Workforce Management Market

Global Market Study on Workforce Management: AI & Machine Learning Lending Impetus to Market Growth

Workforce Management Market Segmented By Software, Integrated Workforce Management (WFM) Suite, Standalone Software, Workforce Analytics, Time and Attendance Management, Workforce Performance Management, Workforce Compliance Management Solution with Cloud, On-Premises Deployment

About the Report

The global workforce management market is anticipated to reach a valuation of US$ 17.3 billion by 2031, and expand at an impressive CAGR of close to 10% during the forecast period 2021-2031. With increasing popularity of cloud-based solutions, it has become simpler to store data over the cloud. Another major driving factor is increasing penetration of smart and connected devices and growing focus on workforce optimization.

Workforce optimization can be achieved through performance monitoring, time and attendance tracking, scheduling, and demand prediction, among others. Moreover, with the implementation of workforce management software and services, workforce optimization can be achieved while simplifying remote working.

Persistence Market Research’s new study covers comprehensive insights about market trends, value (US$ Mn) projections, recent developments, and dynamics in the market for the forecast period of 2021-2031. After the unprecedented events of 2020, it has become important to capture the impact of COVID-19 and recalibrate our findings with the actual market scenario.

The report tracks the global value of workforce management in 20+ high-growth markets, where demand seems to be high across North America, East Asia, and Europe.

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Companies

  • IBM
  • Oracle Corporation
  • ActivTrak
  • UKG, Inc.
  • SAP
  • ADP
  • Verint
  • Workday, Inc.
  • Paypro Workforce Management
  • Reflexis Systems
  • Infor
  • Blue Yonder (formerly JDA Software Group)

Future Market Projections Look Bright

The global workforce management market is anticipated to witness high growth in revenue from around US$ 6.3 Bn in 2020 to US$ 17.3 Bn by 2031. The market is anticipated to gain traction over the coming years owing to constant focus on innovations in the digital technologies and rising demand for automation of workforce management across different industry verticals.

A large number of leading organizations are inclined toward integrated all-in-one workforce management suite that might include capabilities such as marketing automation, inbound marketing, workforce optimization, and business analytical tools in order to achieve insights related to operational, commercial, and financial aspects.

Owing to this, there has been surge in demand for integrated workforce management suite. The sub-segment is anticipated to expand at a CAGR of around 11% globally, over the forecast period. Moreover, rise in demand for cloud-based workforce management solutions coupled with growing demand for process automation is further responsible for driving the market growth.

Owing to these factors, demand for workforce management is likely to surge across the globe at a CAGR of close to 10% through 2031.

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How is Growing Trend of AI and Machine Learning Propelling Demand for Workforce Management Solutions?

Growing trend of companies shifting toward artificial intelligence and machine learning is helping them in scaling up their skills in order to gain a competitive advantage in the market. Artificial intelligence has already had a huge impact in the workforce management industry by optimizing business areas by offering cost efficiency and improved performance. For instance, IBM Corporation offers an AI workforce management solution, powered by IBM Watson.

Furthermore, machine learning is used to analyze the activity of users and how they handle tasks differently. Once strong patterns are recognized, machine learning can help in automating the processes and workflows for efficient workforce management.

For example, if a certain action has been performed for more than 20 times, the machine will automatically ask the user if he wishes to automate the action henceforth. It is estimated that this factor will disrupt the market and will create growth opportunities for workforce management solution providers.

With the help of AI and machine learning technologies, workforce management solutions today can automatically generate schedules on the basis of business needs.

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How are Increasing Partnerships & Collaborations Supporting Market Expansion?

Over a period of time, it has been seen that workforce management solution vendors are entering into partnerships and collaborations with regional players and technology vendors to enhance and jointly develop their product portfolios.

This is being done to fulfill growing demand for workforce management software solutions and services across the globe, and provide customers with differentiated products equipped with advanced technologies for managing their workforce effectively.

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Which Factors are Affecting Adoption of Workforce Management?

With the advent of cloud computing, it has been stress-free for businesses to enhance their operations and integrate intelligent solutions while improving performance of their systems with maximum efficiency. This has led to generation of new opportunities for major companies operating in the market in order to expand their workforce management portfolio while integrating cloud features.

Demand for cloud-based workforce management systems is increasing across the globe. Cloud-based workforce management solution provides better access and can be accessed by mobile devices as well. A cloud-based workforce management solution enables companies to improve and simplify their resource management functions compared to other business technologies.

Since the solutions are automated, they further help in improving the accuracy and efficiency. These solutions have the ability to provide self-service which reduces the load of labor intensive tasks. Such cloud-based solutions are very secure because data is not lost when the computer/system/laptop crashes.

