The global subscription billing management market size was valued at USD 4.77 billion in 2021 and is anticipated to grow a CAGR of 16.1% from 2022 to 2030. The rising adoption of subscription-driven business models in various industries, ranging from the manufacturing sector to financial institutions, is expected to boost the adoption of the market. Moreover, the rising adoption of subscription-based models by numerous businesses is leading to improved customer retention rates. Such factors bode well for market growth in the coming years.
Several market players are focusing on expanding their presence and releasing new products focused on specific markets. For instance, in February 2022, Recurly, Inc., a subscription management and billing solution provider announced the expansion of its European footprint to introduce new capabilities focused on the European market. Moreover, various subscription billing providers are also focusing on incorporating machine learning capabilities into their platforms to improve their revenues. For instance, Stripe’s billing software combines advanced machine learning capabilities with automatic card update features. This use of machine learning technology has helped Stripe in increasing its recurring bill revenue by 10% on average
The companies offering subscription billing software are focused on integrating enhanced technologies such as artificial intelligence, the internet of things, and blockchain into their platforms to improve their offerings. At the same time, numerous digital infrastructure companies are also implementing cloud billing platforms into their existing products to meet the data connectivity demand from their customers. For instance, in March 2022, Aria Systems, Inc., a subscription billing company, announced that EXA Infrastructure, a digital infrastructure company, has implemented its cloud billing platform using Aria to bill for the existing products to meet the data connectivity demand from its customers.
Prominent digital payment solution providers have started using the subscription business model to meet the changing customer demands. The subscription-based model allows digital payment companies to efficiently improve their revenues and sell their products. Furthermore, digital payment companies are also collaborating with subscription billing management companies for merchants operating on the subscription model. For instance, in October 2021, Worldline, a digital payment company, announced its collaboration with Chargebee, a subscription billing management company, to provide subscription and revenue operations and end-to-end payment solutions for merchants.
Businesses use subscription billing management systems to generate and send invoices to their partners or customers to receive payments. A subscription billing management system helps companies to improve performance and reduce errors by automating document preparation and other tasks. On the other hand, machine learning technology is also being used to analyze fraudulent attempts in online transactions. Machine learning technology is also used in recurring payment software to increase sales, enhance customer experience, and reduce payment failures.
The outbreak of the COVID-19 pandemic had a moderately positive impact on the demand for subscription billing management software. The demand for this software increased among companies offering OTT video streaming services, digital news & media, e-learning, and communication software, among others, during the pandemic. The efforts made by subscription-based companies by offerings free trials to gain new customers acted as a major factor driving the market growth.
The subscription order management segment dominated the market in 2021 and accounted for a share of more than 30.0% of the global revenue. Subscription order management involves finding the right mix of products and projects, recurring and one-time services, and usage charges for customers as part of the efforts to lower the customer churn rate.
The ability of the subscription order management software to work closely with accounting tools to cater to the changing needs of the subscription services bodes well for the growth of the segment. Subscription order management software collects and stores the information of the customers billing details and subscription plans, and also integrates with the payment gateway systems to meet the requirements of the subscription business.
The receivables management segment is anticipated to register substantial growth during the forecast period. In recent years, companies have continued to shift to the subscription business model, and the need to track customer details efficiently has also increased, which is one of the major factors driving the growth of the receivables management segment. Several market players are also focusing on acquiring collection management companies to introduce and expand their receivables management solutions.
For instance, in February 2022, Chargebee, a subscription management solution provider, announced that it had acquired numbers, a collection management company, and launched Chargebee Receivables, a receivable management platform that allows automating the receivables process from purchase to payment efficiently.
The professional services segment dominated the market in 2021 and accounted for more than 78.0% of the global revenue. The professional services segment covers integration & deployment, support & maintenance, and training & consulting services. Integration & deployment services are necessary to help businesses in installing the software, aligning the software with the existing systems, and operating the software efficiently.
Many professional service firms are now providing their services through a subscription model to enhance customer flexibility. For instance, according to Exact, a software company, 37% of professional service companies choose to provide their services through a subscription model to enhance customer loyalty.
The managed services segment is expected to register the fastest growth during the forecast period. These services help improve operations without incurring any additional expenses on employing new, dedicated staff for management purposes. Managed Services in a recurring billing system offer benefits such as improved customer billing, custom pricing discount plans, multiple renewable options, and better customer loyalty. Such factors are expected to create lucrative growth opportunities for the market in the coming years.
The cloud deployment segment dominated the subscription billing management market in 2021 and accounted for more than 72.0% of the overall revenue. Cloud-based billing solutions can accommodate changes and capably manage the organization's shifting needs, which is a major factor driving the growth of this segment in the coming years. Cloud-based billing offers benefits such as automated processes, flexibility, scalability, business operations support, and end-to-end customer life cycle management.
The on-premise segment is expected to register significant growth during the forecast period. On-premise for billing software has the advantage that it is stored on the customer’s local server, which in turn provides better flexibility. In on-premise subscription billing software, everything runs on the systems installed in the organization without any involvement of third parties. Moreover, on-premise businesses can effectively cater to changing business needs. Such factors mentioned above bode well for the growth of the segment during the forecast period.
The large enterprise segment dominated the market in 2021 and accounted for more than 66.0% of the global revenue share. Large enterprises have a large customer base that is spread widely across the globe, and hence to improve the customer retention rate, they are aggressively investing in subscription billing management solutions.
