Workforce Analytics Market - Size, Trends & Growth

Name: Workforce Analytics Market - Size, Trends & Growth
Creator: Mordor Intelligence
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Workforce Analytics Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 2.52 Billion
Market Size (2030)	USD 5.30 Billion
Growth Rate (2025 - 2030)	16.00% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Workforce Analytics Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Workforce Analytics Market Analysis by Mordor Intelligence

The workforce analytics market reached USD 2.52 billion in 2025 and is forecast to advance at a 16.0% CAGR, taking the total to USD 5.30 billion by 2030. Growth stems from organizations moving rapidly toward data-driven talent decisions, hybrid-work optimization, and AI-powered analytics. Heightened focus on predictive planning, real-time insights, and cost optimization keeps demand robust even in cautious economic climates. Cloud-based deployments expand quickly as integration with HCM suites multiplies data volumes and unlocks use cases, while sector-specific needs in healthcare and manufacturing accelerate adoption. Regional momentum is striking: North America commands early enterprise uptake, yet Asia-Pacific’s digital transformation programs create the fastest expansion path. Competitive dynamics stay moderately intense as HCM platform leaders fold analytics into core offerings and pure-play vendors pursue strategic funding rounds, acquisitions, and partnerships to build scale.

Key Report Takeaways

By component, solutions led with 65.3% of the workforce analytics market share in 2024; services are projected to rise at 17.2% CAGR through 2030.
By deployment, cloud models accounted for 59.2% share of the workforce analytics market in 2024, while hybrid cloud exhibits the quickest 16.5% CAGR to 2030.
By organization size, large enterprises held 68.1% share in 2024, whereas SMEs post the highest 17.8% CAGR over the forecast period.
By end-user industry, BFSI led with 27.3% revenue share in 2024; healthcare is set to expand at an 18.1% CAGR to 2030.
By geography, North America captured 25.6% of the workforce analytics market size in 2024, while Asia-Pacific advances at a 16.3% CAGR through 2030

Global Workforce Analytics Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Growing need for data-driven talent decisions in hybrid workplaces	+3.2%	Global, early gains in North America and Europe	Medium term (2-4 years)
Proliferation of HR data from cloud HCM suites	+2.8%	Global, accelerated in Asia-Pacific	Short term (≤ 2 years)
Adoption of AI/ML for predictive people analytics	+4.1%	North America and Europe leading	Medium term (2-4 years)
Workforce cost optimization amid economic uncertainty	+2.5%	Global, stronger in developed economies	Short term (≤ 2 years)
Shift to skills-based talent marketplaces	+1.9%	North America and Europe expanding globally	Long term (≥ 4 years)
ESG and diversity-reporting mandates	+1.5%	Europe and North America, rising in Asia-Pacific	Medium term (2-4 years)

Source: Mordor Intelligence

AI-Powered Predictive Analytics Transforms Workforce Decision-Making

Enterprise adoption of machine-learning models allows HR teams to predict talent gaps, refine allocation, and lift retention. Johnson & Johnson’s AI skills-inference framework, which builds taxonomies and passive assessments, improved learning alignment and hiring accuracy. Manufacturing illustrates urgency: 42% of plants plan to raise AI/ML use within five years, with 50% deploying quality-control AI in the coming year.^{[1]Rockwell Automation, “State of Smart Manufacturing Report 2025,” rockwellautomation.com} Managers shift roles as 70% view workforce transformation as critical to performance. These factors collectively stimulate enterprise demand across the workforce analytics market.

Cloud HCM Integration Drives Data Proliferation and Analytics Adoption

Cloud HCM suites such as Oracle Fusion HCM Analytics and SAP SuccessFactors Workforce Analytics offer real-time metrics on composition, compensation, and skills, empowering HR leaders to match capabilities to business goal. ^{[2]Oracle Corporation, “Fusion HCM Analytics Product Sheet 2025,” oracle.com} Integration platforms like One Model standardize data from multiple HCM sources and enrich it with predictive insights on attrition and pay equity. Municipal deployments highlight scale: the City of Los Angeles runs Workday for 50,000 staff, with AI guiding resume screening and skill tagging. Cloud ubiquity therefore accelerates use-case volume across the workforce analytics market.

