Travel And Expense Management Software Market Statistics: 2032
The global travel and expense management software market was valued at $3 billion in 2022, and is projected to reach $15.7 billion by 2032, growing at a CAGR of 18.3% from 2023 to 2032.
The key factors such as rise in the adoption of mobile devices, the increase in the demand for reducing operational costs and expenses and the surge in need for hassle-free claim of expenses are significant factors driving the growth of this market. In addition, the lack of skilled workforce is hampering market growth. Furthermore, the upsurge in the growth of travel technology companies is providing opportunity for market growth which fuels the growth of the market.
Travel and expense management software market refers to the industry and marketplace where software solutions are designed to manage and automate travel and expense-related processes which are bought & sold and utilized by businesses and organizations. This market encompasses the development, sale, and implementation of software solutions that cater to the needs of managing corporate travel, tracking expenses, and streamlining related financial processes. The key components of the travel and expense management software market include software providers, buyers and users, integration partners, consulting and implementation services.
The report focuses on growth factors, restraints, and trends of the travel and expense management software market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the travel and expense management software market.
Segment Review
The travel and expense management software market is segmented into deployment mode, organization size, industry vertical and region. On the basis of deployment mode, the market is divided into on-premises and cloud. By organization size, the market is bifurcated into large enterprises and small & medium enterprises. Depending on industry vertical, the market is classified into IT & Telecom, BFSI, manufacturing, public sector, healthcare and others. On the basis of region, the market is studied across North America, Europe, Asia-Pacific and LAMEA.
Based on deployment mode, the cloud segment dominated the market in 2022. This is attributed to the increase in the advancements into the cloud-based infrastructure, as the cloud technology provide various benefits such as convenient accessibility to different applications from remote areas; virtual bookings and other innovative solutions. However, the on-premises segment is rising as it provides strong security and reduced costs benefit as compared to cloud technology.
Based on the region, North America dominated the global travel and expense management software market in 2022. This can be attributed to surge in the adoption of cloud-based technology in the region. However, the Asia-Pacific region is rising at an increasing pace. This can be attributed to the increase in the small, medium and large technology businesses in the region.
The report analyzes the profiles of key players operating in the travel and expense management software market such as Apptricity Corp., KDS Inc. (American Express GBT), Interplx Inc. (Serko Limited), Expensify Inc., Coupa Software Inc., 8Common Limited, Oracle Corporation, SAP Concur (SAP SE), TripActions Inc. (Navan Inc.), and Advixchange Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the travel and expense management software market.
Top Impacting Factors
Growing Adoption of Mobile Devices
The upsurge in the use of smart and mobile devices such as smartphones, laptops, tablets and others are driving the growth of this market. Travel and expense management software mobile applications are assisting users to capture receipts, submit expense reports and track spending after being away from the office. In addition, integration of travel and expense management software with mobile devices is useful in real time tracking of expenses. Real time tracking provides benefits such as efficient budget control and spending pattern visibilities, as it promptly records expenses incurred, improving the accuracy and timeliness of data.
Furthermore, managers can easily review and approve expense reports by using travel and expense management software applications. In addition, various travel and expense management software can be easily integrated with travel booking platforms, allowing mobile users to manage both travel and associated expenses. Therefore, all these factors are expected to drive the growth of the travel and expense management software market during the forecast period.
Increasing Demand for Reducing Operational Costs and Expenses
Travel and expense management software automates various manual processes associated with expense reporting such as data entry, receipt capture and expense categorization. The software automates all these tasks, reducing time, increasing operational efficiency and leading to the high cost savings. In addition, the automated approval workflows in expense management software are streamlining the process of reviewing and approving expense reports. This efficiency provided by the software reduces time consumption, leading to more strategic tasks.
Furthermore, travel and expense management software automates policy checks and flags non-complaint expenses, thus organizations can control costs effectively and can prevent unnecessary expenditure. In addition, the software provides real-time visibility into corporate spending patterns. This visibility allows organizations to identify areas of overspending, optimize budgets, and make data-driven decisions to reduce unnecessary costs. Therefore, all these factors are expected to drivee the growth of the travel and expense management software industry during the forecast period.
Rising Need for Hassle-free Claim of Expenses
Travel and expense management software enables experience management faster and simpler by automatically routing expense reports to approvers and paying approved expenses electronically, thus reducing time and cost of processing expenses. In addition, the technology results in faster employee reimbursement more rapidly than manual processes. Furthermore, the software reduces data entry errors and restricts duplicate entries and prevents overpayment. In addition, the software enforces standard policies and restricts out of policy expenses.
Moreover, the technology provides better visibility by displaying metrics such as expenses per employee, per category and the time taken to approve expense reports. In addition, reporting and analytics associated with software provide real-time insight into expenses by employee, by project and by category. Therefore, all these factors are expected to propel the travel and expense management software industry growth during the forecast period.
Lack of Skilled Workforce
Skilled professionals are required to efficiently manage and operate travel and expense management software, thus lack of workforce can result in inefficiency and reduced effectiveness of software. In addition, the software requires proper training for end users to ensure effective utilization. Inadequate training programs, reduced user adoption and overall efficiency is leading to shortage of skilled workforce. Furthermore, customization of software demands skilled professionals. Due to the lack of skilled workers companies struggle to optimize the software for maximum efficiency, resulting in underutilization of software. Therefore, all these factors are expected to hamper the travel and expense management software market share growth during the forecast period.
