Xero leads the way as demand for cloud-based solutions surges
According to the latest IDC Market Share report titled “Asia/Pacific (excluding Japan) Financial Applications Market Share, 2022,” Xero has emerged as the leader in the Asia/Pacific (APeJ) financial applications market for SMB and midmarket segments. The region witnessed a substantial 10 per cent growth in 2022 compared to the previous year, with the market generating an impressive revenue of $US3.1 billion.
The rise in demand for mobile wallets, online banking services, and the increasing adoption of digital technologies has been instrumental in driving the expansion of the financial applications market in Asia/Pacific. The ongoing digital transformation (DX) initiatives and the widespread adoption of mobile technologies have further fueled the demand for cloud-based financial applications across the region. With companies increasingly seeking secure and compliant solutions to manage their financial data, the market for cloud-based financial applications in Asia/Pacific is poised for significant growth in the coming years.
According to IDC’s 2023 Future SMB and Midmarket Survey, 50 per cent of respondents, primarily small and medium-sized businesses (SMBs), in Asia/Pacific have expressed their intention to automate financial and accounting processes using cloud applications within the next 18 months.
Supriya Deka, Senior Market Analyst at IDC Asia/Pacific SMB and Midmarket Program, emphasizes the need for continuous innovation among financial solution providers to meet the unique needs and requirements of businesses. Deka highlights the importance of integrating emerging technologies like low-code, no-code, and generative AI into financial platforms. By offering specialized and cutting-edge financial solutions tailored to SMBs and midmarket businesses, these providers enable organizations to thrive and succeed in an ever-evolving business environment.
The rapid growth of the financial applications market in Asia/Pacific reflects the region’s commitment to digitalization and the increasing reliance on cloud-based solutions for financial management. As businesses prioritize automation and seek technology-driven solutions, the market is expected to witness sustained growth, presenting significant opportunities for providers to innovate and cater to the evolving needs of businesses across the region.
