- Kaulkin Ginsberg defines the accounts receivable management (ARM) industry for sizing purposes as businesses or markets that engage in the collection or recovery of creditor assets, which includes debt collection agencies, debt buyers, and repossession servicers. For the purposes of market sizing, however, collection law firms and ARM software providers and technology vendors have been largely omitted from calculations.
- This definition broadly encompasses related markets, but not too expansively to the point at which it includes all outsourced business service (OBS) industries.
- Overall, the ARM industry generated revenues amounting to $22.8 billion in 2019 – the latest year for which historical data is available – up 7.1% from $21.3 billion in 2018.
- Of this total, 71.4% was attributed to collection agencies, 23.8% to debt buyers, and the remaining 4.8% to repossession servicers.
- Kaulkin Ginsberg projects that industry revenue further grew by 4.1% in 2020 to $23.7 billion, driven primarily by improved recovery outcomes resulting from pandemic-induced government stimulus benefits delivered to consumers and businesses.
- Kaulkin Ginsberg forecasts that ARM industry revenue will rise only marginally to $23.8 billion in 2021 – an increase of just 0.2% from 2020 – resulting from strong collection rates balancing out falling placement levels and regulatory concerns.
- In the long term, Kaulkin Ginsberg predicts that the ARM Industry will grow at an average annual rate of 2.9% to $26.2 billion in 2024.
ARM Industry Revenue, by Segment
 Data derived from Census Bureau, FTC, various annual financial filings from publicly traded companies, and calculations by Kaulkin Ginsberg.