Productivity Management Software Market Size, Share & Trends Analysis Report By Solution (AI & Predictive Analytics, Content Management & Collaboration), By Deployment, By Enterprise, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global productivity management system market size was valued at USD 47.33 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.8% from 2022 to 2030.The growing requirement to manage tasks and workflow among the business to amplify the growth and swiftly growing advancements in Machine Learning (ML) and Artificial Intelligence (AI) are the key factors driving the market. Furthermore, the growing adoption of cloud computing in the business processes and the increasing adoption of enterprise mobility, smartphones, and Bring Your Own Device (BYOD) to expand the mobile workforce will surge the demand for productivity management software, contributing to the growth of the market.

Organizations have been looking for new ways to boost productivity. New approaches and technology have helped deliver products and services more efficiently and effectively than in the past few years. Productivity growth is critical for companies because delivering more products and services to customers results in high income. When productivity rises, an organization's capital can be converted into sales, allowing it to compensate stakeholders while still preserving cash flow for potential development and expansion.

Higher productivity also assists in gaining a competitive advantage over the competitors. Companies are keener to reduce their operational expenses to gain hefty profits, and improved productivity helps them achieve their profitability goals. Organizations are currently looking towards investing in technology-oriented solutions such as productivity management software (PMS) that would offer them centralized productivity management solutions to improve the working environment and reduce costs.

Operational efficiency is mainly a metric that assesses a company's profitability as a function of its operating costs. The more profitable a company or investment is, the more efficient its operations are. The comparison of productivity and operational efficiencies can also provide a look at the economies of scale. Entities strive to achieve productive economies of scale to lower per-unit costs and boost per-unit returns. Executives are concerned with increasing performance, which is a focus of many technology initiatives and implementations.

Efficiency, small business sales, internal processes, procurement, pricing, and business principles are considered transparent business practices. Increased transparency in the business also helps improve the overall operational efficiency of the organizations for which the employees' productivity is a key parameter. Adopting technology-based solutions could help organizations overcome problems associated with operational efficiency and transparency, thus offering greater returns in terms of revenues. Hence, these factors could assist the growth of the market in the forthcoming years.

The COVID-19 pandemic impacted the workflow and team communication in businesses of different sizes. Increasing acceptance of work from home policies by organizations worldwide and the necessity to manage workforces remotely has augmented the requirement for remote work management. Due to remote work management, the need for digitization has grown enormously. PMS has been critical in permitting businesses and workers to achieve workflow continuity. Collaboration software from Zoom, Slack, Cisco Webex, and Microsoft Teams collaboration technology have proved to be particularly helpful for businesses to improve productivity and maintain workflow.

Solution Insights

The content management and collaboration segment dominated the market in 2021 and accounted for more than 35% of the global revenue. The segment includes workflow management, file sharing, task and project management, and communication, among others. The content management and collaboration software create working together on professional projects faster and more accessible, and it reduces the bottleneck in feedback and approval processes. The solution makes it easier to get work done by bringing communications, content, and context in a single place supporting the growth of the segment.

The artificial intelligence and predictive analytics segment is anticipated to exhibit the highest CAGR of over 15.0% during the forecast period. The segment includes software that use data mining techniques, statistical algorithms, machine learning, and AI. This software makes an in-depth analysis of current data to identify patterns in historical events and helps the company to transform data into predictive insights and to maximize the productivity of the organization. The growth of the artificial intelligence and predictive analytics segment can be attributed to the higher adoption of several risk analytics solutions for risk identification and risk mitigation measures.

Deployment Insights

The cloud-based PMS segment held the leading revenue share of more than 55.0% in 2021. Enterprises are concerned about the costs of data hosting on-premises, both in terms of deployment and maintenance. The current competitive environment and global economic conditions have intensified the implementation of cost-effective business model restructuring steps. Another factor driving the adoption of cloud-based solutions is the growing shift of businesses toward digital transformation and accelerating customer engagement, both of which lower enterprise costs. The cloud provides the pay-as-you-go model, allowing businesses to pay for cloud services based on how much they use them, resulting in lower costs.

The on-premise deployment segment of the productivity management software market is expected to register a significant CAGR of 6.8% in the forthcoming years. The on-premise deployment of productivity management software has a substantial amount of revenue share, and it is attributed to the large enterprises using the on-premise deployment of productivity management software. The cost of an on-premise solution can be very high at the initial point, but it offers the benefit of lower operating costs for a longer-term. Furthermore, security concerns in cloud deployment for organizations drive the growth of the segment.

Enterprise Insights

The Small and Medium Enterprises (SMEs) segment held the leading revenue share of more than 50.0% in 2021.Productivity management software enables businesses to offload unproductive and repetitive tasks to technology that can complete them more efficiently and efficiently. Therefore, growing adoption in large enterprises to ease the operation process is projected to support the segment growth. Moreover, the increasing number of large enterprises across the emerging and developed economies is expected to increase the demand for productivity management software over the forecast period.

The SMEs segment is also anticipated to exhibit the highest CAGR of 18.2% over the forecast period. Productivity management software helps SMEs improve costs, remove repetitive tasks, prioritize work, and improve collaboration among teams. The growth can be attributed to the increasing number of SMEs in emerging countries, such as China and India. Moreover, increased demand for productivity management software solutions among SMEs to simplify workflow and decrease operational costs is expected to propel market growth.

Regional Insights

North America accounted for the largest revenue share of around 35% in 2021 and is projected to hold the dominant share throughout the forecast period owing to the presence of key companies such as Salesforce, Oracle, IBM Corporation, Microsoft Corporation, Adobe, and Google. 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 AI and ML technologies would further fuel market growth.

The Asia Pacific market for productivity management software is projected to expand at the highest CAGR of 15.3% from 2022 to 2030. The rising industry sectors such as Healthcare, IT and telecom, BFSI, others are expected to support regional growth. Besides, the increasing number of small and mid-size enterprises in the regions will also boost the growth of the regional market over the forecast period.

Key Companies & Market Share Insights

The key players that dominated the global market in 2021 include Google LLC; Microsoft; Salesforce.com, Inc.; Slack Technologies, Inc.; and Adobe. These players offer multiple ranges of productivity management software solutions and cater to industries such as BFSI, IT and telecom, healthcare, retail, and others. The companies are focused on providing content management and collaborations, workflow management, task management, AI, and predictive analytics software solutions to offer high productivity and better customer experience.New product launches and upgrades in the existing software solutions have remained the key strategies of the participants.

For instance, in June 2020, Slack Technologies, Inc. announced a strategic partnership with Amazon Web Services to build deep integrations between Amazon AppFlow and AWS Chatbot. AWS will implement Slack organization-wide to streamline team communication. In April 2020, Microsoft announced it would rename its productivity software solution Office 365 to Microsoft 365. The company also announced no changes in the subscription plans. The company’s productivity solution Office 365 currently has more than 200 million commercial monthly active users and 38 million consumer subscribers globally. Some of the prominent players operating in the global productivity management software market are:

• Google LLC

• Microsoft

• Salesforce.com, Inc.

• Slack Technologies, Inc.

• Monday.com

• IBM Corporation

• Oracle

• Zoho Corporation Pvt. Ltd.

• Adobe

• HyperOffice

Productivity Management Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global productivity management software market report based on solution, deployment, enterprise, and region:

• Solution Outlook (Revenue, USD Billion, 2018 - 2030)

  • Content Management & Collaboration

  • AI & Predictive Analytics

  • Structured Work Management

  • Other Solutions

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • On-Premise

  • Cloud

• Enterprise Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprises

  • Small & Mid-Size Enterprises

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa