New Delhi, May 13, 2024 (GLOBE NEWSWIRE) -- The global tool tracking software market was valued at US$ 34.9 billion in 2023 and is anticipated to generate a revenue of US$ 111.7 billion by 2032, with a CAGR of 13.8% from 2024 to 2032.
The future of the tool tracking software market is gleaming bright, fueled by a confluence of factors. This surge is being driven by the explosion of Internet of Things (IoT) devices. With the number of active IoT connections expected to hit a mind-blowing 30.9 billion by 2025, the demand for tools to track these assets effectively is skyrocketing. Adding fuel to the fire is the growing talent pool of software developers. The demand for these professionals is estimated to soar by 21% by 2028, with a median annual wage significantly higher than the national average. This influx of skilled developers paves the way for continued innovation in the tool tracking software space.
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The benefits of these solutions extend far beyond simple inventory management. In manufacturing, the need to monitor multiple facilities simultaneously for real-time data is propelling growth. Additionally, innovative solutions that leverage the power of IoT and Industrial IoT are anticipated to further enrich the market. Looking beyond manufacturing, the advantages of tracking software are vast. From issue tracking software that minimizes software development costs to time tracking tools that boost productivity, the demand across industries is undeniable. Even factors like rising product demand and growing populations in emerging economies are pushing the tool tracking software market forward.
While challenges like rising research and development costs exist, the overall outlook is overwhelmingly positive. With advancements in AI, machine learning, and on-demand testing, tool tracking software is poised to become an indispensable asset across the business landscape, empowering organizations to streamline operations, optimize resources, and achieve remarkable success.
Key Findings in Global Tool Tracking Software Market
| Market Forecast (2032) | US$ 111.7 Billion |
| CAGR | 13.8% |
| Largest Region (2023) | North America (40.0%) |
| By Component | Service (61.5%) |
| By Deployment | Cloud (59.7%) |
| By Application | Asset Tracking (45.9%) |
| By Enterprise Size | Large Enterprises (68.9%) |
| By Operating System | iOS (42.4%) |
| By Industry | Transportation and Logistics (24.4%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Unlocking Hidden Revenue Opportunity: Asset Management Software to Supercharge Tool Tracking Software Market, With Over 47.7% Market Share
The asset management software market is booming, projected to reach a staggering US$ 54.55 billion by 2032. This impressive growth is fueled by a global trend of increasing assets under management, with North America leading the charge at a 12% rise in 2023 alone. Other regions are catching up quickly, demonstrating the widespread need for efficient asset tracking solutions.
As per Astute Analytica’s latest report, there's a clear gap in the market, with a surprising 43% of small businesses still struggling with manual or non-existent inventory tracking. This presents a golden opportunity for providers of asset management tools to step in and revolutionize how businesses handle their assets. Implementing such solutions can lead to a multitude of benefits, including a productivity boost of up to 28%, significant cost reductions in repairs and maintenance (by 17%), and a dramatic decrease in equipment downtime (up to 20%). The potential cost savings are even more compelling, with asset management initiatives estimated to save businesses between $220,000 and a staggering $19 million per project. In essence, effective asset management helps businesses unlock the full potential of their assets while minimizing associated costs and risks.
Modern asset management tools across the global tool tracking software market are not just software; they're comprehensive systems that often incorporate hardware components as well. This allows for features like asset audits, barcode labels, check-in/out functionalities, mobile apps, and secure cloud storage. Leading providers like ManageEngine AssetExplorer go even further, offering advanced features like custom reporting, relationship maps, and support for both physical and virtual assets. Pricing typically varies based on the number of users and assets tracked, with tiered plans catering to different needs and budgets.
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Dominating Through Data: The Rise of Tool Tracking Software in Large Enterprises, Control Over 68.9% Market Revenue
Large enterprises dominate the tool tracking software market due to their complex operations and the critical need for optimal resource utilization. These companies manage vast asset inventories across multiple locations, necessitating robust tracking solutions. In fact, 81% of surveyed workplaces use tools to track employee attendance, highlighting the importance of monitoring workforce presence and productivity. Accurate, real-time asset management allows enterprises to keep items in good working order, avoid asset loss, and curb theft, leading to improved asset visibility, reduced losses, and enhanced operational efficiency.
Data-driven insights are crucial for large enterprises, with 65% of global companies planning to increase analytics spending. Organizations generate vast amounts of data, emphasizing the need for professionals who can interpret and analyze that information. Companies worldwide use data analytics to optimize business operations (60%), drive process and cost efficiency (57%), and drive strategy and change (52%). Prescriptive analytics, though complex, can significantly impact business growth when applied effectively, with large-scale organizations using it to optimize inventory in the supply chain and production.
