Human Resource Management Market Size, Share & Trends Report

Human Resource Management Market Size, Share & Trends Analysis Report By Component, By Software, By Service, By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-295-2
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 257

Report Overview

The global human resource management market size was valued at USD 17.56 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.2% from 2021 to 2028. The continued digitization and automation of HR operations to create effective and agile reskilling strategies is expected to drive the growth of the market over the forecast period. The growth can also be attributed to the strong emphasis enterprises are putting on attracting the right pool of candidates, retaining human capital, and managing resources efficiently. Having realized the potential of human resource management (HRM) solutions in improving and enhancing HR operations, organizations are aggressively adopting these solutions, thereby driving the market.

U.S. human resource management market size, by component, 2017 - 2028 (USD Million)

Advances in the latest technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and predictive analytics, are facilitating the integration of HRM solutions with analytics. At the same time, startups are developing mobile applications and collaboration software that can provide employers and employees with the flexibility to access the required information on the go. On the other hand, the use of predictive analytics is helping in deriving inferences regarding continuous employee progress through various charts and infographics. HRM solution providers are focusing on all these evolving technological trends and aligning their software solutions with the changing requirements of customers. The development of such advanced solutions bodes well for the market growth.

Remote working is turning out to be the new norm in the wake of the outbreak of the COVID-19 pandemic. Hence, market players are investing in R&D activities to provide HRM solutions that are efficient and easy to deploy and can potentially support the remote working model. Meanwhile, as remote working becomes the new norm, key market players, such as Oracle Corporation, SAP SE, Workday Inc., and UKG, are upgrading their existing solutions in line with the evolving trends and have started offering their products over the cloud as part of the efforts to annul the need for periodic system upgrades. All these factors are expected to contribute to market growth.

Remote working practices are prompting small and medium enterprises to opt for the latest HRM solutions so that strategic decisions can be made efficiently. The popularity of HRM solutions among these organizations is growing in line with the strong emphasis they are putting on talent acquisition and workforce planning to address the challenges associated with retaining human capital. On the other hand, large enterprises are scouting for a single solution for addressing all their HR requirements. Major market players, such as ADP, Inc., have already introduced robust HRM solutions to cater to the requirements of large organizations. Workday is offering a COVID-19 vaccine management solution that combines real-time HR data with immunization information, thereby providing organizations with the insights and resources needed to help in ensuring a healthy workforce and a safer workplace.

Component Insights

The software segment dominated the market in 2020 with a revenue share of over 68%. This growth can be attributed to the high demand for core HR and talent management software from organizations of multiple industries for retaining employees. Core HR and talent management software can also help in enhancing workflows and subsequently improving the overall organizational productivity. Core HR systems can particularly help enterprises in reducing the burden of performing conventional HR activities and aid managers in making strategic decisions.

Conventionally, organizations have relied on manual operations for employee engagement and HR compliance, thereby hindering efficient resource management. However, HRM software solutions can potentially address these issues by digitalizing all the manual operations. Moreover, HRM software solutions are centrally accessible and can be monitored by supervisors to evaluate and reward employees, even in a remote working model. HRM software not only reduces the error rate and enhances efficiency by automating manual tasks, but also helps in evaluating the operational trends within an enterprise.

Software Insights

The core HR segment dominated the market in 2020 with a revenue share of over 33%. The dominant revenue share can be attributed to the growing demand for automating various HR functions in the department. Primary functionalities provided by core HR software include payroll administration, time & attendance management, and HR compliance. Flexibility and easy access to data are some of the benefits that are driving the adoption of core HR software across the globe.

The talent management segment is expected to witness the fastest CAGR from 2021 to 2028. Talent management software assists HR professionals in making strategic decisions and aligning the planning and talent acquisition activities with the organizational goals, thereby improving the overall organizational performance. The software also offers various features that can be useful in inviting, recruiting, and retaining the employees considered valuable assets for the organization. The growing use of social media platforms and video platforms for recruiting is also contributing to the growth of the segment.

Service Insights

The integration & deployment segment dominated the market in 2020 with a revenue share of over 38%. The dominant revenue share can be attributed to the increased need to address the technical issues while implementing an HRM system, updating software periodically, and troubleshooting. Most organizations opt for deployment & integration services for installing the software and integrating it with the existing systems across multiple departments. These services allow organizations to visualize and access data, and eventually improve the decision-making processes. The growing organizational demand to enhance the capability of the existing systems, strong emphasis on automation and continued adoption of cloud computing are some of the vital factors that are driving the growth of the market.

The support & maintenance segment is expected to register the fastest CAGR from 2021 to 2028. Continued advances in technology are necessitating continuous upgrades to the system and HRM solutions are no exception to that. HRM solutions also need to be updated periodically in line with the advances in technology and enterprises need strong vendor support for technical issues and troubleshooting, thereby driving the growth of the segment.

Deployment Insights

The on-premise segment dominated the market in 2020 with a revenue share of over 60%. Implementing on-premise solutions was the most feasible option during the initial phases of deploying HR software to replace manual tasks. Several organizations preferred on-premise HR solutions as they do not rely on internet connectivity but still offer feasible options for radical customization of the software. On-premise solutions also offer data security while helping companies in complying with various regulations.

However, the demand for hosted deployment is expected to increase significantly over the forecast period. Hosted or cloud deployment allows users to easily access data from any location. It also eliminates the need for periodic software upgrades. Hosted solutions also offer convenience and benefits, such as rapid integration, low operational manpower requirement, and reduced maintenance. Several HRM solution providers, such as SAP SE, Oracle Corp., IBM Corp., and ADP LLC, have already started offering their solutions on the cloud.

