USD 8.65 billion
Cloud Based Payroll Software Market Size, Share, Growth Analysis, By Organization Size(Large Enterprize and Small & Medium Enterprize), By Industrial Vertical(Retail, Healthcare), By Component(Software and Services) - Industry Forecast 2024-2031
Report ID:
SQMIG45F2145 |
Region:
Global |
Published Date: May, 2024
Pages:
197
|
Tables:
88 |
Figures:
71
Cloud Based Payroll Software Market Insights
Global Cloud Based Payroll Software Market size was valued at USD 8.65 billion in 2022 poised to grow from USD 9.30 billion in 2023 to USD 16.62 billion by 2031, growing at a CAGR of 7.53% in the forecast period (2024-2031).
One modern method for managing, organizing, and automating the process of paying employees' salaries is cloud-based payroll software. As the software is hosted on remote servers run by the software supplier, anyone with an internet connection can access the data. Cloud-based payroll software offers flexibility and scalability in contrast to traditional payroll systems, which necessitate internal management and frequent updates. It offers automated wage, tax withholding, and deduction computations, which saves time and lowers the possibility of human error. Additionally, it makes it easier to comply with local, state, and federal laws by helping to create the required paperwork and reports. To guarantee smooth data flow, it typically has user-friendly interfaces and connects with other company systems, like accounting and human resources.
Due to its ability to lessen human error and enhance compliance, artificial intelligence and machine learning are becoming more and more in demand as payroll solutions. AI payroll solutions can analyze data, use it to inform decisions, and proactively and strategically address issues. By tracking the data collection and processing process, AI payroll systems also identify systemic problems and offer ways to increase productivity. Without requiring workers to provide specific data, AI features calculate, and track employees' working hours and pay rates before sending the information to payroll for processing. AI prediction technologies assist the corporation in predicting whether it will surpass its payroll budget so that corrective action can be taken.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Service
Growth Rate
7.53% CAGR
Global Cloud Based Payroll Software Market ($ Bn)
Country Share by North America (%)
Global Cloud Based Payroll Software Market By Component (%)
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Cloud Based Payroll Software Market Segmental Analysis
The global cloud-based payroll software market is segmented based on organization size, industrial vertical, component and regions. In terms of organization size, the market is bifurcated into large enterprise and small & medium enterprise. Based on industrial vertical, the market is grouped into retail, healthcare, manufacturing, BFSI and others. In terms of component, the market is divided into software and services. Based on region, the market is segmented into North America, Europe, Asia Pacific, Central & South America and Middle East & Africa. Component is anticipated to witness a higher growth rate during the forecast period.
Analysis by Component
As per categorization by component, the market is classified as software and services. Among these, software earned the largest share and continues to dominate the market. The scalability, affordability, and accessibility of software components are driving rapid innovation and acceptance in the global cloud-based payroll software market. These components, which include payroll processing, tax compliance, and employee management modules, are the industry leaders as they provide easy integration with pre-existing systems, adaptable features, and real-time updates. This allows companies of all sizes to optimize their payroll operations while maintaining data security and regulatory compliance.
Due to there is a rising need for specialized assistance and customization, the service component of the global market for cloud-based payroll software is expected to increase at the quickest rate. Businesses want service providers that can provide implementation, training, and ongoing support that is customized to meet their specific needs as they pursue payroll management efficiency and compliance. This tendency stems from the fact that payroll standards vary greatly throughout areas, making it necessary for businesses to rely on service providers to ensure that legal requirements are met, that integration goes smoothly, and that software performance is optimized to maximize return on investment.
Analysis by Organization Size
Large enterprise organizations are driving innovation and adoption in the global cloud-based payroll software market due to their strict requirements for compliance, scalability, and advanced features. These businesses use cloud-based payroll solutions to automate and centralize labor-intensive payroll procedures across several sites, cutting down on errors and administrative work. Their market supremacy can be ascribed to their significant resources, which enable them to invest in advanced software solutions and efficiently customize them to match their unique demands.