These solutions even offer the flexibility to access workforce related information at any location and at any time. Companies such as IBM Corporation, Oracle Corporation, and UKG, Inc., among others, provide cloud-based workforce management software solutions.

This is anticipated to have a high impact on market growth throughout the forecast period. The impact is further supported by growing count of new enterprises, largely small- and medium-sized businesses demanding such solutions.

Workforce Management Market

Country-wise Insights

Will the U.S. Market Prosper Due to Large Number of Workforce Management Solution Providers in the Country?

North America is expected to hold the largest share of the global market, with the U.S. leading the market share with 68%, and Canada expanding at the highest CAGR of more than 9% over the forecast period. Growth in the U.S. can be attributed to the presence of a large number of established players, which is one of the major factors driving market growth.

Furthermore, enterprises in the U.S. are the highly progressive in terms of the adoption of Machine Learning (ML), Artificial Intelligence (AI), and cloud technologies, thereby propelling the growth of the market. Companies like ADP and Workday, Inc. are providing innovative workforce management solutions to the customers, thereby driving the market growth.

Will Increasing Demand for Automation in Germany Drive Need for Workforce Management?

The market in Europe is expected to top US$ 5 billion by 2031, with Germany leading the market share with 30% and the U.K. market expanding at the highest CAGR of more than 11% over the forecast period. With growing popularity of BYOD and increasing demand for connected devices, demand for automation of work processes and workflows is no longer an exception.

The workforce management adoption in Germany market is primarily driven by increasing deployment of cloud solutions. Increasing automation across Germany’s manufacturing sector is driving demand for workforce management solutions.

Furthermore, cost of workforce management varies as per requirement and complexities involved. Usually, complex workforce management with higher capabilities are costlier in nature, and this happens to be one of the major factors responsible for hampering market growth. Moreover, integration issues involved with existing systems is a concern and is causing hindrance to market growth.

What Makes China Dominate the East Asia Market for Workforce Management?

The market in China is expected to reach close to US$ 1.3 billion by 2031, expanding at a considerable CAGR of 10% over the forecast period. Growth in China is primarily attributed to rising demand for innovative solutions for mobile workforce management in the industrial sector.

Companies in China are offering various innovative solutions in order to meet consumer needs and demands. For instance, Infor announced the introduction of a promotion program in China to help organizations be operationally agile and simplify their return to offices, amid COVID-19 pandemic.

The company’s workforce management solution happens to be a great tool for workforce optimization that offers intelligent scheduling, which further aids in making it stress-free for enterprises to strategically reopen their businesses amid the pandemic.

Category-wise Insights

Which Workforce Management Solution Will be Most Sought-after?

The integrated workforce management suite market is expected to reach US$ close to 6.2 billion by 2031, increasing at a significant CAGR of 11%. Growth of integrated suites is driven by demand from large enterprises having multi-national presence and a huge workforce to manage through a single integrated solution.

On the basis of solution, the market is bifurcated into integrated workforce management software (WFM) suites and standalone software. Demand for standalone software such as workforce analytics software, time and attendance management software, compliance management software, and others is largely from small and medium enterprises, due to limited budget constraints to opt for costly integrated suites.

Hence, SMEs usually deploy standalone software as per their requirements of workforce management.

Which Industry Holds the Largest Share in Workforce Management?

The retail & CPG segment is expected to reach US$ 4.6 billion by 2031, progressing at a significant CAGR of over 11% during the forecast period. The retail & CPG industry sub-segment is expected to hold substantial market share, as workforce management solutions are widely being implemented to monitor retail and warehouse employees and maintain track across different departments and retail functions.

The sub-segment is anticipated to create an incremental opportunity of over US$ 3 Bn from 2021 to 2031. Apart from this, other industries such as IT & telecom, manufacturing, and others are also estimated to contribute significant share to the market.

Why is There High Demand for Workforce Management from SMEs?

The SMEs segment is expected to reach US$ 7.2 billion by 2031, expanding at a significant CAGR of 11%. Demand for subscription-based and affordable workforce management solutions is expected to increase, owing to rise in implementation by SMEs.

There are many SMEs and emerging starts-up companies who are increasing implementing workforce management solutions. Growth is attributed to rising trend of digitization coupled with digital workplace in start-ups and emerging small companies.

Additionally, cloud-enabled workforce management solutions are further projected to drive adoption of workforce management solutions in SMEs. Currently, there has been considerable growth in the demand for workforce management solutions, as consumers are inclined more toward the automation of processes across different industries.

Why are Key Workforce Management Solution Providers Continuously Focusing on Operational Expansion?

