Productivity Management Software Market

Productivity Management Software Industry Outlook (2022-2032)

The global productivity management software industry was valued at US$ 47 Bn in 2021, and is expected to increase at a steady CAGR rate of 13.7% during the forecast period. According to this growth rate, this industry can be projected to reach a market size of worth US$ 192.96 Bn by 2032.

Report Attributes	Details
Market Value for 2021	US$ 47 Bn
Expected Market Size in 2022	US$ 53.44 Bn
Projected Market Valued in 2032	US$ 192.96 Bn
Growth Rate (2022-2032)	13.7% CAGR
Market Share of North America	36%
Revenue Share of Small and Medium Enterprises (SMEs)	57%
Key Companies Profiled	Google LLC Microsoft Corporation IBM Corporation Oracle Corporation Adobe Inc. Salesforce Zoho Corporation Private Limited Slack Technologies LLC Monday.com

During the end of 2021, this market observed a rise in their growth and is thus can be expected to reach a market valuation of US$ 53.44 Bn by 2022. The rise in demand can be mainly attributed to the increasing demand for tasks and workflow management among businesses in order to boost their growth, along with rapid advancements in Machine Learning (ML) and Artificial Intelligence (AI).

Demand Analysis of Productivity Management Software 2015-2021 vs. Market Outlook 2022-2032

The demand for productivity management software expanded at an 11% CAGR between 2015 and 2021. With increasing adoption of cloud computing in the business process and the expansion of the mobile workforce, demand for productivity management software has flourished significantly throughout the historical period.

Businesses, small or big, experienced a dampening of workflow and team communication due to the COVID-19 pandemic. Organizations around the world have introduced and then accepted increased work-from-home policies and the need to manage workers remotely has increased demands for remote work management. As remote work management has gained popularity, digitization has become more necessary and crucial for the business to run smoothly. Productivity management software (PMS) have, thus, proven instrumental in enabling businesses and workers to maintain workflow continuity. For businesses, communication software such as Slack, Zoom, Microsoft Teams and Cisco Webex has proven especially helpful to boost productivity and maintain workflow.

With the abundant amount of data created by businesses, it is becoming increasingly necessary for businesses to adopt better data management procedures, causing the market to grow. It serves to enhance cloud computing and to improve customer, supplier, employee, and customer collaboration. Through the use of Business Productivity Software, groups can coordinate work more effectively since they can access data from any location and at any time; and business can be conducted continuously from anywhere in the world. It is expected that the market will grow by 1.3x times during the forecast period.

Key Drivers Influencing Productivity Management Software Demand

PMS increases the productivity and efficiency in a company

Increasing productivity has been a priority for organizations. The use of technology and new approaches has enhanced efficiency and effectiveness in delivering products and services. In order for companies to earn a high income, product and service production must increase. Productivity growth allows organizations to convert capital into revenue, thereby compensating stakeholders while preserving cash flow for potential expansion and development.

Productivity increases also contribute to gaining a competitive edge over the competition. Companies want to gain hefty profits by reducing their operational costs, and better productivity helps them achieve those goals. In order to improve the working environment and reduce costs, organizations are looking into technology-based solutions such as productivity management software (PMS).

Enhanced Technological Advancements to accelerate the Market Growth

The growing use of mobile phones and the move to bring your own device (BYOD) contribute to the market's growth. Cloud computing and artificial intelligence are being implemented in different business processes to revitalize the market.

Furthermore, the huge amount of data being produced by companies is driving the demand for better data management procedures, and therefore the market is growing. Business Productivity Software supports both data and processes in every aspect of the business.

Also, it enhances cloud computing and provides better collaboration with sellers, customers, suppliers, customers and employees. It is now easy to assess data from anywhere and anytime and business can be conducted continuously from anywhere in the world, as Business Productivity Software enhances connectivity and enables teams to coordinate tasks.

Country-wise-Analysis

How will the market emerge in the North American region during the forecast period?

Key players offering AI and ML technologies will enhance the growth 

According to Fact.MR, by the end of 2022, North America is expected to account for around 36% of global revenue, and it is expected to remain the dominant market throughout the forecast period. This is due to the presence of key players such as Oracle, Salesforce, Microsoft Corporation, IBM Corporation, Google and Adobe.

