Market Overview 

Tax management software and solutions are specifically designed to assist in the handling of tax deposits and returns. The tax management software includes assistance in online tax fillings and e-returns. In contrast, the services include monitoring of financial affairs and income revenue sources so as to remain in compliance with tax regulations. 

Market Dynamics  

The surge in the number of financial transactions across multiple verticals in diverse global locations and increasing commercial need for assistance in understanding the problematic nature of tax systems are the primary factors driving the market growth. The incremental change in commercial transactions and transfer of funds from one business to another is one of the primary factors influencing robust market growth, with taxes deducted at multiple levels of such transactions. The rapid commercial globalization of business opportunities and enterprise expansion in geographical reach has added to the prospects of market growth, as businesses have to deal with tax considerations at domestic and international levels. The broader federal vigilance would further instigate extended instances of adoption of tax management solutions, improving the growth of the market. However, the lack of standardization in tax regulations and the threat of cyberattacks in case of digital tax management systems might hamper the market growth. The lack of standardization in rules of tax deductions, even on a regional level, might hinder the growth prospects of the Tax Management market. The inherent challenges of cybersecurity and possible leak of confidential corporate data might also refrain businesses from investing in the procurement of tax management software. The gradual incorporation of online filing and digital cloud-based solutions in tax management systems would provide lucrative opportunities for the market in the coming years. The decentralization of monitoring and vigilance of tax filings and deductions, brought about by the integration of cloud-based digital tax management services, would offer crucial vendors with new opportunities of product application and business expansion in the ensuing years. 

Market Segmentation 

The global Tax Management market is mainly classified based on Type, Application, Tax Type, and Organization Size. Type is segmented into Software and Services. By Application, the market is divided into Banking, Financial Services & Insurance (BFSI), Information Technology (IT) & Telecom, Manufacturing, Energy & Utilities, Retail, Healthcare & Life Sciences, Media & Entertainment, and Others. Tax Type is divided into Indirect Tax and Direct Tax. By Organization Size, the global Tax Management market is categorized into Small & Medium-sized Enterprises (SMEs) and Large Enterprises. 

The Software segment by Type holds a significant share in terms of overall market value owing to the ease in online fillings and e-returns of tax systems. The simplicity of complex tax regulations and quick changes to financial calculations based on modifications to the existing rules would further bolster the growth prospects of the segment. 

In terms of Application, the Banking, Financial Services & Insurance (BFSI) segment is poised to garner $8,634.4 million by 2026; growing at a CAGR of 12.8% during 2020-2026. The surge in software adoption in financial institutes to handle multiple client accounts and development of solutions to monitor irregularities in tax filings would boost the segment growth in the coming years. 

Regional Analysis 

Based on geography, the global Tax Management market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. North America is further divided in the U.S., Canada, and Mexico, whereas Europe consists of the UK, Germany, France, Italy, Russia, and Rest of Europe. Asia-Pacific is segmented into India, China, Japan, South Korea, and Rest of Asia-Pacific. The South America region includes Brazil, Argentina, and the Rest of South America. At the same time, Middle East & Africa is categorized into GCC Countries, Egypt, South Africa, and Rest of Middle East & Africa. 

North America is a leading region and holds a substantial share in terms of overall market value owing to the establishment of large-scale corporations requiring the need for deployment of tax management software solutions. The increased customer openness in the region to digital solutions that are exclusively dedicated to tax management services would further bolster the demand for products and instigate the regional market growth. 

Competitive landscape 

The Tax Management market is moderately consolidated, with few companies operating in the evolving market scenario with an extended global market reach and expansive solution offerings. The investments into software development and strengthening of service capabilities would further strengthen the secure market positioning of top players. 

Key players operating in the Tax Management industry include Avalara, Inc., Automatic Data Processing, Inc., Intuit Inc., Thomson Reuters Corporation, Wolters Kluwer N.V., Blucora, Inc., H&R Block, Inc., SAP SE, Sovos Compliance, LLC, Vertex, Inc., Canopy Tax, Inc., DAVO Technologies, Defmacro Software Pvt. Ltd., Drake Software, Sailotech, Taxback International, TPS Unlimited, Inc., TaxSlayer LLC, and Xero Limited. 

The launch of new software solutions after thorough development and diversification of business opportunities through strategic partnerships are the primarily followed business strategies of the top players looking to capture substantial market share during the forecast period.  

Covid-19 Impact Analysis 

The rapid spread of the Covid-19 pandemic has reached almost every corner of the globe and is continuing to rage on. Several governments have been compelled to implement stringent lockdown measures that have resulted in the closure of industrial activities in almost all of the major countries. The closing down of industrial activities has severely lessened financial transactions, as many businesses refrain from multiple purchasing orders and product procurement activities. The grave economic losses incurred during extended months of business inactivity has diminished the possibilities of profitable business operations. Such factors have further declined the prospect of tax deductions, as corporations opt for cost-cutting measures to avoid bankruptcy in several instances. The decline in transactions has reduced the need for tax management solutions, as low spending would invariably lead to lower sales tax and income generation. Inversely, the cloud-based tax management solutions might witness a surge in adoption as corporations continue to adopt remote working models during the rise in cases of the Covid-19 pandemic. 

Tax Management Market Key Segments: 

By Type 

• Software 
• Services 

By Application 

• Banking, Financial Services & Insurance (BFSI) 

• Information Technology (IT) & Telecom 
• Manufacturing 
• Energy & Utilities 
• Retail 
• Healthcare & Life Sciences 

• Media & Entertainment 
• Others 

By Tax Type 

• Indirect Tax 
• Direct Tax 

By Organization Size 

• Small & Medium-sized Enterprises (SMEs) 
• Large Enterprises 

Key Global Tax Management Industry Players 

• Avalara, Inc. 

• Automatic Data Processing, Inc. 
• Intuit Inc. 
• Thomson Reuters Corporation 
• Wolters Kluwer N.V. 
• Blucora, Inc. 

• H&R Block, Inc. 
• SAP SE 
• Sovos Compliance, LLC 
• Vertex, Inc. 
• Canopy Tax, Inc. 

• DAVO Technologies 
• Defmacro Software Pvt. Ltd. 
• Drake Software 
• Sailotech 
• Taxback International 

• TPS Unlimited, Inc. 
• TaxSlayer LLC 
• Xero Limited 

What Report Provides 

• Full in-depth analysis of the parent Industry 

• Important changes in market and its dynamics 
• Segmentation details of the market 
• Former, on-going, and projected market analysis in terms of volume and value 
• Assessment of niche industry developments 
• Market share analysis 

• Key strategies of major players 
• Emerging segments and regional growth potential