The global audit software market is characterized by the presence of several global, regional, and local providers. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, rapid advances in technology, and frequent changes in government policies are key factors that restrict the market growth. The vendors compete based on the features offered in their audit software solutions, cost of the software, regulatory compliance, and reliability of software. It is crucial for enterprises to offer innovative technology and value-added services for survival and success in a cutting-edge competitive market environment. The market share analysis is derived by considering various factors such as financial position, R&D investments, brand value, product portfolio, strategy analysis, and key innovations in the global audit software market
According to Wantstats analysis, SAP SE, Netwrix, MetricStream, Logic Manager, AuditDesktop are some of the key players of the global audit software market as of 2018. These companies continue to retain their strong global hold through expansion, mergers, and acquisitions, strong revenue, and offering a broad portfolio of audit software solutions.
SAP SE is a key player in the global audit software market. The company develops audit management software with advanced features that include simplified audit planning and management, reconciled tracking, and delivery of audit results that attracts its customers and stands top when compared with its peers. As a part of its growth strategy, the company follows both organic and inorganic growth strategies to survive in the competitive market scenario. SAP SE continuously invests in product development, with a focus on introducing new, proprietary products. The company’s research and development (R&D) efforts allow it to develop several innovative products, which provides it with a significant competitive advantage in targeted markets.
MetricStream is yet another significant player in the market. The company offers audit management software solution that helps businesses with a variety of audit-related activities, data, and processes in a single application. The features of the software application offered include support to all types of audits- internal audits, operational audits, IT audits, supplier audits, and lastly, the quality audits. Also, the company offers end-to-end utilities that manage the whole audit cycle, right from planning and scheduling to development of standard audit plans and checklists, to field data collection, to development of audit reports and recommendations. The company is engaged in developing new products and enhancing the use of existing products and services. The company has well-diversified operations that mitigate risks associated with over-dependence on a single or a few segments.
AudiDesktop is a prominent player in the global audit software market that offers audit management software with functionalities such as self-assessments based on country-specific regulations, management of assignments, scheduling, and completion of audits, and so on. The company has invested heavily in acquiring several products, services, and technologies that complementary to its existing offerings. It has a broad product portfolio with security and compliance as its aim.
Intelex Technologies is a significant player in the global audit software market that offers a software application with features that include centralized audit data, automated email alerts, checklists, reports & dashboards, report non-conformances, and track corrective and preventive actions. It focuses on its research and development capabilities to provide customers with best-in-class auditing solutions. The company also plans on expanding and strengthening its core business with targeted acquisitions and through new product development.
MasterControl, Inc. is a market player that offers a complete audit solution with the combination of scheduling and conducting audits. It offers functions that include connected audit management and quality management, centralized audit management, simplified approval and reports, standardized audit process, improved collaboration, 21 CFR Part 11 Compliant, and so on. It is innovating its technologies to develop software that fastens, eases, and efficient audit software.
Some of the other active players working in the global audit software market are SHLOKLABS, Netwrix Corporation, Logic Manager, Gensuite, IQVIA Company, Onspring Technologies LLC, and IQS, Inc hreat of New Entrants
The major vendors in the global audit software market, such as Netwrix Corporation, SAP SE, SHLOKLABS, MetricStream Inc, Intelex Technologies, and MasterControl Inc, are pioneers in this field and have become popular brands globally. These players collectively have occupied a large market share in the audit software market as they possess the required resources, capital funds, customer base, and high technical expertise. However, audit software is one of the most cost-effective tools for all kinds of businesses, and hence it creates lucrative opportunities for new firms to enter the market. The technological complexity of the audit software is high, and developing it requires significantly high technical expertise. Therefore, new entrants are likely to possess a low threat to the major vendors operating in the global audit software market during the forecast period.
Bargaining Power of Suppliers
The number of suppliers in the audit software market is moderate, as many established and local players design and develop audit software. Due to the presence of an adequate number of suppliers, there exists high competition among them, which highly affects their bargaining power. The product differentiation of audit software is low due to major similar features in the software. Conclusively, a large number of suppliers, low product differentiation, and high competition among the suppliers, is expected to have minimal effect on the bargaining power of the suppliers during the forecast period.
Bargaining Power of Buyers
The audit software has been registering significant demand from various small- and medium-sized organizations that majorly consist of accounting/CPA firms, and other industry verticals. The buyer’s concentration in the market is high due to the presence of a large number of firms using audit software. The price sensitivity is expected to moderately affect the bargaining power of buyers since the change in the cost of audit software subscription will only affect the SMEs and not the large customers. Due to the presence of a significant number of buyers in the market, moderate brand identity and price sensitivity, the bargaining power of buyers is expected to be moderate during the forecast period.
Threat of Substitutes
The major alternative to audit software is the freeware software that is available free of cost over the internet. However, these alternatives do not provide the features of the subscription-based audit software, which results in declining its use, which is expected to affect the audit software market moderately. The buyers’ propensity toward the substitutes is low since buyers are inclined toward the branded and reputed audit software providers. Therefore, the threat of substitutes in the global audit software market is expected to be moderate.
Intensity of Rivalry
The global audit software market is expected to register a moderate degree of rivalry among the existing vendors due to their increased concentration and rising demand for audit software in the market. The end-users are more inclined toward tier I companies; therefore, the market registers a high brand loyalty. The product differentiation is also high due to which each player provides differentiate products based on customer needs. Therefore, the competition among the existing players is moderate and expected to remain so during the forecast period.
