The market for cloud-based Automated Revenue Management (ARM) software represents a rapidly expanding five-year (2022-2026) total addressable market (TAM) exceeding $7 billion.*
Once viewed as an adjunct to the general ledger of an accounting application and considered an automation tool for revenue recognition, ARM solutions have blossomed into a standalone category that meets essential accounting needs of a growing number of industries. Contrary to conventional wisdom, the market for ARM solutions actually expanded and accelerated in growth since the adoption of new accounting standards. At the time of the arrival of ASC 606 and IFRS 15, many in the industry believed that corporate investment in revenue automation tools would decline after the reporting deadlines passed. Instead, as MGI Research predicted at the time, the market has in fact accelerated with more spending, more choices in the market, and more demand for ARM solutions in business and finance. The supplier’s market for ARM solutions is experiencing a period of investment and innovation. New start-ups are delivering innovative solutions and attracting funding, while existing players are dedicating more investment and resources to improving their offerings. The buyer’s perspective is shifting, no longer seeing ARM as a point solution to meet regulatory compliance requirements, but instead expanding into broader adoption as a method to automate and scale revenue accounting.
This MGI Research Forecast provides a quantitative estimate for the TAM for cloud-based ARM software solutions from 2022-2026. Included in this report are the worldwide annual estimates of spending, growth rate, breakdown of spending by company size, industry, and geography, and the demand impact of major secular trends like IoT, the Subscription Economy, and Digital Transformation, among others. This research is based on MGI Research’s proprietary MGI Forecasts global analytics model, a database that includes every publicly listed operating company with revenue greater than $1 million per year.
*Contact MGI Research for the precise figure.