How Has the Workforce Analytics Market Size Evolved in Recent Years?
The workforce analytics market has seen considerable growth due to a variety of factors.
• In recent years, the market size of workforce analytics has witnessed a substantial expansion. The market, which is projected to increase from $1.78 billion in 2024 to $2.01 billion in 2025, is anticipated to grow at a compound annual growth rate (CAGR) of 12.5%.
Factors such as regulatory compliance and reporting, adoption of cloud-based solutions, integration with HR management systems, predictive analytics for retention, and diversity and inclusion analytics are responsible for the historical period growth. Additionally, efforts to enhance efficiency and productivity and optimize talent acquisition have also contributed to the market's growth.
What are the Market Size and Expected Growth Rates for the Workforce Analytics Market?
The workforce analytics market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations suggest the workforce analytics market will experience swift expansion in the years to come, aiming to reach a market valuation of $3.85 billion by 2029, escalating at a compound annual growth rate (CAGR) of 17.7%.
The surge in this projection can be traced back to factors such as competitive vendor innovations, domain-specific analytic solutions, macroeconomic circumstances and recovery, an emphasis on analytics for training and development, and increasing adoption among medium-scale enterprises. Standout trends for the anticipated period comprise planning for workforce resilience, gauging employee productivity, implementing artificial intelligence and machine learning, deploying people metrics for forming business strategies, and real-time performance tracking.
What Are The Essential Drivers Behind The Growth Of The Workforce Analytics Market?
The escalating investment in workforce analytics is predicted to fuel the growth of the workforce analytics market. Many firms are contemplating augmenting their investment in workforce analytics because it aids in enhancing employees' productivity, formulating effective recruitment strategies, making superior hiring decisions, retaining top talent, optimum utilization of the workforce, and forward-thinking workforce planning. To bolster the effectiveness of the workforce and management, workforce analytics employs advanced technologies and metrics, ensuring a commendable return on investment over time. As an instance, an article from Randstad, a Dutch HR services firm, published in September 2022 showcases a 2022 Talent trends study by Randstad Sourceright, indicating that 73% of talent leaders are putting in money towards HR and workforce analytics. Consequently, this surge in investment towards workforce analytics is anticipated to fuel the demand for workforce analytics solutions and services during the projected period.
How Is The Global Workforce Analytics Market Divided Into Key Segments?
The workforce analytics market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment: On-Premise, Cloud
3) By Organization Size: Large Enterprises, SMEs
4) By Industry Vertical: BFSI, Manufacturing, Healthcare, Government, Retail, IT And Telecom, Education, Other Industry Verticals
Subsegments:
1) By Solution: Workforce Management Software, Predictive Analytics Tools, Employee Engagement Platforms
2) By Services: Consulting Services, Implementation Services, Training And Support Services
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What Trends Are Reshaping The Future Of The Report Market?
The surge in adoption of cutting-edge technologies is emerging as a primary trend in the workforce analytics domain. This sector is currently witnessing the introduction of such sophisticated technologies like artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) in the realm of workforce analytics solutions. By utilizing workforce analytics rooted in AI, ML, and NLP, businesses are able to better assess and heighten their productivity, expand business scale, streamline business procedures and enhance workforce efficacy. Noteworthy players are zeroing in on providing improved workforce analytics to cater to consumer expectation and solidify their stand in the market. A case in point is Visiera, a cloud-based workforce analytics and workforce planning software firm based in Canada that caters HR analytics and workforce intelligence solutions. In June 2023, they unveiled a novel technology named Vee — a formidable new generative AI-based digital aide that supplements a straightforward conversational interface to Visier People, the most extensively adopted people analytics solution globally. This innovative feature makes it easier for any business leader to access the necessary insights regarding their workforce.
Who Are the Key Players in the Workforce Analytics Market?
Major companies operating in the workforce analytics market include:
• ADP LLC (Automatic Data Processing Inc. )
• Cornerstone OnDemand Inc.
• International Business Machines Corporation (IBM)
• Kronos Incorporated
• Oracle Corporation
• Accenture plc
• Capgemini SE
• Tableau Software LLC
• Workday Inc.
• PeopleStreme Pty Ltd
• Microsoft Corporation
• Visier Inc.
• UKG Inc. (Ultimate Kronos Group)
• SAP SE
• Beeline. com Ltd.
• Brightfield Strategies LLC
• Bullhorn Inc.
• Cisco Systems Inc.
• Talentsoft SA
• Trianz Holdings Pvt. Ltd.
• Genpact Limited
• Deloitte Touche Tohmatsu Limited
• Cognizant Technology Solutions Corporation
• Infosys Limited
• Wipro Limited
• HCL Technologies Limited
• NICE Systems Ltd.
• Verint Systems Inc.
• WorkForce Software LLC
• Google LLC
What are the Regional Insights into the Workforce Analytics Market?
North America was the largest region in the workforce analytics market in 2024.North America is expected to be the fastest-growing region in the forecast period. The regions covered in the workforce analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
