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travel and expense management software market

Travel And Expense Management Software Market Share, Size, Trends, Industry Analysis Report, By Organization Size (SMEs, Large Enterprises); By Deployment; By Industry Vertical; By Region; Segment Forecast, 2021 - 2028

  • Published Date: Oct 2021
  • Pages: 132
  • Format: PDF
  • Report ID: PM2107
  • Base Year: 2020
  • Historical Data: 2016 - 2019

Report Summary

The global travel and expense management software market was valued at USD 5.46 billion in 2020 and is expected to grow at a CAGR of 12.2% during the forecast period. The key factors inducing the market growth include the increasing need for travel and tourism industry and to simplify and increase efficiency in managing business processes, coupled with the growing organizational shift towards travel & expense management solutions for easy access to budget plans through connected devices.

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Additionally, this management software assists in analyzing and monitoring a massive amount of expenditure data on a single platform, thereby saving time and money, which is further favoring the adoption of such systems. Travel & expense management software helps in controlling and monitoring expense reports, thus preventing error and fraud and simplifying the business process.

It also facilitates rising visibility across the overall reimbursement process, lowering costs and enhancing the productivity of the expense handling process. The use of these solutions has increased in several enterprises by offering more faster, efficient, and compliant options for enterprises in software systems market, which further positively impacts the market growth.

Industry Dynamics

Growth Drivers
The proliferation of travel & expense management software has created a significant growth prospect for market players. Numerous businesses have been growing internationally, resulting in a considerable increase in the number of employees traveling abroad and further managing to increase the volume of travel and associated expenses. There is a risk of non-compliance and fraud to company policies in such cases, making it complicated for businesses to audit the expenditure report.

Therefore, the travel & expense management software has observed a significant rise in adoption across the industries due to the requirement for tracking and managing expenses over the foreseen period. Additionally, the rise in the number of business tours and trips has been expanding significantly. Therefore, several companies are highly involved in managing the expense report through this management software as it helps manage bookings and create itineraries for an employee. For instance, nearly 1.3 million individual travels for work each day in the U.S. alone.

Similarly, travel spending of business organizations was likely to grow by almost 7.1% and is expected to reach US$1.7 trillion by the year 2022, as per Condor Ferries. Thus, global market companies are looking forward to integrating travel & expense management software and playing a critical role in changing the dynamics of the travel and expense management software market during the forecast period.

Report Segmentation

The market is primarily segmented on the basis of deployment, industry vertical, organization size, and region.

By Deployment

By Industry Vertical

By Organization Size

By Region

  • Cloud
  • On-Premises
  • Banking, Financial Services, Insurance
  • Aerospace & Defense
  • Healthcare
  • Public Sector
  • Retail
  • Others
  • SMEs
  • Large Enterprises
  • North America (U.S., Canada)
  • Europe (Germany, UK, France, Italy, Spain, Netherlands, Austria)
  • Asia Pacific (China, India, Japan, South Korea, Indonesia, Malaysia)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, South Africa, Israel, UAE)

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Insight by Deployment

Based on the deployment segment, the cloud segment is expected to account for the largest market share in the global travel and expense management software market during the foreseen period. The is due to the extensive adoption of cloud-based travel management software, as it facilitates the users to access the applications on several devices remotely and enhance customer relations by using sophisticated and innovative solutions.

Furthermore, the robust market growth in the integration of digital technologies in cloud-based management software, and hence, is creating a huge implementation of such marketing analytics in the global market. On the contrary, the on-premises travel & expense management software segment further accounted for the significant travel and expense management software market share in 2020, and hence, is witnessing considerable growth throughout the world. This can be recognized to factors, such as improved security and reduced cost of ownership in comparison to the cloud system.

Insight by Organization Size

The large-scale organization segment is expected to witness large revenue in the global market, owing to the extensive implementation of the management software in large-scale organizations on account of the rising number of employees on business trips. Further, travel & expense management software are gaining wide popularity in a large organization on these companies, generates efficient and accurate expense reports, streamlines bookings, speeding up the reimbursements, and simplifies financial reporting. This, in turn, is expected to gain a significant profit share that accelerates the growth of the global market.

On the flip side, the SMEs segment is expected to pave a significant market share in terms of revenue during the forecast period, as it helps to scrutinize the expense reports through which the businesses will be competent to form insights and create budgetary decisions. In addition, SMEs further look to opt the travel & expense management software and mechanize their manual processes to secure better ROI, which is projected to impel the market growth over the foreseen period.

Geographic Overview

Geographically, North America leading the global market in 2020 and is estimated for the largest share in terms of revenue due to the surge in trend and popularity of cloud technology and mobile among enterprises and the rising inclination towards travel & expense management systems in the region. Moreover, the rise in the presence of the large enterprise delivers the prospect for such management software to provide a simplified platform for generating expense reports in order to authorize reimbursements. This, in turn, is expected to expand the market growth at a rapid pace considering the global scenario.

U.S. and Canada are further estimated to register the high proliferation of advanced technologies, such as machine learning and AI, coupled with the increased number of product launches and partnership agreements that will expand the application and usage of such management software to manage expenses across these countries. As a result, to which in January 2020, U.S.-based Coupa Software completed the acquisition with Yapta, which offers improved transparency into travel spend and integrating innovative management software to track booking prices in real-time, which is expected to bolster the market growth.

Moreover, Asia Pacific is expected to witness a high CAGR in the global market in 2020. The demand for travel & expense management software in the region is attributed to an increase over the forecast period, owing to the rising development of cloud infrastructure and the growing presence of local companies, such as Expensify Inc., Zoho Corporation Pvt. Ltd., and VA Tech Ventures Pvt. Ltd.

For instance, the International Data Corporation (IDC) found that Asia Pacific dominates the IoT spending in 2019 with more than 35.7%, compared to the U.S. (27.3%), and is expected to reach up to USD 398.6 billion in Asia Pacific, by 2023. As a result, concerning management software has gained immense acceptance, which, in turn, the market is gaining significant prominence worldwide.

Competitive Landscape

Some of the Major Players operating in the global market include 8common Limited, Apptricity Corporation, Avidxchange, Basware, Chrome River Technologies, Inc, Concur Technologies, Inc., Coupa Software Inc, DATABASICS Inc, Expensify, GBT Travel Services U.K. Ltd., InterplX Expense Management, American Express Global Business Travel, Oracle, Oversight Systems, Inc., and Zoho Corporation Pvt. Ltd.

Travel and Expense Management Software Market Report Scope

Report Attributes

Details

Market size value in 2020

USD 5.46 billion

Revenue forecast in 2028

USD 11.50 billion

CAGR

12.2% from 2021 - 2028

Base year

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Segments covered

By Deployment, By Industry Vertical, By Organization Size, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key Companies

8common Limited, Apptricity Corporation, Avidxchange, Basware, Chrome River Technologies, Inc, Concur Technologies, Inc., Coupa Software Inc, DATABASICS Inc, Expensify, GBT Travel Services U.K. Ltd., InterplX Expense Management, American Express Global Business Travel, Oracle, Oversight Systems, Inc., and Zoho Corporation Pvt. Ltd.

Key Take-Away
Polaris Market Research
Travel & Expense Management Software Market Size Report, 2028