Subscription Billing Management Market - Growth, Trends, Forecasts (2022 - 2027)

Subscription Billing Management Market - Growth, Trends, Forecasts (2022 - 2027)

The Subscription Billing Management Market is expected to register a CAGR of approximately 15% during the forecast period (2020 - 2025). The increasing adoption of digitization and increasing demand for flexibility has given rise to subscription-based businesses across sectors.

Key Highlights
  • Automation and standardization of the subscription billing process are becoming necessary due to the substantial growth of the customer base. This is coupled with the increasing focus of businesses to maximize customer retention by enhancing customer experience. Hence, the adoption of subscription billing management solutions is expected to grow across industries during the forecast period.
  • The organizations are increasingly transitioning towards software-based subscription billing solutions, which helps them lower their operating costs, reduce complexities of the monetization models, and reduce billing errors. The solutions automate the invoicing and billing process by integrating technologies like Artificial Intelligence, Machine Learning, and Cloud Computing, among many others. These also help organizations attain essential customer insights, vital for improving customer experience, and increasing customer retention.
  • For instance, in September 2019, Daisy Corporate Services partnered with Cloudmore to strengthen its cloud subscription services business by integrating the Cloudmore platform to automate internal management processes, offer self-service to its customers, and automate end-to-end financial reconciliation and billing processes. Such partnerships and collaborations are expected to boost the solution provider's market presence.
  • COVID-19 has positively impacted the market growth. Comapanies of all sizes are restructuring their startegies for 2020 and beyond. These companies are onboarding subscription management tool with visibility across channels, in order to drive normalcy and make things easier by aligning their metrics.
Key Market TrendsMedia and Entertainment Industry Expected to Exhibit Significant Adoption
  • The Media and Entertainment industry is a perfect example of rapid digital transformation, as it is consistently innovating technologies and evolving innovative ways to produce and provide subscription-based digital media. The advertisers, publishers, broadcasters, and others are adopting the subscription-based revenue model to keep up with the rapidly growing demand.
  • The subscription video-on-demand (SVOD) streaming landscape is growing rapidly due to the growth of media providers, such as Netflix, Amazon Prime, Eros Now, Hulu, Hotstar, and many more. Also, recently, new entrants, such as Disney+ and Apple TV+ launched late in 2019, and Comcast’s Peacock (April 2020) and AT&T’s HBO Max (May 2020), are certain factors driving the market growth.
  • Hence, the broadcast platforms, media corporations, and advertising companies are rapidly deploying subscription billing management solutions with an aim to integrate revenue processes into one streamlined customer-focused experience, which is expected to provide unprecedented insight into the entire Quote-to-Cash process.
  • In March 2020, Hisense, a China-based consumer electronics manufacturer, contracted Aria Systems for third-party billing for its VIDAA International streaming video platform. VIDAA is an open format Smart TV operating system, currently used on Hisense TVs. Aria Systems platform is expected to enhance the management of international VIDAA subscription accounts by streamlining the process of generation of recurring revenue globally while maintaining compliance with local privacy and data protection laws.
North America Expected to Dominate the Market
  • North America is expected to dominate the Subscription Billing Management Market, due to the presence of several major market players in the region, such as SAP, Salesforce, Oracle, Amazon Web Services, Apttus, Recurly, and many more.
  • These market players are increasingly raising funds to further boost their market presence globally. For instance, in September 2019, Recurly raised USD 19.5 million with an aim to boost subscription revenue by integrating machine learning technology.
  • Also, the market players are increasingly innovating to develop enhanced and improvised solutions in the market, with a view to capturing maximum market share. For instance, in October 2019, NetApp introduced a storage subscription service called Keystone, which collectively offers, on-premises and public cloud deployments, and both customer-managed, NetApp or partner-managed systems. This will help companies to move from the big storage trend to subscription billing.
Competitive Landscape

The competitive landscape of the Subscription Billing Management Market is fragmented due to the presence of several market players globally, offering innovative billing and invoicing solutions for subscription-based businesses. Also, the new and emerging, as well as existing companies, are increasingly raising funds to enhance and improvise their offerings to gain maximum market traction.

  • December 2019 - BillingPlatform, a cloud-based monetization and billing software provider, raised USD 10 million, which will be used to continue product development, customer success programs, and go-to-market efforts.
  • August 2019 - The San Francisco-based subscription management platform Chargebee raised USD 14 million, which will help Chargebee to expand its product suite for its enterprise clientele.
Additional Benefits:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Companies Mentioned
 
Salesforce.com, Inc.
SAP SE
Oracle Corporation (Netsuite)
Apttus Corporation
Amazon Web Services, Inc.
Recurly, Inc.
Zoho Corporation Pvt. Ltd.
Zuora Inc.
Chargebee Inc.
2Checkout.com, Inc.
Chargify LLC
Invoicera
Stripe, Inc.
Muvi, LLC
Billingplatform.com

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1 INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growth of Subscription Based Businesses
4.2.2 Increasing Focus of Businesses on Increasing Customer Retention by Reducing the Subscriber Churn Rate
4.2.3 The Need for Reduction in Complex Monetization Models and Reducing Billing Errors Due to the Increase in Size of Customers
4.3 Market Restraints
4.3.1 Data and Privacy Concerns
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment of Impact of Covid-19 on the Market
5 MARKET SEGMENTATION
5.1 Deployment Mode
5.1.1 On-Premise
5.1.2 On-Cloud
5.2 Size of the Organization
5.2.1 Small and Medium Enterprises
5.2.2 Large Enterprises
5.3 End-user Industry
5.3.1 Retail and E-commerce
5.3.2 BFSI
5.3.3 IT and Telecom
5.3.4 Media and Entertainment
5.3.5 Public Sector and Utilities
5.3.6 Other End-user Industries (Transportation and Logistics, Educational Institutions)
5.4 Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Salesforce.com, Inc.
6.1.2 SAP SE
6.1.3 Oracle Corporation (Netsuite)
6.1.4 Apttus Corporation
6.1.5 Amazon Web Services, Inc.
6.1.6 Recurly, Inc.
6.1.7 Zoho Corporation Pvt. Ltd.
6.1.8 Zuora Inc.
6.1.9 Chargebee Inc.
6.1.10 2Checkout.com, Inc.
6.1.11 Chargify LLC
6.1.12 Invoicera
6.1.13 Stripe, Inc.
6.1.14 Muvi, LLC
6.1.15 Billingplatform.com
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS

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