The cloud based payroll software market size is projected to reach US$ 28307.94 million by 2031 from US$ 11354.83 million in 2023. The market is expected to register a CAGR of 12.1% during 2023–2031. Increasing adoption of cloud integration for cloud operations is likely to remain a key trend in the market.
A payroll management system has increasingly become essential to operate and control employees' salaries, and a cloud-based payroll system is a massive support for organizations operating remotely, including the payroll department. Cloud-based payroll software collects, manages, and maintains employee data to automate employee payments remotely. Also, it helps businesses reduce their operational costs while staying aligned with the latest financial and legal obligations. By using cloud-based payroll software, employees' salaries can be disbursed from anywhere securely. Also, businesses can improve their efficiency by deploying new software with reduced internal staffing requirements and minimum risk. Owing to the cost-avoidance approach for managing payroll operations through effective governance structures and adopting leading practice processes and controls, the demand for cloud-based payroll software is growing significantly with the expansion of BFSI and IT & telecom industries. Many SMEs are expected to boost the demand for cloud-based payroll software in the coming years. Thus, the growing number of SMEs is projected to offer lucrative opportunities for the cloud-based payroll software market in the future.
Payroll software is a cloud-based platform that maintains, manages, and automates payments to employees. Integrated, Robust, and properly configured payroll software can help organizations of all sizes maintain other financial regulations, and compliance with tax laws and reduce costs. This frees human resources (HR) teams from routine tasks so that they can focus more on budgeting, planning, and other business-forward initiatives. One of the fundamental benefits of cloud-based payroll systems is that information can be retrieved from anywhere via a mobile or desktop computer device.
Payroll should be managed efficiently, as inaccuracies in payroll calculation and processing might hamper employees' experience in the organization. Furthermore, cloud-based payroll management software is generally easy to set up and execute timely updates. Employees can easily utilize this software, and the vendors also provide a training guide to understand the software. Since the software is easy to install and update, the implementation of this software has increased significantly to ease the employees' work. As online payroll software is easy to use and helps navigate quickly, payroll software vendors allow end users to pay as per business requirements in terms of increasing or decreasing the number of users. Finance is a crucial tool for any organization, regardless of its size, size, or industry. To enhance payroll management, the increasing demand for payroll software increases the growth of the cloud-based payroll software market.
Workplace safety is a requirement, not an option. It is more important than ever for firms to prioritize workplace security as they transition to a hybrid working paradigm. The emergence of the digital age has led to an increase in the frequency of data breaches and cyberattacks. Sensitive data is protected in part by cyber security tools, including firewalls, antivirus programs, and encrypted communication channels. To guarantee that these systems are capable of fending off the most recent attacks, regular updates are necessary. Cloud based payroll software has a plethora of security features that provide a strong barrier against the threat of data exposure. It is a fortress with multi-factor authentication at the entry, protecting vital payroll data with encryption. Therefore, increasing security measures for security are creasing various opportunities for the market.
Key segments that contributed to the derivation of the cloud based payroll software market analysis are component, organization size, and industry vertical.
The geographic scope of the cloud based payroll software market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America dominates the cloud based payroll software market. The US accounted for the largest share of the North America cloud based payroll software market. Various businesses in the US are increasingly adopting advanced payroll solutions for workforce management. The use of outdated payroll systems such as spreadsheets has decreased due to the increasing popularity of automated payroll processes based on a centralized system. These processes help them to maintain compliance standards. It has been a difficult task for human resources (HR) departments to manage payroll processes manually.
The regional trends and factors influencing the Cloud Based Payroll Software Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Cloud Based Payroll Software Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 11354.83 Million |
| Market Size by 2031 | US$ 28307.94 Million |
| Global CAGR (2023 - 2031) | 12.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Cloud Based Payroll Software Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Cloud Based Payroll Software Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The cloud based payroll software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the cloud based payroll software market are listed below:
The “Cloud Based Payroll Software Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
North America dominates the cloud based payroll software market.
Ease of system enhancements and the increasing security measures for security are the major factors that propel the global cloud based payroll software market.
Increasing adoption of cloud integration for cloud operations is anticipated to play a significant role in the global cloud based payroll software market in the coming years.
The key players holding majority shares in the global cloud based payroll software market are The Sage Group plc, Moorepay Limited, Automatic Data Processing, Inc, Xero Limited, Ceridian HCM, Inc, MYOB Australia Pty Ltd, Microkeeper, ELMO Software, Webscale Pty Ltd, and Telenox Pte Ltd.
The global cloud based payroll software market is expected to reach US$ 28307.94 million by 2031.
The expected CAGR of the global cloud based payroll software market is 12.1%.