Skills-Based Talent Marketplace Evolution Requires Advanced Capability Mapping

Organizations pivot from job-centric designs to skills-focused structures that support dynamic deployment and career mobility. TechWolf’s USD 43 million investment and Microsoft’s Copilot People Skills tool signal heightened interest in AI-driven skills inference. Mercer reports 70% of firms have skills libraries and 23% link skills to rewards, validating strategic readiness. PwC and Workday’s alliance on Skills Cloud shows consultancy-platform collaboration to bridge capability gaps. Skills emphasis broadens the addressable base for the workforce analytics market.

Economic Uncertainty Accelerates Workforce Cost Optimization Strategies

Volatile macro conditions push companies to deploy analytics that balance cost control with engagement. Randstad stresses data-enabled agility to cross-train staff and shape contingency plans. Manufacturers face 75% labor shortages and anticipate recession impacts, reinforcing demand for advanced planning . Visier’s research proves redeployment and overtime reduction can replace layoffs, highlighting ROI from analytics. Fiscal discipline keeps analytics popularity high across the workforce analytics market.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Data-privacy and compliance complexity	-2.1%	Europe leading, global adoption	Medium term (2-4 years)
High implementation cost and change-management burden	-1.8%	Global, cost-sensitive markets	Short term (≤ 2 years)
Algorithmic-bias and ethics concerns	-1.3%	Primarily developed markets	Long term (≥ 4 years)
Fragmented data silos in gig ecosystems	-1.1%	Global, service economies	Medium term (2-4 years)

Source: Mordor Intelligence

Data Privacy and Regulatory Compliance Complexity Constrains Market Growth

The EU AI Act, effective August 2024, designates many HR-AI applications high-risk, demanding risk assessments and transparency.^{[3]RemoFirst, “EU AI Act: Implications for HR,” remofirst.com} GDPR obligations deepen as firms integrate large language models, mandating explainable AI and privacy-by-design workflows. In North America, CCPA and state AI laws leave 42% of HR managers uncertain about compliance. These overlapping mandates slow decision cycles and elevate total cost of ownership for the workforce analytics market.

High Implementation Costs and Change Management Complexity Limit Adoption

Hospitals, where labor now forms nearly 50% of costs, need analytics yet must fund sizeable platform and change-management programs. Manufacturers show ambition 89% intend to add AI but only 16% achieve scale due to process and people hurdles. Budget scrutiny in SMEs forces phased rollouts and ROI justification. These pressures temper the otherwise strong outlook for the workforce analytics industry.

Segment Analysis

By Component: AI-Enhanced Solutions Sustain Market Leadership

Solutions represented 65.3% of the workforce analytics market in 2024, reflecting pervasive demand for comprehensive platforms that embed predictive algorithms. Talent acquisition and development optimization solutions enjoy strong momentum as enterprises fill skills gaps; Huntington Ingalls Industries recorded 25% faster hiring and 30% higher retention by deploying AI-native tools. Performance and engagement analytics also expand as El Camino Health reduced RN turnover by 7 points, saving USD 840,000 annually. Services, although smaller, post 17.2% CAGR as firms secure implementation, managed-service, and training support. Professional services guide complex data migrations, while managed services allow HR teams to focus on strategy. The introduction of generative AI assistants such as Visier’s “Vee” sharpens competitive differentiation and sustains solution growth.

Training and support fetch mounting interest: 31% of manufacturers cite upskilling needs to realize analytics initiatives. Providers that bundle learning and change-management modules thereby capture incremental share within the workforce analytics market.

Workforce Analytics Market: Market Share by Component — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Deployment Type: Cloud Ascendancy Continues

Cloud platforms held 59.2% share in 2024 and will grow at 16.5% CAGR as organizations chase lower upfront costs and seamless upgrades. One Model proves value by abstracting data from Workday and SAP SuccessFactors into analytics-ready frameworks. Large public-sector clients such as Los Angeles showcase scale and security when managing tens of thousands of employees on cloud stacks.

