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The expansion of Workforce Analytics market is influenced by various market factors which drive its growth and shape the industry. These market factors determine demand, adoption and development of workforce analytics solutions. Understanding these factors is crucial for business to make informed decisions and realize the potential of the workforce analytics market.
One important market factor driving the growth of Workforce Analytics is an increasing need for data driven decision-making in organizations. As business becomes more complicated and competitive, there has been a growing recognition that strategic decisions based on correct and timely employee information are vital to success. Workforce analytics solutions enable firms to collect, analyze and interpret huge amounts of workforce data thereby making them able to take talent acquisition, retention, workforce planning, performance management as well as succession planning decisions that are backed up by facts. Demand for data-driven insights is driving uptake of workforce analytics solutions across different sectors.
Another major market factor affecting Workforce Analytics is the emergence of remote work and distributed teams. Since the global pandemic and subsequent shift towards working from home; companies are finding new challenges in managing their workers efficiently. Workforce analytics solutions offer insights into remote work trends such as productivity levels, collaboration patterns and employee engagement which helps firms understand what goes on in remote settings hence enabling them make better choices targeted at improved performance and well-being The increased prevalence of remote work necessitates workforce analytics tools that can provide visibility and actionable insights into distributed teams.
Besides, other market forces driving this sector include the need for talent retention/management through proper analytic application/workforce planning. In today’s competitive environment attracting and retaining top talents is paramount if organizations are to remain competitive in their respective industries. Workforce planning plus analytics aligns organizations with their strategic objectives, optimizes resource allocation and mitigates risks that come with talent shortages or surpluses.
Also, the market forces driving Workforce Analytics include the increased focus on Diversity, Equity and Inclusion (DEI) in workplaces. Organizations are realizing that they must create diverse and inclusive work environments to enhance innovation, employee engagement as well as organizational performance.Workforce analytics help track and measure DEI metrics by identifying biases and informing actions towards more inclusive practices and policies.Demand for DEI analytics tools is increasing as companies aim at having a diverse workforce that is able to reap from its advantages.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 2.4 Billion |
| Market Size Value In 2023 | USD 2.74 Billion |
| Growth Rate | 14.20% (2023-2032) |
Workforce Analytics Market Highlights:
Workforce Analytics Market Overview
The Workforce Analytics Market is projected to grow from USD 3.12 billion in 2024 to USD 7.92 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.32% during the forecast period (2024 - 2032). Additionally, the market size for workforce analytics was valued at USD 2.74 billion in 2023.
Figure 1: Workforce Analytics Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Workforce Analytics Market Trends
Growing demand for performance monitoring is driving the market growth
Trends like increasing data use for strategic workforce planning, gaining a competitive edge, addressing long-term labor issues, and ensuring employee engagement and satisfaction, are the main factors propelling the market's growth. By keeping track of this information, managers can evaluate the success of their efforts to get their staff involved in planning improvements, resolving questions, establishing expectations, and reporting performance concerns. Thus, assessing an employee's performance helps managers identify the areas that need to be improved and those that are on par with or even exceeding goals. A data-driven approach to managing people at work is called workforce analytics. It uses statistical and data-based methods to help businesses better understand and improve employee performance, engagement, and retention. The market recently experienced an uptick due to the increased availability of data and the adoption of new technologies like ML and AI. Additionally, businesses are automating the evaluation of workforce data using Machine Learning (ML) and Artificial Intelligence (AI), which can be used to classify patterns and trends that would otherwise be difficult to spot. These distinctive insights can then be applied to improve performance, manage personnel, and maintain organizational talent.
As a result, it is anticipated that the use of AI and ML in workforce analytics will accelerate market growth over the forecast period. An improved set of data analytics tools for assessing and improving workforce performance is called workforce analytics. It assesses hiring, employment, worker development, employee training, pay, and benefits. Applications for workforce planning, compensation administration, talent and performance administration, hiring, and employee collaboration are available in the market. Organizations’ difficulties analyzing the enormous amounts of data their employees generate is another factor driving demand for improved analytical solutions. This element is anticipated to accelerate market growth for workforce analytics. Thus, driving the workforce analytics market revenue.
Workforce Analytics Market Segment Insights
Workforce Analytics Type Insights
The global workforce analytics market segmentation, based on type, includes solutions and services. The solutions segment dominated the market, lowering churn rates by identifying the factors that lead to it and comprehending how investing in human capital assets helps with revenue generation and cost-cutting. It gives previously obscured processes and outcomes visibility. Improving business process monitoring. Addressing opportunities or challenges in employee management more effectively.
Figure 1: Global Workforce Analytics Market, by Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Workforce Analytics Deployment Insights
The global workforce analytics market segmentation, based on deployment, includes On-Premise and cloud. The cloud category generated the most income. Due to cloud-driven deployment's flexibility, efficiency, and cost-effectiveness, it is also expected to grow at the highest CAGR during the projected period. Additionally, it offers users a better platform that can be accessed from different locations. Due to the advantages of cloud-driven software, users choose it over on-premise software, which has high costs for software installation and upgrades. The rapid conversion from an on-premise to a cloud-based platform hampered the segment's expansion.
Workforce Analytics Organization Size Insights
Based on organization size, the global workforce analytics market segmentation includes large and SMEs. The SMEs category generated the most income due to the software's early adoption. Additionally, according to a report by the software provider Enlyft, out of all the customers using SAP SuccessFactors Workforce Analytics, about 38% are small and medium-sized businesses, and 72% are large corporations.
Workforce Analytics Industry Insights
The global workforce analytics market segmentation, based on industry, includes banking, insurance, government, retail, logistics, healthcare, and manufacturing. The banking category generated the most income. Numerous companies invest heavily in this software for data security and effective data management. The BFSI industry has been motivated to develop better infrastructure and technology to survive its difficulties, including security threats, expansion, and low-profit margins. As a result, it is anticipated that BFSI will invest in these solutions to fulfill these needs, driving the market during the forecast period.
Workforce Analytics Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American workforce analytics market will dominate this market because of its technological sophistication, the area adopts new technologies more quickly. The dominance of North America in the global market is also attributable to several regional businesses that offer analytics solutions.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: GLOBAL WORKFORCE ANALYTICS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s workforce analytics market accounts for the second-largest market share. Because of the growing concern over handling massive amounts of data, cutting labor costs, enhancing operational skills, and developing digital technologies like cloud, Big Data, 5G, mobile platforms, and advanced analytics platforms. Further, the German workforce analytics market held the largest market share, and the UK workforce analytics market was the fastest-growing market in the European region.
The Asia-Pacific Workforce Analytics Market is expected to grow at the fastest CAGR from 2023 to 2032. A significant increase in revenue growth is anticipated during the forecast period. The expanding adoption and deployment of cutting-edge technologies like cloud-based solutions fuel the demand for this software. The Asia Pacific workforce analytics market share is also driven by growing partnerships and collaborations among regional businesses to deliver better solutions. Moreover, China’s workforce analytics market held the largest market share, and the Indian workforce analytics market was the fastest-growing market in the Asia-Pacific region.
Workforce Analytics Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the workforce analytics market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The workforce analytics industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global workforce analytics industry to benefit clients and increase the market sector. In recent years, the workforce analytics industry has offered some of the most significant advantages to medicine. Major players in the workforce analytics market, including ADP LLC (U.S.), Aquire Inc (U.S.), Cornerstone OnDemand Inc (U.S.), Genpact Ltd (Bermuda), IBM Corporation (U.S.) Kronos Inc (U.S.), Oracle Corporation (U.S.), PeopleSreme Pty. Ltd (Australia), SAP SE (Germany), Tableau Software (U.S.), Tower Watson & Co (U.S.), Visier Inc (Canada), and others are attempting to increase market demand by investing in research and development operations.
Oracle Corporation (U.S.), The headquarters of the American multinational computer technology company Oracle Corporation are in Austin, Texas. According to revenue and market capitalization, Oracle was the third-largest software company in the world in 2020. The company sells enterprise software products like enterprise resource planning (ERP) software, human capital management (HCM) software, customer relationship management (CRM) software (also known as customer experience), enterprise performance management (EPM) software, and supply chain management (SCM) software, as well as database software and technology (particularly under its own brands).
SAP SE (Germany), We are redefining ERP and building networks of intelligent enterprises that provide transparency, resiliency, and sustainability across supply chains to help businesses of all sizes and industries run better. We are the market leader in enterprise application software. Our customers can operate profitably, continuously adapt, and make a difference globally thanks to our comprehensive suite of applications and services. One of the world's top software developers for business process management, SAP creates products that streamline efficient data processing and information exchange between organizations. virtual reality experience. Enterprise resource planning (ERP) software has a global standard that SAP established with the release of its original SAP R/2 and SAP R/3 products. By processing massive amounts of data in memory and supporting cutting-edge technologies like artificial intelligence (AI) and machine learning, SAP S/4HANA now elevates ERP to a new level.
Key Companies in the workforce analytics market include
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SAP SE (Germany)
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Informatica (U.S.)
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Splunk Inc. (U.S.)
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Denodo (U.S.)
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Syncsort Inc. (U.S.)
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IBM Corporation (U.S.)
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Global DS (U.S.)
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Oracle Corporation (U.S.)
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Teradata Corporation (U.S.)
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K2 View (U.S.)
Workforce Analytics Industry Developments
May 2022: TIBCO Software Inc. introduced TIBCO DQ and updates to its Data Virtualization and Unify products. The product assists organizations in putting together the agile tool on any cloud. It also has AI and machine learning capabilities for automated detection and monitoring.
June 2022: NetApp Inc. and Kyndryl announced a partnership with BMW Group to provide data infrastructure to the automotive company. The NetApp fabric aids in the acceleration of the company's innovative insights.
February 2021: NetApp Inc. released ONTAP data management software to create a hybrid multi-cloud data management tool. It provides high-performance storage and advanced integration with the public cloud. Hewlett Packard Enterprise Company enhanced its HPE Ezmeral software portfolio to support the growing digital transformation. HPE Ezmeral is a standalone platform with integrated capabilities like ML Ops and HPE Ezmeral Container Platform.
Workforce Analytics Market Segmentation
Workforce Analytics Type Outlook
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Solutions
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Services
Workforce Analytics Deployment Outlook
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On-Premise
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On cloud
Workforce Analytics Organization Size Outlook
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Large
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SME’s
Workforce Analytics industry outlook
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Banking
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Insurance
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Government
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Retail
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Logistics
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Healthcare
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Manufacturing
Workforce Analytics Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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