The market is highly competitive in nature due to the presence of a large number of players operating in the industry. Moreover, companies are focused on expanding their production capacities and enhancing capabilities in order to gain a competitive advantage in this space.

Workforce management solution vendors are offering innovative products in order to provide workforce management equipped with AI and machine learning technologies for customers according to their needs.

In addition, players are also focusing on mergers and acquisitions in order to enhance their portfolio and serve increasing consumer needs. For instance, in April 2020, Kronos Incorporated and Ultimate Software announced the completion of their merger.

The merger is anticipated to give birth to the most innovative workforce management company offering human capital management, in order to help organizations across all industry verticals. The merger of Kronos and Ultimate creates UKG, Inc., one of the largest cloud companies.

Market Share Analysis

Market participants are adopting the product diversification strategy to enhance their market presence. Moreover, emerging companies are significantly investing in new product development and launches to sustain their market presence. Also, via innovation and development, various vendors are focusing on enhancing their solution attractiveness levels.

The workforce management industry is estimated to be moderately fragmented over the forecast period. This projected fragmentation is attributed to revenue generated by major giants and new start-ups along with other established small- and medium-sized workforce management providers operating in the market.

Market leaders are companies that individually hold a market share of above 10%. This group includes giants such as ADP, SAP, and Oracle Corporation, among others. These companies hold approximately 36% of the global market share.

Companies with a market share of over 5% and below 10% are promising players. These companies are likely to showcase quick growth and harness the opportunities that the global market has to offer. These companies hold approximately 13% share of the global market.

Companies that have a relatively lower share worth less than 5% are striving to attract new clients in foreign markets. Such emerging players are Paypro Workforce Management, Blue Yonder, Infor, and ActivTrak, among others.

Competitive Landscape

Market players are relying on expansion strategies to deepen penetration across lucrative markets. These include collaboration with key players, product innovation, acquisitions partnerships, and strengthening of regional and global distribution networks.

Rapid adoption of workforce management in the retail & CPG, IT & telecom, and BFSI industries to reduce process times, increase customer satisfaction, and offer high return on investment are factors supporting high growth. Key vendors are also focusing on strengthening their channel partner ecosystems to improve on indirect sales, for enhanced business growth.

Some of the leading companies providing workforce management solutions are:

  • IBM Corporation
  • Oracle Corporation
  • UKG Inc.
  • SAP
  • Blue Yonder
  • Infor
  • Paypro Workforce Management
  • Workday, Inc.
  • ActivTrak
  • Reflexis Systems
  • ADP
  • Verint

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence shall be available in the report.

Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa
  • Latin America

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • Italy
  • France
  • U.K.
  • Spain
  • Benelux
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • ANZ
  • GCC
  • Turkey
  • South Africa
  • Brazil
  • Mexico

Key Segments Covered

  • Solution
  • Deployment
  • Enterprise Size
  • Industry
  • Region

Key Companies Profiled

  • IBM Corporation
  • Oracle Corporation
  • UKG Inc.
  • SAP
  • Blue Yonder
  • Infor
  • Paypro Workforce Management
  • Workday, Inc.
  • ActivTrak
  • Reflexis Systems
  • ADP
  • Verint

Customization & Pricing

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Key Questions Answered in Report

  • How will the market expand until 2031?

    Persistence Market Research projects the market to register a CAGR close to 10% across the 2021-2031 assessment period. With increasing number of applications requiring automation of work processes, there has been substantial increase in demand for workforce management solutions.

  • What are the major challenges for workforce management providers?

    Integration complexities coupled with lack of awareness regarding the benefits of workforce management solutions tend to be on the higher side, which is causing hindrance to market growth.

  • Who are the leading players providing workforce management?

    Prominent players operating in this space include IBM Corporation, Oracle Corporation, UKG Inc., SAP, Blue Yonder, Infor, Paypro Workforce Management, Workday, Inc., ActivTrak, Reflexis Systems, ADP, and Verint.

  • What are the major trends impacting market growth?

    Increasing demand for cloud-based solutions and AI/ML capability integrations for automated solutions happens to be the key trend shaping the market of workforce management.

  • Which region is expected to be at the forefront in this market?

    North America is dominating the global market; however, the market in East Asia is anticipated to expand at a significant rate over the forecast period. East Asia is expected to remain a key market, owing to growing demand for workforce management solutions from the manufacturing sector.

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  • Is this research conducted by Persistence Market Research?

    Yes, the research has been conducted by expert analysts of Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Persistence Market Research?

    Persistence Market Research follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on the use of standard market structure, methods and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

    Persistence Market Research speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request

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