GVR Report cover 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, 2023 - 2030

  • Report ID: GVR-2-68038-295-2
  • Number of Pages: 185
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Report Overview

The global human resource management market size was valued at USD 21.69 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.7% from 2023 to 2030. The growing implementation of digitization and automation of human resource processes to develop effective and agile approaches is anticipated to add to the demand of the market over the estimated period. The development can also depend on the efforts enterprises are putting on enticing the right pool of applicants, managing resources efficiently and retaining human capital. Enterprises are integrating these developments as these human resource management solutions have potential to enhance and improve the HR operations, thereby driving the market.

U.S. Human Resource Management Market size and growth rate, 2023 - 2030

Moreover, the improvements in modern technologies, such as predictive analytics, Machine Learning (ML), and Artificial Intelligence (AI) are simplifying the incorporation of HRM solutions with analytics. For instance, HRM software and services are deploying AI-powered chatbots to answer regular employee questions regarding pay structure, leave policy, and more. It is anticipated that these modern technologies will be able to complete routine tasks so that HR personnel can increase productivity. Simultaneously, startups are evolving collaboration software and mobile applications that can provide employees and employers with the ease of accessing essential information on the go. This, in turn, is expected to add to the market growth.

Furthermore, the demand for HRM software and services is expected to grow due to the application of predictive analytics as it is helpful in developing inferences regarding incessant employee progress through numerous charts and infographics. HRM solution providers are concentrating on developing and designing advance software solutions with the shifting requirements of clients. The development of such innovative solutions is expected to result in market growth.

In post-COVID-19 pandemic world, remote working and hybrid work is turning out to be the new norm. Thus, market players are focused on providing HRM solutions that are easy and efficient to install and can possibly support the remote working model by investing in R&D activities. Concurrently, due to the adoption of remote work, key market companies, such as SAP SE, Oracle, UKG Inc., and Workday Inc. are improving their HRM solutions in accordance with the upcoming trends and are also offering products over the cloud as part of the efforts to nullify the need for constant system upgrades. All these aspects are estimated to contribute to market growth.

Remote working practices encourage small and medium organizations to determine modern HRM solutions so that strategic decisions can be made efficiently. The acceptance of HRM solutions among these establishments is increasing in line with the strong emphasis they are putting on workforce planning and talent acquisition to address the challenges allied with retaining human capital and operational efficiency. Additionally, large companies are seeking a single solution to acknowledge all their HR requirements. Key market players, such as ADP, Inc., have now announced robust HRM solutions to satisfy the requirements of large establishments. Workday Inc. is offering combined real-time HR data with immunization statistics in their COVID-19 vaccine management solution, thus providing establishments with the insights and resources needed to assist in ensuring a safer workplace and a healthy workforce.

Component Insights

The software segment led the market in 2022 with a revenue share of around 68.0%. This growth can be credited to the high demand for talent management and core HR software from companies of various industries for retaining workforces. Talent management and core HR software can also help in improving workflows and subsequently refining the overall organizational productivity. Core HR solutions primarily helps management in making strategic decisions by minimizing the load of performing traditional HR duties. For instance, in February 2023, The Amenity Collective, a lifestyle services and hospitality company, deployed Workday Human Capital Management (HCM), Workday Payroll, Workday Financial Management, and Workday Learning solutions developed by Workday, Inc. to break down data silos and drive efficiencies, revving its business transformation.

Commonly, companies have trusted on manual operations for HR compliance and employee engagement, thereby hampering efficient resource management. However, HRM software solutions can address these problems by digitalizing all the manual operations. Additionally, HRM software solutions are centrally manageable and can be supervised by managers to assess and reward employees, even in a remote working model. HRM software not only enhances productivity by automating manual tasks and diminishes the error rate but also helps in assessing the operational trends within the company.

Software Insights

The core HR segment led the market in 2022 with a revenue share of over 33.0%. The increased need for automating various HR operations in the department is in control for the major revenue share. Payroll administration, attendance and time management, and HR compliance are the main features of core HR software. Some of the functions that are driving the acceptance of core HR software around the world are flexibility and simple access to data.

The talent management segment is estimated to witness the fastest CAGR from 2023 to 2030. Talent management software helps HR professionals in aligning the talent acquisition and planning activities and making calculated decisions with the company’s goals, thus improving the overall organizational performance. The software also has a number of features that can assist in inviting, hiring, and retaining people that are regarded as valuable additions to the company. The growing use of video platforms and social media platforms for recruiting is also providing growth to the segment.

Service Insights

The integration and deployment segment controlled the market in 2022 with a revenue share of more than 37.0%. The leading revenue share can be credited to the increased need to resolve he technical issues while implementing an HRM system, troubleshooting and updating software intermittently. The majority of businesses opt for deployment and integration services to install software and integrate it with existing systems across several departments. These services allow establishments to access and visualize data, and ultimately use it in the decision-making processes. The rising organizational demand to improve the competence of the existing systems, shifting towards automation and adoption of cloud computing are some of the important aspects that are driving the development of the market.

The support and maintenance segment is estimated to record the fastest CAGR from 2023 to 2030. The continuous advancements in technology are demanding continuous advancements to the HR system that uphold data. Thus, HRM solutions are also required to be updated regularly in line with the developments in technology and companies need strong vendor support for troubleshooting and technical problems. This, in turn, is driving the growth of the segment.

Deployment Insights

The on-premise segment dominated the market in 2022 with a market share of more than 57.0%. During the early stages of implementing HR software to substitute manual activities, on-premise solutions were the most practical alternative. On-premise HR solutions were preferred by certain firms since they do not need internet connectivity but yet allow for extensive customization of the system. On-premise solutions also provide data security while helping establishments in fulfilling several regulations.