These solutions assist large enterprises in managing the customer’s portfolio by providing them with a better customer experience. Moreover, payment companies are striking partnerships with cloud-based subscription billing solution providers to expand their reach. Such partnerships are expected to drive the growth of the large enterprise segment during the forecast period.
The small & medium enterprises segment is expected to register the fastest growth during the assessment period. The growing preference to automate manual accounting and financial processes and provide efficient services to customers is expected to drive the adoption of subscription billing management software among small and medium enterprises. Cloud-based billing solutions help small & medium enterprises enhance the overall customer experience and maximize customer retention rates.
The BFSI segment dominated the market in 2021 and accounted for over 23.0% of the global revenue. The increasing adoption of the latest technologies by the incumbents of the BFSI industry is playing a vital role in driving the growth of the subscription and billing management market.
Several payment service providers across the globe are striking partnerships with subscription management platform providers to provide seamless payment solutions. For instance, in January 2022, a payment service provider in Europe announced its partnership with Chargebee to simplify the subscription billing for merchants.
The retail & e-commerce segment is anticipated to register a promising CAGR during the forecast period. The changing preference in consumer demands and buying behavior is reshaping the retail & e-commerce segment. The increasing use of online channels for buying consumer goods is prompting retailers to opt for automated subscription billing platforms that can potentially help in automating bills and settling customer disputes. Such factors bode well for the growth of the segment during the projection period.
North America dominated the market in 2021 and accounted for over 32.0% of the global revenue. Numerous players across this region are focusing on developing subscription billing management solutions aimed at providing better customer service. Moreover, various companies based in North America are using cloud-based billing platforms to manage the billings efficiently.
For instance, in March 2021, Aria Systems, a subscription-based company, announced that Rentokil North America had selected Aria’s cloud-based billing platform to manage the billing across various multiple business lines. The Asia Pacific regional market is expected to record the highest CAGR during the forecast period. The subscription billing management industry in Japan is expected to be driven by the rising strategic partnerships between global companies and Japanese service providers to offer better subscription billing management services.
For instance, in October 2020, Zuora, Inc. partnered with SB Payment Service Corp., a subsidiary of Softbank Group. The partnership aimed to allow Japanese businesses across an increasing number of industries to process credit card payments securely and seamlessly on a recurring subscription basis.
The competitive landscape of the market is highly fragmented and characterized by the presence of a large number of players. Vendors are focusing on providing fully scalable, flexible offerings through a monthly subscription to enable quick deployment of new functions, channels, and features. Moreover, market players are focusing on offering better cloud-based billing platforms to enhance customer flexibility.
The vendors are investing in the development of solutions for various end-use industries, such as BFSI, government, healthcare, and IT & telecom. Market players are also investing in partnerships and product launches to increase their customer base and strengthen their market positions.
For instance, in March 2021, cleverbridge announced a partnership with 20-20 Technologies Inc., a software development company. The partnership envisaged cleverbridge providing its platform to the latter for transitioning from a manual process to an automated renewal process for maintenance and support renewals. Some prominent players in the global subscription billing management market are:
Aria Systems, Inc.
In April 2023, Recurly launched app management capabilities within its platform. This was planned to help bridge the data gap for direct-to-consumer marketers by providing subscription analytics across app stores and the web.
In October 2022, Recurly launched new ramp pricing. Through this launch, recurring income businesses can dynamically raise or lower subscription prices.
In August 2022, Zuora Inc. acquired Zephr, a leading subscription experience platform. This acquisition helped accelerate Zuora's media sector leadership and future platform innovation.
Market size value in 2022
USD 5.45 billion
Revenue forecast in 2030
USD 17.95 billion
CAGR of 16.1% from 2022 to 2030
Base year of estimation
2017 - 2020
2022 - 2030
Revenue in USD million and CAGR from 2022 to 2030
Revenue forecast, company market share, competitive landscape, growth factors, and trends
Software, services, deployment, enterprise size, end-use, and region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil
Key companies profiled
Aria Systems, Inc.; Oracle; BluSynergy; SAP SE; Conga; Recurly, Inc.; Gotransverse; cleverbridge; Zuora Inc.; LogiSense Corporation
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global subscription billing management market report based on software, services, deployment, enterprise size, end-use, and region.
Software Outlook (Revenue, USD Million, 2017 - 2030)
Credit And Collection Management
Quote And Pricing Management
Subscription Order Management
Services Outlook (Revenue, USD Million, 2017 - 2030)
Deployment Outlook (Revenue, USD Million, 2017 - 2030)
Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)
Small & Medium Enterprises
End Use Outlook (Revenue, USD Million, 2017 - 2030)
Retail & E-Commerce
IT & Telecom
Media & Entertainment
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East & Africa
b. The global subscription billing management market size was estimated at USD 4.77 billion in 2021 and is expected to reach USD 5.45 billion in 2022.
b. The global subscription billing management market is expected to grow at a compound annual growth rate of 16.1% from 2022 to 2030 and is expected to reach USD 17.95 billion by 2030.
b. North America dominated the subscription billing management market with a share of 32.04% in 2021. This is because a large number of players across this region are focusing on developing subscription billing management solutions aimed at providing better customer service.
b. Some key players operating in the subscription billing management market include Aria Systems, Inc., Oracle, Blusynergy, SAP SE, Conga, and Recurly, Inc.
b. Key factors that are driving the subscription billing management market growth include the rising adoption of subscription business models and the growing need to improve customer retention.
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