On-premises retains relevance where data sovereignty dictates, especially in BFSI and defense. Hybrid deployment emerges as a compromise, storing sensitive data locally while running analytics compute in the cloud. Vendors strengthen encryption and permission models: SAP and Oracle both add role-based controls and compliance attestations. The workforce analytics market therefore skewers decisively toward cloud without abandoning localized models.

By Organization Size: SME Uptake Accelerates

Large enterprises controlled 68.1% revenue in 2024 by virtue of complex global structures demanding granular insights. They account for many marquee wins, such as a Fortune 500 manufacturer boosting AI proficiency by 54% after analytics-driven upskilling. However, SMEs record the highest 17.8% CAGR thanks to SaaS pricing and simplified interfaces. Pre-configured dashboards, automated insights, and low-code customization let smaller firms deploy analytics without heavy IT support.

Visier’s partnership with Le Lab RH extends enterprise-class platforms to French start-ups, underlining vendor strategy to penetrate the long-tail customer base. As a result, the workforce analytics market becomes more democratized, widening total addressable demand.

Workforce Analytics Market: Market Share by Organization Size — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By End-User Industry: Healthcare Surges Ahead of BFSI Stronghold

BFSI retained 27.3% of total revenue in 2024 due to regulatory reporting and intensive data footprints. A Fortune 100 insurer slashed dashboard build time from three weeks to one day using Workday Prism Analytics, sharpening manager access to self-service insights. More than 87% of BFSI firms intend further AI spend, targeting personalization and productivity.

Healthcare, however, is on track to post an 18.1% CAGR, fastest among all verticals, as hospitals fight acute nurse shortages that could reach 450,000 by 2025. INTEGRIS Health saved USD 30 million by halving contingent staff reliance through analytics-guided scheduling. Manufacturing, IT-Telecom, retail, public sector, and energy also deepen use cases, but healthcare’s pressing workforce shortages keep it in the spotlight of the workforce analytics market.

Geography Analysis

North America held 25.6% of the workforce analytics market in 2024, supported by SEC disclosure mandates that push granular workforce metrics. The City of Los Angeles demonstrates advanced maturity by automating hiring and payroll for 50,000 staff through Workday’s AI features, lowering processing times materially. Canada capitalizes on public-sector digitization, while Mexico rides near-shoring to embed analytics in manufacturing HR programs.

Asia-Pacific shows the fastest 16.3% CAGR through 2030. India’s Tata Steel Kalinganagar plant saved USD 4 million annually by training 130 staff in analytics and boosting strike rates from 60% to 90%. China invests aggressively to align automation and worker reskilling, while Japan and South Korea blend analytics with aging-workforce strategies. Australia and New Zealand apply analytics to retain healthcare professionals, where only 41% stay more than two years in non-metro areas.

Europe grows steadily on the back of GDPR and the AI Act, which both demand transparent algorithms and human oversight. Germany, the United Kingdom, and France implement at scale, with French start-ups benefiting from Visier and Le Lab RH collaboration. The Netherlands sees robust adoption among multinationals, whereas Southern Europe lags because of limited analytics talent supply. Middle East and Africa constitute early-stage opportunities: UAE and Saudi Arabia weave analytics into Vision 2030 programs, and South Africa begins public-sector pilots focused on skills mapping.

Workforce Analytics Market CAGR (%), Growth Rate by Region — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

The workforce analytics market exhibits moderate concentration. Established HCM vendors—Workday, SAP, Oracle, UKG—bundle analytics natively into HR suites, while specialists such as Visier, ChartHop, and CultureAmp differentiate through depth of analytics and AI features. Visier raised USD 125 million (Series E) and bought Yva.ai to widen organizational-network insights, then joined with The Josh Bersin Company for richer benchmarks.

Consolidation accelerates: Workday acquired HiredScore for AI-optimized hiring and Cornerstone Galaxy absorbed SkyHive to reinforce skills-based management. TalentNeuron purchased HRForecast to merge internal employee data with external labor intelligence, forming an end-to-end planning engine. Partnerships proliferate as integrators seek ecosystem breadth: Workday allies with Randstad for AI-enabled recruiting, UKG taps Lightcast for skills data, and Paycor embeds Visier analytics.

