How Has The Payroll Services Market Size Evolved Historically?
The payroll services market has seen considerable growth due to a variety of factors.
• There has been a consistent growth in the payroll services market over the past few years. The market size is forecasted to increase from $71.14 billion in 2024 to $73.37 billion in 2025, with a compound annual growth rate (CAGR) of 3.1%.
The growth during the historic period is a result of a variety of factors including intricate payroll regulations, expansion of small and medium-sized enterprises (SMEs), worldwide business globalization, emphasis on primary competencies, competitive talent, and potential cost savings alongside increased efficiency.
What Can Be Expected from the Payroll Services Market in the Coming Years?
The payroll services market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the payroll services market is predicted to experience consistent expansion in the coming years. It is set to rise to $85.73 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.0%.
This growth during the predicted period can be linked to the increasing trend of remote work and the gig economy, compliance with ever-changing regulations, concerns about cybersecurity, as well as customization and scalability, and strategic workforce management. Key trends anticipated in the forecast period are the incorporation of AI and automation, technological progression, heightened adoption of cloud-based payroll solutions, self-service portals for employees, along with the growth of global payroll services.
What Main Forces Are Fueling Expansion In The Payroll Services Market?
Boosted by the rising adoption of mobile devices and the internet, the payroll services market is anticipated to experience significant growth. A mobile device comprises a handheld compact tool equipped with functionalities such as making calls, touch-screen display, among others. Many businesses are launching payroll applications to enhance user-friendliness, unmatched convenience, and the potential to elevate employee engagement and organizational efficiency. Thus, the expanding integration of mobile and internet permits users to access payroll from any location. For instance, the International Telecommunication Union, a specialized agency based in the US, reported that the number of individuals using the Internet globally escalated from 4.9 billion in 2021 to 5.3 billion in November 2022. Therefore, the escalating adoption of mobile devices and the internet fuels the expansion of the payroll services market.
How Are The Segments Defined Within The Global Payroll Services Market?
The payroll services market covered in this report is segmented –
1) By Type: Payroll And Bookkeeping Services, Tax Preparation Services, Other Accounting Services
2) By Business Size: Small Business, Medium Business, Large Business
3) By Industry Vertical: Banking, Financial Services and Insurance (BFSI), Consumer and Industrial Products, IT and Telecommunication, Public Sector, Healthcare, Other Industry Verticals
Subsegments:
1) By Payroll And Bookkeeping Services: Payroll Processing, Employee Record Management, Payroll Reporting
2) By Tax Preparation Services: Individual Tax Preparation, Business Tax Preparation, Tax Consulting Services
3) By Other Accounting Services: Financial Statement Preparation, Accounts Payable and Receivable Management, Budgeting And Forecasting Services
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How Are New Trends Expected To Influence The Growth Of The Payroll Services Market?
Prominent firms within the payroll services market are embracing innovative technologies like platform-based payroll software to maintain their market influence. This term refers to a cloud-hosted system intended to control and automate the payroll procedures. For example, in February 2024, Ramco Systems Limited, an enterprise software product and platform company based in India, introduced Ramco Payce. This comprehensive, cloud-hosted payroll platform is designed to streamline payroll administration and compliance across various regions. It boasts quick implementation, no-code rule formation, rapid payroll computation, immediate compliance upgrades, and easily accessible reporting, improving efficiency and precision. The software provides remote access, thus equipping businesses with flexible payroll data management options.
Who Are the Key Players in the Payroll Services Market?
Major companies operating in the payroll services market include:
• International Business Machines Corporation
• Deloitte Touche Tohmatsu
• PricewaterhouseCoopers International Ltd.
• Ernst and Young Global Limited
• KPMG International Limited
• Automatic Data Processing Inc.
• HCL Technologies Limited
• BDO International Inc.
• Intuit Inc.
• Insperity Inc.
• Workday Inc.
• Paychex Inc.
• Alight Solutions Inc.
• Sage Group plc
• Grant Thornton LLP
• Paycom Software Inc.
• Ceridian Inc.
• Nethris Inc.
• Neeyamo Inc.
• Gusto Inc.
• Zalaris ASA
• Papaya Global Inc.
• CloudPay Inc.
• Namely Inc.
• Keka Inc.
• OnPay Inc.
• HRMantra Software Pvt Ltd.
• Infosys BPM
What Is The Most Dominant Region In The Payroll Services Market?
Asia-Pacific was the largest region in the payroll services market in 2024. The regions covered in the payroll services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