As more and more small and medium-sized businesses (SMEs) realize the advantages of cloud-based solutions, the market for cloud-based payroll software is expected to grow rapidly. As cloud-based payroll software is affordable, flexible, and scalable, small and medium-sized businesses (SMEs) are using it to modernize their payroll procedures and adjust to shifting regulatory environments. These solutions enable SMEs to focus resources on core company activities, improve compliance, and expedite payroll operations—all of which contribute to the segment's growth. Previously, these capabilities were only available to larger businesses.
Global Cloud Based Payroll Software Market By Component (%), 2022 (%)
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Cloud Based Payroll Software Market Regional Insights
North America's sophisticated technological infrastructure, strong adoption rates, and strict regulatory requirements have made it the leader in the global market for cloud-based payroll software. The presence of major industry participants, large expenditures in cloud computing, and a focus on data security and compliance all contribute to the region's dominance. Additionally, companies in North America place a high value on scalability and efficiency, which is fueling the market for cloud-based payroll solutions with customizable features and easy connection with current systems. Due to this, North America is still leading the way in the worldwide industry, establishing standards and fostering innovation in the use of cloud-based payroll software.
The reason behind rising levels of digitization, complicated regulations, and the uptake of cloud technologies, Europe is turning into the region with the fastest rate of growth in the global market for cloud-based payroll software. The demand for cloud-based payroll solutions is being driven by the European countries' emphasis on efficiency, data security, and compliance. Further driving market expansion are the region's cross-border operations and diversified workforce, which call for flexible and adaptable payroll systems. Moreover, Europe's dynamic landscape is influenced by the existence of creative startups and strategic alliances with well-established businesses. Europe is leading the way in the use of cloud-based payroll software, which is propelling the market's rapid rise as businesses look to streamline payroll procedures and handle changing regulatory environments.
Global Cloud Based Payroll Software Market By Geography, 2024-2031
- Largest
- Fastest
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Cloud Based Payroll Software Market Dynamics
Drivers
Enhancing Payroll Mobility and Collaboration
- When utilising cloud-based payroll systems, users may log in and access payroll processes from any location with an internet connection. Companies with distant or dispersed teams will especially gain from this. Thanks to the numerous cloud payroll systems that provide mobile applications or flexible web interfaces, users may access payroll information and execute tasks using smartphones or tablets. This improves payroll management's mobility when on the go.
Streamlining Global Payroll Management with Cloud Solutions
- Particularly beneficial to multinational companies with international offices are cloud payroll solutions. This implies that there is uniformity when it comes to handling payrolls pertaining to multiple locations from one point of control which is important in payroll processes’ conformity and adherence by payroll officers. As cloud-based payroll systems are typically available around-the-clock, users can finish payroll duties whenever they wish. This will be especially helpful to businesses with workers that work non-traditional hours or in different time zones.
Restraints
Legal and Data Protection Implications
- The specific tax regulations that are in effect in different countries and areas have an immediate influence on payroll processing. These include revenue collection tariffs, national life insurance returns and remaining duty obligations which are salary related. It is imperative to adhere to these laws for one to stay out of trouble with authorities. Each state and each country normally have distinct labour legislations that take care of critical areas like acceptable salaries levels, duration of employment, reward for overtime working hours as well as legal entitlements.
Navigating Complexity in Payroll Processing
- Payroll processing can sometimes be treated differently depending on the industry. Financial services are an example of where there are laws for bonus payments and incentive programmes; regulating employees benefits comes under healthcare sector’s legislation. The tax and labor laws differ from one state to another within a single nation. This demands that the payroll systems should be flexible enough to cater for this variety so that they may comply with them.
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Cloud Based Payroll Software Market Competitive Landscape
The global market for cloud-based payroll software is growing and highly competitive, with major global competitors spearheading innovation and market expansion. Leaders in the field, like ADP, Inc., Paychex, Inc., Sage Group plc, and Workday, Inc., provide complete cloud-based payroll solutions customised to meet the demands of businesses globally. To stay ahead of the competition in the ever-changing global market, these businesses rely heavily on customer satisfaction, strategic alliances, and cutting-edge technology.
