Workforce Management Market Overview
The workforce management market size was valued at USD 4,350 million in 2019, and is projected to reach USD 9,391 million by 2027, growing at a CAGR of 10.2% from 2020 to 2027.
Workforce management applications are used to create best-fit schedules for employees, help companies to track time and attendance as well as administer absence and leave of their employees. Manufacturing industry has garnered high adoption of workforce management solutions as it helps them measure an employee’s productivity and helps them to manage and retain a high-performing workforce. This in turn has positively impacted the workforce management market growth during the forecast period.
Key Market Trends & Insights
- By component, the services segment is expected to exhibit significant growth during the forecast period
- By industry vertical, the manufacturing sector is expected to witness a considerable market growth in the near future.
- Region wise, Asia-Pacific is expected to witness significant CAGR in the coming years.
Market Size & Forecast
- 2019 Market Size: USD 4,350 Million
- 2027 Projected Market Size: USD 9,391 Million
- Compound Annual Growth Rate (CAGR) (2020-2027): 10.2%
Workforce management applications features varies from industry to industry. For example, in the IT industry human resources software is coupled with workforce management tools that integrate employee portals with biometric recognition services. Whereas in the manufacturing industry workforce management applications is widely used to track the performance of an employee with the location tracking and scheduled day-to-day tasks. Thus, the ability to accommodate almost all industries workforce needs is expected to boost the workforce management market in the coming years.
By Component
Solution is projected as one of the most lucrative segments.
Advent to cloud computing has made it easy for businesses to optimize their operations and integrate intelligent solutions while improving performance of their systems with maximum employee efficiency. This has created new opportunities for players operating in the market to expand their workforce management portfolio and integrate cloud features. Moreover, whether a business focuses on customer relationship management (CRM) systems or on human capital management, the R&D for enhancing product experience of both their employees and their customers is at its peak to proliferate the cloud-based workforce management solutions. Thus, cloud-based solutions are expected to witness high traction in the workforce management market forecast.
By Deployment Mode
On-premise is projected as one of the most significant segments.
Many business leaders incline towards all in one solution that might include services such as Salesforce, inbound marketing software, marketing automation software, workforce management software, and business analytical tools to achieve insights with commercial, operational, and financial aspects. Thus, cloud-based workforce management software that helps businesses to optimize the use of time by automating traditionally labor-intensive tasks is a workforce management market opportunity.
By Organization Size
Large Enterprises is projected as one of the most significant segments.
Demand for affordable, subscription-based offerings of workforce management is expected to increase due to implementation by SMEs. There are many SMEs and starts-up companies operating in Asia-Pacific. These start-ups prefer cloud enabled workforce management services, as it is less costly as compared to on-premise workforce management solution. Furthermore, the cloud enabled workforce management solutions also will garner high adoption, owing to increase in popularity of e-commerce sites, rise in number of relevant talents, emerging startups, and presence of service industry in Asia-Pacific.
By Industry Vertical
IT and Telecom is projected as one of the most significant segments.
The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the workforce management industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.
By Region
Asia-Pacific would exhibit the highest CAGR of 13.1% during 2020-2027.
Segment Review
The workforce management market is segmented on the basis of component, deployment, organization size, industry vertical, and region. On the basis of component, it is categorized into solution and service. On the basis of deployment, it is classified into on-premise and cloud. By organization size, it is bifurcated into large enterprises and small and medium enterprises (SMEs). Depending on industry vertical, it is divided into BFSI, manufacturing, healthcare, government, retail, IT & telecom, education, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Top Impacting Factors
Rise in demand for workforce optimization and mobile-based workforce applications are major factors expected that drive the global workforce management market during the forecast period. Moreover, increase in adoption of cloud-based workforce management to stabilize the remote working situation in the growing coronavirus pandemic is also a factor that boosts market growth. In addition, necessity to achieve competitive advantage in terms of employee and customer engagement among various industry verticals is among some of the major factors expected to fuel the global market growth in the near future.
However, dearth of professionals’ associated with support of cloud-based workforce solutions and concerns associated with data privacy and compliance are factors that could hinder the workforce management market growth to a certain extent. On the contrary, AI based workforce analytics solutions, increase in number of workforce data sources, and availability of high volume of HR (Human Resource) data are factors expected to provide lucrative revenue growth opportunities for the players operating in the market.
Rise in demand for workforce optimization and mobile applications
Large enterprises thrive to optimize their workforce that operates across the globe, from IT services to manufacturing products employees or workers coexist in an industry that directly impact revenue of the company. This is a major factor that drives the adoption of workforce management among various industries across the globe. In addition, companies are inclined toward digital solutions that help them to make their workforce more productive.
Key Workforce Management Companies:
The following are the leading companies in the workforce management market.
- ADP, LLC
- Infor
- IBM Corporation
- Kronos Incorporated
- Oracle Corporation
- SAP SE
- SumTotal Systems
- LLC
- Verint Systems Inc.
- Workday, Inc.
- WorkForce Software, LLC.
Key Benefits For Stakeholders
- This study includes workforce management market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities of the global market.
- The workforce management market share is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the market.
Workforce Management Market Report Highlights
| Aspects | Details |
 By Component |
|
 By Deployment |
|
 By Organization Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | KRONOS INCORPORATED, INFOR, ADP, LLC., WORKFORCE SOFTWARE, LLC., .INTERNATIONAL BUSINESS MACHINES CORPORATION, ORACLE CORPORATION, SUMTOTAL SYSTEMS, LLC, VERINT SYSTEMS INC., SAP SE, WORKDAY, INC. |
Analyst Review
Top executives in almost all industries have made it a priority to reinvent the future of worker engagement strategies with adoption of new technologies. This in turn is necessitating new roles and encouraging employees to adopt new work skills. With on-going pandemic in 2019-2020, workforce management applications have witnessed rapid transformation from digitizing the relationship between company and customer to digitizing the relationship between employer and employee.
According to the Allied Market Research analysis, fast-tracking trends such as digitalization, automation, and innovation are major factors to drive the workforce management market in North America in 2019. Many Asia-Pacific business leaders are considering technological solutions that help them devise comprehensive plan of action to protect their employees and organizational productivity. Among these, workforce management applications are being used for developing a remote working model. Rapid advancements in workforce management tools that enable remote working is reshaping the way workplace used to operate, especially in the services industry.
Furthermore, SaaS-based workforce management model have positively impacted the market growth, as cloud-enabled workforce analytics solution is gaining high acceptance over conventional on-premise workforce management in developing regions. Workforce analytics is widely being deployed across large enterprises for enhanced and predictive management of employees, while offering improved employee productivity and optimized business revenue. Hence, adoption of workforce analytics by various industries is expected to fuel the growth of the workforce management market.
Major players operating in the global workforce management market include ADP, LLC, Infor, IBM Corporation, Kronos Incorporated, Oracle Corporation, SAP SE, SumTotal Systems, LLC, Verint Systems Inc., Workday, Inc., and WorkForce Software, LLC. The global workforce management market companies are focusing on new technologies to offer intelligent workforce analytics to cater to evolving end-user requirements. Key players have adopted various growth strategies to enhance and develop their product portfolio, garner maximum market share, and increase their market penetration. The market is witnessing new product launches and adoption of AI by leading players.
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