The demand for hosted deployment is expected to rise considerably over the estimated period. Cloud or hosted deployment allows users to access data from any location effortlessly. It also reduces the need for constant software upgrades. Hosted solutions also offer benefits and convenience, such as low operational manpower requirement, rapid integration, and reduced maintenance. Some HRM solution providers, such as Oracle Corp., SAP SE, ADP LLC, and IBM Corp., have now started offering their services on the cloud.

Enterprise Size Insights

The large enterprise segment dominated the market in 2022 with a revenue share of more than 55.0%. The dominant revenue share can be credited to the aggressive implementation of HRM solutions by some large organizations to efficiently manage their enormous databases of employees. These solutions enable HR personnel to quickly access employee data, decreasing the time spent on manual duties such as performance goal tracking, feedback, and reviews. These technologies assist businesses to handle massive personnel databases and provide secure, real-time access to employee information throughout the globe.

The SME segment is estimated to register the highest CAGR over the forecast period. Several SMEs are adopting HR solutions to decrease the burdens of carrying out administrative tasks and instead focus on administrative growth. SMEs are particularly estimated to implement cloud-based Human Capital Management (HCM) solutions due to the cost benefits offered by cloud-based solutions.

End-use Insights

The IT & telecom segment achieved the highest revenue share of over 21.0% in 2022. End-users of HRM solutions comprise government agencies as well as several other institutions operating in various industries and industry verticals, including BFSI, academia, healthcare, manufacturing, IT & telecom, retail, media & entertainment, and others. The large revenue share can be ascribed to the growing demand for system automation and the requirement to source candidates based on job profiles and organizational structure throughout the IT industry.

Talent recognition, learning, and employee engagement is one of the crucial part for growth of organization.Constant organizational growth is known to make workforce management more difficult. All of these factors point to an increase in demand for Human Resource Management software solutions and services. This demand is expected to arise across a variety of businesses and verticals due to the ongoing trend of digitization.

Global Human Resource Management Market share and size, 2022

HRM software and services are in high demand in the retail business due to the increasing need to match internal consumer expectations and overcome obstacles in employee retention processes. The rapid growth of the retail industry has encouraged large-scale recruiting at all levels, as well as the need to retain employees by providing better career routes, perks, and job roles. Many establishments functioning in the retail industry are adopting HRM solutions to modernize these functions.

Regional Insights

North America dominated the market in 2022 with a revenue share of over 34.0%. North America is home to numerous HRM solution providers. Establishments in the U.S. are particularly concentrating on increasing productivity and labor efficiency by deploying HRM solutions for payroll management, attendance & time tracking, and talent management, among other processes. North America has adopted cloud-native technologies excessively and has continuously been an early adopter of modern technologies.

Human Resource Management Market Trends by Region, 2023 - 2030

Asia Pacific is anticipated to witness the fastest CAGR from 2023 to 2030 due to the investments being made by governments and the initiatives being pursued in the region in digitization. Furthermore, the regional market will be driven by the increasing number of automation initiatives being conducted to improve organizational productivity. The presence of a skilled and large work force is also estimated to drive the demand for recruitment and talent management software in the region as enterprises look to hire perfect people that fill empty roles. The unaggressive investments in the deployment of new technologies bode well for the regional market's growth.

Key Companies & Market Share Insights

Vendors active in the market are following various strategic initiatives including mergers and acquisitions, partnerships and collaborations, and new product development as part of the efforts to gain a competitive edge and expand the customer base. For instance, in March 2023, UKG, Inc. launched UKG Wallet to transform payment and financial wellness in all industries. Accenture's workforce management capabilities have been strengthened as a result of the acquisition and improved its ability to deliver HR transformation to clients. Some of the prominent players in the global human resource management market include:

  • Accenture

  • ADP, Inc.

  • Cegid

  • Ceridian HCM, Inc.

  • Cezanne HR Limited.

  • International Business Machines Corp. (IBM)

  • Kronos Incorporated

  • Mercer LLC

  • Oracle

  • PwC

  • SAP SE

  • UKG, Inc.

  • Workday, Inc.

Human Resource Management Market Report Scope

Report Attribute


Market size value in 2023

USD 24.25 billion

Revenue forecast in 2030

USD 56.15 billion

Growth rate

CAGR of 12.7% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Report updated

June 2023

Quantitative units

Revenue in USD billion and CAGR from 2023 to 2030

Report coverage

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

Segments covered

Component, software, service, deployment, enterprise size, end-use, 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; South Africa; Saudi Arabia

Key companies profiled

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

Customization scope

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

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Human Resource Management Market Report Segmentation

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 2018 to 2030. 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 Billion, 2018 - 2030)

    • Software

    • Service

  • Software Outlook (Revenue, USD Billion, 2018 - 2030)

    • Core HR

    • Employee Collaboration & Engagement

    • Recruiting

    • Talent Management

    • Workforce Planning & Analytics

    • Others

  • Service Outlook (Revenue, USD Billion, 2018 - 2030)

    • Integration & Deployment

    • Support & Maintenance

    • Training & Consulting

  • Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

    • Hosted

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

    • Large Enterprise

    • Small & Medium Enterprise (SME)

  • End-use Outlook (Revenue, USD Billion, 2018 - 2030)

    • Academia

    • BFSI

    • Government

    • Healthcare

    • IT & telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • France

      • Germany

      • U.K.

    • Asia Pacific

      • Australia

      • China

      • India

      • Japan

      • Singapore

      • Thailand

      • Hong Kong

    • Latin America

      • Brazil

      • Mexico

    • Middle East and Africa (MEA)

      • South Africa

      • Saudi Arabia 

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