Tax Software Market - Snapshot

Technological inventions in electronic equipment have increased at a fast pace. Tax management systems are one such innovation that play a vital role in banking, government, telecom, retail, etc. Tax software is designed to help companies or individuals in ensuring tax compliance for corporate tax, income tax, VAT, customs, sales tax, service tax, and similar tax users may require to pay. Tax software simplifies the process of filing tax through tax forms and also automatically calculates a company's or individual’s tax compulsions/obligations. The objective of this software is to provide the user with a simplified solution to calculate tax payment and minimize any associated human error.

tax software market

Tax software offers numerous opportunities for countries that intend to invest in developing new technological features in various industries. Vendors are popularizing the use of tax software due to their advanced features providing electronic accounting solutions, handling financial data, automation of business critical applications, reduced execution risk by reducing operating costs, improving management, visibility, and increased productivity.

Key drivers of the tax software market are increase in the penetration of tax software, rise in investments in digital solutions, and adoption of electronic accounting. Demand for tax software is increasing exponentially due to the advanced features offered by these solutions. Vendors across regions are investing in the development of advanced technology to provide tax management solutions. For instance, banks and insurance companies are most heavily hit by identity theft and lose billions of dollars each year as a result. Therefore, the banking sector is adopting tax software in order to avoid losses. Tax software are anticipated to revolutionize many sectors of the economy, including business, healthcare, social networks, and transportation. However, a major restraint faced by the market is security and networking issues for cloud applications. The market presents an opportunity for vendors across China, Germany, India, and the U.K. to develop new tax software.

The tax software market can be segmented based on component, tax type, software deployment type, end-user, industry, and geography. Based on component, the market can be segmented into tax software and services. Furthermore, the tax software is sub-segmented as standalone and integrated whereas services is sub-segmented as managed and professional. On the basis of tax type, the market is categorized as sales tax, income tax, and others such as VAT, service tax, and estate tax. In terms of software deployment,the market is segmented into cloud and on premise. In terms of end-user,the market is classified into individuals and commercial enterprises, wherein commercial enterprises is further classified into large, and small and medium (SMEs) enterprises. Based on industry, the market is classified into banking, financial services, and insurance (BFSI), government, healthcare, retail, IT & telecom, manufacturing, transportation, energy and utilities, etc.

In terms of region, the tax software market can be segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is projected to dominate the tax software market due to the presence of strong players in the U.S. and spending by the U.S. government for the provision of tax management systems in various public and private organizations. The market in Asia Pacific and Europe is likely to present strong growth opportunities during the forecast period,due to a rise in investments in the taxation industry and business expansion of vendors across the region.

The research study includes profiles of leading companies operating in the global tax software market. Some of the key players profiled in the market include ADP LLC., Blucora, Inc., Chetu, Inc., Intuit Inc., Drake Software.,Thomson Reuters Corporation, Vertex, Inc., Wolters Kluwer N.V. (Kluwer Publishers and Wolters Samsom), Xero Limited, Sage, and Avalara.

Tax Software Market: Overview

The tax software market report provides analysis for the period 2016 – 2026, wherein the period from 2018 to 2026 is the forecast period and 2017 is the base year. The report covers all the major trends and technologies playing an influential role in the market’s growth over the forecast period. It also highlights the drivers, restraints, and opportunities for the analysis of market growth during the said period. The study provides a complete perspective on the evolution of the global tax software market throughout the above mentioned forecast period in terms of revenue (US$ Mn).

The market overview section of the report demonstrates market dynamics such as the drivers, restraints, and opportunities that influence the current nature and future status of this market, key trends, regulations and policies, ecosystem analysis, Porter’s Five Force Analysis, and PESTEL analysis of the market. A market attractiveness analysis has been provided for every segment in the report, in order to provide a thorough understanding of the overall scenario in the tax software market. The report also provides an overview of various strategies adopted by key players in the market.

Global Tax Software Market: Scope of the Report

The report segments the market on the basis of component, tax type, software deployment, end-user, and industry. The report provides in-depth segment analysis of the global tax software market, thereby providing valuable insights at the macro as well as micro levels. Additionally, the report highlights the competitive scenario and trends in which the tax software market concentration rate, mergers & acquisitions, and expansions undertaken by companies are provided.

The report also highlights the competitive landscape of the global tax software market, positioning all the major players according to their presence in different regions of the world and recent key developments initiated by them in the market. The comprehensive tax software market estimates are the result of our in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed by taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting the growth of the tax software market.

This report provides all the essential information required to understand the key developments in the tax software market, and growth trends of each segment and region. It also includes basic overview, sales area/geographical presence, revenue, SWOT analysis, and strategy and developments under the company profile section. Also, the report provides insights related to trends and their impact on the market. Furthermore, Porter’s Five Forces analysis explains the five forces, namely buyers bargaining power, suppliers bargaining power, threat of new entrants, threat of substitutes, and degree of competition in the market. The report also provides a comprehensive ecosystem analysis of the tax software market. It explains the various participants including tax software vendors within the ecosystem of the market.

Global Tax Software Market: Research Methodology

The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers are referred.

Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the tax software market, across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to get latest market insights and validate the existing data and analysis. Primary interviews offer first-hand information on important factors such as market trends, market size, competitive landscape, growth trends and outlook etc. These factors help to validate and strengthen secondary research findings and also help to develop the analysis team’s expertise and market understanding. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.

Global Tax Software Market: Competitive Dynamics

The research study includes profiles of leading companies operating in the global tax software market. Some of the key players profiled in the market include ADP LLC., Blucora, Inc., Chetu, Inc., Intuit Inc., Drake Software.,Thomson Reuters Corporation, Vertex, Inc., Wolters Kluwer N.V. (Kluwer Publishers and Wolters Samsom), Xero Limited, Sage, and Avalara.

The global tax softwaremarket is segmented as below:

Global Tax Software Market, by Component

  • Tax Software
    • Standalone
    • Integrated
  • Services
    • Managed
    • Professional

Global Tax Software Market, by Tax Type

  • Sales Tax
  • Income Tax
  • Other Tax (VAT, Service Tax, Estate Tax)

Global Tax Software Market, by End-users

  • Individuals
  • Commercial Enterprises
    • Small and Medium Enterprises
    • Large Enterprises

Global Tax Software Market, by Software Deployment

  • Cloud
  • On-Premise

Global Tax Software Market, by Industry

  • BFSI
  • Telecom & IT
  • Government
  • Healthcare
  • Retail & consumer goods
  • Transportation
  • Manufacturing
  • Energy and utilities
  • Others (Hospitality, Education)

Global Tax Software Market, by Geography

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • The U.K
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific (APAC)
    • India
    • China
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)
    • GCC Countries
    • South Africa
    • Rest of MEA
  • South America
    • Brazil
    • Rest of South America