How Has the Cloud-Based Payroll Software Market Evolved Historically and What is its Current Size?
The cloud-based payroll software market has seen considerable growth due to a variety of factors.
• The cloud-based payroll software market has experienced rapid growth in recent years. It is projected to grow from $12.85 billion in 2024 to $14.37 billion in 2025, reflecting a CAGR of 11.8%.
The growth drivers include the adoption of cloud technologies, the increasing demand for streamlined payroll solutions, the rise of the gig economy, a focus on cost-cutting, and the growth of subscription-based software models.
What is the Forecasted Market Size and CAGR for the Cloud-Based Payroll Software Market?
The cloud-based payroll software market is expected to maintain its strong growth trajectory in upcoming years.
• The cloud-based payroll software market is expected to grow rapidly, reaching $22.16 billion by 2029, at a CAGR of 11.4%.
The growth is driven by AI adoption, demand for predictive analytics, integrated forecasting, IoT device usage, and big data reliance. Trends include cloud payroll solutions, AI integration, integrated HR and payroll systems, and blockchain technology adoption.
What Key Factors and Trends Are Driving The Growth Cloud-Based Payroll Software Market?
The increasing trend of remote work is expected to spur growth in the cloud-based payroll software market. Remote work refers to employees working outside of office spaces, often from home, using digital technology. The trend toward remote work is driven by factors such as access to a global talent pool, flexibility, and better work-life balance. Cloud-based payroll software helps manage remote teams by integrating with other systems like time tracking and HR tools, automating complex payroll tasks like tax calculations and deposits, and reducing errors. According to the Office for National Statistics, hybrid working increased in the UK, with 24% of workers hybrid in May 2022, up from 13% in February 2022. This shift toward remote work is driving the cloud-based payroll software market.
What Are The Market Segments In The Cloud-Based Payroll Software Market?
The cloud-based payroll software market covered in this report is segmented –
1) By Product Type: Free And Open-Source Software, Subscription-Based Software
2) By Organization Size: Small And Medium-Sized Enterprises, Large Enterprises
3) By Industry: Manufacturing, Information Technology And Telecommunications, Healthcare, Retail, Banking, Financial Services, And Insurance, Government , Other Industries
Subsegments:
1) By Free And Open-Source Software: Self-Hosted Payroll Solutions, Customizable Payroll Software, Open-Source Payroll Tools For Small Businesses, Community-Supported Payroll Platforms
2) By Subscription-Based Software: Monthly Subscription Plans, Annual Subscription Plans, Per-employee Subscription Plans, Tiered Subscription Plans (Basic, Premium, Enterprise), Cloud Payroll Software With Add-Ons (Tax Filing, Compliance Tools )
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How Are New Trends Impacting The Size Of The Cloud-Based Payroll Software Market?
Companies in the cloud-based payroll software market are focusing on integrating advanced solutions like platform-based payroll systems to help businesses manage payroll more efficiently. Platform-based payroll systems are digital solutions provided as SaaS offerings for streamlining payroll management. For example, in February 2024, Ramco Systems Limited, an India-based tech company, launched Ramco Payce, a platform-based payroll system that integrates AI, machine learning, and data analytics for faster and more accurate payroll processing.
Who Are the Key Players In The Cloud-Based Payroll Software Market?
Major companies operating in the cloud-based payroll software market are:
• Oracle Corporation
• SAP SE
• ADP Inc.
• Intuit Inc.
• Paychex Inc.
• TriNet Group Inc.
• Sage Group
• Kronos Incorporated
• Paycom Software Inc.
• Dayforce Inc.
• Xero Ltd.
• MYOB Australia Pty. Ltd.
• Gusto
• IRIS Software Group Ltd.
• Certinia
• Zenefits Software
• ELMO Software Ltd.
• Moorepay Ltd.
• Webscale Pty Ltd.
• Vibe HCM Software
• onPay Inc.
• Ascentis Corporation
• Microkeeper Ltd.
• Personnel Data Systems Inc.
• Talenox Pte Ltd.
What Are The Regional Insights Into The Cloud-Based Payroll Software Market?
North America was the largest region in the cloud-based payroll software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud-based payroll software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
