Payroll Software Market Size | Industry Trends & Growth Insights 2025

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Code: MTA10210

Publication Date: Oct 2025

What is the size of Payroll Software Market?

According to 6Wresearch internal database and industry insights, the Payroll Software Market was valued at USD 6.25 billion in 2024 and is expected to reach USD 10.12 billion by 2031, growing at a CAGR of 7.20% during 2025-2031.

This expansion is primarily driven by the growing demand for automation in payroll processes, the adoption of cloud-based systems, and compliance with changes in laws and regulations related to the workforce.

Growth Factors for Payroll Software Industry

Growing demand for automation in payroll processing.
Increased adoption of cloud-based solutions for flexibility and scalability.
Need for compliance with tax laws and labour regulations at a local level.
Increased incidence of small and medium-sized businesses accepting payroll solutions.
Growing demand for payroll software to accommodate remote work situations.

Payroll Software Market Trends

The Payroll Software Market is changing, with trends related to more businesses adopting a cloud-based payroll system, the increasing application of AI (Artificial Intelligence) for error detection, and the growing use of mobile payroll applications. In addition, more organisations are looking for capabilities such as real-time data analysis, security, and integration of payroll systems with other HR software. Organisations are also looking for payroll solutions made specifically for the varying needs of their unique business.

Emerging Developments in the Payroll Software Market

The Payroll Software Market is witnessing developments with the integration of advanced features like Artificial Intelligence and machine learning for improving payroll accuracy. Companies are also introducing mobile-first payroll solutions, offering employees more control over their pay. With increasing adoption of flexible work arrangements, payroll software is being designed to accommodate a wide range of employee work patterns, including gig and remote workers.