Workforce Management Market Anticipated to Generate a Revenue of $9,580.3 Million, Growing at a CAGR of 10.6% from 2019 to 2027Download Sample Reports Overview
The global workforce management market is projected to be valued at $9,580.3 million by 2027, rising from $4,219.2 million in 2019 at a remarkable CAGR of 10.6 %.
Impact Analysis of COVID-19 on the Workforce Management Market
The global market for workforce management is anticipated to experience a healthy growth amidst the COVID-19 pandemic. This growth is due to the introduction of work-from-home module industries everywhere for operations and businesses around the world. The remote working has ignited the need for effective management of employees to improve the efficiency and withstand the growth of their organization during the pandemic period.
Moreover, many organizations are utilizing new methodologies of workforce management solutions such as cloud-based enterprise management software’s, that can enable remote working operations for the human resource staff of the organization for effective management of the employees. For example, in May 2020, a major American software firm Oracle, announced the availability of Oracle Analytics for cloud human capital management. It is an oracle analytics cloud powered by Oracle Autonomous database. These new developments are expected to help organizations for remote operations of their business during the COVID-19 pandemic period. All such factors are predicted to the global workforce management market.
Global Workforce Management Market Analysis
The increasing growth of the global workforce management market is due to increasing utilization of advance solutions for human resource management in their organizations such cloud-based deployment of workforce management software. The cloud-based solutions have advantages such as they are accessible from anywhere and enable effective remote working operations for both the employees and the management of the organization. In addition to this, the cloud-based solution is most cost effective then the on-premise workforce management software’s as they do not require data storage costs and are also suitable for small and medium-sized enterprises (SMEs). These factors are expected to drive the global workforce management market.
The high initial cost for installation of workforce management software’s and low awareness about the human resource management solutions especially in the developing countries can have a negative impact on the market during the forecast period.
The increasing utilization of workforce management solutions in workforce management software’s is anticipated to create huge investment opportunities for the global workforce management. For example, small sized retail organizations have started implementing workforce management solutions for advantages such as reduction in cost for employee performance management process, improving employee engagement and productivity, generating data-based insights for individual and organization performance, and increasing scalability potential of the SME in the future. These factors are expected to open new scope of opportunities for workforce management market in the future.
Global Workforce Management Market, Segmentation
The global workforce management market is segmented based on component, deployment mode, organization size, end user and region.
The type segment is further classified in to solution and service. Among these, service sub-segment is anticipated to have the fastest growth and surpass $4,617.6 million by 2027, with an increase from $1,653.7 million in 2019.
The service sub-segment is anticipated to have the fastest market growth due to the increase in demand of off-line training required for the human resource department for effective execution along with the workforce management software, this factor is growing the demand of the service sub-segment in the forecast period.
The deployment mode is further divided into on-premise and cloud. The cloud sub-segment is anticipated to have a fastest growth along in the global market and expected to grow with a healthy CAGR of 12.8% during the forecast timeframe.
The cloud sub-segment is anticipated to growth with a significant rate due to the increasing adoption of cloud-based human resource management software solutions by the organizations globally due to advantages like cost effectiveness as compared to on premise based software solutions as cloud based systems don’t require data storage systems for the organization taking the cloud based service and they are based on subscription based delivery model where the service is provided till the payment and is suitable for small and medium-sized enterprises (SMES) who can’t afford high costs for the IT infrastructure. These factors are expected to grow this sub-segment in the forecast period.
On the basis of organization size, this market is further categorized into large enterprises and small & medium enterprises. The small & medium enterprises sub-segment is predicted to dominate this market generating a revenue of $4,987.2 million by 2027.
The small and medium-sized enterprises (SME’s) sub-segment are anticipated to grow with a healthy rate in the forecast period due to the growing need for reduction in cost for employee performance management process, improving employee engagement and productivity, generating data-based insights for individual and organization performance and the increasing scalability potential of the SME in the future. These factors are expected to contribute in the growth of this sub-segment.
On the basis of end-user, this market is further categorized into BFSI, manufacturing, healthcare, government, retail & e-commerce, IT & telecom and others. The IT & telecom sub-segment is predicted to dominate this market generating a revenue of $1,784.7 million by 2027.
The IT & telecom sub-segment sub segment are anticipated to have dominating segment in the forecast period. The IT and Telecom sector are one of the largest utilizers of the workforce management as both the industries operate on digital operations. The implementation of the workforce management solutions has advantages such as better management of the workflow, improved employee and organization performance, better monitoring of the workforce and optimization of labor costs. These factors are expected to contribute to the expansion of the IT and telecom sub segment.
The workforce management market for the Asia-Pacific region is anticipated to witness rapid growth. This market generated a revenue of $1,019.9 million in 2019 and is further anticipated to register $2,430.7 million by 2027 and growing with a CAGR of 11.2%.
The workforce management market in the Asia-Pacific region is estimated to grow due to increasing adoption of modern human resource technologies by the companies present in this region and the growing economy of this region is aiding the growth. The growing scale of digitization in the businesses of emerging countries of the region such as China, India, Japan, South Korea, and others. These factors are anticipated to contribute in the growth of workforce management market in the Asia-Pacific region.
Key Players in the Global Workforce Management Market
- SAP SE
- ADP, Inc.
- Workday, Inc.
- NICE Ltd.
- Ceridian HCM, Inc.
- UKG Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Workforce Management Market
- Bargaining Power of Suppliers: The suppliers in the Workforce Management Market are high in number. Several companies are working on utilization of new technologies like cloud-based software. Thus, there is threat from the suppliers.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: The suppliers in the workforce management market are high in number. Several companies are working on utilization of new technologies like cloud-based software’s. Thus, there is threat from the suppliers.
Thus, the bargaining power suppliers is moderate.
- Threat of New Entrants: Companies are entering the workforce management testing market and are adopting technological innovations such as developing innovative software application to attract clients. Also, these companies are implementing various effective strategies such as offering discounts and value propositions.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: Low-cost services and technological innovations being offered in the market by companies attract customers. However, companies that are already in workforce management offers huge discounts with regular free service.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including IBM, ADP, Inc., and Workday, Inc. These companies are launching their new innovative solutions in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.