Travel Expense Management Software Market Size, Share, Growth Analysis, By Deployment(Cloud Based, On-Premise), By Organization Size(SMES, Large Enterprises), By Region - Industry Forecast 2024-2031

Travel Expense Management Software Market size was valued at USD 3.26 billion in 2019 and is poised to grow from USD 3.6 billion in 2023 to USD 8.7 billion by 2031, growing at a CAGR of 10.3% in the forecast period (2024-2031).

The travel expense management software market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. 'Concur Technologies Inc.', 'SAP SE', 'Certify Inc.', 'Expensify Inc.', 'Chrome River Technologies Inc.', 'Apptricity Corp', 'Basware Corp.', 'Infor Inc.', 'Nexonia Inc.', 'Paychex Inc.', 'Fraedom Holdings Limited', 'Abacus Labs Inc.', 'Rydoo', 'Zoho Corporation', 'Xpenditure', 'Fyle Technologies', 'Happay', 'Fingage', 'TravelBank', 'BCD Travel'

The need for tracking and managing expenses over the anticipated period has resulted in a significant increase in the adoption of travel and expense management software across industries. Additionally, the increase in business trips and tours has been sharply increasing. Because this management software assists in managing bookings and creating itineraries for employees, many businesses are heavily invested in managing the expense report through it. For instance, every day, almost 1.3 million people travel for work in the United States alone.

A trend in the travel and expense management software market that is anticipated to have a positive effect in the upcoming years is the use of artificial intelligence (AI). By verifying the legitimacy of the expense claims made by employees, AI in travel and expense software can minimise or even completely eliminate fraud. The growing number of annual travel and expense reports that employees submit is one of the main issues businesses face because it makes it challenging for the finance departments to thoroughly audit these reports. AI can be used by businesses to automate policy checks, create audit trails, and flag non-compliant employees. AI assists in the analysis of questionable expenditures in terms of policy violations, obviating the need for manual intervention. By retrieving digital receipts from emails or extracting the necessary data from a receipt's image, AI is used in travel and expense software to assist employees. Employees can thus save time by not having to enter all the necessary data, increasing productivity and lowering expense fraud.

North America is expected to control the travel expense management software market share. This is a result of business adoption and development of cloud technologies also the software's accessibility on mobile devices and the escalating adoption of technological advancements. Over the course of the forecast period, the market for travel and expense management software in Asia Pacific is anticipated to expand quickly. The presence of a sizable number of small and medium-sized businesses and their growing propensity for travel and expense management software are credited with the region's growth. In addition, it is anticipated that rising business travel to nations like China, India, and Hong Kong, among others, will increase demand for the software. The growth of the cloud infrastructure in these regions is also expected to increase demand for software in Latin America, the Middle East, Africa, and Asia Pacific. Additionally, the presence of regional firms like Zoho Corporation Pvt. Ltd., Expensify Inc., and VA Tech Ventures Pvt. Ltd., which offer travel and expense management software for small and medium-sized businesses in the Asia Pacific, has contributed to the expansion of this market. The travel and expense management software market in North America is also anticipated to be driven by the introduction of machine learning and predictive analytics.