Recurring Billing Software Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[227+ Pages Report] According to the report published by Facts Factors, the global recurring billing software market size was worth around USD 4521.35 million in 2021 and is predicted to grow to around USD 10896.61 million by 2028 with a compound annual growth rate (CAGR) of roughly 13.39% between 2022 and 2028. The report analyzes the global recurring billing software market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Global recurring billing software market.

Recurring Billing Software Market: Overview

Software that automates the collecting of membership fees is known as subscription billing software (also known as subscription management software). Business can bill clients frequently for goods and services depending on their subscription status thanks to subscription billing software. When a company creates a relationship with a consumer through subscription billing, it regularly bills and charges that customer. To ensure accuracy in billing, it also maintains track of regular and unique offers, packages, and discounts. For instance, SaaS technology provider Salesforce charges both large and small business clients monthly fees for CRM and related services. Individual customers pay monthly dues to stream services like Amazon Prime, Netflix, the New York Times, and others. The market is expanding as subscription systems become more and more popular. In a number of industries, subscription business models are rising in popularity. The development of the subscription economy is accelerating due to the adoption and application of innovative subscription business models. The market's optimistic potential is accelerated as a result. Numerous benefits of subscription billings include effective incentive alignment on both sides of the transaction, which promotes business stability and consumer affordability. Businesses that offer services rather than products have benefited from the rising popularity of subscription models.

Key Insights

• As per the analysis shared by our research analyst, the global Recurring Billing Software market is estimated to grow annually at a CAGR of around 13.39% over the forecast period (2022-2028).
•  In terms of revenue, the global Recurring Billing Software market size was valued at around USD 4521.35 million in 2021 and is predicted to grow to around USD 10896.61 million by 2028. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• Based on component segmentation, software was predicted to show maximum market share in the year 2021
• Based on organization size segmentation, small and medium enterprises was predicted to show maximum market share in the year 2021
• Based on deployment segmentation, cloud-based were predicted to show maximum market share in the year 2021
• Based on vertical segmentation, IT & Telecommunication were predicted to show maximum market share in the year 2021
• On the basis of region, North America was the leading revenue generator in 2021.

Covid-19 Impact

The COVID-19 pandemic outbreak had a somewhat favorable effect on recurring billing management software demand. During the pandemic, there was a spike in demand for this software from businesses providing OTT video streaming services, digital news & media, e-learning, and communication software, among others. One of the main factors influencing the global recurring billing software market growth was the efforts made by subscription-based businesses to attract new customers by providing free trials.

Recurring Billing Software Market: Growth Drivers

• Rising adoption of subscription-based models by numerous businesses is leading to improved customer retention rates.

Several market participants are concentrating on increasing their visibility and developing new items targeted at particular markets. For instance, Recurly, Inc., a provider of subscription management and billing solutions, said in February 2022 that it was expanding its European base in order to offer additional features targeted at the European market. To increase their revenue, a number of subscription billing service providers are now concentrating on integrating machine learning capabilities into their platforms. For instance, Stripe's billing software combines automatic card update functionality with cutting-edge machine learning capabilities. Because of this application of machine learning technology, Stripe has seen an average 10% increase in recurring bill revenue.

The providers of subscription billing software are concentrating on enhancing their systems by incorporating cutting-edge technology like blockchain, the internet of things, and artificial intelligence. In order to satisfy their customers' demand for data connectivity, several digital infrastructure businesses are also integrating cloud billing platforms into their current products. To fulfill the need for data connectivity from its clients, EXA Infrastructure, a provider of digital infrastructure, installed its cloud billing platform using Aria in March 2022, according to an announcement made by subscription billing business Aria Systems, Inc.

Recurring Billing Software Market: Restraints

• Data synchronization complexities likely market growth

The concern about managing churn is the limiting factor that prevents the global recurring billings software market from expanding. Recurring purchases are seen as one of the key advantages of using a subscription company strategy. The difficulty that businesses experienced, nevertheless, concentrates on the other aspect. Consumers quickly cancel services that fall short of providing a fantastic experience. Poor product quality and a lack of perceived value, for instance, can influence the customer's decision.

Recurring Billing Software Market: Opportunity

• ML to optimize subscription billing to create market expansion prospects

Right now, subscription-based businesses are flourishing. Software as a Service (SaaS) and Platform as a Service (PaaS) are the most popular subscription-based services and products among consumers. According to McKinsey, the market for subscription e-commerce increased by more than 100% between 2011 and 2016. For these service providers, this is good news. At the same time, it emphasizes how critical recurring billing system optimization is to increase sales revenues. The importance of machine learning in subscription-based business models is rising. Software for recurring payments that incorporates machine learning has increased sales, decreased payment failures, and improved customer experience.

