According to a recent report published by Allied Market Research, titled, "Workforce Analytics Market by Component, Deployment Model, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global market was valued at $1.64 billion in 2018, and the workforce analytics market forecast is projected to reach $5.97 billion by 2026, growing at a CAGR of 17.6% from 2019 to 2026.
Workforce analytics is a combination of software and methodology that applies statistical models to worker-related data, allowing enterprise leaders to optimize human resource management. Furthermore, increase in use of data for strategic workforce planning, need to reduce the long-term labor issues, rise in need to spot the talent gaps from performance data, to achieve competitive advantage, to ensure employee satisfaction & engagement are the major factors that drive the growth of the workforce analytics market. However, consolidating all the available data from different sources, lack of analysis skills, concerns associated with data privacy and compliance are expected to hinder the workforce analytics market growth. On the contrary, AI based workforce analytics solutions, availability of huge volume of (Human Resource) HR data and increase in number of data sources, use of machine learning & blockchain technologies with workforce analytics are expected to provide lucrative opportunities for the market growth in the coming years.
The large enterprise segment dominated the workforce analytics industry in 2018 and is projected to maintain its dominance during the forecast period, owing to the increasing need in large enterprises to analyze employee data for achieving organizational goals. Furthermore, SME’s segment is expected to grow at a significant CAGR during the forecast period, due to the surge in the adoption of small and medium enterprises for increasing the operational efficiency and profit of the organizations.
The BFSI sector dominated the workforce analytics industry in 2018 and is projected to maintain its dominance during the forecast period, owing to the increase in demand for workforce from the banking and financial institutions. Furthermore, the retail & e-commerce sector is expected to grow at a significant CAGR during the forecast period, owing to the growing need to enhance employee skills in the retail & e-commerce industry.
By region, the global workforce analytics market was dominated by North America in 2018 and is expected to maintain this trend during the forecast period. The major factors driving the growth of the market in this region includes high rate of adoption of technologies such as AI, cloud, big data, analytics, and others. However, Asia-Pacific is expected to witness the highest growth rate during the forecast period, owing to improve employee productivity and performance of organizations business.
Key Findings of the Study:
- By component, the solution segment led the workforce analytics market size in terms of revenue in 2018.
- By deployment model, the cloud segment accounted for the highest workforce analytics market share in 2018.
- By industry vertical, the BFSI segmented accounted for the highest workforce analytics market share in 2018.
- By region, North America generated the highest revenue in 2018.
The company profiles of workforce analytics market players included in this report are Oracle Corporation, IBM Corporation, Tableau Software Inc, SAP SE, Workday Inc, ADP LLC, Cornerstone OnDemand Inc, Kronos Incorporated, WorkForce Software, LLC, and Visier Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.