Global Workforce Management Software Market to Grow at a CAGR of 6.5% During 2020–2030

Introduction

Workforce management deals with maximizing an organization's competency and performance level. Workforce management also assists in forecasting, scheduling, intraday management, timekeeping, and attendance. The rising utilization of modern technologies such as artificial intelligence is a key driving factor. Small and medium enterprises' rising need for the internet of things and the increased development of remote workforce solutions would further aggravate the demand for workforce management.

Market Dynamics

Increased Adoption of Analytical Solutions by SMEs Spur the Demand for Workforce Management Software

As online usage expands, organizations are compelled to meet rising demand, necessitating additional capacity for present cloud-based services. Globally, over 59% of corporations anticipate that their cloud consumption may be substantially higher than expected, and over 50% of small and medium-sized enterprises (SMEs) anticipate the same. Especially for small and medium-sized businesses, the deployment of innovative technology for developing mobile workforce management constitutes a significant financial barrier. The cloud-based solution can be utilized flexibly as a service by many organizations, allowing smaller businesses to use breakthrough technology at low variable costs to enhance their competitiveness.

With the introduction of inexpensive and widely accessible mobile technologies and the increased desire for cost-effective technological solutions among small and medium-sized organizations, cloud-based adoption has been on the rise. These cloud-based solutions are not only appealing to small and medium-sized businesses in search of their first system but also to large corporations seeking to enhance their current processes. SMEs are aided by real-time data access, customizations, the total cost of ownership over time, and the growing requirement to interact with existing software. These variables drive market expansion.

Need for Improved Human Resource Management (HRM) Creates New Opportunities for the Workforce Management Software Market

The global workforce management software market is anticipated to expand at a healthy rate due to the rising use of human resource management strategies that incorporate current technologies. The enterprise workforce management software provides a unified solution for several HRM operations, including recruitment, documentation, performance management, and others. These benefits establish the groundwork for market expansion.

Regional Insights

North America holds the largest market share and is expected to grow at a CAGR of 6.1% over the forecast period. The market for workforce management in North America has been booming recently. The main issues in this area are improving labor productivity and efficiency. The region established itself as the top trader in the retail venture market by occupying a sizable portion of the market and doubling trade volumes to surpass other regions. Countries like the United States and Canada are to blame for this situation. Canada has been witnessing notable growth in the e-commerce industry.

Europe is estimated to reach USD 3 billion by 2030, growing at a CAGR of 6.9%. The widespread adoption of best workforce management practices among businesses results from the increasing need for compliance with GDPR enforced by European legislative bodies. 99% of European companies are small and medium-sized enterprises (SMEs), and most of the manufacturing sector is still underrepresented in international commerce. These players are anticipated to be significant users of the different workforce management software modules to preserve their competitive advantage and grow their operations. Germany is one of the most mature e-commerce markets in Europe.

Asia-Pacific is the fastest-growing region. Asia-Pacific is one of the biggest exporters and producers of goods. China, India, Indonesia, South Korea, Japan, and Australia are huge manufacturers of different goods. Many goods are produced in this region, from automobiles to software, from UAVs to food items. The workforce is essential for making this wide range of goods. This will further help the workforce management software market to increase in the region. The region's high concentration of SMEs, which are heavily involved in creating and using workforce software and their management solutions, is credited with its quick growth rate. The region is also anticipated to increase due to investments made by small and medium-sized businesses.

Key Highlights

• The global workforce management software market size was worth USD 7.5 billion in 2021. It is estimated to reach an expected value of USD 12.5 billion by 2030, growing at a CAGR of 6.5% during the forecast period (2022–2030).
• By deployment mode, the global workforce management software market is segmented into On-premise and Cloud. The Cloud segment is the fastest growing and is expected to grow at a CAGR of 8.8% over the forecast period.
• By type, the global workforce management software market is segmented into Performance & Goal Management, Workforce Scheduling & Workforce Analytics, Time & Attendance Management, Absence & Leave Management, and Others. The Time & Attendance Management segment occupies the largest market share and is expected to grow at a CAGR of 6.1% during the forecast period.
• By end-user industry, the global workforce management software market is segmented into BFSI, Consumer Goods & Retail, Energy & Utilities, Automotive, Healthcare, Manufacturing, and Others. The Consumer Goods & Retail segment occupies the largest market share and is expected to grow at a CAGR of 5.7% over the forecast period.
• By region, the global workforce management software market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America holds the largest market share.

Competitive Players

1. Active Operations Management International LLP
2. NICE Systems Ltd
3. Oracle Corporation
4. Infor Group
5. WorkForce Software LLC
6. Kronos Incorporated
7. Reflexis Systems Inc.
8. SISQUAL
9. Workday Inc.
10. Blue Yonder Group Inc.
11. ServiceMax Inc.
12. Kirona Solutions Limited
13. 7shifts
14. IBM Corporation
15. SAP SE
16. ADP LLC
17. Atoss Software AG
18. Mitrefinch Ltd.
19. Sage Group PLC
20. Roubler UK Limited Company

Recent Developments

• April 2024 - Through an app on the Freshworks Marketplace, Playvox, the industry leader in Workforce Engagement Management (WEM) solutions for contact and support centers that prioritize digital interactions, announced the launch of their new WFM connection with Freshworks Customer Service Applications. The AI-powered tool will assist companies in forecasting support workloads across channels, managing agent schedules in an omnichannel configuration, and planning short- and long-term resource requirements.
• June 2024 - Citation, a Wilmslow-based compliance software expert, purchased Agendrix, an online worker scheduling and rota supplier. With this calculated action, The Citation Group has acquired three companies this year, greatly bolstering its global reach.

Segmentation

1. By Deployment Mode
   1. On-premise
   2. Cloud
2. By Functionality
   1. Workforce Scheduling & Workforce Analytics
   2. Time & Attendance Management
   3. Performance & Goal Management
   4. Absence & Leave Management
   5. Others
3. By End-User
   1. BFSI
   2. Consumer Goods & Retail
   3. Automotive
   4. Energy & Utilities
   5. Healthcare
   6. Manufacturing
   7. Others
4. By enterprise size
   1. SMEs
   2. Large enterprise