The global human resource management market size was valued at USD 14.68 billion in 2018 and is expected to register a CAGR of 11.0% from 2019 to 2025. Advancements in Information Technology (IT) coupled with the introduction of predictive analytics in HR processes is expected to boost the growth. Evolution of various human resource management (HRM) solutions has enabled professionals to perform traditional HR activities in a reduced time span and subsequently focus on attracting the right pool of candidates, retaining human capital, aligning organizational strategies with individual goals, and managing their human resources in a manner that results in organizational growth.
Numerous HR software providers offer their 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.
Organizations across the globe are focusing on creating a digital workplace that enables high productivity, offers flexibility & mobility, and uses modern communication tools. This shift of business processes from legacy systems to digital HR is playing a significant role in centralization of HR data across all the branches of an organization, thereby allowing for easy access of data.
Human resource management solutions are increasingly implemented in retail, IT & 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. Furthermore, organizations are adopting HRM solutions to strategize recruitment employee engagement and as well as ensure proper internal communications.
On the basis of software, the human resource management market is segmented into core HR, employee collaboration and engagement, recruitment, talent management, workforce planning and analytics, and others. The core HR software accounted for a major market share in 2018 owing to the high demand for automation of different HR functions in the department.
Primary functions provided by the software include payroll administration, time and attendance, and HR compliance tasks. Benefits such as flexibility and easy access to data are resulting in their increased adoption across the globe. The segment is expected to grow rapidly over the forecast period. The talent management software assists HR professionals in increased strategic decision making and helps them align the organizational goals with talent acquisition and succession planning activities, thereby increasing the overall performance of the company.
On the basis of service, the HR management market is segmented into integration and deployment, support & maintenance, and training and consulting. The integration & deployment function accounted for the largest share in the market. The large-scale demand for the implementation of new HRM systems and/or integration of new systems with the existing systems at workplace is expected to drive the market growth.
In the present scenario, technology is changing at a considerable pace, resulting in continuous upgrades in the system. HRM solutions also need to be updated with the changing technologies and organizations need vendor support in case of troubleshooting and technical issues, thereby resulting in the faster growth of support & maintenance segment.
On the basis of deployment, the HRM market is segmented into hosted and on-premises. The on-premises segment led the market in 2018 and was valued at USD 9.18 billion. Initially, when the HR department was transitioning from paper to software, the most feasible option was to implement on-premise solutions.
Several organizations have opted for on-premise HR solutions as they do not require an internet connection and offer feasible options for the radical customization of the software. Increased availability of internet connections at affordable rates is expected to increase the demand for hosted deployment of HR solutions in organizations.
On the basis of enterprise size, the HR management market is segmented into large enterprises and Small and Medium Enterprises (SME). The SME segment is expected to register the fastest 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 the organizational development.
In order to reap the benefits from these HR solutions, numerous multinational companies and large enterprises have also implemented HR solutions. These solutions allow companies to manage the huge and scattered database and avail real-time and centralized access to employee data across the globe.
On the basis of end use, the HRM market is segmented into academia, BFSI, government, healthcare, IT and telecom, manufacturing, retail, and others. Increasing demand from IT and telecom, retail, and healthcare sectors is predicted to drive the growth. High demand for automation of systems and sourcing candidates as per job profiles and organization structure is estimated to boost the 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. Organizations are focusing on bringing about substantial improvements in the productivity of organization post the implementation of HR solutions for various HR disciplines.
North America generated the highest revenue of USD 5.21 billion in 2018. Presence of a large number of HRM solution providers is expected to significantly drive the regional growth. Additionally, U.S. is focusing on increasing labor efficiency and productivity by using HRM solutions for time and attendance, payroll, and talent management activities in the organizations is further expected to boost regional market growth.
Growth of Asia Pacific can also be attributed to the increasing government initiatives for supporting digitization of business processes and adoption of cloud-based systems. Presence of several emerging economies, such as China, India, and South Korea are expected to further drive the regional HR management market growth in the forthcoming years.
Technology and software industry is highly fragmented with several players holding significant market share. Key participants include Accenture PLC; Automatic Data Processing (ADP), Inc.; Cezanne HR Ltd.; Ceridian HCM, Inc.; IBM Corporation; Kronos Incorporated; Mercer LLC; NetSuite, Inc.; Oracle Corporation;PricewaterhouseCoopers (PwC); SAP SE; Talentsoft; Ultimate Software; and Workday, Inc.; among others.
Major market players are adopting different strategic initiatives such as mergers and acquisitions, partnerships, and collaborations for technologies and new product developments. For instance, in May 2016, Ultimate Software acquired Vestrics, a predictive analytics company that facilitated the enhancement of product offerings in the analytical category of the former.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, France, Germany, U.K., Australia, India, Japan, China, Singapore, Thailand, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
15% free customization scope (equivalent to 5 analyst working days)
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest 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 report 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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