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Increasing Adoption of Technology in the BFSI Sector Propelling the Growth of the Subscription and Billing Management Market

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Brahmayya Sunkesula
Increasing Adoption of Technology in the BFSI Sector Propelling the Growth of the Subscription and Billing Management Market

The ubiquity of the internet in every nook and corner of the world, accompanied by incessantly increasing usage of portable electronic and communication devices such as smartphones, laptops, and iPads has led to massive growth of the e-commerce sector. The tremendous growth in the e-commerce sector is easily fathomed from the statistics by “India Brand Equity Foundation (IBEF),” according to which, the Indian e-commerce market revenue is anticipated to increase from $39 billion in 2017 to $120 billion by 2020, propelling at a CAGR of 51%. With the upheaving online sales and services, the need for solutions to automate billing process is also rising. Hence, rising demand for solutions, consequently led to increasing demand for subscription and billing management solutions which standardize order, billing, and payment processes. Moreover, high traffic of online transactions instigated the necessity of integrated billing platforms, which further led to increasing adoption of subscription and billing management solutions such as subscription order management, billing mediation, pricing and quote management, financial customer care, and dispute management. These factors are catapulting the growth of Subscription and Billing Management Market.

Moreover, the benefits related to usage of billing management is fueling the growth of the subscription and billing management market. The benefits provided by subscription management software for users, include minimal setup cost, various options for payment processing, automated invoicing, and efficient billing process. Furthermore, the application of billing management helps in building hassle-free and accurate interactions among order, payment, and billing and transaction processes. These factors are anticipated to project the growth of the subscription and billing management market. By the end of 2018, the global subscription and billing management market size was estimated as $4 billion, and the market is poised to propel at a CAGR of 14.9%, during the forecast period 2019-2025. The report covers subscription and billing management market size by Service and Solution, subscription and billing management market share by top 5 companies and also the market share by start-ups during the forecast period

View Full Table of Contentshttps://www.industryarc.com/Research/Subscription-And-Billing-Management-Market-Research-500969

Report Price (Single User): US $3850

The Booming E-Commerce Sector in North America is Supporting the Subscription and Billing Management Market Growth—

Geographically, North America held the major share in the global subscription and billing management market, accounting to regional market share of 38.58% in 2018. This is attributed to the presence of developed economies such as the U.S., which continues to rank at top in socio-economic standards. The retail industries in these countries are shifting from traditional methods to online platforms to augment their sales. The rapid shift of retail sector to online platforms can easily be identified from the findings by “the U.S. Census Bureau”, according to which the U.S. retail e-commerce sales for Q1 2019 was $137.7 billion, an increase of 3.6% from the Q4 2018. Owing to high customer satisfaction, the customers are shifting to online shopping, which consequently has initiated retailers to fetch for solutions that would help them to automate bills and manage customer disputes. These factors are prime impetus to growing adoption of subscription management and billing management solutions. Moreover, the presence of prominent market players, including Oracle Corporation, Netsuite, Inc., and Computer Sciences Corporation, in this region, is likely to augment the North American subscription and billing management market, over the forecast period.

The Digital HealthCare Industry in APAC Supporting Subscription and Billing Management Market Growth—

Moreover, Asia Pacific subscription and billing market is anticipated to grow considerably in the coming future. This is due to increase in the adoption of cloud and digital technology, among small and large enterprises in this region for increasing their profitability. Additionally, the emerging economies such as China and India are expected to make significant contributions toward this regional market growth, owing to increasing adoption of new technology in the healthcare industry, to streamline their processes. The growing digital healthcare solutions in India can be easily fathomed from the announcement made by National Association of Software and Services Companies (NASSCOM), according to which NASSCOM CoE-IoT (Center of Excellence-Internet of Things) has entered into a strategic partnership with GE Healthcare. This partnership is intended to proliferate the start-up ecosystem in the country and strive with them to bring digital healthcare solutions to the market. Moreover, a recent article from China Daily stated that “IT investment in the country’s hospital system will reach $9.47 billion by 2022, surging 53.5% from 2017, resultantly, boosting the digitalization of Chinese medical system.” Thus, digitization of healthcare sector is resultantly driving the demand for subscription management and billing management solutions. Therefore, the subscription and billing management market in this region is anticipated to propel significantly in the near future.

European BFSI Sector: A Lucrative Marketplace for Subscription and Billing Management Market—

The European banking, financial services and insurance (BFSI) sector is considered as the most lucrative marketplace for the subscription and management market. The market players are significantly targeting the UK, as it is one of the major countries in this region. Several banks and financial institutions in the UK such as HSBC Holdings, Barclay’s PLC, Royal Bank of Scotland, Lloyds Banking Group, Nationwide Building Society and many more, are continuously investing in technology to simplify the banking and financial services offered to their customers. For instance, in 2018, “Nationwide Building Society,” announced to spend about $5.2 billion (£4.1 billion) on technology in the next five years. Thus, the increasing adoption of technology in the BFSI sector is further propelling the growth of the subscription and billing management market in Europe.

Media and Entertainment Industry Poised to Create Growth Avenues in Subscription and Billing Management Market

Based on industry, the subscription and billing management market is segmented into banking, financial services, and insurance, retail, healthcare, IT and telecom, media and entertainment, utilities, and others. Among these, media and entertainment is currently the most lucrative segment and will be exhibiting an above-average CAGR of 19% over the forecast period. Managing numerous resources and catering customer requirements has become the most important aspects of the media and entertainment sector, where clients demand and expect high-quality services within the allocated span of time. Therefore, the need for robust, accurate, and efficient order, billing, and payment processes is persuading the industry to adopt advanced technologies such as subscription and billing solutions. The subscription and billing management has facilitated the industry to procure robust and efficient results in terms of order, billing, and transaction processes. Thus, the key application segment is poised to incur maximum gain to the subscription and billing management market.

Subscription and Billing Management Market: Major Players

The prominent players of the global subscription and billing management market are Oracle Corporation, NetSuite, Computer Sciences Corporation (CSC), ZUORA, SAP, cleverbridge, Cerillion, Aria Systems, Fast Spring, Avangate, and Apttus. These players are continuously investing in R&D activities to launch new products, and adopt various strategies, such as collaborations, acquisitions, partnerships, and agreements, to cater the needs of the subscription and billing management users.

For instance, NetSuite Inc., a provider of cloud-based financials/ERP and omnichannel commerce software suites, recently launched a cloud unified order-to billing-to-revenue solution, “SuiteBilling.” This new addition to subscription and billing management portfolio would facilitate business organizations to adopt any business model, including product, time, service, subscription, and usage or combination. The SuiteBilling solution unifies both billing and revenue recognition processes irrespective of the business model with complete controls and auditability.

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