According to a new report, published by KBV research, The Global Cloud Based Payroll Software Market size is expected to reach $14.82 billion by 2031, rising at a market growth of 7.1% CAGR during the forecast period.
Cloud-based payroll software is a digital payroll management system that enables businesses to automate salary processing, tax calculations, employee benefits, and compliance tracking using cloud computing technology. Unlike traditional on-premise payroll systems, which require dedicated IT infrastructure and manual intervention, cloud payroll software operates entirely online, allowing HR professionals and business owners to process payroll from any location, anytime, using an internet-connected device.
The Software segment is experiencing a CAGR of 6.7 % during the forecast period. Businesses are shifting from manual and on-premise payroll systems to cloud-based platforms to enhance accuracy, efficiency, and accessibility. The integration of AI, machine learning, and predictive analytics into payroll software enables organizations to automate complex calculations, track tax deductions, and generate real-time reports.
The Small & Medium Enterprises segment led the maximum revenue in the Global Cloud Based Payroll Software Market by Organization Size in 2023, thereby, achieving a market value of $9.3 billion by 2031. SMEs typically operate with limited HR resources, making cloud payroll software an attractive option to automate salary processing, tax filings, and compliance tracking without requiring a dedicated payroll team.
The BFSI segment is growing at a CAGR of 6.2 % during the forecast period. The BFSI industry deals with highly regulated payroll structures, strict tax compliance, and multi-tiered employee benefits, making automation and cloud-based solutions essential. Financial institutions require secure payroll platforms with robust compliance tracking, multi-country payroll support, and AI-driven analytics to ensure precision in salary processing and regulatory adherence.
Full Report: https://www.kbvresearch.com/cloud-based-payroll-software-market/
The North America region dominated the Global Cloud Based Payroll Software Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $5.2 billion by 2031. The Europe region is anticipated to grow at a CAGR of 6.8% during (2024 - 2031). Additionally, The Asia Pacific region would witness a CAGR of 7.7% during (2024 - 2031).
By Component
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