E-invoicing in Europe: Market Research
Info Setronica | April 19th, 2024
What is e-invoicing?
Electronic invoicing is the exchange of an electronic invoice document between a supplier and a buyer. An electronic invoice (e-Invoice) is an invoice that has been issued, transmitted and received in a structured data format which allows for its automatic and electronic processing, as defined in Directive 2014/55/EU.
The European Committee for Standardization (CEN) developed standard EN-16931 for electronic invoicing at the request of the European Commission following the Directive 2014/55/EU.
Market analysis
This section delves into a comprehensive market analysis, exploring the size, growth trajectory, dynamics, and the profound impact of global events such as COVID-19 on the e-invoicing ecosystem.
Size and growth
In 2023 the Europe E-invoicing market size reached €1.46 billion. Looking forward, IMARC Group expects the market to reach €5.5 Billion by 2032, exhibiting a growth rate (CAGR) of 15.4% during 2024-2032.
Dynamics
The European e-invoicing market is characterised by intense competition among vendors, with both established players and new entrants vying for market share. Vendors differentiate themselves through product innovation, integration capabilities, compliance with local regulations and customer support services. Strategic partnerships and collaborations with financial institutions, payment service providers and technology companies are common in the market.
Segmentation
The European e-invoicing market can be segmented according to deployment type, enterprise size, industry vertical, and region. Deployment types include on-premises, cloud-based and hybrid solutions. Enterprise sizes range from small and medium enterprises (SMEs) to large enterprises. Industry verticals adopting e-invoicing solutions include retail, healthcare, manufacturing, transportation, banking and finance, and others.
Key trends
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Adoption of artificial intelligence and machine learning: E-invoicing solutions are incorporating artificial intelligence (AI) and machine learning (ML) technologies to automate invoice processing, detect anomalies, and provide intelligent insights.
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Blockchain-based invoicing: The use of blockchain technology ensures the integrity and immutability of invoice data, enhancing security and trust in E-Invoicing transactions.
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Mobile invoicing: With the increasing use of mobile devices, e-invoicing solutions are providing mobile apps and responsive interfaces for convenient invoice generation, approval, and payment on the go.
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Advanced analytics and reporting: E-invoicing platforms are incorporating advanced analytics capabilities to provide businesses with real-time insights, financial forecasting, and customized reporting.
FAQ
To future-proof e-invoicing solutions, businesses should select platforms that offer flexibility, scalability, and compliance with evolving standards. Engaging with solutions that actively update to align with the latest regulatory requirements and technological advancements is crucial. Additionally, choosing providers that support interoperability between different e-invoicing systems can help businesses adapt to future changes in the e-invoicing landscape.
International standards for e-invoicing, such as the Cross-Industry Invoice (CII) and Universal Business Language (UBL), facilitate cross-border transactions by ensuring compatibility and understanding between different systems and regulations. Businesses should choose e-invoicing solutions that support these standards to ensure smooth international operations. Staying informed about changes in these standards and participating in industry discussions can also help businesses adapt more effectively.
Yes, e-invoicing solutions can integrate with existing business systems, such as Enterprise Resource Planning (ERP) and accounting software. This integration streamlines the invoicing process, reduces manual data entry, and minimizes errors. It allows for automated data exchange and processing, leading to improved efficiency, faster payment cycles, and enhanced data accuracy. Businesses should look for e-invoicing solutions that offer easy integration capabilities with their current systems to maximize these benefits.
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