Market Overview:

The size of the Global Human Resource Management Software, which was estimated to be worth $21.8 billion in 2022, is anticipated to increase to $51.3 billion by 2030, rising at a CAGR of 9% between 2023 and 2030.

The market is undergoing continuous digitization, along with continuous automation of HR solutions and operations. This is likely to create a combination of highly effective and agile retraining strategies that will help the market towards outstanding global growth and expansion of prominent market players and services delivered during the on-going forecast period.

Over the anticipated period, it is anticipated that demand for the market would increase due to the growing adoption of automation and digitization in HR processes to build agile and efficient ways. The growth may also be influenced by the efforts businesses make to attract the suitable applicant pool, manage resources effectively, and retain human capital. Companies are implementing these changes because they believe that these human resource management solutions will strengthen and improve HR operations, which will drive the market.

The potential of human resource management procedures, implementations, and delivered solutions plays a key role in improving the operations of HR departments, businesses, and companies in the global market, among other things. The compound annual growth rate (CAGR) of the market clearly indicates that the market has positive properties that will implement and enhance the work of the HR department, which is one of the most important departments of any company or institution in particular. Such management is also necessary to ensure that market participants use the resources available to them wisely and that the market, now and in the future, is safe and profitable.

Significant Market Dynamics:

Drivers:

providers' priority is developing and evolving technology trends

The primary objective of providers of HRM solutions is to develop and evolve technology trends and match them with software solutions based on the customers' dynamic needs and requirements. This is a significant factor in the remarkable expansion of the global market.

Innovations in modern technology

Modern technological advancements, such as predictive analytics, Machine Learning (ML), and Artificial Intelligence (AI), facilitate the incorporation of analytics into human resource management (HRM) solutions. Startups are concurrently developing collaboration software and mobile applications that enable employees and employers to access critical information on the go.

Restraints:

However, potential start-ups still in the development phase are struggling with the trends and changes brought on by the pandemic.

 In addition, low investment and a lack of capital availability are preventing HRM solutions from being found and implemented in various verticals to enhance the capabilities of different departments and sections. This is likely to present major market restrictions for the forecast period ending in 2028.

Challenges 

High initial costs associated with the implementation of HRMS solutions are anticipated to be major challenges hindering market expansion.

Increasing cyber security and data security issues are significant factors that are anticipated to impede market growth, prompting the need for additional security measures for data security and access to sensitive data.

Opportunities

The launch of predictive analytics in HRMS:

The introduction of predictive analytics in HR is anticipated to stimulate market expansion. The proliferation of HRM solutions has allowed professionals to spend less time conducting HR functions and more time recruiting qualified candidates. It contributes to the management of human resources, the retention of the workforce, and the integration of personal and organizational goals, thereby fostering organizational development.

The switch to digital HR systems

Organizations are emphasizing the development of a digital workplace that facilitates high productivity, the use of the most advanced communication tools, and mobility and adaptability. The transition to digital HR systems from legacy systems facilitates the centralization of an organization's data, thereby facilitating data accessibility.

Key Market Updates

1. September 2022 - SkyHive launches SkyHive Answers, a cloud-based application that provides business users with immediate, accurate, and comprehensive answers to their most pressing human capital strategy queries. Utilizing SkyHive's Labor Market Intelligence, SkyHiveAnswers eliminates the need for labor-intensive human data analysis, intricate data processing, and time-consuming research.
2. April 2022 - Oracle reveals Oracle ME, a comprehensive employee experience platform that enables organizations to increase employee engagement and guarantee employee success. It belongs to Oracle Fusion Cloud Human Capital Management. (HCM). Oracle ME enables HR and business executives to streamline communications throughout the organization, increase employee productivity by guiding them through complex tasks, and improve talent retention by fostering a more supportive and trustworthy work environment.
3. Omni HR, an HR automation platform, completed a USD 2.4 million pre-seed funding round co-led by Alpha JWC Ventures and Picus Capital in July 2022.
4. January 2022: flex, a human resource management platform based in South Korea, raises USD 32 million in Series B funding at a USD 287 million valuation.
5. In October 2021, Buk, a company based in Chile that developed a human resources management platform for Latin American enterprises, raised USD 50 million in Series A funding at a valuation of USD 417 million.

Market Segmentation

By Type

By type, the market for human resource management is divided into two segments: cloud and on-premises.

By Component

By component, the market for human resource management is segmented as follows: Software, Talent Management, Workforce Management, Recruitment, Payroll Management, Performance Management, Service, Support & Maintenance, Integration & Deployment, Training & Consulting.

 Increasing software used to manage the entire employee lifecycle, as well as the growing need to comply with regulatory laws, are among the primary factors propelling the software segment to have the largest market share over the forecast period.

By Application

Government agencies are among the end-users of HRM solutions, along with numerous other organizations operating in a wide range of industries and industry segments, including academia, BFSI, healthcare, IT & telecom, manufacturing, retail, and media & entertainment. In 2021, the IT & telecom sector had the largest revenue share, exceeding 20%. Engagement of employees, recognition of talent, and learning are crucial for the development of any organization. As a business expands, human resource management can become increasingly complex. All of these factors point to a rising demand for HRM software and services in a variety of enterprises.

Regional insights

North America is the world's largest market for HRIS software. The area is a lead in the use of cloud computing, robotic process automation, and other cutting-edge technologies. Market growth in the area is also helped along by the constant innovation and improvement of HRM solutions.

