Workforce Management Market Analysis by Component (Solutions and Services); by Organization size (Small and Medium Enterprises and Large Enterprise); by Operating Systems (IOS, Android, Windows, Linux/Unix and Others); by Deployment Model (On-Premises and Cloud); and by End User (BFSI, Manufacturing, Healthcare, Government, Retail & E-Commerce, IT & Telecom, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4809 | Published Date: Apr 11, 2023
The global workforce management market size is estimated to reach ~USD 33 Billion by the end of 2035 by growing at a CAGR of ~12.3% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of workforce management was ~USD 8 Billion. The growth of the market can be attributed to the growing demand from various organizations and sectors such as banking, manufacturing, and retail to optimize their workforce scheduling, the need for more efficient payroll systems, and the need for better compliance and risk management. As the banking sector grows, banks are increasingly relying on technology-driven solutions to streamline and automate their processes. For instance, India's financial services sector shows its economy's progress and potential. Increasing incomes, a focus by the government on financial inclusion, and digital adoption will drive rapid growth in the sector out to 2035. By 2030, the sector could surpass USD 1 trillion in digital payments. This has increased the demand for workforce management solutions that can help banks manage their employees more efficiently.
In addition to these, factors that are believed to fuel the market growth of workforce management include increasing emphasis on employee satisfaction, rising demand for remote workforce management tools, and growing need for compliance with labor regulations. Additionally, the growing adoption of cloud-based workforce management solutions is expected to further boost the market growth of workforce management. It is conclusively established that businesses are able to avoid costs associated with installing upgraded hardware by utilizing cloud-based mobile workforce software solutions. Furthermore, it enhances security and collaboration between individuals and teams within mobile workforces.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 12.3% |
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Base Year Market Size (2022) |
~ USD 8 Billion |
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Forecast Year Market Size (2035) |
~ USD 33 Billion |
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Regional Scope |
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Growth Drivers
Intensifying Trend of Digitalization- For instance, in 2022, 64% of the world's GDP was expected to be digitized, according to a recent report. The number of digital transformation strategies has increased to 72% as of 2019. The digital business strategy has already been adopted by 55% of startups in 2019. The increasing digitalization of businesses and organizations is leading to an increased demand for software platforms that can help manage employee data, attendance, payroll, and other HR activities. This is driving the growth of the workforce management market.
Adoption of Advanced Technologies Such as Artificial Intelligence - Currently, 37% of companies have implemented AI in their business, and another 40% report that they are exploring AI as a possibility for the future. The number of people employed in the AI sector is expected to increase to 98 million by 2025. AI technology helps to automate labor-intensive processes, such as payroll, recruiting, and scheduling, and can be used to optimize the use of resources and improve employee engagement, which in turn boosts productivity and drives market growth.
Government Initiatives to Encourage Digital Transformation - For instance, a new Digital Transformation with Africa (DTA) initiative was announced by US President Biden at the Africa Business Forum on December 14 in Washington, DC. The initiative will provide access to training and resources to enable the use of digital tools and technologies, expand access to digital infrastructure, and support the development of a digital-ready workforce.
Increased Deployment Of Workforce Management Software In The Healthcare Workforce - By implementing workforce management software, healthcare organizations can streamline workforce processes and reduce administrative costs. This software can also improve communication between staff, provide real-time visibility into staffing needs and facilitate accurate scheduling. For instance, the QGenda Nurse and Staff Workforce Management Solution has been launched in December 2022 to simplify the deployment and management of today's enterprise healthcare workforce.
Rising Demand for Cloud-Based Enterprise Resource Planning (ERP) Systems- It was observed that 50% of companies worldwide are acquiring, upgrading or planning to update their ERP systems in the near future. 95% of businesses improved their business processes after implementing ERP. Also, cloud-based ERP solutions are used by more than half (53%) of organizations
Challenges
The global workforce management market is segmented and analyzed for demand and supply by deployment model into on-premises and cloud. Out of these, the cloud segment is estimated to gain the largest market share of about ~57% in the year 2035. The growth of the segment can be attributed to the increasing demand for cost-effective solutions, ease of scalability, improved flexibility, and rapid deployment of cloud-based solutions. For instance, the amount of data stored in the cloud is expected to exceed 100 zettabytes by 2025. Over 93% of all workloads were processed by cloud data centers in 2021. The Amazon Web Services (AWS) cloud infrastructure as a service (IaaS) is one of the world's foremost, most popular and widely used cloud services. Additionally, cloud-based solutions provide better visibility of organizational processes and offer enhanced collaboration between different departments, which is another factor driving the growth of this segment. Cloud-based solutions also offer improved security and data management, as well as better scalability and cost savings.