Inventory management is critical for businesses of any size, and large enterprises in the global tool tracking software market rely on specialized ERP software or highly customized SaaS applications to track goods across multiple warehouse locations. Inventory management software has evolved to integrate with accounting and ERP systems, calculating costs in multiple currencies for accurate value assessment. The combination of IoT/M2M with cloud-based infrastructure provides operational scalability, making asset tracking more affordable and effective for smaller enterprises.
Tool tracking software simplifies compliance by providing accurate asset tracking databases and recording all asset activities, ensuring efficient record-keeping for retired, sold, or lost assets. Activity monitoring features help detect and respond to malicious activities, ensuring overall security. Ultimately, the focus on operational efficiency and cost savings drives adoption among large enterprises, minimizing lost inventory, equipment failures, and downtime, directly translating to cost reduction and increased profitability.
Dominance of Software as a Service in the Tool Tracking Software Market
The tool tracking software market has experienced significant growth in recent years, with the service segment, particularly Software as a Service (SaaS), emerging as the dominant force. The SaaS market is projected to reach US$282.20 billion in 2024, with an expected annual growth rate of 7.33%, resulting in a market volume of US$374.50 billion by 2028. Wherein, the SaaS segment of the tool tracking software market is projected to generate more than 61.5% market revenue, which translates to US$21.97 billion in 2023. The hybrid segment of the SaaS market is expected to grow at an even higher rate due to the rising adoption of hybrid cloud solutions across various sectors. The dominance of the service segment can be attributed to several factors. SaaS solutions offer an on-demand consumption model, revolutionizing the IT landscape and enabling rapid adoption by small and medium enterprises.
Astute Analytica attributes the dominance of Service-based models to the companies’ focus on application development and deployment rather than managing the underlying infrastructure, accelerating time-to-market and reducing development costs. Additionally, growing government support for the digital transformation of businesses in developing economies encourages IT & telecom companies to develop newer software solutions, further driving the service segment's growth in the global tool tracking software market. Project tracking services play a crucial role in the success of tool tracking software. These services help project managers and stakeholders monitor work progress, resource utilization, and create earned value analysis by measuring project variance and tracking milestones.
North America is the Most Mature and Dominant Tool Tracking Software Market, Contribute 40% Revenue
North America stands as the most mature market for tool tracking software. Wherein, the United States boasts high adoption rates, with the North American market valued at US$14.29 billion in 2023 and a projected CAGR of 12.5% from 2024 to 2032. The strong manufacturing sector, accounting for 11.39% of the total output in the U.S. economy and employing 8.51% of the workforce, further fuels the demand for tool tracking solutions. Moreover, the presence of major technology providers in North America reinforces the region's dominance, with the United States being the largest tech market in the world, accounting for 33% (USD 1.8 trillion) of the global market in 2023. The shift towards cloud-based solutions is evident, with the U.S. public cloud services market expected to grow from USD 76.4 billion in 2020 to USD 167.4 billion by 2025, at a CAGR of 17.0%.
Large enterprises in the United States tool tracking software market are rapidly adopting AI and machine learning technologies, with 91.5% of leading businesses investing in AI on an ongoing basis and 57.6% considering it a high priority in their IT spending. The COVID-19 pandemic has accelerated remote work adoption, with 74% of CFOs intending to shift some employees to permanent remote work post-pandemic, driving the need for time tracking software. Apart from this, the presence of key market players like Oracle, IBM, SAP, and Microsoft, coupled with high IT infrastructure spending (USD 1.8 trillion in 2023), supports the adoption of tool tracking software in North America. Companies in the region place a strong emphasis on effective asset management, with 80% considering it a critical business function. The growing North American construction industry, expected to reach USD 2.46 trillion in 2024 with a 4.5% growth rate, further drives the demand for tool tracking solutions.
While North America currently leads the tool tracking software market, other regions like Europe and Asia-Pacific are poised for significant growth, with the Asia-Pacific region forecasted to grow at the swiftest CAGR of 14.3% in the foreseeable future.
Global Tool Tracking Software Market Leaders
- Asset Panda, LLC
- CHECKROOM NV
- EZOfficeInventory
- GigaTrak
- GoCodes
- Plex Systems, Inc.
- ShareMyToolbox, LLC
- ToolHound
- ToolWorks (Meghsoft)
- WinTool AG
- Other Prominent Players
Market Segmentation:
By Components
- Software
- Services
- Software as a Service (SaaS)
- Professional Services
By Enterprise Size
- Large Enterprise
- Small and Medium Enterprise
By Deployment
- Cloud
- On-Premises
By Operating System
- iOS
- Android
- Windows
By Application
- Inventory Management
- Asset Tracking
- Equipment Maintenance
- Depreciation Management
- Analytics & Reporting
- Others
By Industry
- Manufacturing
- IT & Telecom
- Automotive
- Hospitality
- Transportation and Logistics
- Healthcare and Life Sciences
- Retail and Consumer Goods
- Construction
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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