Workforce Management Market

Workforce Management Overview for 2024 to 2034

The workforce management market is expected to be valued at USD 8,877.4 million in 2024. The pace of progress for the market from 2024 to 2034 is expected to be positive, with a CAGR of 9.2%. By the end of the forecast period, the workforce management industry value is slated to hit USD 21,342.1 million.

Attributes	Details
Workforce Management Market Value for 2024	USD 8,877.4 million
Projected Market Value for 2034	USD 21,342.1 million
Value-based CAGR of Market for 2024 to 2034	9.2%

Workforce Management Demand Outlook

• Employees are considered the backbone of the organization by companies and to optimize their performance, workforce management systems are being called upon.
• Workforce management systems are seeing increasing adoption as companies look to plan budgets better, with the software helping them in the wage budget regard.
• Workforce management adoption is increasing in large enterprises as the handling of a sizable set of employees gets cumbersome without suitable systems in place.
• Workforce management system demand is increasing as companies transition to digitization, helping the bulky amount of employee data to be shifted to digital files and servers.
• Through software, companies are trying to improve efficiency and employee performance. Workforce management is one such software that is being adopted to improve employee performance.

Workforce Management Market Trends

• As trends of remote work grow, the demand for remote workforce management software is getting propelled.
• Following the trend in other office management systems, cloud-enabled workforce management services are being preferred by organizations with a significant amount of employee data.
• Public sector companies are becoming part of the consumer base at a rapid pace, as governments are encouraging the use of efficient software in public working.
• Demand for workforce management is increasing from medium and small-scale businesses, as the benefits of the management system get more widespread.
• Use of tools like AI and machine learning in workforce management is boosting the capabilities of the system and improving the demand for it.
• Companies are concentrated on increasing the diversity of the workplace and making them more inclusive. Thus, workforce management solutions are being utilized to make the workforce more of an equal opportunity ground for employees from all backgrounds.
• Through the use of cloud-based systems, workforce management handling has become more convenient for consumers, for example, the operation of the system through mobile phones. The convenience factor is propelling the workforce management industry.
• Pricey nature of workforce management systems is impeding the growth of the market, especially among small and medium-scale businesses.

Category-wise Outlook

Cloud is the top deployment type in the market. Large enterprises continue to rule the roost in the organization type segment.

Enhanced Capabilities Made Possible by Cloud Systems Make Sure the Demand for Cloud-based Solutions is Climbing

Cloud-based systems are expected to account for 68.3% of the market share by deployment type in 2024. Factors driving the growth of cloud-based workforce management systems are:

• Cloud-based workforce management systems are enabling organizations to improve storage capabilities, increase convenience by making the solution available through mobiles, and much more. Thus, the demand for cloud-based workforce management solutions is increasing.
• On-premises solutions are impractical for remote workforce management systems and thus cloud is the medium chosen for these systems.

Attributes	Details
Top Deployment Type	Cloud
Market Share (2024)	68.3%

Large Enterprises Continue to Make Overwhelming Use of Workforce Management

Large enterprises are anticipated to account for 61.7% of the market share in 2024. Some of the factors that large enterprises use of workforce management are:

• Large enterprises have to deal with a sizable amount of employees and to streamline employee-related processes, the help of workforce management is being sought.
• Cost of workforce management solutions is less likely to be a hindrance for large enterprises and thus the solution is becoming more commonplace in large enterprises.

Attributes	Details
Top Organization Type	Large Enterprises
Market Share (2024)	61.7%

Country-wise Analysis

Rise in corporate culture is helping the market’s purpose in North America. Increase in understanding of the benefits of employee welfare is propelling the market in Europe.

Companies in the Asia Pacific are increasingly turning towards digitization and thus the environment is conducive for the growth of the market in the region. The commercial boom in Oceania is seeing the region emerge as lucrative in the market.

Countries	CAGR (2024 to 2034)
China	9.7%
Australia	12.7%
Japan	3.9%
Germany	4.6%
United States	6.0%

New Solutions Key in Australia

The market is anticipated to register a CAGR of 12.7% in Australia for the forecast period. Some of the factors driving the growth of the market in the country are:

• Workforce management system providers in Australia are concentrating on new launches to expand the demand in the country. For example, UKG launched its UKG Strategic Workforce Planning solution in Australia in May 2023.
• Increasing rate of corporate offices opening and foreign companies opening branches in Australia is helping the market in the country.

Drive to Incorporate More Women into Corporate Working Aided by Workforce Magenta in Japan

Japan is set to see the market expand at a CAGR of 3.9% over the forecast period. Prominent factors driving the growth of the market are:

• Japanese inclination to increase the rate of women occupying prominent positions in companies is being aided by workforce management.
• Technologically advanced Japanese companies are opting for advanced workforce management systems with AI capabilities.

