Global Subscription Billing Management Market Projected to Grow at a CAGR of 21.7% and Generate a Revenue of $47,661.5 million by 2032Download Sample Reports Overview
The global subscription billing management market is predicted to be valued at $47,661.5 million by 2032, surging from $6,862.6 million in 2022, at a noteworthy CAGR of 21.7%.
Impact Analysis of COVID-19 on the Subscription Billing Management Market
The COVID-19 pandemic has had both positive and negative impacts on the subscription billing management industry. The Subscription Economy Index (SEI), a study on the overall health of the subscription economy created by Zuora's Chief Data Scientists. According to the Subscription Economy Index (SEI) report published in 2019, pay-as-you-go, digitally enabled services have caused recurring revenue-based business models to expand, growing by more than 350% over the previous seven and a half years. In fact, the SEI regularly indicated that subscription revenues were expanding five times faster than the standards for the S&P 500 Industry benchmark. Due to the economic effects of COVID-19 on many industries, several subscription businesses have noticed an increase in the number of customers who are unable to make payments on time, mandating the necessity for several adjustments, credits, and refunds. Subscription companies may concentrate on keeping their clients intact in the post-pandemic period and boosting customer lifetime value instead of raising revenue to keep the business surviving during these uncertain times.
Global Subscription Billing Management Market Analysis
Subscription billing management works to make the process of purchasing, using, and paying for it easier and faster in order to keep customers interested in a product for an extended period of time. New clients can be acquired through one-time sales, but companies that rely on recurring revenue, such as subscription-based firms, must maintain their current clientele and ensure that they pay their bills on time. The main clients of subscription billing management are the repeat consumers. The main subscription models used are block (or tier) pricing models, usage (or consumption) pricing models, contracted pricing models, percent of total models, and fixed price models. Financial services, communications & media, manufacturing businesses, and professional services firms are a few industries that use subscription pricing structures in B2B businesses. In addition, subscriptions have emerged as the preferred option for both customers and businesses, from software platforms and streaming services to SaaS firms and e-commerce. Effective subscription billing management systems are needed due to increase in subscription-based services. The systems for managing subscription billing provide all-inclusive billing automation solutions that guarantee precise and timely invoicing while lowering the likelihood of mistakes and late payments. In addition, they enable businesses to establish flexible pricing strategies and individualized plans that are tailored to the demands of each consumer, ultimately increasing customer retention and satisfaction rates.
The development of technology also changes consumer purchasing habits. Customers need to choose subscriptions so that they can use the services or goods for as long as they need before switching to other interests due to maintenance requirements, clutter, update problems, and other application related issue. This has brought challenges, such as there is a lot of pressure to maintain, upgrade, and remain adaptable since, as soon as subscribers discover a better option, they can transfer to other providers. In the case of physical items, the lack of ownership is another difficulty. Some consumers still find it convenient to not own the item they have been paying for months. Upgraded services, streamlined pricing, and quick and secure online payment options need to be given special consideration for customer retention. The demands and requirements for handling subscription billing, secure payment processing, and recurring income are changing as more firms explore new opportunities in the world of subscriptions. As a result, the dangers and hazards related to managing payment operations and online subscription billing grow more serious.
The ability to provide both common pricing templates and customized scenarios to support customer-specific deal conversations and contracts is created by subscription billing. Generic subscriptions can be used by all customers or by a specific subset, but customized subscriptions give customers the opportunity to choose specific pricing and contract requirements. It also enables users to stick with existing subscriptions or choose a new subscription as per their changing needs. Monthly recurring income, total contract value, and the loss of clients are quickly and simply provided through real-time reporting and insights into basic billings and financial data. The choice of billing subscriptions as either one-time charges or recurring fees, either in advance or in arrears, is provided by flexible subscription billing options. Companies may create subscriptions with several rating models that capture setup costs, license counts, and variable usage all in one step. The billing process efficiency can be increased significantly by the combination of easy subscription set up and maintenance, and flexible rating models.
Global Subscription Billing Management Market, Segmentation
The subscription billing management market is segmented on the basis of type, end user, and region.
The type segment is classified into fixed and variable. Among these, the fixed sub-segment is anticipated to be the fastest growing during the forecast period. The growth in fixed subscribers has subsequently necessitated efficient subscription billing management systems. Companies are recognizing the importance of streamlining and automating billing processes to manage the growing customer base effectively. These systems not only handle recurring payments but also offer other benefits, such as tracking customer preferences, managing upgrades and downgrades, and providing personalized offers. As consumers seek convenience and flexibility, companies have adapted by offering subscription plans for products and services ranging from software, entertainment, healthcare, and even household essentials.
The end user segment is further classified into entertainment, ecommerce, fitness, publishing, and others. Among these, the fitness sub-segment is predicted to have the fastest growth during the forecast period. The fitness industry has witnessed an unprecedented surge in the number of subscribers, driven by an ever-increasing health consciousness among people worldwide. As more individuals prioritize their well-being, gyms, fitness studios, and online workout platforms have experienced a significant rise in memberships. This developing trend is projected to lead to an increase in demand for subscription billing management systems to efficiently handle the growing volume of fitness subscriptions. The shift towards a subscription-based model has proven advantageous for both fitness providers and consumers. Subscribers enjoy the convenience of accessing a diverse range of workouts and personalized training regimens at their fingertips, while fitness businesses benefit from a steady stream of recurring revenue.
The subscription billing management market in LAMEA is projected to show the fastest growth during the forecast period. The LAMEA region is witnessing a significant surge in the number of subscribers across various industries. This remarkable growth in subscriber bases can be attributed to the increasing adoption of digital services, such as streaming platforms, software-as-a-service (SaaS) offerings, e-commerce, and others. As more businesses shift towards subscription-based models to cater to consumer preferences and ensure recurring revenue streams, the demand for efficient subscription billing management solutions is on the rise. In addition, with the widespread availability of the Internet and the rapid proliferation of smartphones, consumers in the LAMEA region are increasingly embracing subscription-based services. The convenience, flexibility, and cost-effectiveness of such models have proven to be attractive for both businesses and customers. Therefore, companies are expanding their subscription offerings to cater to a broader customer base, intensifying the need for robust billing and subscription management systems.
Key Players in the Global Subscription Billing Management Market
Some of the leading subscription billing management market players are Zuora Inc., Salesforce, Inc., SAP SE, Oracle Corporation, ZOHO Corporation., Chargebee Inc., Chargify LLC., Recurly Inc., 2Checkout, and Apttus Corporation.