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The workforce analytics market size is forecast to increase by USD 2.56 billion at a CAGR of 17.74% between 2023 and 2028. The market's growth hinges on various factors, notably the escalating need for streamlined labor management and recruitment, driven by increasing business demands. Additionally, the surge in cloud-based solutions adoption caters to modern organizational needs for scalability and flexibility in HR processes. The integration of automation further optimizes efficiency across HR operations. These trends reflect a broader shift towards digitalization and innovation in workforce management, underscoring the pivotal role of advanced technologies in meeting evolving business requirements.
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The market is experiencing remarkable growth, driven by various factors such as the increasing demand for AI-based solutions to analyze workforce data and the adoption of blockchain technologies for secure data management. Businesses are prioritizing enhancing employees performance through statistical and data-driven methods, optimizing workforce planning and strategic decision-making. Challenges persist, including the lack of analytical skills and capabilities, particularly among small & medium enterprises. However, integrating machine learning and cloud-based solutions shows promise in overcoming these obstacles, offering a competitive edge in employee engagement, retention, and overall enterprise success. The demand for efficient workforce management and recruitment is notably driving market growth, although factors such as the lack of skilled labor may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for efficient workforce management and recruitment is driving market growth. Workforce analytics refers to the use of ML and AI technologies to analyze workforce data and identify patterns and trends, enabling organizations to make better decisions regarding their human capital. This software solution offers real-time insights into key HR metrics, such as employee turnover rates, performance levels, and recruitment costs. By providing personalized recommendations, workforce analytics helps streamline the execution process, improve managerial efficiency, and ensure data privacy and compliance during deployment.
Moreover, enterprise types across industries, including IT & telecommunication and BFSI, are increasingly adopting workforce analytics for Big data analytics and HR analytics to optimize hiring processes, enhance employee engagement, and retain top talent. However, ROI and risk factors must be carefully considered before implementation, with satisfaction with decisions being a primary concern for real-time talent decisions. These factors will drive market growth during the forecast period.
The increasing use of mobile applications for workforce analytics is a key trend shaping the market. The Market has experienced significant growth, driven in part by the integration of ML and AI technologies. This market focuses on analyzing workforce data to identify patterns and trends, enabling organizations to make better decisions. Software solutions for workforce analytics provide valuable insights, improving the execution process and enabling personalized strategies. Deployment of these solutions can vary, with IT & telecommunication and BFSI industries leading the way.
Moreover, workforce analytics is essential for enterprise types seeking to optimize human capital and enhance managerial efficiency. ML and AI enable real-time talent decisions, ensuring compliance with data privacy regulations and maintaining satisfaction with decisions. Big data analytics and HR analytics are crucial components, offering a high return on investment. However, risk factors such as data security and accuracy must be addressed. Mobile applications for workforce analytics, including those from Visier and SAP SuccessFactors, are increasingly popular. These factors will support market growth during the forecast period.
The lack of a skilled workforce is challenging market growth. The Market experiences a significant skills gap due to the intricate fusion of ML and AI, data analysis, statistical modeling, and business strategy expertise required. Companies investing in data-driven decision-making through workforce analytics face challenges in sourcing proficient professionals. This field, which uncovers patterns and trends from workforce data, is essential for personalized organization development, ensuring data privacy and compliance during deployment.
Moreover, enterprise types, including IT & telecommunication and BFSI, heavily rely on HR analytics and Big data analytics for managerial efficiency and better decisions. However, the rapid advancement of technology, increasing demand for real-time talent decisions, and the relatively new nature of the field pose risk factors for ROI and satisfaction with decisions. Effective execution processes are crucial to mitigate these challenges and maximize the potential benefits of workforce analytics. This may hamper the ability of service providers to cater to the needs of their client base, which, in turn, can deter the growth of the global market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Kronos Inc. - The company offers workforce analytics for healthcare, which provides access to all relevant workforce and operational data in one easy-to-use platform. It also offers the KRONOS software solution for workforce management, employee scheduling, labor activities, and other purposes.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the retail segment will be significant during the forecast period. In today's retail industry, workforce analytics has become essential for organizations to make informed decisions and enhance managerial efficiency. ML and AI technologies are used to analyze workforce data, identifying patterns and trends to drive better decisions. HR analytics software enables real-time talent decisions, improving human capital management and ensuring data privacy and compliance. Enterprise types in IT & telecommunication, BFSI, and retail sectors benefit from workforce analytics, leveraging Big data analytics for Return on Investment and mitigating risk factors.
