The global travel and expense management software market is projected to expand at a CAGR of 11.4% during the forecast period, 2021 – 2028. The growth of the market is attributed to the increasing number of employees traveling abroad that is rising fraud practices among them.
Travel and expense management software provides fast, efficient, and flexible travel and expense management by letting the enterprises analyze and manage their employees’ existing expense data and transform it into accurate insights to make appropriate decisions for business operations. The complex corporate expenses process of the enterprises is simplified by the automation tool integrated in travel and expense management software.
The software allows access to travel and expense portal though mobile applications, which has increased the demand for travel and expense software to manage employees’ expenses. It provides the organization management with a combined view of all expenses made by employees that helps them to manage budgets and avoids non-compliance of policies among employees.
Market Drivers, Restraints, Trends, and Opportunities
- The integration of the software with mobile application and easy access to the software are the factor driving the market growth for the travel and expense management software market.
- The travel and expense management software helps to monitor and analyze a large amount of expense data on a single platform. This saves a lot of time and money, thereby eliminating the use of paper and manual and tedious tasks. Thus, such benefits are expected to spur the market growth during the forecast period.
- The emergence of COVID-19 outbreak has adversely affected the market growth. Various government bodies have imposed restriction on travelling to control the spread of the disease, which has hampered the growth of the market.
- Increasing use of artificial intelligence (AI) and data analytics is expected to boost the market growth. It simplifies the process and improves efficiency to manage expenses.
Global Travel and Expense Management Software Market Segment Insights
Cloud-based segment expected to account for a considerable market share.
Based on deployment types, the market is segmented into cloud-based and on-premise. The cloud-based segment is expected to account for a market share of more than 75% during the forecast period. Increasing adoption of cloud-based IT infrastructure in SMEs is driving the segment growth. Cloud-based software allows easy access to applications on various devices remotely. On the other hand, the cloud-based segment is expected to face challenges owing to the absence of skilled professionals and technical awareness regarding the deployment of cloud-based platform.
Large enterprises segment anticipated to account for a significant market share
On the basis of organization sizes, the market is bifurcated into SMEs and large enterprises. The large enterprises segment is anticipated to account for a market share of more than 55% during the forecast period. Increasing number of business trips related to business is rising the adoption of these software in large enterprises.
North America expected to acquire a large market share
In terms of regions the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to acquire a large market share in terms of revenue. Growing adoption of cloud-based technology in this region is driving the regional market growth. Additionally, the presence of a large number of SMEs and their growing inclination toward travel and expense management software is driving the growth of the market in the region. Moreover, the introduction of machine learning and predictive analytics is anticipated to drive the travel and expense management software market in North America.
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