Workforce management market: Cloud-based solutions and automation among key growth drivers
With a reported size of $5.5 billion in 2022, the global workforce management market is poised for an extraordinary surge in the coming years. According to industry experts, this dynamic sector is projected to reach a staggering $9.8 billion by 2028, indicating a robust compound annual growth rate (CAGR) of 10.5% during the period spanning from 2023 to 2028.
Transforming workforce management: Enhancing efficiency and productivity
Workforce management (WFM) has emerged as a pivotal component in the modern business landscape, offering a comprehensive suite of tools and processes to centralize human resource utilization data within organizations. This technology empowers stakeholders across the board, from front-line supervisors and corporate management to managers and employees, with performance-based software and tools that significantly boost operational efficiency.
WFM serves a multifaceted role, encompassing workforce forecasting, scheduling, HR management, and workforce analysis. Its ability to create customizable workflows improves overall productivity and enhances the efficiency of decision-making processes. As a result, WFM solutions have found widespread application across various industries, including banking, financial services, and insurance (BFSI), healthcare, government and defense, transportation and logistics, retail, and information technology (IT).
Key drivers propelling market growth
Several key drivers are steering the expansion of the workforce management market:
- Automation Across Industries: The increasing need for automation across various sectors, combined with a heightened focus on workforce optimization, is fueling the adoption of WFM solutions. Organizations increasingly use these solutions to efficiently manage time, reduce task duplication, and optimize workforce utilization.
- Cloud-Based Solutions: The adoption of cloud-based WFM solutions is gaining momentum. Cloud-based solutions offer the advantages of reducing the reliance on physical hardware, cutting operational costs, and providing enhanced infrastructure scalability. Additionally, they enable secure access to official files and align with the growing trends of Bring-Your-Own-Devices (BYOD) and remote work.
- Penetration of Smartphones and BYOD: The widespread use of smartphones and the BYOD trend positively influence market growth. WFM solutions empower employers to track task progress in real-time while facilitating secure access to official documents supporting flexible work arrangements.
- Rapid Urbanization and IT Development: The fast pace of urbanization, particularly in developing economies, along with extensive research and development (R&D) endeavors in the IT sector, are expected to be critical contributors to the continued expansion of the workforce management market.
As businesses and organizations worldwide increasingly recognize the importance of efficient workforce management in today’s competitive landscape, the market for workforce management solutions is poised to reach new heights in the coming years.
