incorporating advanced AI capabilities into AR automation platforms to offer more predictive and strategic financial insights.

Key Findings of the Study

  • Solutions remain the dominant component segment, forming the technological backbone of AR automation.

  • Cloud-based deployment continues to lead, driven by scalability, cost-effectiveness, and remote accessibility.

  • The escalating demand for operational efficiency and cost reduction is a primary growth driver.

  • SMEs represent a significant market opportunity, increasingly adopting accessible cloud-based solutions.

  • Integration of AI and machine learning is a key market trend, enhancing predictive capabilities and automation.

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Posted by  T. Kumbhar

T. Kumbhar is a results-driven Senior Market Research Consultant at IMR, specializing in market trends, competitive intelligence, and data-driven insights. With extensive experience across Agrochemicals, Food Tech, Consumer Goods, Automotive, and Construction, he helps businesses make informed strategic decisions through in-depth research and analysis. His expertise includes market research, competitive analysis, business strategy, forecasting, pricing strategies, and consumer insights.