ID: MRFR/ICT/1763-CR | July 2020 | Region: Global | 123 pages
Workforce Management Market is likely to develop at an 8.53% CAGR between 2020- 2026, reveals the latest Market Research Future’s (MRFR) workforce management market forecast report. The strong workforce management industry growth can be accredited to the increasing competition in the business environment.
The COVID-19 outbreak has resulted in the trends of remote working and working from home. Workforce management services and solutions are likely to gain opportunities from this trend as companies strive to keep track of business performance and employee productivity. This solution helps HR and enterprise management in tracking and optimizing employee productivity and maximizing the performance of employees. Besides, it assists in forecasting employee needs, creating and managing the work schedules, along with analyzing performance. Workforce management solutions gather real-time data regarding the performance of employees, manage the resources of the company from remote locations, assist in carrying out employee training, scheduling, management, and recruitment, and forecasts and analyze the business outcomes and productivity.
Enterprises that chose on-premises software deployment have experienced a fall in the use of these solutions with remote working resulting in its restricted use. Workforce management solutions that are cloud-based are predicted to have a growing demand over the forecast period due to their cost-effective, flexible, and scalable features.
Interest in this solution is likely to go up with some corporate giants planning to go ahead with the trend of work from home even after a reduction in the impact of the worldwide crisis. TCS, for instance, India’s leading IT Company, will plan to continue its latest work model, the 25/25 model, where 25% of the team of a respective project will not be in one location. This IT firm has asked about 90% of its employees from a total of 4.5 lakhs to continue working from home in a secure borderless workplace. HR heads further of a few companies in India like Saint-Gobain, Paytm, Whirlpool, Deloitte, Ernst & Young, Cognizant, Bank of Baroda, and Axis Bank have agreed on work from home to continue. Hence, COVID-19 is likely to shift the patterns of working permanently as organizations are forced to embrace remote working, thus boosting the need of workforce management solutions.
Addition of IoT to Bolster Market Growth
The addition of the internet of things to workforce management software that is simplifying the job by improving technological capabilities may bolster market growth over the forecast period.
Other factors adding to the workforce development market size include the growing demand for mobile-based workforce applications and workforce optimization, rising adoption of workforce management that is cloud-based for stabilizing the situation of remote working during this crisis, demand for workforce management software, and need to attain competitive benefits with regards to customer and employee engagement across industry verticals. Besides, rise in workforce data sources, accessibility of high volume human resource data, AI-based workforce analytics solutions, need to comply with regulatory mandates, integrated workforce system scattered across diverse locations, growing workforce management trends, and need for unified and connected enterprise are also adding market growth.
BYOD Trend to Offer Robust Opportunities
The growing trend of (BYOD) coupled with the digital workplace trend, is likely to offer robust opportunities to industry players in the future.
Privacy Issue to Act as Market Restraint
Data privacy and compliance issues and lack of knowledge about workforce management solutions may have a negative impact on market growth.
Scarcity of Professionals to Challenge Market Growth
Dearth in the availability of professionals to support cloud-based workforce solutions may act as a major challenge to key players in the future.
Global Workforce Management Market has been bifurcated based on Vertical, Organization Size, Deployment, and Component.
Component-based Solutions Segment to Lead the Market
By component, the global workforce management market is segmented into solutions and services. Of these, the solutions segment will lead the market over the forecast period.
Deployment-based Cloud-based Segment to Dominate the Market
By deployment, the global workforce management market is segmented into on-premise and cloud-based. Of these, the cloud-based segment will dominate the market over the forecast period.
Organization-based Large Enterprises Segment to Spearhead the Market
By organization size, the global workforce management market is segmented into large enterprises and small & medium enterprises (SMEs). Of these, the large enterprise segment will spearhead the market over the forecast period.
Vertical-based Retail Segment to Have Lions Share in the Market
By vertical, the global workforce management market is segmented into defense, government, healthcare, retail, manufacturing, energy and utility, IT and telecommunication, BFSI, and others. Of these, the retail segment will have the lion's share in the market over the forecast period.
North America to Sway the Market
By region, the global workforce management market covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), and the Rest of the World (RoW). Of these, North America is predicted to sway the market over the forecast period. Increasing adoption of workforce management services and solutions, growing use of cloud, machine learning, and artificial intelligence, presence of leading workforce management vendors, a higher propensity for technological adoption, rising use of security workforce management software, and increasing adoption of digital workplace solutions in Spain, UK, and the US are adding to the global workforce management market share in the region.
APAC to Grow at Highest CAGR
The global workforce management market in the APAC region is predicted to grow at the fastest pace and at the highest CAGR over the forecast period. Surging need for intelligent workforce management solutions, a growing number of labor laws and regulations in China and India, constant rise in involvement of smart technologies in business processes for strengthening IT framework and growing adoption of digital technologies, and increasing use of mobile workforce management market is adding to the global workforce management market growth in the region.
This market is extremely competitive and fragmented for the presence of a couple of global solution providers and other industry players incorporating technological innovations to provide product differentiation. The majority of the players are laying emphasis to offer innovative solutions to cater to the burgeoning need for advanced technologies and enhancing their roadmaps and capabilities of data science technologies, machine learning, business intelligence, and analytics. The key players have adopted numerous key development strategies like new product launch, and business expansion that is boosting the workforce management market size. They are focusing on improving their solutions with additional capabilities such as different vendor integration, compliance, and analytics to have the upper hand in their products. Besides, they are also focusing on using workforce management solutions as a tactical tool rather than an operations-driven, tracking application that drives the initiatives of R&D in the industry.
Frequently Asked Questions (FAQ) :
The high demand for automation across different sectors is propelling the adoption of workforce management solutions. This is expected to cause the global workforce management market to thrive at a 10.8% CAGR during the assessment period.
Workforce management systems offer valuable insights into employees’ performance. Rapid industrialization is creating numerous job opportunities. Hence, the expansion of the workforce base requires an effective management tool. It is due to which; workforce management systems are experiencing a high rate of adoption across different verticals. Thus, the global workforce management market is expected to witness a sharp rise in its valuation in the years to come. Additionally, the growing number of startups and the adoption of workforce management systems across SMEs is also likely to spur its market growth.
Cloud and on-premise deployment models of workforce management are both appreciated by clients. However, the adoption of a deployment model is highly dependent on a client’s requirement. A study conducted by Market Research Future reveals, on the workforce management market, the cloud deployment is likely to gain high popularity due to the advantage of improving energy efficacy. The cloud, deployment model segment of the market is expected to expand at 16.3% CAGR in the assessment period, states MRFR.
Where large workforce in large enterprises are installing workforce management systems, the growing awareness of micro-level management in SMEs to get high productivity is expected to exhibit to high rate of workforce management system adoption. MRFR states, the SME, organization size segment of the market can thrive at 12.3% CAGR during the forecast period.
MRFR in its list of key players for the workforce management market mentions ATOSS Software AG, Reflexis Systems, Inc., and Huntington Business Systems among others as prominent companies that are operating in the market.