Workforce Analytics Market is forecast to reach $1.94 billion by 2025, after growing at a CAGR of 13.43% during 2020-2025. In recent time, enterprises are adopting workforce analytics to manage human resource effectively. Thus, by leveraging the benefits of workforce analytics, an enterprises finds the best way to manage employees' performance, recruitment retention, employees' engagement and others. In addition to this many of the companies are adopting workforce analytics to manage their workforce planning which will further increase the productivity of employees and uplift the market. Thereby, the adoption of workforce analytics by various enterprises impacts the market positively during the given forecast period 2020-2025.
- Asia-Pacific region dominated the Workforce Analytics Market in 2019 owing to settlement of new enterprises in developing countries such as India and others.
- By leveraging the benefits of workforce analytics, an enterprise find the best practice for recruitment, retention, and employee engagement, which is likely to aid the market growth.
- Cloud based workforce analytics is expected to accelerate the market due to various benefits such as enhanced collaboration, cost efficiency and others.
- High cost of deployment and lack of awareness may hamper the adoption of workforce analytics and is likely to retard the market
Industry Vertical- Segment Analysis
The Banking, Financial Services, and Insurance (BFSI) industry vertical to hold the largest market size in 2019 as well as during the forecast period 2020-2025. In banking sector Workforce Analytics are deployed to make better and faster workforce decision. Also, the use of analytics helps banking sector to optimize their workforce, align them for streamline operation and helps to make decision on accurate intelligence with cloud base operation.
Also, automatic collection of data and verification of work by the analytics further leverage the BFSI industry. There by, the deployment of workforce analytics in BFSI sector would uplift the market during the given forecast period.
Cloud-based Workforce Analytics -Segment Analysis
Cloud based workforce analytics hold the largest market size during the forecast period 2020-2025 owing to its ease of use, scalability and cost effectiveness. Also, cloud-based analytics comes under limited budget, so they could be opted by small and medium scale enterprises as well. Additionally, cloud-based model features accessibility from various device platforms and demand based usage which further adds up to attract more customer attention
Geography - Segment Analysis
The Asia-Pacific region is expected to witness the fastest growth during the forecast period 2020-2025. The enormous settlement of small to medium enterprises (SME) in the countries such as India and China has been deploying the workforce analytics, thereby creating opportunities for the market in the region. For instance, as per offshore Company Corp in 2017, India emerged as the top country for the fastest growing companies in the region. Thus the adoption of workforce analytics by these enterprises will boost the demand for the market. In addition to this, government initiative such as start-up India scheme and others to encourage entrepreneurship in the countries such as India, has been also driving the market in the region.
Drivers – Workforce Analytics Market
- Growing adoption of Workforce analytics in Large Enterprises
Due to the requirement of flexibility, speed and innovation, enterprises are now focusing more on advanced people analytics management systems including workforce analytics. Also companies are looking forward to improve collaboration across various departments to increase the number of innovative ideas built into their products. Thus, these requirements give rise in the adoption of workforce analytics creating opportunities for the market to grow. For instance, Google is utilizing HR analytics for their talent and field service management activities. The deployment of workforce analytics across enterprise is likely to create huge opportunities for the market during the forecast period 2020-2025.
- Growing Trend for Artificial intelligence
Various industry verticals such as enterprise, healthcare, retail and others use AI based workforce analytics for several benefits which includes human bias, improvement in efficiency and insights in an employee's assessment and others. In addition to these, AI based workforce analytics are adopted for predictive decision making so that predictive quality of decisions for present and future can be made. Thus the implementation of AI based workforce analytics will increase the productivity of an organization and is likely to create positive environment for the growth of workforce analytics.
Challenges – Workforce Analytics Market
- High Cost of Deployment
Due to high cost of deployment and lack of information there are possibilities that small enterprises may not be using the workforce analytics. Also the advancement in workforce analytics such as AI adoption and others, add up the cost and make the workforce analytics more expensive. Thus, these issues may hamper the adoption of workforce analytics for small firms which may obstructs the market growth during the given forecast period.
The workforce analytics market is highly competitive. Many multinational companies such as IBM Corporation, Oracle Corporation, Accenture Inc, and Capgemini SE, Sage Software Inc are few of the major players and others.
- In March 2019, Oracle Corporation launched an updated version of Oracle HCM cloud to make work simpler, smarter, and more agile. This updated version offered an enhanced experience to users, such as candidates, recruiters, HR professionals, managers, and employees.
- February 2019, Infor Inc partnered with Montage, a provider of HR analytics solutions. This partnership would offer the next generation of predictive talent analytics and interviewing technology for the hiring process by leveraging the capabilities of their respective platforms.
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