The global HR analytics market size is expected to reach USD 8.59 billion by 2030, growing at a CAGR of 14.8% from 2023 to 2030, according to the new reports of Grand View Research, Inc. The increasing adoption of automation and digitization of HR operations to create agile and effective approaches is expected to drive the market demand over the forecast period. HR analytics enables businesses to assess the impact of people’s policies on their bottom line, as well as detect future trends and develop future skills. Implementing the latest technologies, such as Artificial Intelligence (AI), advanced analytics, and Machine Learning (ML), helps in employee retention and engagement to enhance and improve HR operations, which is expected to drive market growth.
HR analytics solutions can handle tremendous amounts of data, and it helps organizations to achieve an efficient recruiting process. Organizations can leverage advanced analytics to improve scouting talent, performance improvement recruiting, boosting employee happiness, training, hiring, onboarding, attrition, employee demographics, and retention. Better analytical capabilities emerge from more data collection, and predictive analytics technology enables synchronous and real-time intervention, which is why businesses use analytics tools. They can shorten the time it takes for recruiters to review and sort through many resumes. These benefits provided by HR analytics will supplement the market growth during the forecast period.
HR analytics solutions and services ease complex compensation planning, allowing businesses to improve budget allocations and support compensation decisions while adhering to organizational guidelines. Furthermore, organizations all over the world are establishing a digital workplace that allows for flexibility, mobility, and the use of modern communication tools. For instance, in May 2022, IBM Corp. partnered with Ernst & Young Global Ltd. to assist businesses in addressing workforce challenges post-COVID-19 pandemic. Both companies established the Talent Center of Excellence (COE) to develop hybrid cloud-based AI solutions for HR and payroll transformation services.
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The talent analytics segment will register a CAGR of over 16.9% during the forecast period due to the need for businesses to attract the right talent with the help of technologies, such as AI, ML, and deep learning
The support & maintenance segment is expected to witness a significant CAGR of 17.9% during the forecast period. The demand is expected to rise due to the growing need for timely system patching and security updates
The hosted segment is expected to observe a CAGR of 17.7% during the forecast period.It enables businesses to access data from any connected device at any time, expanding the scope for customization and enabling the implementation of analytical tools across multiple business channels. These advantages will contribute to the segment's growth over the forecast period
The Small & Medium Enterprises (SMEs) segment is expected to observe a CAGR of 16.5% during the forecast period. With the help of HR analytics, SMEs can control their solutions across multiple geographies and manage multiple employees. At the same time, they can build on their existing strengths to enhance employee satisfaction and workplace culture in the long run. These benefits will drive the segment growth
The retail segment is expected to witness a CAGR of 17.3% during the forecast period. Companies in retail are experimenting with new ways to gain remote access to their assets, customers, resources, and required data by utilizing various IT services. This has undoubtedly increased the rate of adoption of HR analytics solutions
Asia Pacific is expected to witness significant growth of a CAGR of 16.8% during the forecast period. A rise in the number of automation initiatives being conducted to improve organizational productivity and the presence of a skilled & large labor force is estimated to drive the regional market
Grand View Research has segmented the global HR analytics market based on solution, service, deployment, enterprise size, end-use, and region:
HR Analytics Solution Outlook (Revenue, USD Million, 2018 - 2030)
Employee Engagement & Development
Payroll & Compensation
Recruitment
Retention
Talent Analytics
Workforce Planning
Others (Applicant Tracking System and Succession and Leadership Planning)
HR Analytics Service Outlook (Revenue, USD Billion, 2018 - 2030)
Implementation & Integration
Support & Maintenance
Training & Consulting
HR Analytics Deployment Outlook (Revenue, USD Billion, 2018 - 2030)
Hosted
On-premise
HR Analytics Enterprise-size Outlook (Revenue, USD Billion, 2018 - 2030)
Large Enterprise
Small & Medium Enterprise
HR Analytics End-use Outlook (Revenue, USD Billion, 2018 - 2030)
Academia
BFSI
Government
Healthcare
IT & Telecom
Manufacturing
Retail
Others (Government, Transportation & Logistics, Energies & Utilities, Travel and Hospitality, and Media and Entertainment)
HR Analytics Regional Outlook (Revenue, USD Billion, 2018 - 2030)
North America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Asia Pacific
China
India
Japan
Australia
South Korea
Latin America
Brazil
Mexico
Argentina
Middle East and Africa
UAE
Saudi Arabia
South Africa
List of Key Players in the HR Analytics Market
Cegid
Crunchr
GainInsights
IBM Corp.
Infor
MicroStrategy Inc.
Oracle Corp.
Sage Software Solutions Pvt Ltd.
SAP SE
Sisense Inc.
TABLEAU SOFTWARE, LLC.
UKG Inc.
Visier, Inc.
Workday, Inc.
Zoho Corporation Pvt. Ltd.
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