This MGI MarketView™ provides an overview of the key data measurements of the automated revenue management (ARM) market, such as the total addressable market (TAM), compound annual growth rate (CAGR) by country and company size, top-spending industries and countries, and a summary of the market headwinds and tailwinds.
MGI Research estimates global spend on cloud ARM tools by publicly traded companies will reach nearly $2.2 billion in 2026, representing a 17% CAGR.
What is automated revenue management?
Automated revenue management (ARM), sometimes called revenue recognition or rev rec, helps automate the scheduling, allocation, calculation, and presentment of revenue in the appropriate periods and amounts within the accordance of accounting standards and other regulatory mandates. It is a key component of an Agile Monetization Platform (AMP).
How big is the automated revenue management market?
The market for cloud ARM tools among publicly traded companies is projected to reach nearly $2.2 billion in 2026, growing at a 3-year CAGR of 17%.
Which countries and industries are investing in ARM?
Micro and small companies are ramping up their spending on automated revenue management software. Micro companies are increasing their spend on ARM tools at a CAGR of 22%, and small companies are increasing their spend by 20% each year.
The United States, Japan, and South Korea are spending the most on ARM software – the US alone represents more than one-third of the 2026 ARM total addressable market. ARM spending is growing fastest in Japan with a CAGR of 19%, followed by China (17%) and South Korea (15%).
Information Technology (IT), Consumer Discretionary, and Industrials are the top-spending industries in the ARM market.
Why are companies investing more in automated revenue management tools?
Increased regulatory complexity and pressure (such as the ASC 606 and IFRS 15 compliance deadlines) kickstarted adoption of revenue recognition tools. Today’s investment in automated revenue management software, which goes beyond revenue recognition to provide revenue insights and intelligence, is driven by a) increased pressure on finance teams to provide greater support to the business in a timely, precise manner, and b) the need to scale finance teams efficiently.
Who are representative ARM software vendors?
Vendors in the ARM market covered by MGI Research include, but are not limited to, Ayara, BillingPlatform, Certinia, Chargebee, Gotransverse, Maxio, Oracle, Oracle NetSuite, RightRev, Sage Intacct, SAP, Workday, Zone & Co, and Zuora.
This is a select list of representative suppliers. MGI Research covers over 30 vendors in the ARM market. Go deeper with MGI’s coverage of this space here.
What is an MGI MarketView™?
An MGI MarketView™ is a market summary of the key characteristics of a given market. It provides the total addressable market (TAM), compound annual growth rate (CAGR), spending by region and industry, an overview of growth drivers and inhibitors, and representative suppliers. MGI MarketViews™ are based on comprehensive data and analysis contained in MGI Market Forecasts, MGI ICP Notes™, and MGI 360 Ratings™.
