Automated Tax Software Market Report 2024 (Global Edition)

Global Automated Tax Software Market Report 2024 Market Size Split by Product (Software, Service), by Tax Type (Sales Tax, Income Tax, Corporate Tax, Others), by Deployment Type (Cloud, On-premise), b...

Automated Tax Software Market Report Description

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Automated Tax Software Market Insights Video

Competitive Landscape of the Automated Tax Software Market

The Automated Tax Software Market is a dynamic environment with a variety of competitors vying for market dominance. Companies are constantly looking for ways to expand their reach with strategies such as business acquisitions and strategic partnerships. Key players include established tax software companies, specialized tax solution providers, and rising startups that are bringing new and improved Automated Tax Software solutions to the market.

July 2023: Avalara and Sage partnered with Set Solutions, a leading provider of accounting and financial management solutions, to automate tax compliance across multiple states in the US. This integration allows Set Solutions' customers to seamlessly manage sales tax calculations, filings, and remittances within their existing Sage Intacct accounting platform. The partnership aims to simplify the complex task of sales tax compliance for businesses operating in multiple states. By leveraging Avalara's cloud-based tax calculation and filing services, Set Solutions' customers can now automatically determine the correct sales tax rates, generate tax returns, and remit payments. (Source: https://newsroom.avalara.com/2023-07-11-Set-Solutions-Automates-Tax-Compliance-Across-Multiple-States-with-Avalara-and-Sage-Intacct) April 2023: Taxually acquired California-based LumaTax Inc., a pioneer in sales and use tax (SUT) automation company. This acquisition will enable Taxually to accelerate growth globally across both enterprise and e-commerce segments and to expand its leading indirect tax product suite further, creating a comprehensive tax compliance solution for its combined global client base. (Source: https://www.taxually.com/blog/luma-tax-has-joined-the-taxually-family)

Top Companies Market Share in Automated Tax Software Industry: (In no particular order of Rank)

• APEX Analytix
• Avalara
• CCH
• eDocSolutions
• eGov Systems
• Exactor
• LegalRaasta
• Taxually
• Sage Group plc
• Sales Tax DataLINK
• Sovos Compliance
• Thomson Reuters
• Vertex
• Xero
• Zoho
• Service Objects
• Confidential Data
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• Data Hidden

*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Automated Tax Software Market

Which Region will dominate the Automated Tax Software Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024. It accounted for around 40% of the global due to the region’s increasing complexity of federal and state tax regulations necessitating sophisticated software solutions to ensure compliance and accuracy. The widespread adoption of cloud-based technologies enhances accessibility and scalability for businesses of all sizes. Additionally, the region's strong emphasis on digital transformation and automation drives the demand for efficient tax management systems. The presence of numerous technology-savvy enterprises and a high awareness of the benefits of automated tax solutions further contribute to market expansion. Moreover, regulatory changes and government initiatives promoting digitalization bolster the adoption of these advanced tax software solutions in North America.

Which Region is Expanding at the Fastest CAGR ?

Asia Pacific stands out as the fastest-growing region in the Automated Tax Software Market due to the region's rapid economic growth, which has led to increased complexity in tax regulations, prompting businesses to adopt automated solutions for compliance and efficiency. Additionally, the shift towards digital transformation and cloud computing technologies is accelerating the adoption of automated tax software, facilitating easier access and scalability across diverse markets. Additionally, the rising number of SMEs and startups in countries like India, China, and Southeast Asia are seeking cost-effective solutions to manage tax processes effectively. Moreover, government initiatives promoting digitalization and regulatory compliance are fostering the growth of the market in the Asia Pacific region as businesses strive to streamline operations and enhance financial transparency.

 

The current report Scope analyzes Automated Tax Software Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Automated Tax Software Market

According to Cognitive Market Research, the global Automated Tax Software Market size was estimated at USD 18654.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 7461.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Automated Tax Software market with a market size of USD 5887.27 million in 2024 and is projected to grow at a CAGR of 6.9% during the forecast period. The demand is amplified by the push towards digital transformation and the adoption of cloud-based solutions.
• The Canada Automated Tax Software Market had a market share of USD 895.40 million in 2024 and is projected to grow at a CAGR of 7.9% during the forecast period. The Canadian government's emphasis on digital innovation and efficiency in tax administration is a significant driver propelling the growth of the market.
• The Mexico Automated Tax Software Market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 679.01 million in 2024.

