The global human resource management (HRM) market size was valued at USD 12. 6 billion in 2016 and is estimated to witness remarkable growth over the forecast period. Advancements in the field of Information Technology (IT), coupled with introduction of predictive analytics in the field of HR processes, are expected to boost market growth.
The evolution of various human resource management (HRM) solutions has enabled professionals to perform traditional HR activities in a reduced time span. This has subsequently allowed them to focus on attracting the right pool of candidates, retaining human capital, aligning organizational strategies with individual goals, and managing human resources in a manner that results in organizational growth.
Numerous HR software providers offer solutions on cloud, allowing easy access to data from virtually any system across the organization. Buyers widely prefer cloud-based systems owing to flexibility in terms of usage, reduced maintenance charges, and elimination of installation time and costs.
HRM solutions are increasingly implemented in retail, IT and telecom, healthcare, BFSI, and academia, among others. Companies find it challenging to recruit suitable employees owing to the large number of applicants in an industry. Organizations are also adopting HRM solutions to strategize recruitment employee engagement and as well as ensure proper internal communication.
Core HR software accounted for a major share in 2016 owing to high demand for automation of different HR functions. Primary functions provided by the software include payroll administration, time and attendance, and HR compliance. Benefits such as flexibility and easy access to data are resulting in increased adoption across the globe.
The talent management segment attained a value of USD 802.3 million in 2016. The segment is expected to grow rapidly over the forecast period. Talent management software assists HR professionals in increased strategic decision-making and helps them align organizational goals with talent acquisition and succession planning activities, thereby increasing overall performance of a company.
The integration and deployment function accounted for the largest share in the human resource management market and was valued at USD 1.5 billion in 2016. Large-scale demand for implementation of new HRM systems and/or integration of new systems with existing systems at the workplace is expected to drive segment growth.
In the present scenario, technology is changing at a considerable pace, resulting in continuous upgrades in systems. HRM solutions also need to be updated with changing technologies and organizations need vendor support in case of troubleshooting and technical issues. This is likely to result in rapid growth of the support and maintenance segment.
When the HR industry was transitioning from paper to software, on-premise solutions seemed to be the most feasible option at the time. Since then, several organizations have opted for on-premise HR solutions as they do not require an Internet connection and offer feasible options for radical customization of software.
Now, however, increased availability of Internet connections at affordable rates and greater speed is expected to increase the demand for hosted deployment of HR solutions in organizations. The segment accounted for USD 4.4 billion in 2016 and is expected to grow remarkably over the forecast period.
The small and medium enterprises (SMEs) segment was valued at USD 4.8 billion in 2016 and is expected to exhibit the highest CAGR over the forecast period. Numerous SMEs are implementing HR solutions as they reduce the burden of carrying out administrative tasks and allow employees to focus on organizational development.
In order to reap the benefits of these HR solutions, numerous multinational companies and large enterprises have also implemented HR solutions. These solutions allow companies to manage a massive and scattered database and avail real-time and centralized access to employee data across the globe.
Increasing demand from IT and telecom, retail, and healthcare sectors is predicted to drive industry growth. High demand for automation of systems and sourcing candidates as per job profiles and organization structure is estimated to boost demand for HR solutions across various industry sectors.
HR solutions in performance management, employee engagement, and workforce planning and analytics functions have revolutionized the IT and telecom industries. The use of HR systems in the IT and telecom segment was valued at USD 2.4 billion in 2016. Organizations are focusing on bringing about substantial improvements in organization productivity post the implementation of HR solutions for various disciplines.
Presence of several emerging economies such as China, India, and South Korea are expected to drive the Asia Pacific market. The regional segment was valued at USD 2.3 billion in 2016 and is expected to witness significant growth over the forecast period. The growth in Asia Pacific can be attributed to increasing government initiatives supporting the digitization of business processes and adoption of cloud-based systems. North America is also a major contributor to the global market and is fueled by the presence of a large number of HR solution providers in the region.
The technology and software industry is highly fragmented and several players hold a significant market share. Key industry participants include ADP LLC; Workday, Inc.; Oracle Corporation; Kronos, Inc.; Ultimate Software; and SAP SE.
Major industry players are adopting different strategic initiatives such as mergers and acquisitions, partnerships, and collaborations for technologies and new product development. For instance, in May 2016, Ultimate Software acquired Vestrics, a predictive analytics company, a move that enhanced the former company’s product offerings in the analytical category.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, France, Germany, UK, Australia, India, Japan, China, Singapore, Thailand, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global human resource management market based on software, service, deployment, enterprise size, end-use, and region:
Software Outlook (Revenue, USD Million; 2014 - 2025)
Employee Collaboration & Engagement
Workforce Planning & Analytics
Service Outlook (Revenue, USD Million; 2014 - 2025)
Integration & Deployment
Support & Maintenance
Training & Consulting
Deployment Outlook (Revenue, USD Million; 2014 - 2025)
Enterprise Size Outlook (Revenue, USD Million; 2014 - 2025)
Small & Medium Enterprise
End-use Outlook (Revenue, USD Million; 2014 - 2025)
IT & Telecom
Regional Outlook (Revenue, USD Million; 2014 - 2025)
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