Expense Management Market Size, Share & COVID-19 Impact Analysis, By Type (Telecom/Mobile Expense Management and Cloud Expense Management), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By Industry (BFSI, Manufacturing, IT & Telecom, Healthcare, Hospitality, and Others), and Regional Forecast, 2022-2029

The global expense management market size was valued at USD 6.04 billion in 2021 and is projected to grow from USD 6.51 billion in 2022 to USD 12.05 billion by 2029, exhibiting a CAGR of 9.2% during the forecast period. North America dominated the global market with a share of 47.68% in 2021.

Expense management is a process of submitting, reporting, reimbursing, and auditing employee-initiated business expenses. Telecom Expense Management (TEM) software is an application that streamlines the receipt-to-reimbursement process. The software evaluates overall expenses, classifies cost-saving opportunities, and controls excessive spending. Additionally, expense manager or expense tracker is a software or application that aids in keeping a precise record of money inflow and outflow. However, it is a technique of handling and keeping track of numerous wireless, invoices, and data services to recognize total telecom costs.

It also includes reporting, business intelligence, and analytics suitable for driving action at a strategic and operational level. Furthermore, cloud-based TEM helps to control telecom expenses by tracking, reducing, and eliminating waste. Besides, it also includes cloud licenses, mobile telephony and data, Unified Communications as a Service (UCaaS) licenses, and the Internet of Things (IoT) connectivity.

For instance,

• In January 2021, as per Gartner, 7.6% of total IT spend was on mobile/cellular/wireless connectivity services.


• According to the Oxford Economics survey report, management overheads could bear around 75% of connectivity costs. For instance, with every USD 100 spent on a user, a mobile service provider could incur USD 75 extra hidden costs on management and distribution.

COVID-19 IMPACT

Rise in Internet Services Amid Pandemic is Likely to Fuel Market Growth

With the outbreak of COVID-19, the global market witnessed a significant surge in demand for internet services owing to remote working conditions. The rise in individuals working from home led to increased demand for online video streaming, downloading, and video conferencing, leading to increased network traffic and data usage.

For instance, as per the report by OECD, video conferencing traffic increased by 120% and online and cloud gaming increased by 30% in 2020.

Moreover, enterprises are advancing communication tools with converged IT systems that offer better flexibility. To manage these fixed and mobile complex networks, enterprises rely on dedicated TEM partners that offer full lifecycle support – from procurement to invoicing, inventory, and vendor management. Thus, increasing work from home policies and reliance on internet services is likely to boost the market.

LATEST TRENDS

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Rising Demand for Cost-effective TEM Solutions to Boost Market Growth

Telecommunication services are a significant area of expense for businesses since they are used to cooperate with customers and staff. The increasing cost of these services has led companies to focus on solutions that might help them save costs. As a result, businesses have shifted their attention to expense management solutions, allowing them to cut their telecom spending. These solutions provide ways to give the same services at a lower cost, lowering telecom spending. Achieving control over telecom expenditures would also free up money that businesses can use for additional purposes, increasing the performance of their core tasks. Therefore, companies are majorly focusing on implementing cost-effective telecom TEM solutions due to growing costs from incorporating the latest telecom-enabled services.

Thus, the global market has numerous opportunities for development due to lower implementation costs and rising demand for cost-effective solutions.

EXPENSE MANAGEMENT MARKET GROWTH FACTORS

Rising Adoption of Mobile Devices and Technological Advancements in TEM to Drive the Market Growth

Rising demand for mobile applications, increasing technological advancements, and growing acceptance of portable equipment in several companies play a vital role in fueling the expense management market growth. Moreover, increasing mobile device penetration and the rising popularity of cloud-based services also contribute to the market growth.

Furthermore, cloud-based technologies increased the adoption of video conferencing among enterprises. Additionally, improvements in telecom expenditure management, such as the introduction of 5G networks and AI-driven automation technologies, enable vendors to offer more agile and adaptable services at lower prices, allowing businesses to keep their telecom spending under check.

RESTRAINING FACTORS

Lack of Interoperability and Poor Performance among Vendors to Hamper Market Growth

The challenges in managing telecommunication include forecasting future spending, tracking inventory on bills, allocating the appropriate cost center, and invoice processing to hamper market growth.

TEM software provides multiple benefits to manufacturers, including planning, visibility over expenses, and others. However, vendors have posed too many challenges in implementing this software. Invoices, bills, and other telecom-related data are collected from different vendors to provide reliable and accurate results. This creates hurdles among units in the enterprise leading to lower interoperability.

Thus, extracting invoices from different vendor solutions may hinder the market growth.

SEGMENTATION

By Type Analysis

Ease of Module Integration is likely to Fuel Demand for Cloud-based System

On the basis of type, the market is bifurcated into telecom/mobile expense management and cloud expense management.