Workforce Analytics Industry Leaders

Accenture plc
ADP, Inc.
BambooHR LLC
Capgemini SE
Ceridian HCM Holding Inc.
*Disclaimer: Major Players sorted in no particular order

Workforce Analytics Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

February 2025: Workday and Randstad signed a strategic partnership to integrate AI across recruiting, aiming to cut time-to-fill in tight labor markets.
January 2025: Visier secured USD 125 million Series E funding to accelerate people-analytics expansion.
January 2025: One Model became a Workday Innovation Partner, improving data orchestration across HR systems.
January 2025: Visier and Le Lab RH partnered to offer French start-ups advanced people-analytics platforms.

Table of Contents for Workforce Analytics Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Growing need for data-driven talent decisions in hybrid workplaces
- 4.2.2 Proliferation of HR data from cloud HCM suites
- 4.2.3 Adoption of AI/ML for predictive people analytics
- 4.2.4 Workforce cost-optimization amid economic uncertainty
- 4.2.5 Shift to skills-based talent marketplaces requiring capability mapping
- 4.2.6 ESG and diversity-reporting mandates accelerating analytics roll-outs
4.3 Market Restraints
- 4.3.1 Data-privacy and compliance complexity (GDPR, CCPA, AI Acts)
- 4.3.2 High implementation cost and change-management burden
- 4.3.3 Algorithmic-bias and ethics concerns in AI-driven analytics
- 4.3.4 Fragmented data silos in gig/flexible-work ecosystems
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitutes
- 4.7.5 Competitive Rivalry
4.8 Assesment of Macroeconomic Factors on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Component Type
- 5.1.1 Solutions
- 5.1.1.1 Talent Acquisition and Development Optimization
- 5.1.1.2 Payroll and Workforce Monitoring
- 5.1.1.3 Performance and Engagement Analytics
- 5.1.1.4 Turnover and Retention Analytics
- 5.1.1.5 Risk and Compliance Analytics
- 5.1.2 Services
- 5.1.2.1 Professional Services
- 5.1.2.2 Managed Services
- 5.1.2.3 Training and Support Services
5.2 By Deployment Type
- 5.2.1 Cloud
- 5.2.2 On-premises
5.3 By Organization Size
- 5.3.1 Large Enterprises
- 5.3.2 Small and Medium-sized Enterprises (SMEs)
5.4 By End-user Industry
- 5.4.1 Banking, Financial Services and Insurance (BFSI)
- 5.4.2 Manufacturing
- 5.4.3 IT and Telecom
- 5.4.4 Healthcare and Life Sciences
- 5.4.5 Retail and e-Commerce
- 5.4.6 Government and Public Sector
- 5.4.7 Energy and Utilities
- 5.4.8 Transportation and Logistics
- 5.4.9 Other Industries
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Netherlands
- 5.5.3.5 Rest of Europe
- 5.5.4 Asia_Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia and New Zealand
- 5.5.4.6 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 United Arab Emirates
- 5.5.5.1.2 Saudi Arabia
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, Recent Developments)
- 6.4.1 Accenture plc
- 6.4.2 ADP, Inc.
- 6.4.3 BambooHR LLC
- 6.4.4 Capgemini SE
- 6.4.5 Ceridian HCM Holding Inc.
- 6.4.6 ChartHop, Inc.
- 6.4.7 Cisco Systems, Inc.
- 6.4.8 CultureAmp Pty Ltd
- 6.4.9 Darwinbox Digital Solutions Pvt. Ltd.
- 6.4.10 Eightfold AI, Inc.
- 6.4.11 Gusto, Inc.
- 6.4.12 IBM Corporation
- 6.4.13 Infor, Inc.
- 6.4.14 Kronos-UKG, Inc.
- 6.4.15 Lattice, Inc.
- 6.4.16 Microsoft Corp. (Viva Insights)
- 6.4.17 Namely, Inc.
- 6.4.18 Oracle Corporation
- 6.4.19 Peoplestreme Pty Ltd (Ascender)
- 6.4.20 SAP SE
- 6.4.21 Skillsoft Corp. (SumTotal Systems)
- 6.4.22 Tableau Software LLC
- 6.4.23 Visier, Inc.
- 6.4.24 Workday, Inc.
- 6.4.25 Zoho Corporation (Zoho People Analytics)