The growth is mainly attributed to the increased adoption of PMS solutions to manage mundane tasks and highly evolving infrastructure in organizations. Increased adoption of Artificial Intelligence and Machine Learning technologies would further fuel market growth.

What will be the market scope in the APAC region?

Increasing number of SMEs will account for steady growth

Asia Pacific's productivity management software market is estimated to expand at the highest CAGR of 15.5% from 2022 to 2032. Growing industries such as IT and telecom, healthcare, BFSI, and others will contribute to the growth of the region. Over the forecast period, the growing number of small and mid-sized enterprises will also bolster the growth of the regional market.

Category-wise Insights

What can be expected from the Small and Medium Enterprises (SMEs) segment during the forecast period?

The Small and Medium Enterprises (SMEs) segment is expected to account for over 51% of global revenues by 2022. Businesses can automate repetitive, unproductive activities by using productivity management software, which enables them to complete them more efficiently and effectively. Therefore, segmental growth here is expected to be driven by increasing adoption in large enterprises to ease operation processes. Over the forecast period, an increasing number of large enterprises are expected to increase demand for productivity management software in emerging and developed economies, respectively.

Over the forecast period, the SMEs segment is also predicted to exhibit the highest CAGR of 18.7%. Productivity management software helps SMEs in reducing costs, eliminating repetitive tasks, prioritizing work, and improving collaboration between employees. Growth in emerging countries like China and India can be attributed to the increasing number of SMEs. In addition, SMEs are increasingly seeking productivity management software solutions to streamline workloads and reduce operating costs, which are expected to boost market growth.

Which Segment is expected to be dominant during the forecast period?

The cloud-based PMS segment is projected to hold the largest share of revenue at over 56% in 2022. In terms of deployment and maintenance, companies are concerned with the costs of hosting data on-premises. As a result of the current competitive environment and economic conditions, more companies are implementing cost-effective business model restructuring.

The growing shift in businesses towards digital transformation and customer engagement are also contributing factors to the adoption of cloud-based solutions, two factors that lower enterprise costs. Cloud computing provides the pay-as-you-go model, allowing businesses to pay based on how much they use cloud services, resulting in lower overall cost.

What will be the Outlook of the On-Premise Deployment Segment?

During the forecast period, on-premise deployment is projected to register a CAGR of over 7%. On-premise deployment of productivity management software has a significant revenue share, which is due to the use of productivity management software by large enterprises.

Although it may seem expensive at first, on-premise solutions offer lower operational costs over time. In addition, the segment's growth is driven by concerns about security in cloud deployments.

Competitive Landscape

The productivity management software market is characterized by the presence of numerous players. A variety of productivity management software solutions are offered by these players, catering to industries like BFSI, IT and telecommunications,  retail, healthcare and others. In order to offer high productivity and better customer experiences, the providers focus on enhancing content management, workflow management, task management, artificial intelligence, and predictive analytics software solutions. Launching new products and updating existing software solutions remain the key strategies for the participants.

• Slack Technologies, Inc. and Amazon Web Services announced their partnership in June 2020, allowing them to build deep integrations between Amazon AppFlow and AWS Chatbot. To streamline team communications, AWS will implement Slack across the organization.
• Microsoft announced in April 2020 that it would rename its productivity software solution Office 365 to Microsoft 365. However, the subscription plans will remain the same. With more than 200 million monthly active commercial users and 38 million monthly active consumer users, Office 365 is the world's leading productivity solution.
• A partnership agreement was signed between Monday.com and Xertica, a leading cloud computing consulting firm in Latin America, in August 2020. With Monday.com's resources, the partnership was intended to help companies achieve their goals with their remote teams and be more competitive. Latin America's digital transformation and productivity have been boosted by this partnership.

Report Scope

Attributes	Details
Forecast Period	2022- 2032
Historical Data Available For	2015- 2021
Market Analysis	US$ Mn for Value ‘000 Units for Volume
Key Regions Covered	North America Europe Asia Pacific Latin America Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Germany France U.K Italy BENELUX Nordics China Japan South Korea GCC South Africa Turkey
Key Segments Covered	Solution Deployment Enterprise Region

Key Segments Covered in the Productivity Management Software Industry Survey

• By Solution

  • Structured Work Management
  • AI & Predictive Analytics
  • Content Management & Collaboration

• By Deployment

  • Cloud
  • On-Premise

• By Enterprise

  • Small & Mid-Size Enterprises
  • Large Enterprises