The telecom/mobile expense management segment held the highest market share in 2021 due to rising adoption of mobile devices and smartphones. Cloud-based solution is witnessing higher CAGR during the forecast period, owing to its growing popularity among businesses. Moreover, with the increasing number of video conferencing solutions, such as Skype and Zoom, people have shifted from landlines to wireless devices. Further, the rising adoption of cloud-based technology aids customers to build relationships and improve customer experience. Thus, the arrival of Zoom and other licensing tools has changed the appearance of organizational communication, thereby driving the need for TEM.

By Enterprise Type Analysis

Rising Demand for Digitization in Large Enterprises to Boost the Market Growth

Based on enterprise type, the market is bifurcated into large enterprises and small & medium enterprises.

Large enterprises segment captured maximum revenue share of the market in 2021. Rapidly growing digital engagement with customers is expected to surge the demand for TEM in large industries.

Additionally, TEM providers are continually improving business process outcomes by providing better visibility, ensuring asset performance and control of assets, and naturally reducing costs for communication services under management. These factors are likely to fuel the market share.

The small & medium enterprises segment is anticipated to grow with the highest CAGR in the forecast period. Enterprises are adopting this software to increase organizational efficiency, control expenditures, and automate the expense reporting process, which drive the market growth. Moreover, employees can file the expenses on the software by getting approved automatically.

By Industry Analysis

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Rising Supply Chain and Customer Engagement to Fuel the Demand for the Service in the Manufacturing Industry

Based on industry, the market is divided into BFSI, manufacturing, IT & telecom, healthcare, hospitality, and others.

Manufacturing holds the largest share in the market owing to improvements in the efficacy of supply chain operations and delivery of reliable customer experience. Moreover, using cloud-based TEM software compiles all data in one central location.

BFSI is expected to grow at the highest CAGR during the forecast period owing to its growing popularity among banks and financial institutions. TEM software helps banks and financial institutions recover maximum savings and keep their telecom operations under control.

REGIONAL INSIGHTS

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Geographically, the market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further segmented into countries.

North America is expected to dominate the global market over the forecast period. Increasing demand for mobile applications, rising adoption of portable equipment in several enterprises, and technological developments are driving the expense management software market growth. Furthermore, increased adoption of mobile devices and growing popularity of cloud-based services also aid market growth.

Asia Pacific is expected to witness rapid growth rate over the forecast period. The region's growth is due to increased mobile device usage, the growing popularity of personal device legislation, and the burgeoning IT and communications sectors. The telecom sector has undergone a significant transition due to the increasing usage of hybrid IT API architecture, with most businesses transferring their corporate infrastructure to the cloud.

Europe is expected to show a steady growth rate. European businesses require greater flexibility, control, and understanding of an ever-growing and complex telecom environment. For instance,

• The occurrence of Zoom and other per-seat licensing tools has transformed the face of organizational communication and driven the need for TEM.   

The rapid rise in digital solutions in industries in South America and increase in focus on on-time deliveries to meet customer expectations are likely to foster the TEM market share in the region.

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Similarly, growing digitization and mechanization across industries and substantial investments are driving the IT and telecom sectors in the Middle East & Africa to boost market growth.

KEY INDUSTRY PLAYERS

Focus on Business Expansion to Fuel Key Players’ Market Share

The top players are focused on expanding their geographical boundaries across the world by introducing industry-specific solutions. These players are strategically acquiring and collaborating with local players to gain a strong hold in the region. Moreover, the key players are introducing products to attract and retain their customer base. Also, continuous investment toward research & development of product offerings is thriving the market growth. Thus, by adopting such corporate strategies, players sustain their competitiveness in the market.

List of Key Companies Profiled in the Expense Management Market:

• Vodafone Group Plc (U.K.)


• Tangoe (U.S.)


• Brightfin (U.S.)


• Tellennium (U.S.)


• Valicom (U.S.)


• Avotus (Canada)


• Calero-MDSL (U.S.)


• Cass Information Systems, Inc. (U.S.)


• Habble Srl (Italy)


• VoicePlus (Australia)

KEY INDUSTRY DEVELOPMENTS:

• October 2022: Sakon announced to engage in a strategic partnership with TRG Screen, a provider of subscription based enterprise management solutions. Through this partnership, both firms would unleash new opportunities for customers to reorganize their expense and vendor management needs.


• August 2022: Calero-MDSL acquired Network Control, a provider of telecom expense management and managed mobility software and services. Through this acquisition the company aims to strengthen its technology and services to accelerate its business growth.


• June 2022: Tangoe launched a suite of bundles of their cutting-edge technology TEM platform named as Tangoe One. This platform is designed to help medium-size enterprises to manage, simplify, and optimize mobile, telecom, and cloud expenses and assets from a single platform.


• May 2021: Brightfin announced the merger of three veteran companies of telecom expense management services namely Mobile Solutions, MobiChord, and Visage Mobile. This merger was induced by Periscope Equity and it would be using brightfin’s TEM solution.


• December 2020: Tellennium engaged in a partnership with MicroCorp, a provider of telecommunications, data center, and cloud services. Through this partnership, Tellennium aims to strengthen their SaaS solution including automating, managing, and processing complex technology, and telecom invoicing for medium to large enterprises.

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