Cloud Based Payroll Software Market Trends 2021-2031
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.
Cloud Based Payroll Software Market Analysis
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.
Cloud Based Payroll Software Market Overview
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.
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Cloud Based Payroll Software Market: Strategic Insights
Market Size Value in US$ 10,254.01 million in 2022 Market Size Value by US$ 20,355.22 million by 2028 Growth rate CAGR of 12.1% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Cloud Based Payroll Software Market: Strategic Insights
| Market Size Value in | US$ 10,254.01 million in 2022 |
| Market Size Value by | US$ 20,355.22 million by 2028 |
| Growth rate | CAGR of 12.1% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Cloud Based Payroll Software Market Drivers and Opportunities
Ease of System Enhancements and Updates
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.
Increasing security measures for security
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.
Cloud Based Payroll Software Market Report Segmentation Analysis
Key segments that contributed to the derivation of the cloud based payroll software market analysis are component, organization size, and industry vertical.
- Based on the component, the cloud based payroll software market is divided into software and services. The software segment held a larger market share in 2023.
- By organization size, the market is segmented into small and medium enterprises and large enterprises. The large enterprises segment held a larger market share in 2023.
By industry vertical, the market is segmented into BFSI, manufacturing, healthcare, it and telecom, retail, hospitality, and others.
Cloud Based Payroll Software Market Share Analysis by Geography
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.
Cloud Based Payroll Software Market Report Scope
Cloud Based Payroll Software Market News and Recent Developments
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:
- Oracle announced plans to deliver Oracle Payroll for Ireland, part of Oracle Fusion Cloud Human Capital Management (HCM). Expanding on the power of Oracle’s global payroll solution, the new localisation will deliver intelligent capabilities like AI-driven risk mitigation, automated workflows, built-in compliance support, improved data insights, and rapid payroll processes for employees working in Ireland. (Source: Oracle, Press Release, March 2024)
- Ramco Systems announced the launch of Ramco Payce, a platform-based payroll software designed to redefine how businesses manage payroll. Payce capitalizes on advanced technologies such as serverless in-memory, artificial intelligence, data analytics, and machine learning. Ramco's two decades of exceptional performance to help enterprises process payroll faster, effortlessly and accurately. (Source: Ramco Systems, Press Release, February 2024)
Cloud Based Payroll Software Market Report Coverage and Deliverables
The “Cloud Based Payroll Software Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Cloud based payroll software market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Cloud based payroll software market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- cloud based payroll software market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the cloud based payroll software market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Organization Size, and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, France, Germany, Italy, Malaysia, Mexico, New Zealand, Saudi Arabia, Singapore, South Africa, South Korea, UAE, United Kingdom, United States
Frequently Asked Questions
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%.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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