by The subscription and recurring payment market is estimated to be valued at US$ 154.05 Bn in 2022 and is expected to exhibit a CAGR of 18.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The subscription and recurring payment market involves payment models where consumers pay regularly for products or services at a fixed rate over a period of time. This enables businesses to offer their products and services to customers through a convenient subscription model. The growing digital economy has boosted subscription models across industries such as online video streaming, music streaming, software-as-a-service (SaaS), and others. Individuals can sign up for personalized subscription boxes to receive merchandise on a recurring schedule.
Market Dynamics:
The increasing adoption of digital technologies across enterprises has accelerated the growth of software-as-a-service (SaaS) model. As most SaaS businesses operate on a recurring payment model, this drives greater demand for subscription and recurring payments. Additionally, companies are increasingly offering personalized subscription services through subscription boxes and bundles to provide customized product experiences to consumers. This allows companies to learn more about customer preferences and retain them through engaging subscription offerings. Moreover, convenient payment options through credit/debit cards and digital payment apps have made recurring payments effortless for consumers and merchants alike. The proliferation of online shopping has also ushered in the popularity of subscription commerce.
Segment Analysis
The Subscription and Recurring Payment market is dominated by the Software-as-a-Service (SaaS) sub-segment. It holds over 40% of the total market share as most businesses today adopt cloud-based subscription models for various software and services. The SaaS-based recurring payments method provides flexibility to both businesses and customers in terms of payment plans and pricing.
PEST Analysis
Political: Favorable regulations around recurring payments have encouraged digital payment adoption in several countries.
Economic: The economic growth and rise of digital businesses have increased the need for recurring payment solutions.
Social: The change in consumer preference towards subscription-based services for content, deliveries, memberships etc. is driving market growth.
Technological: Advancements in payment gateways and the emergence of technologies like AI are making recurring payments more seamless.
Key Takeaways
The global Subscription and Recurring Payment market is expected to witness high growth, exhibiting CAGR of 18.5% over the forecast period, due to increasing adoption of subscription models by Software, content and other service providers.
North America accounts for the largest market share currently due to high penetration of digital payment services and presence of key players in the region. Asia Pacific is expected to grow at the fastest rate during the forecast period, driven by economic growth, rising internet penetration and adoption of new digital business models in countries like India and China.
Key players operating in the Subscription and Recurring Payment market are PayPal, Stripe, Square, Recurly, Chargify, Zuora, FattMerchant, Payment Depot, PaymentEvolution, FastSpring, Chargebee, Spreedly, ChargeOver, Chargent, Vindicia, Chargify, Razorpay, Cashfree, CCAvenue, BillDesk. These players are focusing on offering specialized recurring billing solutions and integrating their platforms with multiple digital payment methods for improved user experience.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