Recurring Billing Software Market: Challenges

• Lack of consistent recurring payment infrastructure to pose challenges for market

The subscription model has expanded over the past ten years from business-to-business (B2B) software to consumer services, online shopping, and even food. It has changed how established software businesses like Microsoft and Adobe conduct business and given rise to market leaders like Hulu and Dollar Shave Club. It has also become the de facto business model for a wide range of goods and services. Business-to-business (B2B) and business-to-consumer (B2C) organizations have found that using subscriptions as a business model has a number of advantages, including increased customer retention, higher lifetime value, and more predictable revenues.

Recurring Billing Software Market: Segmentation

The global recurring billing software market is segmented based on component, organization size, deployment type, vertical and region

Based on component, the market is segmented into software and services. Due to solutions that encompass a broad range of technologies that help organizations achieve their objectives and maintain a competitive advantage, the software sector is anticipated to dominate the market share of the worldwide recurring billing software market. Software solutions are gaining traction for established infrastructure systems to automate numerous tasks in critical infrastructure, manufacturing, and other industries.

Based on organization size, the market is segmented into small & medium enterprises and large enterprises. Due to the availability of low-cost capabilities that assist SMEs in surviving and prospering in the service sector, the small and medium businesses segment is anticipated to dominate the market share of the worldwide recurring billing software market. Providing quality services and advantages enables SMEs to increase customer leads and sales. As the emphasis on delivering a better customer experience and the need to automate normal accounting and financial operations grow, recurring billing management software adoption is rising. The sector is expanding as a result of cloud-based software's low price and widespread use.

Based on deployment type, the market is segmented into cloud-based and on-premises. The ability for organizations to rapidly get accurate SaaS analytics and insights, grow billing and payments conveniently, and automate GAAP-compliant revenue recognition will enable the cloud-based to dominate the market share of the worldwide recurring billing software market. Businesses in heavily regulated industry verticals including BFSI, healthcare & life sciences, and manufacturing choose the on-premises deployment strategy of big data solutions. The on-premises deployment approach is also likely to be chosen by large firms with sufficient IT resources. Zuora, for example, provides cloud-based platforms enabling subscription-based businesses to start, manage, and improve subscription billing.

Based on vertical, the market is segmented into BFSI, IT & telecommunications, media & entertainment, public sector and utilities, transportation and logistics, and others. Due to the quick transition of traditional software and technology companies to a subscription-based model, the IT & telecoms sector is predicted to hold the largest market share in the global recurring billing software market. In the past two years, there has been a greater acceptance of and transition from the conventional license-based method to a subscription model. Emerging software companies have been implementing usage-based charging in the Business-to-Business (B2B) market for a while. This has resulted in the widespread adoption of subscription and billing management software, especially cloud-based software.

Recent Developments:

• In January 2020, Zuora partnered with Radiuz, a global Mobility-as-a-Service (MaaS) platform provider, to replace Radiuz’s home-grown billing system with Zuora Billing.
• In November 2019, Aria Systems announced the availability of its Aria Crescendo Monetization Platform on Microsoft Azure.
• In November 2019, Sage Intacct launched its financial management platform, Sage Intacct, in the UK.
• In October 2019, Gotransverse announced the launch of a new multi-tenant production environment in Frankfurt, Germany.

Report Scope

Recurring Billing Software Market: Regional Analysis

• North America to lead the market growth during the projection period

In 2021, North America led the global recurring billing software market. In order to improve customer service, many players in this market are concentrating on creating subscription billing management systems. Additionally, a number of North American-based businesses use cloud-based billing tools to effectively handle their billings.

For instance, subscription-based business Aria Systems announced in March 2021 that Rentokil North America had chosen Aria's cloud-based billing platform to handle the billing across numerous business lines. During the projection period, the Asia Pacific regional market is anticipated to have the greatest CAGR. Rising strategic alliances between foreign businesses and Japanese service providers to deliver better subscription billing management services are anticipated to fuel the growth of the subscription billing management market in Japan. For instance, Zuora, Inc. collaborated with SB Payment Service Corp., a Softbank Group subsidiary, in October 2020. The collaboration sought to make it possible for Japanese companies operating in an expanding range of industries to process credit card payments safely and conveniently on a subscription basis.

Competitive Analysis

• 2Checkout 
• Apttus 
• Aria Systems 
• BillingPlatform 
• Chargebee 
• Chargify 
• Cleverbridge 
• Gotransverse 
• Recurly 
• SaaSOptics 
• Sage Intacct 
• Salesforce 
• SAP 
• Vindicia 
• Zuora 
• Digital River 
• NetSuite 
• FastSpring 
• JustOn 
• Zoho 
• Fusebill.

The global Recurring Billing Software market is segmented as follows:

By Component

• Software
  • Billing Mediation
  • Financial Customer Care & Dispute Management
  • Pricing & Quote Management
  • Subscription Order Management
  • Others
• Services
  • Consulting
  • Implementation
  • Support and Maintenance

By Deployment Type

• Cloud-based
• On-premises

By Organization Size

• SMEs
• Large Enterprises

By Vertical

• BFSI
• Retail and e-commerce
• IT & Telecommunications
• Media and Entertainment
• Public Sector and Utilities
• Transportation and Logistics
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America