Increasing Rates of Remote Work Necessitating Adoption of Remote Workforce Management in China

The market is expected to register a CAGR of 9.7% in China over the forecast period. Some of the factors driving the growth of the market in China are:

• Significant number of Chinese employees are engaged in remote work and to handle them, remote workforce management systems are being called upon in increasing measure in China.
• Chinese companies employ a considerable contingent of foreign employees and to deal with them, workforce management systems are being called upon.

Foreign Players Making their Way into the German Market

The market is set to progress at a CAGR of 4.6% in Germany for the forecast period. Factors influencing the growth of the market in Germany include:

• Foreign companies, are expanding their operations in Germany. For example, in December 2023, RLDatix acquired local player Breitenbach Software Engineering GmbH to expand its scope in Germany.
• Focus on employee welfare among German companies is leading to increased adoption of workforce management solutions in Germany.

Extensive Payroll Management Needs Propel the Market in the United States

The market is expected to register a CAGR of 6.0% in the United States over the period from 2024 to 2034. Some of the reasons for the growth of workforce management in the country are:

• Companies in the United States are clamoring for services that offer them better payroll management and thus workforce management systems are being integrated further in the country.
• Focus on diversity in workplaces is fueling the demand for workforce management in the United States.

Competitive Landscape in the Workforce Management Market

The competitive landscape of workforce management sees a heavy amount of acquisitions and mergers. Competitors are ruthless in their drive to control more of the market share.

The workforce management market is highly fragmented, with players of all sizes tussling it out for a piece of the pie. Startup culture is also evident in the market.

Recent Developments in the Workforce Management Market

• In February 2024, Trapeze’s Workforce Management (WFM) solution was chosen by logistics company Qube to manage its workforce.
• In January 2024, Valsoft Corporation Inc. acquired Easy Employer, increasing its footprint in the market.
• In November 2023, Huntr and BetterPlace announced their partnership. The newly partnered organizations also released a platform geared towards blue-collar enterprises.
• In September 2023, Indian startup Smartstaff was invested in by the Persol Group. Through the investment, the Persol Group increased its standing in India.
• In June 2023, Australian player Enforce Consulting was acquired by Deloitte.

Key Companies in the Workforce Management Market

• Oracle
• Kronos
• ADP
• SAP
• Ultimate Software
• WorkForce Software
• IBM
• Workday
• Ceridian
• Verint
• Reflexis Systems
• ATOSS
• NICE
• SumTotal
• Infor
• Meta4
• Ramco Systems
• TimeClock Plus
• Replicon
• Mark Information

Key Coverage in the Workforce Management Industry Report

• Back Office Workforce Management Market Analysis
• embedded workforce management software market coverage
• Human Capital Management Market assessment
• Staffing and Scheduling Software Market Analysis
• Labor Management Systems market report
• Employee Productivity Solutions market coverage

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component
  • 5.1. Solutions
    • 5.1.1. Time and Attendance Management
    • 5.1.2. Leave and Absence Management
    • 5.1.3. Workforce Scheduling
    • 5.1.4. Workforce Analytics
    • 5.1.5. Others
  • 5.2. Services
    • 5.2.1. Consulting
    • 5.2.2. Implementation
    • 5.2.3. Training, Support and Maintenance
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment Type
  • 6.1. On-Premises
  • 6.2. Cloud-Based
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Organization Size
  • 7.1. Large Enterprises
  • 7.2. Small and Mid-Sized Enterprises (SMEs)
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vertical
  • 8.1. BFSI
  • 8.2. Telecom
  • 8.3. Government
  • 8.4. Consumer Goods and Retail
  • 8.5. Manufacturing
  • 8.6. Energy and Utilities
  • 8.7. Transportation and Logistics
  • 8.8. Healthcare and Life Sciences
  • 8.9. Information Technology enabled Services (ITeS)
  • 8.10. Others
• 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 9.1. North America
  • 9.2. Latin America
  • 9.3. Western Europe
  • 9.4. Eastern Europe
  • 9.5. South Asia and Pacific
  • 9.6. East Asia
  • 9.7. Middle East and Africa
• 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 17. Key Countries Market Analysis
• 18. Market Structure Analysis
• 19. Competition Analysis
  • 19.1. Oracle
  • 19.2. Kronos
  • 19.3. ADP
  • 19.4. SAP
  • 19.5. Ultimate Software
  • 19.6. WorkForce Software
  • 19.7. IBM
  • 19.8. Workday
  • 19.9. Ceridian
  • 19.10. Verint
• 20. Assumptions & Acronyms Used
• 21. Research Methodology