Europe Automated Tax Software Market

According to Cognitive Market Research, the global Automated Tax Software Market size was estimated at USD 18654.2 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 5596.26 million in 2024 and will grow to a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.

• The United Kingdom Automated Tax Software Market had a market share of USD 940.17 million in 2024 and is projected to grow at a CAGR of 8.2% during the forecast period. In the UK, Automated Tax Software sales witness an upswing due to the drive towards digital tax compliance initiatives, such as Making Tax Digital (MTD)
• The France Automated Tax Software Market is projected to witness growth at a CAGR of 6.6% during the forecast period, with a market size of USD 514.86 million in 2024.
• According to Cognitive Market Research, the Germany Automated Tax Software Market size was valued at USD 1108.06 million in 2024 and is projected to grow at a CAGR of 7.6% during the forecast period. In Germany, Automated Tax Software sales surged due to the focus on enhancing tax efficiency and compliance through advanced digital solutions.
• The Italy Automated Tax Software Market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 481.28 million in 2024.
• The Russia Automated Tax Software Market is projected to witness growth at a CAGR of 6.4% during the forecast period, with a market size of USD 867.42 million in 2024.
• The Spain Automated Tax Software Market is projected to witness growth at a CAGR of 6.5% during the forecast period with a market size of USD 458.89 million in 2024
• The Luxembourg Automated Tax Software Market is projected to witness growth at a CAGR of 7.5% during the forecast period, with a market size of USD 173.48 million in 2024.
• The Portugal Automated Tax Software Market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 117.52 million in 2024.
• The Greece Automated Tax Software Market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 67.16 million in 2024.
• The Rest of Europe's Automated Tax Software Market is projected to witness growth at a CAGR of 6.1% during the forecast period, with a market size of USD 867.42 million in 2024.

Asia Pacific Automated Tax Software Market

According to Cognitive Market Research, the global Automated Tax Software Market size was estimated at USD 18654.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 4290.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.9% from 2024 to 2031.

• According to Cognitive Market Research, the China Automated Tax Software Market size was valued at USD 1930.71 million in 2024 and is projected to grow at a CAGR of 10.4% during the forecast period. Automated Tax Software sales surged in China due to the push towards digital transformation and regulatory reforms in tax administration.
• The Japan Automated Tax Software Market is projected to witness growth at a CAGR of 9.4% during the forecast period, with a market size of USD 592.08 million in 2024.
• The India Automated Tax Software Market had a market share of USD 514.86 million in 2024 and is projected to grow at a CAGR of 12.7% during the forecast period. India's initiatives towards digital tax reforms, such as the Goods and Services Tax (GST), are driving market growth for Automated Tax Software.
• The South Korea Automated Tax Software Market is projected to witness growth at a CAGR of 10.0% during the forecast period, with a market size of USD 429.05 million in 2024.
• The Australia Automated Tax Software Market is projected to witness growth at a CAGR of 10.6% during the forecast period, with a market size of USD 223.10 million in 2024.
• The South East Asia Automated Tax Software Market is projected to witness growth at a CAGR of 11.9% during the forecast period, with a market size of USD 296.04 million in 2024.
• The Rest of Asia Pacific Automated Tax Software Market is projected to witness growth at a CAGR of 10.7% during the forecast period, with a market size of USD 304.62 million in 2024.

South America Automated Tax Software Market

According to Cognitive Market Research, the global Automated Tax Software Market size was estimated at USD 18654.2 Million, out of which Latin America held the market of around 5% of the global revenue with a market size of USD 932.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.3% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Automated Tax Software Market size was valued at USD 399.20 million in 2024 and is projected to grow at a CAGR of 8.90% during the forecast period. Automated Tax Software sales flourished in Brazil due to the evolving tax regulatory environment and the increasing complexity of tax compliance requirements.
• Argentina Automated Tax Software Market had a market share of USD 156.70 million in 2024 and is projected to grow at a CAGR of 9.2% during the forecast period. In Argentina, efforts to modernize tax administration and enhance compliance through digital solutions are boosting market growth.
• Colombia Automated Tax Software Market is projected to witness growth at a CAGR of 8.1% during the forecast period, with a market size of USD 83.01 million in 2024.
• Peru Automated Tax Software Market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 76.48 million in 2024.
• The Chile Automated Tax Software Market is projected to witness growth at a CAGR of 8.6% during the forecast period, with a market size of USD 67.16 million in 2024.
• The Rest of Latin America Automated Tax Software Market is projected to witness growth at a CAGR of 7.4% during the forecast period, with a market size of USD 150.17 million in 2024.

