GVR Report cover Human Resource Management Market Size, Share & Trends Report

Human Resource Management Market Size, Share & Trends Analysis Report By Component (Software, Service), By Software, By Service, By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-2-68038-295-2
  • Number of Pages: 171
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Technology

Report Overview

The global human resource management market size was valued at USD 19.38 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.8% from 2022 to 2030. The increasing adoption of automation and digitization of HR operations to create agile and effective approaches is expected to surge 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. The companies are adopting these developments as these human resource management solutions have the potential to enhance and improve the HR operations, thereby driving the market.

U.S. human resource management market size, by component, 2020 - 2030 (USD Million)

Improvements in modern technologies, such as predictive analytics, Machine Learning (ML), and Artificial Intelligence (AI) are simplifying the incorporation of human resource management (HRM) solutions with analytics. Simultaneously, startups are evolving collaboration software and mobile applications that can provide employees and employers with the ease to access the essential information on the go.

The use of predictive analytics is helpful in developing inferences regarding incessant employee progress through numerous charts and infographics. HRM solution providers are concentrating on delivering developing technological trends and designing their software solutions with the shifting requirements of clients. The development of such innovative solutions is expected to result in market growth.

In the post-COVID-19 pandemic world, remote working and hybrid work are turning out to be the new norm. Thus, the players in the human resource management market are focused on providing HRM solutions that are easy and efficient to install and can support the remote working model by investing in R&D activities. Concurrently, as remote working has become the new norm, key market companies, such as SAP SE, Oracle, UKG Inc., and Workday Inc. are improving their current solutions in order 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 are encouraging 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. 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 HRM market in 2021 with a revenue share of around 68%. This growth can be attributed 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 help management in making strategic decisions by minimizing the load of performing traditional HR duties.

Commonly, companies have trusted 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 provides assistance in assessing the operational trends within the company.

Software Insights

The core HR segment led the market in 2021 with a revenue share of over 33%. The increased need for automating various HR operations in the department is responsible 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 features 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 2022 to 2030. Talent management software helps HR professionals in aligning the talent acquisition and planning activities and making strategic 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 2021 with a revenue share of nearly 37%. The leading revenue share can be credited to the increased need to resolve the 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 & 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 & maintenance segment is estimated to record the fastest CAGR from 2022 to 2030. Continuous advancements in technology are demanding continuous advancements to the system. Thus HRM solutions are also required to be updated sporadically in line with the developments in technology and companies need strong vendor support for troubleshooting and technical problems, thus driving the growth of the segment.

Deployment Insights

The on-premise segment dominated the HRM market in 2021 with a revenue share of around 59%. 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 require 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.

Though, 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 2021 with a revenue share of over 58%. 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 also enable businesses to manage 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

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 IT & telecom segment achieved the highest revenue share of over 20% in 2021. 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. The growth of any organization considerably depends on talent recognition, learning, and employee engagement.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 across a variety of businesses and verticals.

Global human resource management market share, by end-use, 2021 (%)

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 2021 with a revenue share of over 34%. 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.

Asia Pacific is anticipated to witness the fastest CAGR from 2022 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 labor force is also estimated to drive the demand for recruitment and talent management software in the region. The aggressive 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 & 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 July 2021, Accenture acquired Workforce Insight, a workforce optimization firm that offers advising and technology services in workforce management and human capital management. Accenture's workforce management capabilities have been strengthened as a result of the acquisition and improved its ability to deliver HR transformation to clients.

In October 2021, IBM has announced a partnership with Apptio, Inc. to enhance enterprise transformation through IBM’s open hybrid cloud approach. The partnership will help clients to drive the usage of Red Hat OpenShift and improve decision-making through hybrid cloud technology, and IBM’s open hybrid cloud approach. Some of the prominent players in the global human resource management market include: 

  • Accenture

  • ADP, Inc.

  • Cezanne HR Limited.

  • Ceridian HCM, Inc.

  • International Business Machines Corp. (IBM)

  • Kronos Incorporated

  • Mercer LLC

  • Oracle

  • PwC

  • SAP SE

  • Cegid

  • UKG, Inc.

  • Workday, Inc. 

Human Resource Management Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 21.48 billion

Revenue forecast in 2030

USD 56.15 billion

Growth rate

CAGR of 12.8% from 2022 to 2030

Base year for estimation

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 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

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

 

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 2018 to 2030. For 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, 2018 - 2030)

    • Software

    • Service

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

    • Core HR

    • Employee Collaboration & Engagement

    • Recruiting

    • Talent Management

    • Workforce Planning & Analytics

    • Others

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

    • Integration & Deployment

    • Support & Maintenance

    • Training & Consulting

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

    • Hosted

    • On-premise

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

    • Large Enterprise

    • Small & Medium Enterprise (SME)

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

    • Academia

    • BFSI

    • Government

    • Healthcare

    • IT & telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Million, 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)

Frequently Asked Questions About This Report

pdf

GET A FREE SAMPLE

bck

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

cog

NEED A CUSTOM REPORT?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

BBB icon gvr sidebar D&B icon gvr sidebar

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.