The increase of the regional market is primarily driven by the substantial investments in cloud technology research and development and the robust economic growth. The human resource management software market in North America is anticipated to continue to be the largest worldwide throughout the forecast era.

It is anticipated that the market for human resource management software in Asia will expand at a faster pace than any other region. Revenue growth in the area can be attributed in part to the rising popularity of cloud computing and government programs designed to encourage digitalization.

There are a lot of market shares in the area that are held by emerging economies like South Korea, China, and India. The APAC market for HRIS software is expected to grow rapidly over the coming years.
Scope of the Report

Key Vendors

1. Accenture

Accenture is a global provider of professional services with dominant competencies in digital, cloud, and security. We provide Strategy and Consulting, Technology and Operations, and Accenture Song, all of which are supported by the world's largest network of Advanced Technology and Intelligent Operations centers.

Visit: http://www.accenture.com  

2. Cezanne HR

Cezanne HR is the global leader in providing intelligent, sophisticated, and cost-effective Cloud HR software to mid-sized business operations. Cezanne HR's comprehensive HR suite is simple to deploy, flexible, and easy to administer. It covers the entire employee lifecycle, from recruitment and on boarding to core HR administration and performance and pulse surveys. 

Visit: https://cezannehr.com

3. Oracle

Oracle Cloud Infrastructure provides increased efficiency, security, and cost savings. It is designed to facilitate the migration of workloads from on-premises systems to the cloud, as well as between the cloud, on-premises, and other clouds. Oracle Cloud applications provide business leaders with modern applications that assist them in innovating, achieving sustainable development, and becoming more resilient. 

Their specialilties include enterprise, software, applications, database, middleware, fusion, business intelligence, Primavera, PeopleSoft, EPM, BEA, Hyperion, Retek, Utilities, On-Demand, server & storage systems, BPM, solutions for communications industry, ERP, CRM, CRM On Demand, JDE, and Siebel.

Visit: http://www.oracle.com

4. NetSuite

Oracle NetSuite, founded in 1998, is the world's first cloud corporation. NetSuite has assisted businesses to achieve visibility, control, and agility for more than twenty years, enabling them to establish and grow successful businesses. 

Initially focusing on financials and ERP, now offer an integrated system that includes inventory management, HR, professional services automation, and Omni channel commerce, which is used by over 34,000 customers in 217 countries and territories.

Visit: http://www.netsuite.com 

5. Mercer LLC

Mercer provides organizations with advice and technology-driven solutions to satisfy the health, wealth, and career needs of an evolving workforce. More than 25,000 Mercer employees are located in 44 countries, and the company operates in over 130 nations.  For more information, visit www.mercer.co.in Follow Mercer on Twitter at @MercerInIndia and on Facebook at Mercer Insights.

Market Key Players:

• Accenture
• ADP, Inc.
• Cezanne HR Ltd.
• Ceridian HCM Holding Inc.
• International Business Machines Corp. (IBM)
• Kronos Incorporated (now Ultimate Kronos Group)
• Mercer LLC
• NetSuite, Inc.
• Oracle
• PwC,
• SAP SE
• Talent soft
• UKG Inc.
• Workday Inc.
• Ultimate Software (US)

Major Market Segments Covered

By Type:

• Cloud
• On-premise

By Component:

• Software
• Talent Management
• Workforce Management
• Recruitment
• Payroll Management
• Performance Management
• Service
• Support & Maintenance
• Integration & Deployment
• Training & Consulting

By Application:

• IT & Telecommunication
• BFSI
• Government
• Healthcare
• Retail
• Manufacturer
• Others

By Region:

Human Resource Management Software market growth represents the North American market trend expected to account for the largest market share during the market operation globally during the forecast period. The market driver for the remarkable market growth in this region is that the market is home to various market giants such as ADP, IBM and Oracle who enhance the technological advancement of the region based on research, development and implementation. There are also a growing number of HRM solution providers in the market that help companies optimize large-scale HR processes.

The second largest growth in global market operations is likely to be enjoyed in the APAC region. The reason is that the region is implementing HRM solutions and services with the motivation to drive data-driven solutions that will help the market grow according to its maximum potential during the forecast period.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Conclusion

The market is continuously undergoing digitization and automation of HR solutions and operations. Human resource management procedures, implementations, and delivered solutions play a significant role in enhancing the operations of HR departments, businesses, and corporations on the global market, among other things. The primary objective of HRM solution providers is to develop and evolve technology trends and match them with software solutions based on the dynamic needs and requirements of their customers. Modern technological developments like predictive analytics, Machine Learning (ML), and Artificial Intelligence (AI) facilitate the incorporation of analytics into human resource management (HRM) solutions. Startups are concurrently developing collaboration software and mobile applications that provide employees and employers with mobile access to essential data. In addition, low investment and a lack of capital prohibit the discovery and implementation of HRM solutions in various verticals to enhance the capabilities of various departments and sections. This is anticipated to have a significant impact on the market during the forecast period ending in 2028. It is anticipated that the introduction of predictive analytics in HR will stimulate market growth. Organizations prioritize the creation of a digital workplace that facilitates high productivity, the use of the most advanced communication tools, and mobility and adaptability. The transition from legacy HR systems to digital HR systems enables the centralization of an organization's data, thereby enhancing data accessibility.