Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Indirect Tax Management Market size was over USD 6.33 billion in 2024 and is projected to reach USD 26.67 billion by 2037, witnessing around 11.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of indirect tax management is assessed at USD 6.96 billion.
The growth of the market can be attributed to the increasing adoption of electronic accounting, and growing investments in digital solutions. Along with these, rising volumes of financial transactions across several verticals as a result of digitization, and escalating vigilance of tax administrators around the world are also expected to drive market growth in the upcoming years. In 2019, it was calculated that there are approximately 2 billion digital buyers around the world. eCommerce purchases are predicted to rise up to 22 percent in 2023. Furthermore, the world is witnessing a need to automate taxation formalities as it can significantly minimize human efforts. This in turn is projected to be a crucial factor offering lucrative opportunities to the market growth in the near future.
Indirect Tax Management Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing Adoption of Electronic Accounting Across the Globe
- Growing Investments in Digital Solutions
Challenges
- Lack of Standardization in Tax Laws
Indirect Tax Management Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11.7% |
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Base Year Market Size (2024) |
USD 6.33 billion |
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Forecast Year Market Size (2037) |
USD 26.67 billion |
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Regional Scope |
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Indirect Tax Management Segmentation
The market is segmented by vertical into banking financial services and insurance (BFSI), information technology (IT) and telecom, energy & utilities, healthcare, government, retail, and others, out of which, the BFSI segment is anticipated to hold the largest share in the global indirect tax management market. This can be ascribed to the increasing number of customers who utilize digital banking services in the BFSI industry, and imposition of stringent government regulations in the sector. In addition, the retail segment is predicted to observe the highest growth over the forecast period in view of the fact that the retail industry needs to be adhered to a complex taxation system to raise spending on infrastructure and decrease exports. Moreover, by deployment type, the cloud-based segment is evaluated to grab the largest share by the end of 2030, owing to the high preference of businesses to implement tax management software in cloud.
Our in-depth analysis of the global market includes the following segments
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By Deployment Type |
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By Vertical |
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Customize this ReportIndirect Tax Management Industry - Regional Synopsis
APAC Market Statistics
Asia Pacific industry is predicted to hold largest revenue share by 2037, driven by growing usage of tax management software, and rapid growth of the BFSI industry, driven by growing usage of tax management software, and rapid growth of the BFSI industry. According to the Indian Brand Equity Foundation, during FY16-FY20, deposits grew at a CAGR of 13.93% and reached USD 1.93 trillion by FY20, and bank credit and deposits stood at USD 1.48 trillion and USD 2.08 trillion respectively. Apart from these, frequent regulatory changes in India and China are also expected to drive the region’s market growth in the future.
North America Market Analysis
Additionally, indirect tax management market in North America is projected to grab the largest share over the forecast period, which can be credited to the continuous changes in tax regulations, well-developed IT infrastructure, and presence of prominent market players in the region.
Companies Dominating the Indirect Tax Management Landscape
- SAP SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Wolters Kluwer N.V
- Alvara, Inc.
- Thomson Reuters Corporation
- Sovos Compliance, LLC
- Drake Enterprises, Inc.
- Canopy Tax, Inc.
- DAVO Technologies, LLC
- TPS Unlimited, Inc.
- Intuit Inc.
In the News
October 2019- Wolters Kluwer announced the launch of its redesigned CCH SalesTax use tax and sales compliance platform, which is a robust cloud-based tax solution. It is designed to help companies effectively manage indirect tax regulatory requirements in North American continent.
Author Credits: Abhishek Verma
- Report ID: 3524
- Published Date: Dec 24, 2024
- Report Format: PDF, PPT
