Workforce management market forecast to hit $17.2 billion by 2031

MarketsandMarkets projects the global market for workforce management software and services will grow to $17.2 billion by 2031, from an estimated $10.6 billion in 2026, according to a Sept. 23 release. The firm puts compound annual growth at 10.1%, with workforce optimization and analytics growing faster, at 13.2%.

The research firm ties that outlook to employers’ efforts to control labor costs, improve productivity and plan staffing more precisely. It identifies retail, manufacturing, healthcare and logistics as industries increasingly using scheduling, timekeeping and workforce analytics tools to manage large, distributed, shift-based workforces.

Cloud-based delivery is expected to grow fastest among deployment models. But on-premises systems are forecast to retain the largest share throughout the period, which MarketsandMarkets attributes to employers’ security and data-control requirements, connections to existing payroll and enterprise systems, and high switching costs. Faster cloud adoption, in this forecast, does not displace the installed base from its leading position.

Services are projected to grow faster than software as employers seek help implementing, connecting and maintaining workforce systems. MarketsandMarkets cites gaps in IT and HR technology skills as a reason businesses outsource maintenance, updates and performance tuning.

That work extends beyond installation. The forecast identifies multi-country rollouts, integration with payroll and enterprise resource planning systems, and ongoing configuration of AI-driven forecasting and scheduling tools as sources of demand for consulting, integration and managed services.