U.S. Absence Management Market Size, Share, Growth, Report 2026 to 2035

Revenue, 2025

USD 354.65 Million

Forecast, 2035

USD 903.28 Million

CAGR, 2026 – 2035

9.8%

Report Coverage

United States

U.S. Absence Management Market Size and CAGR

The U.S. absence management market size is expected to be worth around USD 903.28 million by 2035, from USD 354.65 million in 2025, growing at a CAGR of 9.8% during the forecast period from 2026 to 2035. The rapid deployment of blockchain-based absence management solutions for monitoring the activities of employees has driven the market expansion. 

Key Takeaways 

• By deployment mode, the on-premises segment dominated the market in 2025.
• By deployment mode, the cloud segment is expected to rise with the fastest growth rate during the forecast period.
• By application, the large enterprises segment led the industry.
• By application, the SMEs segment is seen to have the fastest growth rate throughout the forecasted period.
• By end user, the BFSI segment held the largest share of the market. 
• By end user, the manufacturing segment is expected to rise with the highest CAGR during the forecast period. 

U.S. Absence Management Market Overview

Absence management is defined as an advanced solution that helps in monitoring the attendance of employees in the U.S. These solutions are used for tracking and managing employee time-off by automation request approvals. It further enhances HR efficiency by reducing errors, along with lowering productivity loss in large organisations. The U.S. absence management market is expected to experience rapid growth due to technological advancements in the industrial sector across the nation.

What are the Key Trends in the U.S. Absence Management Market?

• Collaborations: Numerous market players are collaborating with BFSI companies to develop a wide range of software to manage the attendance of employees. 
• Integration of Big Data in Absence Management Solutions: The integration of big data analytics in absence management software helps in identifying absence patterns of employees. 
• Rise in Number of Enterprises: The increase in the number of enterprises in the U.S. has increased the demand for absence management solutions in the country. 

Report Scope of U.S. Absence Management Market

What is the Role of AI in the U.S. Absence Management Market? 

AI has played a prominent role in shaping the landscape of the U.S. absence management market. The integration of AI in an absence management platform helps in automating repetitive tasks, ensuring compliance, analysing data and others. Moreover, AI-based absence management solutions enhance employee experience, improving efficiency, evaluating the performance of employees and others. Thus, the corporate sector of the U.S. is rapidly deploying AI-enabled workforce management solutions in their offices to improve overall productivity. 

• In May 2025, Jellyvision launched Aidora. Aidora is an AI-based leave management platform designed for the organisations of the U.S. region.

U.S. Absence Management Market Dynamics 

Driver

Partnerships Among Market Players and Enterprises

The insurance companies have started adopting advanced workforce management solutions to track the attendance of employees regularly. Thus, the absence management companies are partnering with enterprises to deploy advanced solutions in offices to lessen the burden of HR, thereby driving the growth of the U.S. absence management market. 

• In April 2025, FINEOS Corporation Ltd partnered with Sutherland. This partnership is aimed at developing a leave management solution for the BFSI sector in the U.S.

Restraint 

Privacy Concerns and Complexities in the Integration Process

The absence management industry is facing several problems in its day-to-day operations. Firstly, the privacy-related concern arising from the absence management solution is hampering the industry. Secondly, the integration of workforce management software in traditional organisations is very complex, which in turn acts as a restraining factor in this industry. 

Opportunity 

Surging Adoption of Biometric Solution by Corporate Companies

The IT and telecom companies in the U.S. region have started deploying advanced biometric solutions for keeping accurate records of employees.  Thus, the rapid adoption of these biometrics solutions in the corporate sector is expected to create numerous growth opportunities for the market players in the upcoming years to come. 

• In December 2025, Precise Biometric launched BioMatch Vizo. BioMatch Vizo is an AI-enabled fingerprint recognition solution designed for organisations in the U.S. region.

Segmental Analysis 

By Deployment Mode Insights

What Made the On-Premises Segment Dominate the U.S. Absence Management Market in 2025?

The on-premises segment held the largest share of the market in 2025. The increasing emphasis of the healthcare companies on deploying on-premises absence management solutions for tracking the attendance of the workforce has driven the market expansion. Additionally, numerous advantages of on-premises solutions, such as superior customisation, improved security, enhanced performance, and others, are expected to drive the growth of the U.S. absence management market. 

The cloud segment is expected to grow at the fastest rate during the forecast period. The growing adoption of cloud-based workforce management solutions by the BFSI companies for tracking the attendance of employees has boosted the market growth. Moreover, several benefits of cloud-based attendance solutions, including superior flexibility, enhanced scalability, improved cost savings, and others, are expected to foster the growth of the U.S. absence management market. 

By Application Insights 

How did the Large Enterprises Segment lead the U.S. Absence Management Market in 2025?

The large enterprises segment dominated the industry. The rapid deployment of blockchain-enabled workforce management solutions in large enterprises for managing the attendance of several employees has driven the market growth. Moreover, the rising focus of manufacturing companies to collaborate with software providers for adopting absence management solutions is expected to accelerate the growth of the U.S. absence management market. 

The SMEs segment is expected to rise with the fastest growth rate throughout the forecasted period. The rise in the number of small and medium enterprises in several cities, including New York, Chicago, Houston, Phoenix, San Francisco and some others, has driven the market expansion. Additionally, numerous government initiatives aimed at strengthening the SMEs sector are expected to foster the growth of the U.S. absence management market. 

By End User Insights 

Why did the BFSI Segment hold the Dominant Share of the U.S. Absence Management Market in 2025?

The BFSI segment held the highest share of the market. The surging adoption of advanced workforce management solutions in the BFSI sector has driven the market expansion. Additionally, the growing cases of fraudulent activities by remote employees in the insurance sector are expected to drive the growth of the U.S. absence management market. 

The manufacturing segment is expected to expand with the highest CAGR during the forecast period. The growing deployment of cloud-based absence management solutions in the manufacturing industry has driven the market growth. Moreover, collaborations among AI providers and software companies for designing advanced monitoring software to cater for the needs of the manufacturing sector are expected to propel the growth of the U.S. absence management market. 

Companies Ecosystem

Recent Developments 

• In November 2025, ADP launched ADP WorkForce Suite. ADP WorkForce Suite is a workforce management solution designed for the organisations of the U.S.
• In October 2025, Empathy collaborated with MetLife. This collaboration is aimed at launching a leave management platform named Leave Platform.
• In April 2025, EIS launched AbsenceLink. AbsenceLink is an advanced workforce management platform designed for the organisations of the U.S.
• In March 2025, Reliance Matrix launched Text-Back technology. Text-Back technology is an advanced absence management platform that comes with advanced features, including two-way text messaging and automated email notification.

Segments Covered in the Report 

By Deployment Mode

• On-premises
• Cloud-based

By Application

• Large Enterprises
• SMEs

By End User

• BFSI
• Healthcare
• Manufacturing
• Retail
• I.T. and Telecom
• Government and Public Sector
• Others