Middle East and Africa Automated Tax Software Market

According to Cognitive Market Research, the global Automated Tax Software Market size was estimated at USD 18654.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 373.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031.

• The GCC Countries Automated Tax Software Market is projected to witness growth at a CAGR of 9.4% during the forecast period, with a market size of USD 159.68 million in 2024. Automated Tax Software sales flourish due to the initiatives to digitize tax administration and improve efficiency through automated solutions.
• The Egypt Automated Tax Software Market is projected to witness growth at a CAGR of 8.9% during the forecast period, with a market size of USD 39.17 million in 2024
• The South Africa Automated Tax Software Market is projected to witness growth at a CAGR of 9.6% during the forecast period, with a market size of USD 58.95 million in 2024. Automated Tax Software sales flourish in South Africa due to the country’s focus on digital innovation in tax compliance and regulatory modernization.
• The Turkey Automated Tax Software Market is projected to witness growth at a CAGR of 8.1% during the forecast period, with a market size of USD 32.09 million in 2024.
• The Nigeria Automated Tax Software Market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 39.17 million in 2024.
• The Rest of the MEA Automated Tax Software Market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 44.02 million in 2024.

Automated Tax Software Market Analysis

Automated Tax Software Market Product Segment Analysis

According to Cognitive Market Research, the Software segment holds the largest market share. Automated tax software offers businesses and individuals the capability to streamline tax preparation, filing, and compliance processes through advanced computing capabilities and algorithm-driven solutions. These software solutions are designed to handle complex calculations, ensure accuracy in tax reporting, and integrate seamlessly with existing financial systems. Moreover, the scalability and flexibility of software-based solutions allow for customization based on specific tax requirements and regulatory changes across different jurisdictions. As digital transformation continues to reshape financial management practices, the demand for software that offers real-time updates, cloud-based accessibility, and data security features remains high. This subsegment's dominance is further bolstered by ongoing technological advancements, such as artificial intelligence and machine learning, which enhance software functionalities and user experience, thereby solidifying its market leadership position.

Service emerges as the fastest-growing category in the Automated Tax Software Market. Services encompass specialized tax advisory, consultancy, and support services provided by tax professionals and firms. These services are increasingly sought after due to the growing complexity of tax laws, regulations, and compliance requirements globally. Businesses and individuals rely on tax experts to navigate intricate tax landscapes, optimize tax strategies, and ensure adherence to regulatory frameworks. Additionally, services extend to tax planning, audit support, and representation before tax authorities, offering personalized guidance tailored to specific client needs. As the demand for comprehensive, hands-on tax expertise grows, especially among small to medium-sized enterprises (SMEs) and individuals, the service subsegment is poised for significant expansion.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Automated Tax Software Industry. Request a Free Sample PDF!

Automated Tax Software Market Tax Type Segment Analysis

According to Cognitive Market Research, Income tax dominates the Automated Tax Software Market due to its widespread applicability across individuals, businesses, and organizations. The complexity of income tax regulations and the frequency of filings necessitate robust software solutions that can handle various tax deductions, credits, and compliance requirements. Automated tax software streamlines the process of income tax preparation, ensuring accuracy in calculations, timely filing, and adherence to changing tax laws. For businesses, especially larger corporations and SMEs, the ability to manage payroll taxes, deductions, and employee benefits under income tax regulations is crucial. The demand for income tax software is driven by its role in optimizing tax liabilities, minimizing errors, and facilitating efficient financial planning and reporting.

Sales tax is the fastest-growing segment within the Automated Tax Software Market, driven by the increasing complexity of sales tax regulations and the global expansion of e-commerce. Businesses selling goods and services online face intricate sales tax requirements across multiple jurisdictions, necessitating automated solutions to track transactions, calculate taxes, and ensure compliance. The growth of online retail and cross-border transactions has heightened the demand for sales tax software capable of handling multi-state and international tax compliance challenges. Furthermore, legislative changes and the Supreme Court's decision in the South Dakota v. Wayfair case have accelerated the need for businesses to adopt sales tax software that can manage economic nexus laws and tax obligations in various states. As governments worldwide continue to update sales tax regulations and enforcement mechanisms, the sales tax software market is poised for significant growth, offering businesses scalable solutions to navigate complex tax landscapes efficiently.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Automated Tax Software Deployment Type Segment Analysis