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

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Global Workforce Analytics Market Report Scope

Human capital is an asset for any organization, and to study the people data and gather the data internally helps in increased productivity, increased employee satisfaction, and a low employee turnover rate. With the advancements in technology and an increase in global trade, the dynamic change in the workforce has made it necessary for management to utilize workforce analytics to better optimize customer needs and the employee workforce.

The Workforce Analytics Market is Segmented by Component Type (Solutions (Talent Acquisition and Development Optimization Services and Pay Roll and Monitoring) and Services (Professional Services and Managed Services)), by Deployment Type (On-cloud and On-premises), by Organization Size (Small- and Medium-Sized Enterprises and Large Enterprises), by End User ( BFSI, Manufacturing, IT & Telecom, Healthcare, and Retail), and by Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Component Type	Solutions	Talent Acquisition and Development Optimization
		Payroll and Workforce Monitoring
		Performance and Engagement Analytics
		Turnover and Retention Analytics
		Risk and Compliance Analytics

	Services	Professional Services
		Managed Services
		Training and Support Services
By Deployment Type	Cloud
	On-premises
By Organization Size	Large Enterprises
	Small and Medium-sized Enterprises (SMEs)
By End-user Industry	Banking, Financial Services and Insurance (BFSI)
	Manufacturing
	IT and Telecom
	Healthcare and Life Sciences
	Retail and e-Commerce
	Government and Public Sector
	Energy and Utilities
	Transportation and Logistics
	Other Industries

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Netherlands
		Rest of Europe

	Asia_Pacific	China
		Japan
		India
		South Korea
		Australia and New Zealand
		Rest of Asia-Pacific

	Middle East and Africa	Middle East	United Arab Emirates
			Saudi Arabia
			Turkey
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Rest of Africa

By Component Type

Solutions	Talent Acquisition and Development Optimization
	Payroll and Workforce Monitoring
	Performance and Engagement Analytics
	Turnover and Retention Analytics
	Risk and Compliance Analytics
Services	Professional Services
	Managed Services
	Training and Support Services

By Deployment Type

Cloud

On-premises

By Organization Size

Large Enterprises

Small and Medium-sized Enterprises (SMEs)

By End-user Industry

Banking, Financial Services and Insurance (BFSI)

Manufacturing

IT and Telecom

Healthcare and Life Sciences

Retail and e-Commerce

Government and Public Sector

Energy and Utilities

Transportation and Logistics

Other Industries

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Netherlands
	Rest of Europe
Asia_Pacific	China
	Japan
	India
	South Korea
	Australia and New Zealand
	Rest of Asia-Pacific

Middle East and Africa	Middle East	United Arab Emirates
		Saudi Arabia
		Turkey
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Rest of Africa

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Key Questions Answered in the Report

What is the current size of the workforce analytics market?

The workforce analytics market reached USD 2.52 billion in 2025 and is projected to grow to USD 5.30 billion by 2030 at a 16.0% CAGR.

Which deployment model leads the workforce analytics market?

Cloud platforms dominate with 59.2% share in 2024 and are forecast to post the fastest 16.5% CAGR through 2030, driven by lower capital costs and easier integration.

Which industry segment is growing the fastest?

Healthcare is the quickest-growing vertical, advancing at an 18.1% CAGR as hospitals address severe nurse shortages and rising labor expenses through analytics.

How are SMEs benefiting from workforce analytics?

SMEs leverage SaaS subscriptions, pre-configured dashboards, and low-code interfaces to capture data-driven insights without heavy IT investments, driving a 17.8% CAGR in the SME segment.

Page last updated on: July 3, 2025