Enterprise Size Insights

The large enterprise segment dominated the market in 2020 with a revenue share of over 59%. The dominant revenue share can be attributed to the aggressive adoption of HRM solutions by several large enterprises to efficiently manage their vast databases of employees. These solutions allow the HR personnel to conveniently access employee information, thereby reducing the manual tasks involved in performance appraisals, feedbacks, and goal tracking. These solutions also allow companies to manage large employee databases and ensure centralized access to employee data across the globe in real-time.

The SME segment is expected to register the highest CAGR of 14.0% over the forecast period. Numerous SMEs are implementing HR solutions to reduce the burdens of carrying out administrative tasks and instead focus on organizational development. SMEs are particularly expected to adopt cloud-based Human Capital Management (HCM) solutions owing to the cost benefits offered by cloud-based solutions.

End-use Insights

End users of HRM solutions include government agencies as well as various other establishments operational in different industries and industry verticals, including academia, BFSI, healthcare, IT & telecom, manufacturing, retail, and media & entertainment, among others. The IT & telecom segment accounted for the highest revenue share of over 20% in 2020. The high revenue share can be attributed to the increased demand for automation of systems and the need for sourcing candidates according to the job profiles and organizational structure across the IT sector. The growth of any organization significantly depends on employee engagement, talent recognition, and learning. Continuous organizational expansion can typically lead to complexities in managing the workforce. All these factors bode well for the rising demand for HRM software and services across different industries and industry verticals.

Global human resource management market share, by end-use, 2020 (%)

The rising need to meet the expectations of internal customers and overcome the challenges in employee retention processes are driving the demand for HRM software and services in the retail industry. The rapid growth of the retail industry has particularly triggered large-scale hiring at all levels and the need for employee retention by ensuring better job roles, career paths, and benefits. Many organizations operating in the retail industry are opting for HRM solutions to streamline these functions.

Regional Insights

North America dominated the market in 2020 with a revenue share of over 34%. North America is home to several HRM solution providers. Organizations in the U.S. are particularly focusing on enhancing labor efficiency and increasing productivity by deploying HRM solutions for attendance & time tracking, payroll management, and talent management, among other operations. North America has always been an early adopter of the latest technologies and has adopted cloud-native technologies aggressively.

Asia Pacific is anticipated to witness the fastest CAGR from 2021 to 2028 due to the initiatives being pursued and the investments being made by governments in the region in digitization. Moreover, the growing number of automation projects being undertaken to enhance the productivity of organizations will drive the regional market. The presence of a large and skilled workforce is also expected to drive the demand for talent management and recruitment software in the region. The aggressive investments being made by large corporations in deploying new technologies also bode well for the growth of the regional market.

Key Companies & Market Share Insights

Vendors active in the market are pursuing various strategic initiatives including partnerships and collaborations, mergers & acquisitions, and new product development as part of the efforts to expand the customer base and gain a competitive edge over rivals. For instance, in January 2020, Accenture signed a contract to acquire Workday, U.S. MuleSoft, and Salesforce practices from Sierra-Cedar. The acquisition was aimed at strengthening Accenture’s position in the Workday ecosystem and expand the company’s services to government organizations and higher education institutions seeking to transform their core software systems for finance, accounting, human resources, and student services.

In November 2019, Cezanne HR partnered with HFX, a provider of SaaS workforce management systems, to offer an integrated Time & Attendance and HCM suite. The joint solution built on the Cezanne HR software suite can handle different working-time patterns and worker categories by providing support for time & attendance modules, including shift pattern design, rostering, and clocking in times and out times. Some of the prominent players in the global human resource management market include:

  • Accenture

  • ADP, Inc.

  • Cezanne HR Ltd.

  • Ceridian HCM Holding, Inc.

  • International Business Machines Corp. (IBM)

  • Kronos Incorporated (now Ultimate Kronos Group)

  • Mercer LLC

  • NetSuite, Inc.

  • Oracle

  • PwC

  • SAP SE

  • Talentsoft

  • UKG, Inc.

  • Workday, Inc. 

Human Resource Management Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 19.38 billion

Revenue forecast in 2028

USD 43.29 billion

Growth rate

CAGR of 12.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, software, service, deployment, enterprise size, end-use, and region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; France; Germany; U.K.; Australia; China; India; Japan; Singapore; Thailand; Hong Kong; Brazil; Mexico

Key companies profiled

Accenture; ADP, Inc.; Cezanne HR Limited; Ceridian HCM Holding, Inc.; International Business Machines Corporation (IBM); Kronos Incorporated (now Ultimate Kronos Group); Mercer LLC; NetSuite, Inc.; Oracle; PwC; SAP SE; Talentsoft; UKG Inc.; Workday, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global human resource management market report based on component, software, service, deployment, enterprise size, end use, and region:

  • Component Outlook (Revenue, USD Million, 2017 - 2028)

    • Software

    • Service

  • Software Outlook (Revenue, USD Million, 2017 - 2028)

    • Core HR

    • Employee Collaboration and Engagement

    • Recruiting

    • Talent Management

    • Workforce Planning & Analytics

    • Others

  • Service Outlook (Revenue, USD Million, 2017 - 2028)

    • Integration & Deployment

    • Support & Maintenance

    • Training & Consulting

  • Deployment Outlook (Revenue, USD Million, 2017 - 2028)

    • Hosted

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Million, 2017 - 2028)

    • Large Enterprise

    • Small & Medium Enterprise (SME)

  • End-use Outlook (Revenue, USD Million, 2017 - 2028)

    • Academia

    • BFSI

    • Government

    • Healthcare

    • IT & telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • France

      • Germany

      • U.K.

    • Asia Pacific

      • Australia

      • China

      • India

      • Japan

      • Singapore

      • Thailand

      • Hong Kong

    • South America

      • Brazil

      • Mexico

    • Middle East and Africa (MEA)

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