The global workflow management system market size was valued at USD 11.66 billion in 2022. It is estimated to reach USD 127.11 billion by 2031, growing at a CAGR of 30.4% during the forecast period (2023–2031). The surging demand for enhanced and efficient operational solutions, leading to a rise in the sophistication of solutions and services, is estimated to boost the demand for workflow management systems. Moreover, the rising adoption of automation processes coupled with the consistent adoption of the latest technologies across numerous industries and industry verticals is expected to create opportunities for the growth of the workflow management systems market over the forecast period.
Workforce management (WFM) is a collection of tools and processes that allows an organization to monitor and centralize human resource utilization data. It consists of various performance-based software and tools designed to increase the productivity of front-line supervisors, corporate management, managers, and employees throughout the organization.
The workforce management system has multiple capabilities, including workforce forecasting and scheduling, HR management, and workforce analysis. It can also create customized workflows that improve overall productivity and decision-making efficiency. As a result, it has numerous applications in numerous industries, including BFSI, healthcare, transportation and logistics, energy, retail, information technology (IT), and telecommunications.
As organizations increasingly focus on using business data to extract actionable insights, the demand for business processes such as business process management process automation, software solutions such as BPM software, and services such as integration, consulting, training, and development is increasing tremendously. Workflow management systems are increasingly used in end-user industries to streamline business processes. Workflow management software can substantially reduce raw material and inventory costs, helping businesses achieve increased efficiency and profitability.
Several businesses are implementing workflow management software to increase operational productivity by integrating administrative systems into a single program and streamlining routine business processes for optimal efficiency. Similarly, a workflow management system enables enterprises to link departmental information and data to real-time updates, thereby providing greater transparency in business operations. This will increase end-user industries' demand for workflow management system software and services during the forecast period.
Workflow management processes enable organizations to keep operational costs under control and enhance operational efficiency across businesses. Implementing workflow automation in end-use industries such as healthcare, finance, retail, BFSI, transportation, and IT and telecom can reduce manual tasks, time, and operational costs. It can also help organizations maintain business standards and regulatory compliances by designing the workflow process to track and escalate all fundamental activities and outcomes.
Several organizations are implementing the public cloud as a cost-efficient platform for hosting business applications and deploying and developing customer-facing solutions. Enterprises are also experiencing heavy traffic on their application platforms, making it difficult to scale resources to meet the increasing demand. Moreover, workflow management integration with the cloud helps automate repetitive tasks more conveniently and convert paper-based processes to web-based digital workflow, eliminating the need for manual data entry.
Workflow management involves automating and streamlining workflows involved in business processes. The price of software is not wholly based on software development costs. Software providers provide a wide range of licensing options, as well as various strategies for deployment and pricing. The type of license used is important for setting the initial license cost, and it also impacts the total license cost over the product's lifespan, as it needs to be updated frequently.
The increased complexity and maintenance expenses may impact the software's support expenses. Software license agreements are also complicated, expensive, and time-consuming. The cost of software maintenance and support does not cover the cost of the software itself; additional integration and customization typically incur additional costs. This could act as a restraint to the market growth.
The increasing demand for process automation and digital transformation is a major factor driving the market growth of workflow management systems. Automation has become one of the most important factors for businesses looking to digitize their workflow processes. The removal of physical intervention in intricate and repetitive workflows not only expedites corporate processes but also enhances the precision and uniformity of outcomes. The growing need for businesses to automate workflow processes and respond to shifting customer demands is anticipated to drive the adoption of technologies such as RPA and AI over the forecast period.
Companies in all industries, including BFSI, retail, and manufacturing, have implemented workflow management system solutions to automate internal and external processes, particularly those involving customers, partners, and self-service applications. However, the fundamental capabilities of workflow management system solutions can be enhanced by combining them with other technologies, such as RPA and AI. Therefore, the increasing demand for automation and digital transformation creates opportunities for market growth over the forecast period.
| Study Period | 2019-2031 | CAGR | 30.4% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 11.66 Billion |
| Forecast Year | 2031 | Forecast Year Market Size | USD 127.11 Billion |
| Largest Market | North America | Fastest Growing Market | Europe |
Based on region, the global workflow management system market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global workflow management system market shareholder and is anticipated to exhibit a CAGR of 27.8% during the forecast period. The surging number of technology start-ups and the high adoption of CRM, ERP, and cloud services in North America are expected to expedite the growth of the workflow management systems market over the forecast period. The region has high internet penetration, a significant factor supporting market growth. Moreover, the rapid adoption of cloud-based services and the introduction of high-speed data networks also reflect favorably on workflow management systems market forecasts.
In addition, U.S. investors fund companies developing software and services for workflow management systems. These technologies are capable of efficiently and securely delivering material to customers, leading to their widespread integration within governmental and organizational activities. For instance, Monday.com, a workflow management platform provider based in New York City and Tel Aviv, raised USD 150 million in Series D funding in July 2019. Such factors boost the overall market growth in this region.
