According to a recent report published by Allied Market Research, titled, “Workforce Management Market by Component, Deployment Mode, Organization Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” the workforce management market size was valued at $4,350 million in 2019, and is projected to reach $9,391 million by 2027, growing at a CAGR of 10.2% from 2020 to 2027.
Workforce is the biggest asset of a business, where they play a critical role to perform day-to-day operations and offer biggest competitive advantage in the highly competitive market. Thus, many business leaders opt for workforce management solutions to help them optimize their workforce operations and schedule the task depending upon the task priority and skilled labor. This in turn is a factor that drives the workforce management market during the forecast period. Moreover, in this digital era, workforce mobile applications have gained high traction owing to their ability to track the employee location and gain task status instantaneously.
Workforce management offers wide range of solutions such as time and attendance management, task management, workforce scheduling, workforce analytics, budgeting and forecasting, and many others. Though the workforce management solution offers wide range of features, there are many advance/premium features that require extra cost. Thus, many companies opt for customized solutions package that includes features that are specific to their needs. This has created significant opportunity for workforce management market growth, owing to workforce customized solutions offerings.
Depending upon the deployment mode the workforce management market is divided into on-premises and cloud. The cloud segment dominated the market in 2019, whereas on-premises deployment were widely preferred among large enterprises owing to high availability of infrastructure. Adoption of cloud technology have proliferated the number of applications launched that offer high volume of data storage and access to data at anytime and anywhere. Hence, increase in adoption of cloud-based workforce management is widely witnessed as an on-going trend in the global workforce management market. Moreover, necessity to achieve competitive advantage many companies prefer for pay-as-you-go model, due to which cloud-based workforce management solutions dominates the market during the forecast period.
As enterprises are compelled to cope with growing consumer demand, the need for optimized and well-coordinated workforce has raised the adoption of workforce management among various organizations. Moreover, large enterprises have high number of workforce operating across the globe. High adoption of workforce management is thus witnessed among large enterprises as these organizations thrive to have cohesive and detailed understanding of their employees and task completed reports.
Healthcare and retail industries leverage the mobile-based workforce applications as it offers then cost benefit and ease in handling business. Moreover, retail and manufacturing industries thrive to optimize their supply chain processes, among which workforce plays a major role. Human resource management plays an important role in all industries, insights on employees’ accountability as well as performance evaluation can help industries to achieve high productivity. This in turn is a major factor expected to drive the growth of the global workforce management market in the forthcoming years.
To manage disruptions of productivity due to the COVID-19 outbreak is a major factor the drives the growth of the workforce management market in 2020. Many business leaders thrive in communicating information about contingency planning in a crisis, especially during a viral outbreak. This has created opportunities for adoption of workforce management solutions and services to help businesses to protect their employees and organizational productivity. Workforce management is playing a crucial role in strengthening remote working capabilities and is creating a strategy for communicating factually and effectively with employees, customers, partners and other stakeholders. Hence, workforce management market is expected to witness positive growth in the COVID-19 impact with minimalistic disruptions that could be due to lack of infrastructure.
Key Findings Of The Study
- By component, the solution segment dominated the workforce management market size in 2019. However, the services segment is expected to exhibit significant growth during the forecast period in the workforce management industry.
- As per deployment mode, in 2019, on-premise was the leading segment. However, the cloud segment is expected to display significant growth during the forecast period.
- On the basis of organization size, large enterprises segment was dominant in 2019 in terms of workforce management market share. However, the small & medium enterprises segment is expected to depict significant growth in terms of CAGR.
- According to industry vertical, the IT and telecom sector generated the highest revenue in 2019. However, the manufacturing sector is expected to witness a considerable workforce management market growth in the near future.
- Region wise, Asia-Pacific is expected to witness significant CAGR in the coming years. Moreover, North America dominate the workforce management market share in 2019.
Some of the key market players profiled in the workforce management market analysis include ADP, LLC, Infor, IBM Corporation, Kronos Incorporated, Oracle Corporation, SAP SE, SumTotal Systems, LLC, Verint Systems Inc., Workday, Inc., and WorkForce Software, LLC. Major players operating in this market have witnessed significant adoption of strategies such as business expansion and partnership to reduce supply–demand gap. With increase in remote working and lockdown initiatives across the globe, major players have collaborated their product portfolio to provide differentiated and innovative cloud-based workforce management products.