The global workforce management market is segmented and analyzed for demand and supply by end user into BFSI, manufacturing, healthcare, government, retail & e-commerce, IT & telecom and others. Out of these, the retail & e-commerce segment is estimated to gain a significant market share of about ~27% in the year 2035. The growth of the segment can be attributed to the increasing focus of the retailers on the customer experience and providing them with more personalized services. Additionally, the increasing shift towards e-commerce owing to the convenience and cost savings it offers is also expected to drive the demand for global workforce management solutions in the retail & e-commerce space. The rapid growth of the retail and e-commerce space has created a need for more efficient workforce management solutions. Additionally, retailers are putting a greater emphasis on providing customers with personalized services, which has resulted in an increased demand for these management solutions that can help them manage their staff more effectively.
Our in-depth analysis of the global workforce management market includes the following segments:
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By Component |
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By Organization Size |
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By Operating System |
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By Deployment Model |
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By End User |
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The market share of workforce management in North America, among the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The North American region has been adopting workforce management solutions at a faster rate owing to the presence of large enterprises that are continuously innovating and investing in this technology. Moreover, the region has a strong regulatory framework that encourages the use of advanced technology for better workforce management. Moreover, North American enterprises are well-equipped with the latest technologies and have access to a large pool of skilled resources. This has enabled them to invest heavily in AI, ML, and cloud technologies to remain competitive and drive efficiency. For instance, in the United States, 95% of businesses use cloud services, and 66% of all enterprise infrastructure is now hosted in the cloud. Over 93% of businesses in the US have adopted or are planning to implement a multi-cloud strategy. As a result, they are pioneering the market in terms of the adoption of these technologies, thereby boosting the growth of the workforce management market.
The Asia Pacific workforce management market is estimated to be the second largest, registering a share of about ~27% by the end of 2035. The growth of the market can be attributed majorly to the increasing number of automation projects aimed at improving productivity in enterprises. Additionally, the increasing number of foreign investments and government initiatives such as 'Make in India' and 'Digital India' are further driving the regional market growth. Moreover, the growing number of start-ups in the region has provided a platform for the development of innovative workforce management solutions. Start-ups are making use of the latest technological advances to streamline the workforce management process, such as improved analytics and automation capabilities, to help businesses manage their workforce more efficiently. This increased adoption of workforce management solutions by start-ups is expected to drive the market growth in the coming years.
Further, the workforce management market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing adoption of automation tools in the HR sector across the region along with the growing demand for cloud-based solutions. Automation tools help to improve operational efficiency and reduce manual errors in the HR sector. Cloud-based solutions also offer a range of benefits such as scalability, cost efficiency, and flexibility, which makes them attractive to businesses. As a result, more and more companies are adopting automation tools and cloud-based solutions, driving the growth of the workforce management market in Europe. Furthermore, the increasing number of labor laws and regulations in Europe has accelerated the adoption of workforce management solutions. Companies are required to comply with a variety of regulations related to labor and employment law, such as minimum wages, overtime pay, and health and safety requirements. Automating these processes helps companies stay compliant, minimize errors, and reduce costs.
Infor and iCIMS announced a strategic partnership that will bring next-gen talent capabilities to healthcare organizations and key service industries throughout North America. The partnership will provide healthcare organizations and service industries with a wide range of solutions to fill their talent needs, from recruitment to onboarding and employee engagement.
A new Workforce Management solution was released by Verint Systems Inc. The new design is built on the latest technology and features an intuitive user experience, enabling users to quickly create and manage complex workforce schedules. It also has advanced analytics capabilities that provide insights into employee performance and productivity, enabling organizations to make more informed decisions regarding their workforce.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing need for better operational efficiency, the need to reduce labor costs, and the growing demand for improved employee engagement are the major factors driving the market growth.
Ans: The market size of workforce management is anticipated to attain a CAGR of ~12.3% over the forecast period, i.e., 2023 – 2035.
Ans: Difficulty of managing a distributed workforce and the lack of reliable communication tools are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Verint Systems Inc., Infor., Broadcom, Oracle, ActiveOps PLC., NICE Ltd., Kronos Incorporated., IBM, SAP, UKG Inc.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component, organization size, operating system, deployment model, end user and by region.
Ans: The cloud segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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