GITNUX MARKETDATA REPORT 2024

Payroll Software Industry Statistics

The payroll software industry is expected to experience steady growth due to increasing demand for automation and efficiency in managing payroll processes across various industries.

Last Updated: June 22, 2024

Written & Summarized by: Jannik Lindner

How we write

In this post, we will explore key statistics and trends shaping the payroll software industry. From the projected global market size to the impact of payroll errors on businesses, these insights provide valuable information for understanding the evolving landscape of payroll software solutions. Whether you are a business owner looking to optimize your payroll processes or a professional in the software industry, these statistics offer valuable insight into the current and future state of the market.

Statistic 1

"The global Payroll Software market size is projected to reach USD 10940 million by 2026, from USD 7471.2 million in 2020."

Statistic 2

"The overall CAGR for the global Payroll Software market is forecasted to be 7.4% during the 2020-2026 period."

Statistic 3

"The Payroll Software industry in North America is expected to maintain more than 35% market share by 2026."

Statistic 4

"At least 60% of businesses outsource their payroll tasks to payroll software."

Statistic 5

"The cloud-based Payroll Software is expected to grow at a CAGR of 10% from 2021 to 2026."

Statistic 6

"38% of payroll software market share is contributed by companies with 50-999 employees."

Statistic 7

"The Asia Pacific payroll software market is projected to grow at the highest CAGR between 2020 to 2026."

Statistic 8

"The demand for payroll software solutions from SMEs is expected to increase at a CAGR of 9.6% from 2019 to 2025."

Statistic 9

"Payroll errors cost businesses 1.2% of their total payroll."

Statistic 10

"Engagement of payroll software reduces payroll processing costs by up to 80%."

Statistic 11

"32% of employers fail to meet tax obligations due to common payroll errors that can be prevented by using payroll software."

Statistic 12

"The usage of mobile payroll software has increased by more than 40%."

Statistic 13

"Implementation of payroll software decreases payroll cycle times by up to 35%."

Statistic 14

"Automated payroll software saves approximately 4.5 hours per pay period."

Statistic 15

"21% of paper-driven, manual payroll systems overpay employees."

Statistic 16

"40% of companies using payroll software receive penalties for late or incorrect filings or payments."

Statistic 17

"The use of payroll software reduces the rate of payroll errors by up to 50%."

In conclusion, the global payroll software market is experiencing significant growth and is projected to reach USD 10940 million by 2026. The market is being primarily driven by factors such as the increasing adoption of cloud-based solutions, the rising demand from SMEs, and the benefits of cost reduction and efficiency improvement associated with payroll software implementation. Regions like North America and Asia Pacific are key players in this market, with North America expected to maintain a substantial market share. The statistics also highlight the numerous advantages of using payroll software, including reduced errors, enhanced compliance, and time savings. Overall, the data underscores the importance of payroll software in streamlining operations and maximizing productivity for businesses of all sizes.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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