Press Release

Global Tax Software Market Hits USD 18.5 Billion Value in 2023, Projects 10% CAGR Surge By 2030

The Global Tax Software Market  size was valued at around USD 18.5 billion in 2023 and is estimated to grow at a CAGR of about 10% during the forecast period, i.e., 2024-30, cites MarkNtel Advisors in the recent research report. The surge in market expansion owes much to the accelerating digital makeover of business practices, prompting widespread uptake of tax software solutions on a global scale. Furthermore, enterprises are veering away from cumbersome, paper-driven tax procedures toward digital alternatives, enriching workflow effectiveness, data oversight, and collaboration among stakeholders, thereby propelling market growth in recent years.

Digital tax software revolutionizes tax-related operations by automating key tasks like data input, computation, and reporting. This mechanization restrains manual labor and reduces errors, leading to significant efficiency enhancements in tax preparation for businesses. Furthermore, embracing digital tax software yields cost savings by eliminating the need for manual labor, paper-based workflows, and administrative expenses typically associated with traditional tax preparation approaches. Consequently, the efficiencies and automation achieved through digitalization translate into substantial cost efficiencies over time, rendering tax software a financially savvy investment for businesses worldwide.

Furthermore, the education sector has seen substantial investment from governments, particularly in countries such as the UAE, the UK, and India, resulting in the expansion of educational institutions. Concurrently, the influx of international students into destinations like the UK, the US, and Germany has fueled ongoing growth in these countries' education sectors. As these sectors navigate tax obligations, the demand for tax software technology is poised to rise in the coming years, further states the research report, “Global Tax Software Market Analysis, 2024.”

Segmentation Analysis

SMEs Dominating the Global Tax Software Market

Based on the enterprise size, the market is further bifurcated into large enterprises, and small & medium enterprises (SMEs). Among them, small and medium enterprises (SMEs) have emerged as significant players in the Global Tax Software Market. Across regions like South America and APAC, SMEs have flourished due to favorable entrepreneurial environments and government support. Moreover, countries like India, the UAE, and Saudi Arabia are actively diversifying their economies, aiming to bolster entrepreneurial endeavors by expanding the SME sector. Consequently, as SMEs grow, digitalize, and undergo transformation, the need for effective tax management solutions will intensify.

The Government Sector Emerged as a Prominent End-user in the Market

The government and public sector, comprising various governmental bodies, public institutions, and state-owned entities, have significantly influenced the market landscape. This sector encompasses a diverse array of services and functions, spanning infrastructure development, defense, public utilities, and more. Given the stringent tax regulations governing government operations, there has been a notable trend of widespread adoption of tax software and services within these entities over recent years.

Moreover, governments worldwide, including those of the UAE, India, and Australia, are actively supporting digital transformation initiatives within the public sector. Consequently, the burgeoning government efforts toward modernizing the public sector through digitalization are poised to further accelerate the adoption of tax software within this realm in the foreseeable future.

Asia-Pacific to Showcase Significant Growth in the Market

In terms of regional growth, the Asia-Pacific region has witnessed significant expansion in the Global Tax Software Market, driven by developments in sectors such as IT, BFSI, and Manufacturing in countries like India and Australia. Additionally, governments in nations like India and Thailand are promoting paperless offices, which is expected to fuel the adoption of document management software technology in the region in the forthcoming years.

Furthermore, significant growth is anticipated in the Middle East and African countries in the coming years, propelled by their economic diversification endeavors aimed at diminishing dependence on oil revenues and fostering non-oil sectors. Countries such as Saudi Arabia and the UAE are spearheading strategic initiatives to spur growth across diverse industries like pharmaceuticals, hospitality, and manufacturing. As businesses in these sectors expand, there will be a notable surge in demand for advanced tax software to streamline financial operations efficiently.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including SAP SE, Avalara Inc., Sovos Compliance, LLC, HRB Digital LLC, Intuit Inc., Xero Limited, Thomson Reuters, Wolters Kluwer N.V., Drake Software, TaxSlayer LLC, Sage Group plc, ClearTax, TaxJar, TaxACT, Rethink Solutions Inc., and others, are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & solution adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?