The tax management market is set to grow from its current market value of more than $20 billion to over $50 billion by 2032; as reported in the latest study by Global Market Insights, Inc.
Tax Management Market is anticipated to demonstrate positive trajectory through 2032, owing to the increasing integration of tax management software with cloud-based ERP systems. Tax software providers are constantly developing next-generation ERP projects to collaborate with finance institutions and acquire access to taxable data through updated, standardized procedures and linked systems.
Besides, increasing cognizance of digital tax administration indicates a significant shift in tax experts’ perspectives on technological innovations which will also positively favor the industry outlook.
Overall, the tax management market is segmented in terms of component, deployment model, tax, organization size, application, and region.
Based on the component, the services segment is expected to account for significant returns by 2032. Tax software offers services that help users file federal and state income tax returns quickly and accurately. These services are offered through on-premises, online, and desktop versions. Besides, the increasing need for tax management services will prove to be beneficial for the industry expansion.
By deployment model, the on-premises segment will register positive growth. According to reports, more than 20% of end-users are still working on the traditional model of tax filing, thus propelling the segmental adoption.
Considering the tax, the direct tax segment is poised to grow considerably. The segmental growth is driven majorly by personal and corporate tax across developing countries.
Based on organization size, the tax management market from the large enterprises segment is slated to record substantial growth through 2032 as these businesses are constantly collaborating and partnering with tax management solution providers to make compliance easy. Besides, tax management solutions enable large enterprises to focus on creating year-end documentation and updates in the dynamic world of tax compliance.
In terms of application, the healthcare segment will gain appreciable proceeds from 2023-2032. Increasing taxes on products that have negative health impacts such as tobacco, alcohol, and sugar-sweetened beverages (SSBs) will positively assist the segment. In addition, the rising concern among consumers about skin health issues will drive the market during the forecast period.
Regionally, the Asia Pacific tax management market is expected to depict over 10% CAGR through 2032. Increasing spending on retail and consumer goods, coupled with the growing shift of SMEs to the cloud and the rising awareness of the tax management industry, will drive the market during the forecast period.