A recent report predicts that the global tax management market will be worth $55.2 billion by 2030. This report comes from Reportlinker.com and includes several important insights that any investor should be aware of.
The Context Within the Report – Other Economic Predictions
The report is titled “Global Tax Management Industry.” In addition to the predictions for the tax management market, it also includes some general economic context. This context is primarily for later in 2023.
The report predicts that inflation for food, fuel, and retail will continue to be a concern. Experts also predict governments will continue to raise interest rates to fight inflation, thereby reducing job creation and investments. Therefore, all these factors will lead to recession concerns.
The Global Tax Management Industry report acknowledges that investors, markets, and consumers will face challenges this year. But it also predicts growth in the tax management industry, giving hope to investors and tax managers.
The Projected Figures
For context, consider that the 2022 global tax management market was estimated at $27 billion.
Now, consider the projection that it will reach $55.2 billion by 2030. This would be a compound annual growth rate (CAGR) of 9.3% from 2022 to 2030.
Within the overall realm of tax management, software will account for a significant portion. The report predicts that it will have an 8.8% CAGR, reaching $38.3 billion. Meanwhile, the Services segment is predicted to have a 10.7% CAGR.
Looking at Specific Countries
Experts predict China will have a tax management market of $12.9 billion by 2030. This would include a CAGR of 13.9% from 2022 to 2030. Canada also has a high predicted CAGR of 7.5%. Germany’s predicted rate is 6.2% CAGR, and Japan’s is 4.8%.
To provide context, the U.S. tax management market was estimated at $7.4 billion in 2022.
What It Means for Investors
The report clearly predicts that the tax management industry will grow globally. But what does this mean for you as an investor?
The predicted size of the tax management market indicates that there will be a sizable need for tax management. The need for tax management, in turn, indicates that there will be numerous investment opportunities.
After all, investments are one of the primary reasons that high-net-worth individuals need professional tax management. Earned income from a salary or wage tends to be more straightforward and doesn’t require as much tax management advice.
The predicted size of the market also indicates that investors will have their choice of tax management companies and professionals. In other words, you will be able to find a tax manager that specializes in your unique situation, including specialization in the size and the type of your investments.
With numerous tax management companies, investors will be able to choose one that is best suited in other ways as well. You will be able to find a company that fits your budget, your preferred tax and investment strategies, and your communication style. If you work with a tax manager who doesn’t seem to understand your goals, you can easily switch to another manager.
Digital Management Software
The prediction for the Software segment also gives you valuable insight. With a predicted global market of $38.3 billion, you can expect to have numerous options for tax management software. This will give investors like you the choice of using only the software or combining software with professionals to achieve your financial goals.
The recent Global Tax Management Industry report predicts the industry will be worth $55.2 billion by 2030. As an investor, this means that you can expect to have your choice of tax managers, including your choice of appropriate software. It also indicates that there will be plenty of investment opportunities, letting you grow and manage your wealth.
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