Automated Tax Software Market Deployment Type Segment Analysis

According to Cognitive Market Research, the Cloud deployment segment dominates the market and also stands out as the fastest-growing segment. Cloud-based solutions have revolutionized tax software by offering unmatched flexibility, accessibility, and scalability to businesses of all sizes. This deployment model allows users to access tax software from any location with internet connectivity, supporting seamless collaboration and real-time data access essential in today's dynamic business environment. The dominance of cloud deployment is driven by several key factors. Firstly, it eliminates the need for businesses to invest in and maintain costly on-premise infrastructure, thereby reducing IT overhead costs and complexities. Cloud-based tax software providers also ensure automatic updates, ensuring users always have access to the latest features, security patches, and compliance updates. Moreover, cloud solutions offer robust security measures, including data encryption and secure access protocols, to safeguard sensitive tax information.

• Cloud
• On-premise

Automated Tax Software Enterprise Size Segment Analysis

Automated Tax Software Market Enterprise Size Segment Analysis

According to Cognitive Market Research, Large enterprises dominate the Automated Tax Software Market due to their extensive resources, complex tax requirements, and high-volume transactions. These enterprises require sophisticated tax software solutions that can handle multiple tax jurisdictions, intricate compliance regulations, and large-scale financial data. Automated tax software for large enterprises offers advanced features such as integration with ERP systems, customizable reporting capabilities, and real-time data analytics. Moreover, these solutions are designed to streamline complex tax processes, enhance accuracy in tax reporting, and optimize tax strategies to minimize liabilities. Large enterprises typically invest significantly in scalable and robust tax software solutions to manage their extensive operations efficiently and comply with global tax regulations.

Small enterprises represent the fastest-growing segment in the Automated Tax Software Market, driven by several compelling factors. Automated tax software provides small enterprises with affordable, user-friendly solutions that automate tax calculations, filings, and reporting, thereby reducing the administrative burden and minimizing errors. Moreover, cloud-based tax software solutions offer small enterprises flexibility, scalability, and cost-effectiveness, allowing them to access advanced tax functionalities without the need for significant upfront investments in IT infrastructure. As digital transformation accelerates across industries, small enterprises are increasingly adopting automated tax software to enhance operational efficiency, improve financial transparency, and ensure compliance with evolving tax laws. The growing availability of tailored solutions and support services specifically designed for small businesses further fuels the adoption of automated tax software in this segment.

• Large Enterprises
• Medium Enterprises
• Small Enterprises

Automated Tax Software Vertical Segment Analysis

Automated Tax Software Market Vertical Segment Analysis

According to Cognitive Market Research, The BFSI sector dominates the Automated Tax Software Market due to its stringent regulatory requirements, complex financial transactions, and extensive tax obligations. Financial institutions, including banks, insurance companies, and investment firms, rely heavily on automated tax software to manage diverse tax processes such as income tax, corporate tax, and regulatory compliance. These institutions require robust tax solutions capable of handling large volumes of financial data, ensuring accuracy in tax reporting, and facilitating timely compliance with regulatory changes across multiple jurisdictions. Automated tax software for BFSI integrates seamlessly with financial systems, offering advanced features like real-time data analytics, risk assessment, and audit support. Moreover, these solutions enable BFSI firms to optimize tax strategies, mitigate risks, and enhance operational efficiency, thereby driving their widespread adoption within the sector.

The healthcare sector represents the fastest-growing segment in the Automated Tax Software Market, driven by increasing regulatory complexities, rising healthcare expenditures, and the adoption of digital health solutions. Healthcare providers, including hospitals, clinics, and pharmaceutical companies, face unique tax challenges related to patient billing, healthcare reimbursements, research grants, and regulatory compliance. Automated tax software tailored for the healthcare sector streamlines tax processes, ensures compliance with healthcare-specific tax regulations, and facilitates accurate financial reporting. These solutions integrate with electronic health records (EHR) systems, patient management platforms, and billing systems to automate tax calculations, optimize deductions, and enhance financial transparency. As healthcare organizations strive to improve operational efficiency, reduce administrative costs, and comply with evolving healthcare laws, the demand for specialized tax software solutions is expected to grow significantly.

• BFSI
• IT & Telecom
• Healthcare
• Government
• Retail
• Others

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

LinkedIn

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I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

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