Europe is estimated to exhibit a CAGR of 31.9% over the forecast period. An increase in enterprises and growing investments in digital transformation, such as Industry 4.0 and process automation tools, including AI and machine learning, will likely spur the need for workflow management systems in Europe. The European Cloud Initiative launched by the European Union envisages providing a digital lead in the data-driven market to organizations willing to reap the benefits of cloud services. Such initiatives are expected to boost the region's demand for cloud-based workflow management systems. In addition, Germany is a world leader in the transportation as well as service industries. The government and organizations are extending support to innovative transportation network transformation to maintain the country's leading position. This could provide growth opportunities to workflow management system providers.
Furthermore, according to the data published by the Cloud Industry Forum (CIF), the U.K. stands at an adoption rate of the cloud of around 87.6%. The scenario will likely drive the adoption of cloud-based services and increase growth opportunities for the cloud-based workflow management systems market.
In Asia-Pacific, the rising number of smartphone users and the expansion of e-commerce are two key factors projected to drive the market expansion. Most businesses in the region promote the widespread adoption of BYOD and cloud-based tools and the enterprise-wide acceptance of digital workplace services. Similarly, rapid economic development, globalization, increasing Foreign Direct Investment (FDI), and rising Internet penetration are expected to fuel market growth. Regional governments incentivize software firms to design and develop Free and Open-Source Software (FOSS) for SaaS, mobile applications, and Service-Oriented Architecture (SOA). These initiatives are anticipated to facilitate the creation of new workflow management systems. Similarly, the rise in digitization initiatives, such as Digital India, drives the demand for fast and secure content delivery management. This will likely work well for the workflow management systems market in India.
In Latin America, the increasing demand from emerging outsourcing service verticals such as hosting infrastructure services, application management, and IT outsourcing and project-oriented services such as IT consulting and systems is expected to drive the workflow management systems market. The U.S. Congressional Bill favors the Latin American region as it would prevent American companies from outsourcing operations to countries such as India due to a hike in H1-b visa fees. This would subsequently lead to the region's development as a business hub and a lucrative market for implementing workflow management systems.
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The global workflow management system market is segmented by component, deployment, and vertical.
Based on components, the global workflow management system market is bifurcated into software and services.
The software segment dominates the global market and is projected to exhibit a CAGR of 31.4% over the forecast period. The ability of workflow management software to minimize iterative work processes, which lower productivity, and transform conventional workflows augurs the segment's growth well. Workflow management software has the potential to automate processes and enhance the efficiency of decision-making. Workflow is the efficient flow of documents and tasks through an organization's business process.
Services include support services for maintenance or upgrading, which are either a part of a standalone or a subscription plan. Enterprises and service providers offer services for improving efficiency and decreasing human errors and expenses. The services aid businesses in implementing workflow management systems by ensuring that the new systems are compatible with the existing systems of the respective departments or by integrating the new systems with the existing systems while preventing data loss or theft.
Based on the deployment, the global workflow management system market is divided into cloud and on-premise.
The cloud segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 31.4% throughout the forecast period. The cloud segment covers private, public, and hybrid cloud deployments. It is expected to be the most preferred deployment type as it offers flexibility and remote access and lowers financial risks. Cloud-based workflow management software allows organizations to access data anywhere and anytime. Cloud solutions also permit enterprises to maintain a centralized database and provide up-to-date information from around the globe. The expansion of the cloud segment can be attributed to the penetration of mobile devices and the development of technologies for information sharing.
The on-premise segment covers services and software deployed on the customer's premises. On-premise deployment of services allows companies to control the systems, infrastructure, and sensitive business processes independently. The growth of the on-premise segment is attributable to the fact that on-premise software can be easily customized and adapted to the client's particular processes. Initially, on-premise deployment was favored because on-premise software does not necessitate an internet connection, permits simple customization, and ensures complete control over sensitive business data. However, organizations are moving from on-premise deployment to cloud deployment in line with the emergence of cloud computing.
Based on vertical, the global workflow management system market is segmented into BFSI, IT and telecommunication, healthcare, retail, transportation, and others.
The BFSI segment owns the highest market share and is estimated to exhibit a CAGR of 30.5% during the forecast period. In the BFSI sector, workflow management solutions include business process automation, records management, and content management. They can assist with various banking operations, including onboarding new customers, loan application processing, compliance management, fraud information management, and records management. Considering the sensitive nature of the data that incumbents in the BFSI industry must manage and the numerous ways this data can be exploited, workflow management systems can aid in establishing secure data storage and communication systems, allowing authorized access while preventing all unauthorized attempts to access the data.
The soaring need for maintaining electronic data across all operation channels and surging patient outreach is expected to spur the development of the segment over the forecast period. The number of patients and the volumes of patient data, which have been rising rapidly, have triggered the need for scalable business models that can facilitate efficient patient handling. At this juncture, workflow management systems can help in mitigating risks related to costs, drafting new business strategies, improving the patient experience by allowing better decision-making, and guaranteeing optimal utilization of resources and time.
