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The workforce analytics market is estimated to increase by USD 1,858.84 million between 2022 and 2027. The market size is forecasted to grow at a CAGR of 15.42%. The growth of the market depends on several factors, including the demand for efficient labor management and recruitment, the rise in demand for cloud-based solutions, and the use of automation in HR processes.
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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. The solutions help organizations make informed decisions about their human resources by providing insights into employee productivity, engagement, retention, and other key metrics. Organizations use analytics to optimize their hiring processes, improve employee engagement, and retain top talent.
The analytics provide real-time insights into key HR metrics, such as employee turnover rates, performance levels, and recruitment costs. This can help organizations identify patterns and trends in human resources, improve productivity, and develop strategies. Organizations can gain valuable insights into their human resources, optimize their hiring processes, improve employee engagement and retention, and drive business success. 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. Organizations have recognized the need to make analytics accessible through mobile platforms. These applications allow managers and employees to access key labor metrics and insights from anywhere and take action accordingly.
Mobile applications for analytics can improve user experience by providing a more intuitive and user-friendly interface. This can increase adoption and engagement with the analytics tools. The trend of mobile applications for analytics is likely to continue as they help organizations make real-time data-driven decisions and improve the efficiency and effectiveness of their labor. These factors will support market growth during the forecast period.
The lack of a skilled workforce is challenging market growth. Companies investing in data analytics face issues in finding a skilled workforce to execute their strategies. These analytics require data analysis, statistical modeling, and business strategy expertise. However, many organizations are unable to find qualified professionals with the necessary skills and experience to implement and manage effective programs.
The shortage of skilled labor is attributed to several factors, such as the rapid pace of technological change, the growing demand for data-driven decision-making, and the relatively new nature of the field. Many educational institutions have not fully adapted their curriculum to the evolving needs of the market, which has left a gap between the skills in demand and the skills being taught. 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 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 growth strategies.
Global 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 15 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the retail segment will be significant during the forecast period. The retail industry is one of the fastest-growing industries and is evolving rapidly owing to the changing market economy, rise in competition from online retail, new product launches, and customer demands.
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The retail segment was valued at USD 269.69 million in 2017 and continued to grow until 2021. Analytics plays a major role in identifying the best HR strategies in a retail environment, which includes part-time employees, full-time employees, contractual workers, and multiple other stakeholders across distribution channels. Implementing. The analytics helps retailers analyze various parameters, such as customer feedback, sales productivity, and other performance metrics. Analytics help retailers take advantage of existing data to manage their budgets strategically, optimize productivity and scheduling, and improve recruitment, retention, and development activities. Hence, the increasing size of the employable workforce and the rise in hiring costs drive the adoption of analytics in retail companies. Therefore, the retail sector can benefit significantly from the analytics solutions, which will drive the growth of the segment in the forecast period.
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APAC 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.
North America is another key region that contributes significantly to the global market. Data analytics helps gain insights into various aspects of an organization's workforce, such as employee performance, recruitment, retention, and engagement. The growth of the market in the region is primarily driven by the growing need for organizations to optimize their workforce and enhance employee productivity and engagement. The increasing adoption of cloud-based solutions, the growing demand for data-driven HR decisions, and the need to enhance employee engagement and retention are the key factors driving the growth of the North American market. Other factors contributing to market growth include the increasing adoption of mobile devices and the rise of social media platforms.
The market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market is experiencing rapid growth, propelled by the offerings of global workforce analytics software market companies. These companies provide a range of component types and deployment options, catering to organizations of all sizes and end-users across various industries. With a substantial value in USD and a promising Compound Annual Growth Rate (CAGR), workforce analytics software solutions are revolutionizing HR practices, impacting employee behavior positively, and enabling data-driven workforce decisions.
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.
Workforce Analytics Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.42% |
Market growth 2023-2027 |
USD 1,858.84 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.38 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Automatic Data Processing Inc., Brightfield, Bullhorn Inc., Ceridian HCM 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 forecasting, market growth and trends, 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 the forecast period |
Customization purview |
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