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Employee Monitoring Software Industry Trends

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In recent years, the demand for employee monitoring software has increased due to the urgent need for companies to improve the productivity and efficiency of their employees.

According to Market Research Future, the employee monitoring solutions market is expected to reach $3.84 billion by the end of 2023, growing at 22.6%.

Employee monitoring software by technology

Cloud-based technology is hosted on the software provider’s servers. All data is managed and stored on the software provider’s servers.

On-premise software is, as the name implies, installed and run on your own computer/server, not on the software provider’s server.

The advantages and disadvantages of both cloud-based and on-premises software impact the market demand.

On-premise versus cloud-based software

Cloud-based software

Statistics show that this fast-growing trend is gaining momentum, mainly due to the many benefits and advancements associated with cloud technology, such as increased accuracy and productivity, improved manageability and reduced maintenance costs, and efficient and cost-effective employee tracking for end users. When it comes to data protection, cloud-based solutions depend on third-party security measures, which is a major issue for companies that want to protect sensitive data.


Statistics show that this trend is gradually fading as cloud technology advances. Nonetheless, many organizations continue this trend for a variety of reasons. On-premises solutions offer more control when it comes to data security. However, all data functions, updates, and configurations must be performed by dedicated IT staff. In addition, they require a significant upfront investment for installation and maintenance, which is a challenge for SMBs.

Employee monitoring software market, by company size/end user

Large enterprises

Companies in banking and finance, healthcare and insurance, government, hospitality, manufacturing, and IT (especially large enterprises) prefer to use on-premises services due to the increase in sensitive and business-related data.

Small and medium-sized businesses

Which have limited budgets and want a less constrained approach – are opting for cloud-based services. However, as the growing cloud services increasingly solve security and data encryption issues, larger companies may tend to combine the two options.

Employee monitoring software market, by region

United States

The United States remains the largest market for employee monitoring software. The North American market is split between the United States and Canada. The region’s strong market position is due to the presence of a large number of well-known vendors and the relatively high penetration of the technology in business organizations across different sectors.


According to market size projections, Europe is anticipated to be the second-largest market. The European market is split between the UK, Germany, France, and the rest of the world. Stringent regulatory requirements for access and employee protection, along with the need for enhanced employee monitoring, are driving the market growth in Europe.

Asia Pacific

This region is expected to be the fastest-growing market for employee monitoring software. The Asia Pacific market is divided into China, Japan, India, and the rest of the Asia Pacific region. The major factors driving the growth of employee monitoring solutions in the region are growing in the IT and telecom sectors and the increasing adoption of digital employee monitoring technologies.

Growth factors for employee monitoring software

1. The growing need to improve employee efficiency and productivity.

2. The growing need for employee monitoring within organizations.

3. Rapidly changing government policies and a rapidly changing economy.

4. The increasing popularity of Internet services and mobile applications for social media and online payments; and

5. Stringent legal requirements for access and employee protection.

About Author

Sarah Noah Liam is a 28-year-old Software Management person who enjoys programming, ems software, or user monitoring software. She has a post-graduate degree in Computer science. She was raised in a happy family home with two loving parents.

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