Top Player’s Company Profiles
- ADP (US)
- Paychex (US)
- Gusto (US)
- Workday (US)
- Oracle (US)
- SAP (Germany)
- Sage (UK)
- Intuit (US)
- Xero (New Zealand)
- Zenefits (US)
- BambooHR (US)
- Namely (US)
- Kronos (US)
- Ceridian (US)
- Ultimate Software (US)
Recent Developments
- In December 2023, WayCool Foods' tech subsidiary CensaNext today announced a partnership with SAP India aimed at promoting technological innovation and redefining the environment for up-and-coming entrepreneurs. This ground-breaking partnership positions CensaNext as a Partner Managed Cloud supplier of SAP S/4HANA, the most cutting-edge ERP, which has been carefully selected to satisfy the particular requirements of start-ups and small businesses worldwide.
- In October 2023, Oracle purchased Payroll & HR Cloud Software Provider—iCIMS with the intention of fusing iCIMS's payroll and HR services with its own suite of cloud-based products, giving companies all-inclusive options for efficiently managing their human resources. This action demonstrates Oracle's dedication to growing its market share in the cloud-based payroll software industry and providing cutting-edge solutions to satisfy changing client demands.
- In November 2022, Significant technical and governance milestones were also announced by OpenELA, along with the public release of the Enterprise Linux source code. Originally established by CIQ, Oracle, and SUSE, OpenELA is a trade group for developers of open-source Enterprise Linux distributions. By making Enterprise Linux (EL) source code available for free and open source, it aims to promote the creation and cooperation of distributions that are compatible with Red Hat Enterprise Linux (RHEL).
Cloud Based Payroll Software Key Market Trends
- Enhancing Payroll Efficiency with Shift to Cloud-Based Automation: Cloud-based technologies are replacing traditional on-site solutions in organizations to streamline payroll processes and increase overall efficiency. Automation is a significant advancement in the payroll software sector. Cloud-based solutions typically incorporate advanced automation features including automatic tax computations, compliance updates, and direct connections with time and attendance systems.
- Securing Payroll Data in the Cloud Based Software: Security remains the primary worry for businesses that handle confidential payroll data. Cloud payroll software providers have been stressing the need for robust security measures, including encryption, secure data transfer, and compliance with data protection regulations. Cloud-based payroll systems are offering mobile applications in response to the growing trend of remote work and the growing need for mobile accessibility. Employees may now easily access payroll information, examine pay stubs, and request time off from their mobile devices.
Cloud Based Payroll Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, Companies with distributed teams can benefit from the centralization and compliance assurance that cloud-based payroll solutions provide, since they enable users to access payroll procedures from any location with an internet connection. Multinational firms can also profit from this centralization when handling payroll processes across many locations. Processing payroll requires following various tax laws, such as income tax and social security contributions, and labor laws, such as minimum wage requirements and statutory benefits, essential to staying out of trouble with the law.
Major players like ADP, Inc., Paychex, Inc., Sage Group plc, and Workday, Inc. offer comprehensive solutions tailored to businesses worldwide in the fiercely competitive global market for cloud-based payroll software. Their success is fueled by technological innovation, strategic partnerships, and customer satisfaction. Payroll efficiency is increased by the move to cloud-based automation, which replaces conventional on-site systems with cutting-edge features like automated tax computations and compliance updates, along with strong security features like encryption and safe data transfer.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 8.65 billion |
| Market size value in 2031 | USD 16.62 billion |
| Growth Rate | 7.53% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Cloud Based Payroll Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Cloud Based Payroll Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Cloud Based Payroll Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Cloud Based Payroll Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cloud Based Payroll Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cloud Based Payroll Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Cloud Based Payroll Software Market Report Snapshots
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