Integration of Artificial Intelligence and Machine Learning With Subscription and Billing Solution to Drive the Subscription and Billing Software Market Growth

Introduction

The subscription and billing management software market was valued at USD 2.9 billion in 2019 and is expected to reach USD 13.8 billion by 2029, with a CAGR of 16.7%.

Integrating disruptive technologies such as artificial intelligence (AI) and machine learning (ML) with subscription and billing solutions, transforming the business model, and adopting self-service payment models are some of the factors driving market growth. However, the surge in the number of cybercrimes and data theft might hamper market growth.

Key Highlights

• The solution segment accounted for the lion’s share in 2019 and is expected to dominate the market during the forecast period. On the other hand, the services segment is expected to grow with the highest CAGR.
• The managed services segment accounted for the largest market share in 2019, which if more than 60% and continues to dominate the market. Whereas the professional services segment is anticipated to grow with the highest CAGR during the forecast period.
• The cloud segment accounted for more than half of the value share in 2019. The on-premise segment is expected to grow with a significant CAGR of 15.7% during the forecast period
• The large enterprises' segment accounted for the largest share of the pie in 2019. The SME segment is expected to grow with the highest CAGR during the forecast period.
• The retail and e-commerce segments accounted for the largest share of the pie in 2019. The media and entertainment segment is expected to grow at a CAGR of 17.3% during the forecast period.

Competitive Players

1. Oracle Corporation 
2. Sage Plc 
3. com 
4. SAP SE 
5. Zuora
6. Digital River 
7. Checkout 
8. Aria Systems 
9. Chargify 
10. Apttus 
11. Amdocs (Vindicia) 
12. BillingPlatform
13. Chargebee 
14. Cleverbridge 
15. Gotransverse
16. FastSpring
17. JustOn
18. Zoho
19. Fusebill

Recent Developments

• March 2024- Mastercard streamlined subscription management with an open banking-powered service. Mastercard, a worldwide payment technology pioneer, announced an open banking-powered solution that integrates effortlessly with financial institutions' consumer banking services. The Smart Subscriptions solution was introduced in response to consumers' increased desire for improved subscription management solutions. With the advent of subscription-based services in various industries, users require a comprehensive solution that provides both ease and control.
• January 2024- BillingPlatform, the enterprise revenue lifecycle management platform, received a USD 90 million growth equity investment from FTV Capital, a sector-focused growth equity investor with over 25 years of experience in enterprise technology and services, financial services, and payments and transaction processing. The investment will help BillingPlatform continue to grow in a USD 10 billion market that is growing at a rate of more than 10% per year as businesses increasingly turn to the company's comprehensive portfolio of solutions for the Office of the CFO, which enables new revenue streams and go-to-market strategies, reduce revenue leakage, and improve customer satisfaction. 

Segmentation

1. By Software 
   
   1. Subscription Order Management
   2. Billing Mediation
   3. Pricing and Quote Management
   4. Financial Customer Care 
   5. Dispute Management
   6. Others
2. By Services 
   
   1. Professional Services
   2. Managed Services
3. By Deployment 
   
   1. Cloud
   2. On-Premise
4. By Enterprise Size
   
   1. Small and Medium-sized Enterprises (SMEs)
   2. Large Enterprises
5. By End-Use
   
   1. Retail and E-Commerce
   2. BFSI 
   3. Banking
   4. Financial Services
   5. Insurance
   6. IT and Telecom
   7. Media and Entertainment
   8. Public Sector and Utilities
   9. Others