Increasing Growth of Travel Technology Companies
Travel technology companies offer integrated solutions that combine travel aspects, bookings, itenaries and expenses. In addition, travel technology companies integrate expense management software into platforms to deliver a more user-friendly and efficient travel experience. Furthermore, there are different emerging travel technology companies in the market that offer travel and expense management software. For instance, Booking XML is a prominent travel technology company that offers travel technology software solutions to assist travel agencies, travel agents, online travel agencies and others in terms of management and finance.
In addition, Tripfro is a prominent travel technology company that offers travel portal solutions to make bookings easier. The portal offers real-time inventory data, the best purchase rate, seamless multilingual customer service, and diverse customer portfolios. Therefore, all these factors are expected to drive and create opportunities for the travel and expense management software market size growth during the forecast period.
Market Landscape and Trends
The market is witnessing the emergence of new and innovative entrants, specializing in specific niches and offering unique features. Startups focused on mobile expense management, AI-driven automation, and user-friendly interfaces are gaining attention. The increase in the reliance on mobile devices is accelerating the development of mobile-friendly applications. The users expect the ability to manage expenses on the go, capturing receipts and submitting claims through mobile applications. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) for automation is a rising trend. This include automated expense categorization, fraud detection, and predictive analytics to provide insights into spending patterns.
Key Industry Developments
Recent Partnerships in Market
In April 2023, Navan, an online travel management, corporate card and expense management company, acquired Tripeur, a modern travel and expense management company. The aim behind this strategic move is to deliver a seamless, unified travel and expense solution that delivers personalized experiences for business travelers, savings for CFOs, and increased efficiency for admins.
Recent Product Launches in Market
In February 2023, Coupa launched unified travel and expense suite to expand business spend management coverage. The product launch completes an expansion for Coupa from an expense reimbursement-focused solution to a full travel-and-expense management suite that helps companies maximize capture of travel spend to be more efficient and more sustainable.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the travel and expense management software market analysis from 2022 to 2032 to identify the prevailing travel and expense management software market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the travel and expense management software market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global travel and expense management software market trends, key players, market segments, application areas, and market growth strategies.
Travel and Expense Management Software Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 15.7 billion |
 Growth Rate | CAGR of 18.3% |
 Forecast period | 2022 - 2032 |
 Report Pages | 414 |
 By Organization Size |
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 By Industry Vertical |
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 By Deployment Type |
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 By Region |
|
 Key Market Players | TripActions Inc., Interplx Inc., 8COMMON LIMITED, KDS Inc., Expensify Inc., Apptricity Corp., AvidXchange Incorporated, SAP Concur, Oracle Corporation, Coupa Software Inc. |
Analyst Review
As per the insights of the top level CXOs, the travel and expense management software is a software that helps in the process of collecting all travel-related expenses in order to write –off. The travel and expense management involves documenting and processing company business expenses for tax deduction purposes. The software helps in automating the process of expense tracking. Employees can conveniently submit expenses through the system, and the software can automatically categorize and process them. Furthermore, the software tools allow users to capture receipts digitally using mobile devices, eliminating the need for paper receipts and making it easier to manage and submit expenses. In addition, the software enforces company travel and expense policies by flagging and rejecting expenses that do not comply with the established guidelines. This helps in controlling costs and ensuring adherence to corporate policies. Moreover, the software provides a structured workflow for expense approvals. Managers can review, approve and reject expenses online, reducing the time and effort involved in manual approval processes.
The CXOs further added that market players are adopting strategies like product launch for enhancing their services in the market and improving customer satisfaction. For instance, in August 2021, Coupa Software Incorporated, a leader in business spend management launched Coupa app marketplace. The application connects businesses with certified, pre-built solutions that create a seamless way to tap into a trusted global community of BSM partners. Furthermore, the application is designed to enable rapid access of off-the-shelf applications and integrations to address evolving business needs. In addition, it provides seamless linking between systems for a single source of truth and end-to-end workflows. Moreover, the application deliver expert deployment of limited IT resources through secure applications specifically built for Coupa’s platform. Furthermore, in May 2020, the Apptricity, a global leader in real-time asset management, launched new mobile application named Apptricity mobile asset tracking. The application combines Bluetooth, barcode and RFID scanning. The application include features such as location auditing, asset reading, asset movement tracking and others. Therefore, such strategies are expected to boost the growth of the travel and expense management software market in the upcoming years.
The report analyzes the profiles of key players operating in the travel and expense management software market such as Apptricity Corp., KDS Inc. (American Express GBT), Interplx Inc. (Serko Limited), Expensify Inc., Coupa Software Inc., 8Common Limited, Oracle Corporation, SAP Concur (SAP SE), TripActions Inc. (Navan Inc.), and Advixchange Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the travel and expense management software market.
The market is witnessing the emergence of new and innovative entrants, specializing in specific niches and offering unique features.
On-premise is the leading application of Travel and Expense Management Software Market.
North America is the largest regional market for Travel and Expense Management Software.
$29.76 billion is the estimated industry size of Travel and Expense Management Software.
Apptricity Corp., KDS Inc.(American Express GBT), InterplX Inc.(Serko Limited), Expensify Inc., Coupa Software Inc., 8Common Limited, Oracle Corporation, SAP Concur (SAP SE), TripActions Inc. (Navan Inc.), and Avidxchange Inc. are the top companies to hold the market share in Travel and Expense Management Software.
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