Cloud-based Payroll Software Market - Forecast(2024 - 2030)

Cloud-Based Payroll Market Overview

The global Cloud-Based Payroll Market is forecast to reach $11.4 billion by 2026, advancing at CAGR 6.0% during the forecast period 2021-2026. Globally, increasing demand for secured cloud backup of employee data among various organizations is set to be the major driver of the Cloud-Based Payroll Market. Cloud-based payroll software provides seamless payroll outsourcing which includes leave management solution, workers compensation management as well as better tax liability over on-premise systems. Such benefits are set to accelerate the Cloud-Based Payroll Software adoption during the forecast period 2021-2026. Moreover growing demand for payroll software among small and medium enterprises for increasing work efficiency is another factor that has been contributing to the growth of the market.

Cloud-Based Payroll Market Report Coverage

The report based on: “Cloud-Based Payroll Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Cloud-Based Payroll Market Industry Outlook.

By Organization Size: Small Enterprises, Medium Enterprises, Large Enterprises.
By Industry: BFSI, Retail & E-commerce, Pharmaceutical, Healthcare, IT & Telecommunications, Others.
 By Geography: North America (USA, Canada and Mexico); Europe (U.K., Germany, Italy, France & Rest of Europe); APAC (China, Japan, South Korea, India & Rest of APAC); South America (Brazil, Argentina & Rest of South America); RoW (Middle East & Africa)

Key Takeaways

• Large enterprises are analyzed to hold highest share in Cloud-Based Payroll Software Market.
• Retail and E-commerce is the fastest growing segment in Cloud-based Payroll Software Market and is estimated to grow at around CAGR of 7.9% during the forecast period.
• North America dominated the Cloud-Based Payroll Software Market in terms of value $2.9 Billion in 2020 owing to the adoption of cloud based payroll software.

Global Cloud based Payroll Market Value Share, By Geography, 2020 (%)

Cloud-Based Payroll Market Segment Analysis- By Organization Size

Based on Size of Organization, the cloud based payroll software market is segmented into small enterprises, medium sized enterprises and large enterprises. Large enterprises are analyzed to hold highest share and grow at CAGR of 5.7% during the forecast period 2021-2026. It provides organizations with scalable framework and real time information such as continual pay calculations and efficient decision making.

Cloud-Based Payroll Market Segment Analysis- By Industry

Retail and E-commerce is the fastest growing segment in Cloud-based Payroll Software Market and is estimated to grow at around CAGR of 7.9% during the forecast period. With continuous expansion, retail sector and e-commerce has become one of the highest employment generators in many countries. The ongoing Covid19 pandemic has contributed for the growing e-commerce and retail sector as people are switching to online shopping. Increasing staff rate calls for seamless payroll and HR management. To solve the problems of inefficient time tracking, inaccurate salary calculation and disbursements, retail industry are switching to cloud based payroll solutions.

Cloud-Based Payroll Market Segment Analysis- By Geography

North America held the highest Cloud-Based Payroll Market share of around 32.6% in the global Cloud-Based Payroll Market in 2020 and is further set to grow at a significant rate during the forecast period 2021-2026. The factor such as presence of large number of organizations with enormous employee base has been contributing to the market growth across the region in long run. As per IndustryARC recent study, USA based Walmart had the highest number of employees base i.e. 2.2 million globally, thereby increasing the demand for cloud based payroll software to keep track of the employees. Moreover, growing payroll start ups will create opportunities for the growth of the market. In January 2021, Payroll Infrastructure startup Check announced its launch publicly and raised $35 Million from Stripe and Thrive Capital.

Cloud-Based Payroll Market Drivers 

Rise in demand in IT and Telecommunication sector

IT and Telecommunication Sector is considered to be one of the most organized and streamline industries. The IT and Telecommunication industry is not only facing technological challenge but also HR challenge as well. Adoption of cloud based payroll software in IT and Telecommunication helps to improve payroll flexibility and mobility, compensation management, remote workforce management, automated time attendance, leave management and automated performance management. As organizations shifted to remote work due to ongoing Covid19 pandemic, cloud based payroll are in huge demand. This set to drive the market.

Compliance is simplified

Cloud based payroll software allows organizations to comply with statutory regulations of the Government. With payroll, business adapt to compliance laws for PF, ESI, PT, IT and others. In 2019, Asanify, a Kolkata based payroll startup company, not only helps in salary management for SME’s but also helps in depositing and filing payroll compliance such as PF, ESI and TDS. It also provides AI based platform which helps employees to download pay slip and apply for leave through whatsapp or slack.

Cloud-Based Payroll Market Challenges

Data Security issues

Though cloud based payroll software have many advantages but data Security issue becomes a prime concern for every organization which acts as a major challenge restraining the market growth of Cloud based Payroll. Cloud based payroll software depends on 3^rd party to process and store payroll information such as employees name, address, bank account details, social security number and salary information which sometimes leads to loss or theft of data. Owing to the above mentioned factors, use of cloud based payroll software will be significantly impacted, thus hampering its market growth.

Cloud-Based Payroll Software Market Landscape

Partnership, Acquisitions, Collaboration, technology launches and R&D activities are key strategies adopted by players in the Cloud-Based Payroll Software Market. The Cloud-Based Payroll Software Market top 10 companies include ADP Inc, Gusto, Ascentis Hr Software, Oracle Corporation, onPay, PAYCHEX Inc, Intuit QuickBooks Payroll, Zenefits, Ceredian Dayforce Corporation and TriNet.

Acquisitions/Technology Launches

In February 2021, Gusto, a cloud based payroll company announced a partnership with Workiz, a software company, to help service professionals with payroll, human resource management and staffer benefits.

In September 2020, PayChex Inc, a key provider of HR, payroll, benefits and insurance solutions announced 3 new solutions that will be available in PayChex Flex such as Covid19 Leave Tracking, Covid19 Screening and Health Attestation Support to help its customers navigate new business and wellness needs.

Relevant Report Titles

Compensation Management Software Market- Forecast (2021 - 2026) 

Report Code: ITR 0282

Human Resource Management Market- Forecast (2021-2026)

Report Code: ITR 49728

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