Time Tracking Software Market

Time theft and buddy punching are some of the major concerns in companies that still use traditional paper timesheets for time tracking. Time theft is expected to affect almost 75–80% of the businesses. Also, a study by AffinityLive revealed that the US economy loses 50 million hours in productivity per day because of unrecorded work activities. This equates to a loss of USD 7.4 billion per workday, due to which the enterprises are investing in sophisticated time tracking tools that help in eliminating the risks relating to time theft and buddy punching, increase employee productivity, and improve employee engagement and performance. Time tracking software enables managers and employees to manage and track project time and expense, payroll, and other enterprise operations effectively. Furthermore, due to the emergence of cloud-based time tracking software, the prevalence of remote work, and the use of mobile phones for official purposes, it is expected that the time tracking software industry will grow during the forecast period.

The global time tracking software market was valued at USD 1,929.39 million in 2018; it is expected to reach USD 6,937.57 million by 2025, registering a CAGR of 20.69%. There has been a gradual increase in the demand for time tracking software owing to the growing need among enterprises to boost employee productivity and the increasing adoption of remote work culture and bring your own device (BYOD) policies. However, the availability of free and open-source time tracking software in the market is expected to hamper the growth of the market. Also, data privacy and security concerns are the major challenges faced by the market. The market seeks opportunities from the increasing demand for cloud-based time tracking software. The global time tracking software market has been segmented based on deployment, application, organization size, and region.

Based on deployment, the global market has been segmented into on-premise and cloud-based. Among these, the on-premise deployment type accounted for the largest market share of 73.2% in 2018, with a market value of USD 1,411.52 million. The cloud-based deployment is projected to register the fastest CAGR of 22.84% during the forecast period.

Based on application, the global market has been segmented into tracking and reporting, project management, and payroll. In 2018, the tracking and reporting segment accounted for the largest market share of 52.1%, with a market value of USD 1,005.54 million. The project management segment is projected to record the fastest CAGR of 22.99% during the forecast period.

Based on organization size, the global market has been segmented into small and medium-sized enterprise (SMEs) and large enterprise. In 2018, the large enterprise segment accounted for the largest market share of 68.7%, with a market value of USD 1,325.97 million. The SME segment is projected to exhibit the fastest CAGR of 23.09% during the forecast period.

For regional analysis, North America has been segmented into the US, Canada Mexico country-level markets; Europe into Germany, the UK, France, Italy, and the rest of Europe; Asia-Pacific into China, Japan, India, South Korea, and the rest of Asia-Pacific; the Middle East & Africa into GCC, South Africa and the rest of the Middle East & Africa; and South America into Brazil, Argentina, Colombia, and rest of South America. In 2018, North America accounted for the largest market share of 31.6%, with a market value of USD 610.65 million and is projected to register a CAGR of 21.03% during the forecast period. Europe was the second-largest market in the time tracking software market. In 2018, the market in Asia-Pacific exhibited the fastest CAGR of 22.21%.