Tax Management Market By Component (Software, Services), By Tax Type (Indirect Tax, Direct Tax), By Deployment Type (Cloud, On-Premise), By Organization Size (Large Enterprises, Small And Medium Enterprises), By Component (IT And Telecom, Manufacturing, Retail, Healthcare, Media & Entertainment, Others) - Growth, Share, Opportunities & Competitive Analysis, 2019 -2027
"Rising financial transactions worldwide will boost the market growth."
The global tax management market is increasing significantly, anticipated to expand at a CAGR of 12.3% during the estimated period from 2019 to 2027, starting from US$ 16.22 Bn in 2018.
The global tax management market is driven by the increasing financial transaction volume and rising tax rules & regulations worldwide. The rapidly growing global payments revenue is another major factor in enhancing the market growth. The global payment revenue had reached over US$ 2 Tn in 2018 and is expected to reach over US$ 3 Tn by 2023. The complex nature of the tax system and growing vigilance by tax administrators are key factors anticipated to further enhance the market growth in years to come. The growing use of blockchain technology in tax management software for more transparency, security, and real-time information is further expected to enhance the market demand during the forecast period.
Rapidly growing technological advancements such as the internet of things (IoT) and artificial intelligence (A.I.) is one of the key factors for market growth. As a result, major market players are collaborating to provide solutions for tax compliance which is anticipated to drive market growth over the forecast period. For instance, In May 2019, Thomson Reuters Corporation partnered strategically with Ernst & Young (EY). The strategic partnership is expected to bring together EY Tax Technology and Transformation (TTT) services with Thomson Reuters ONESOURCE tax technology to deal with multijurisdictional tax compliance. However, the rise in theft cases of confidential data, lack of standardized tax rules, and regular amendments in tax laws are expected to hinder market growth in years to come.
Market Synopsis
Vertical Analysis
"Growing use of banking applications to spur the segment growth"
The BFSI segment dominated the global tax management market in 2018. The aforementioned segment contributed nearly 35% of the worldwide market share in the same year. The BFSI segment had its dominance due to the growing BFSI industry and the increasing use of banking applications globally. The global financial services industry is expected to reach over US$ 26.5 Tn by 2022 at a CAGR of nearly 6%, starting from more than US$ 22 Tn in 2018. The growing digitization is another major factor expected to drive the segment growth over the forecast period. The surge in government regulations in the industry, along with an increasing number of financial transactions, is expected to enhance the segment demand during the forecast period. In addition, the increase in the adoption of tax management software in the Asia Pacific BFSI industry is presumed to further drive the segment growth in years to come.
Regional Analysis
"Growing adoption of tax management software to enhance the North America growth."
North America had the highest global tax management market share in 2018. The region contributed around 40% of the global market share in the same year. North America has its dominance due to early technological adoption and continuous tax regulation changes. The U.S. is the major contributor in the North American tax management market owing to the growing adoption of tax management solutions and the presence of major market players in the country such as Avalara, Inc., Intuit, Inc., H&R Block, Inc., and others.
"Rising tax compliance will spur the market in the Asia Pacific."
The Asia Pacific is anticipated to expand rapidly owing to rising tax compliance in the region and the growing adoption of tax management software. The growing BFSI industry and rising government regulations in the emerging economies of the Asia Pacific, such as India and China, is further expected to drive the regional market. For instance, in July 2017, the Indian government started levying GST (Goods & Services Tax) at five different rates, including 0%, 5%, 12%, 18%, and 28%
Key Industry Developments:
In January 2019, Thomson Reuters Corporation announced that its tax management software ONESOURCE Determination is certified for SAP S/4HANA Cloud. The integration with SAP enables end-to-end tax integrations, better tax calculations, and validation.
In September 2017, Wolters Kluwer N.V. acquired a rapidly growing collaborative tax firm Absolut. The acquisition will help Wolters Kluwer N.V. to increase its geographic presence in Europe.
In January 2020, Blucora, Inc. announced the acquisition of privately held H.K. Financial Services. The acquisition will reinforce Blucora, Inc.'s strategy to deliver tax-advantaged wealth management services and solutions to end clients and advisors.
In July 2019, H&R Block, Inc. acquired rapidly growing tax and finance solution provider Wave Financial, Inc. The acquisition will expand the reach of H&R Block, Inc. to small and medium enterprises.
This study report represents analysis for each segment from2017 to 2027, considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.
Segmentation Component (2017–2027; US$ Bn)
Software
Services
Tax Type (2017–2027; US$ Bn)
Indirect Tax
Direct Tax
Deployment Type (2017–2027; US$ Bn)
Cloud
On-premises
Organization Size (2017–2027; US$ Bn)
Large Enterprises
Small and Medium Enterprises
Vertical (2017–2027; US$ Bn)
Banking, Financial Services, and Insurance (BFSI)
I.T. and Telecom
Manufacturing
Retail
Healthcare
Media & Entertainment
Others (Energy & Utilities, etc.)
Geography (2017–2027; US$ Bn)
North America (U.S., Canada)
Europe (U.K., Germany, France, Spain, Italy, Rest of Europe)
Asia Pacific (Japan, China, India, Rest of Asia Pacific)
Rest of the World (Latin America, Middle East & Africa)
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities to understand the overall tax management market better. In addition, the global report also represents the competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
Frequently Asked Questions
The market for Tax Management is expected to reach US$ 16.22 Bn in 2028.
The Tax Management market is expected to see significant CAGR growth over the coming years, at 12.3%.
The report is forcasted from 2019-2027.
The base year of this report is 2021.
H&R Block Inc., Intuit Inc.,Avalara, Inc., Thomson Reuters Corporation, Wolters Kluwer N.V.,Blucora, Inc.,SAP SE are some of the major players in the global market.