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The retail segment was valued at USD 303.60 million in 2018 and continued to grow until 2022. ML and AI enable personalized approaches to employee engagement and development, leading to increased satisfaction with decisions. Deployment of workforce analytics software requires careful consideration, ensuring alignment with the organization's goals and execution process. Data privacy and compliance are crucial aspects of implementation, with HR analytics playing a vital role in maintaining a high-quality workforce in a competitive landscape. Hence, such factors are fuelling the growth of the segment which in turn drives the market during the forecast period.
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Europe is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Another signifcant region which contributes to the market growth is North America. The North American market leverages data analytics solutions to evaluate workforce performance, facilitate staffing and employment, and enhance employee collaboration and engagement. Key growth factors include the adoption of cloud-based applications for strategic workforce planning, compensation management, and recruitment. Machine learning and artificial intelligence are utilized to analyze performance data and identify talent gaps, providing a competitive advantage through data-driven methodologies. HR data sources include mobile devices and social media platforms like LinkedIn and Naukri. Integration of data from various sources is essential for monitoring performance and software demand. Large enterprises and small to medium enterprises benefit from these technologies, with high installation costs and deployment analysis considerations. Managers utilize these tools for development and training, compensation & benefits, and AI/ML-driven methodologies. Hence, such factors are driving the market in North America during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is a significant segment of the Human Capital Management (HCM) industry, focusing on the collection, analysis, and reporting of workforce data to optimize business performance. Premises-based and cloud-deployed solutions enable enterprises to measure, manage, and improve workforce productivity and efficiency. These systems offer features such as real-time analytics, predictive modeling, and benchmarking capabilities. They help organizations to identify trends, reduce costs, and make data-driven decisions related to staffing, performance, and succession planning. Devops teams and IT departments also leverage workforce analytics to monitor and manage their technology teams' performance and productivity. The market is expected to grow significantly due to the increasing demand for data-driven decision-making and the need to optimize workforce costs.
Key players like Google, Tata Consultancy Services, and Infosys are at the forefront, offering advanced tools for continuous performance monitoring and employee engagement. Major market trends, particularly in the Asia-Pacific region, emphasize the shift towards employee-centric organizations and the adoption of fact-based HR decisions. As organizations embrace digital technology and AI-driven analytics, workforce analytics solutions are becoming indispensable for driving efficiency, innovation, and managerial effectiveness.Premises-based and cloud-deployed solutions enable enterprises to measure, manage, and improve workforce productivity and efficiency. These systems offer features such as real-time analytics, predictive modeling, and benchmarking capabilities. They help organizations to identify trends, reduce costs, and make data-driven decisions related to staffing, performance, and succession planning. Devops teams and IT departments also leverage workforce analytics to monitor and manage their technology teams' performance and productivity. The market for is expected to grow significantly due to the increasing demand for data-driven decision-making and the need to optimize workforce costs.
The Market is evolving rapidly, driven by the increasing need for workforce performance improvement and evaluation. Organizations are leveraging AI-based workforce analytics to enhance employee performance, employee retention, and planning improvement. This trend is particularly significant with the rise of the work-from-home model, which necessitates advanced tools to monitor and manage remote employees effectively. Compensation and benefits, as well as solutions for long-term labor issues, are crucial components of workforce analytics. HR analytics tools are being employed for predictive workforce analytics, data mining, and regression analysis, enabling hiring teams to make data-driven decisions regarding career progression and employee experience. Techniques like pattern matching and turnover modeling help in risk assessment and productivity indexing.
Furthermore, the market offers both cloud and on-premise solutions, catering to various organizational needs, including small and medium enterprises. Industries such as IT and telecommunication are particularly benefiting from these advancements, using people data to drive strategic decisions. The integration of HR teams with professional services and managed services ensures continuous performance improvement. Tools for payroll and monitoring, continuous performance systems, and management training programs are pivotal in addressing performance anxieties and fostering a culture of growth. The use of on-cloud and on-premises platforms provides flexibility to organizations, enhancing their capability to adapt to workplace trends. This comprehensive approach to workforce analytics is instrumental in navigating dismissals, improving human resources strategies, and ensuring overall organizational efficiency.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.74% |
Market growth 2024-2028 |
USD 2.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.31 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, China, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Automatic Data Processing Inc., Brightfield, Bullhorn Inc., Ceridian HCM Holding Inc., Cisco Systems Inc., Cornerstone OnDemand Inc., International Business Machines Corp., Jobvite Inc., Koch Industries Inc., Kronos Inc., New Mountain Capital Group, L.P., Oracle Corp., Paycor Inc., PredictiveHR Inc., Salesforce Inc., SAP SE, Visier Inc., Workday Inc., and WorkForce Software LLC |
Market dynamics |
Parent market analysis, market growth and trends, market report, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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