Travel and Expense Management Software Market Expected to Reach $15.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Travel and Expense Management Software Market," The travel and expense management software industry was valued at $3 billion in 2022, and is estimated to reach $15.7 billion by 2032, growing at a CAGR of 18.3% from 2023 to 2032.

The documentation and processing of organizational business costs for tax deduction, budget compliance, business intelligence, and employee experience management is stated as travel and expense (T&E) management.  Travel and expense management software assist users to capture and upload receipts digitally. In addition, the technology helps in automated policy checks by flagging expenses that violate company policies, ensuring adherence to spending guidelines and compliance. Furthermore, the software integrates with travel booking platforms to centralize travel reservations and itineraries. In addition, the software helps employees plan and book trips within the company's travel policies. Moreover, the software enforces a structured approval process, allowing managers to review and approve expenses before reimbursement.

Major market players adopted different strategies to increase the competition and offer enhanced services to their customers in the travel and expense management software market. For instance, in April 2023, Yokoy launched its VISA credit card for business customers as well as its Smart Lodge card for fully-automated business travel payments and expense processing. The solution consolidates and automates expense management processes including value added tax (VAT) validation and reclaim, and automates expense approvals and travel expense reporting. Furthermore, in December 2021, TripActions launched TripActions LiquidTM in Europe. TripActions Liquid is the first fintech-powered travel and expense management offering that support card issuance in multiple currencies. The expansion increases TripActions ability to provide an end-to-end solution for global companies of all sizes while eliminating expense reports for employees and automating the entire expense management process for customers. In addition, June 2021, SAP SE upgraded its SAP Concur software with a new feature called verify, for its expense management software SAP Concur. This new feature will use machine learning and AI technology to automatically approve expense reports while identifying possible anomalies for auditors to review. Moreover in November 2023, 8Common Limited signed a contract with the Australian Government to provide travel and expense management solution under GovERP platform. The GovERP platform enables the selection of the company’s leading travel and expense management solution, Expense8, under a pre-selected panel of service providers. To date, the company has signed over $10.8 million in Total Contract value under the GovERP program, with the typical contract duration of 3 years. 8CO currently generates an average revenue per user of approximately $50 and services over 40,000 live users across 34 entities with the Federal Government. In addition, in January 2023, Serko Limited signed an agreement with travel management company, TakeTwo Travel Solutions to offer Zeno by Serko as a global travel booking tool. Zeno offers budget and spend optimization features that are designed to cut travel costs, including savings alerts and trip budget configurations based on policy type, policy category, and traveler profile custom fields. Therefore, such strategies foster travel and expense management software industry growth in the ICT sector.

Based on component, the software segment dominated the market in 2022. This is attributed to the large number of travel and expense management software software providers available in the market. However, the service segment is expected to grow in the future. This is attributed to the growing demand for skills assessment service and gradually increasing travel and expense management software service providers.

By organization size, the large enterprises dominated the market in 2022. This can be attributed to the large use of travel and expense management in the organization for managing everyday operations. However, the small and medium enterprises are expected to grow in the future as the small and medium businesses are slowly shifting towards travel and expense management software to avoid manual process, to tackle expense errors and policies and to gain better ROI.

Based on the region, North America dominated the global travel and expense management software market in 2022. This can be attributed to growing adoption of cloud based technology in the region. However, the Asia-Pacific region is growing at an increasing pace. This can be attributed to the growing small, medium and large technology businesses in the region.

Key findings of the study

• By deployment mode, on-premise segment led the travel and expense management software market size in terms of revenue in 2022.
• By organization size, large enterprises segment led the travel and expense management software market share in terms of revenue in 2022.
• By industry vertical, IT & Telecom segment led the travel and expense management software market forecast in terms of revenue in 2022.
• By region, North America led the travel and expense management software market analysis in terms of revenue in 2022.