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Human Resource (HR) Technology Market Size, Share & Industry Analysis, By Type (Talent Management, Workforce Management, Recruitment, Payroll Management, Performance Management, and Others), By Deployment (Cloud and On-premise), By Enterprise Type (Small and Medium Sized Enterprises (SMEs) and Large Enterprises), By Industry (BFSI, IT and Telecommunication, Government, Manufacturing, Retail, Healthcare, and Others), and Regional Forecast, 2024-2032

Last Updated :April 01, 2024 | Format: PDF | Report ID: FBI105437



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The global human resource (HR) technology market size was valued at USD 37.66 billion in 2023 and is projected to grow from USD 40.45 billion in 2024 to USD 81.84 billion by 2032, exhibiting a CAGR of 9.2% during the forecast period (2024-2032). The market’s growth is fueled by the rising implementation of automation in human resource management operations. Additionally, rapid technological advancements across companies are creating ample opportunities for market expansion.

Human resource (HR) technology refers to the hardware and software designed to automate and streamline HR processes. The HR technology is implemented by combining and synchronizing software based on the needs of the HR department while adhering to the regulatory framework of human capital in any given organization.

With the shift toward digital transformation in the business landscape, HR tech solutions allow companies to navigate the changes with managerial assistance.  They help improve recruitment practices, support managers, and boost engagement, retention, and productivity.

The COVID-19 pandemic created a rapid shift in market dynamics of working models and forced human resource teams and departments to embrace new ways to react to the demands of the employee or workforce. Hence, the deployment of human resource technology solutions, including talent management, workforce management, recruitment, and payroll management, created a growth opportunity for the market.


Increasing Adoption of Generative AI into the Solutions Creates Unprecedented Opportunities for Market Players

The rapid shift in market dynamics and working models has forced human resource teams and departments to explore new ways of meeting the demands of the employees or workforce. The adoption of AI tools, particularly GenAI, is gaining momentum in human resources, offering vital resources to upskill employees, create content from different sources, and summarize multiple data sets, empowering HR functions across the organization.

Moreover, market players integrating Generative AI offer innovative solutions that redefine the HR domain. Generative AI boosts HR practices through virtual assistants and AI-powered chatbots, enhancing organizational management, facilitating asset development, and driving positive change. For instance,

  • According to research analysis, 5% of HR professionals have already adopted generative AI into their organizations, while 9% are currently conducting generative AI trials. In addition, 60% of HR professionals are participating in enterprise-wide conferences around their organization’s use of generative AI, while 58% are collaborating with IT leaders to explore potential use cases.

Furthermore, enterprises are expected to prioritize investments in technologies such as artificial intelligence, cloud, and machine learning to simplify business processes, thus creating significant opportunities for human resource (HR) technology vendors.

Human Resource (HR) Technology Market Trends

Implementation of Employee Experience Platform and Robot Process Automation into the Solution to be the Key Trend for Organizations

HR technology emerges as a tool for enhancing employee engagement by reorganizing HR processes, improving communication, and personalizing the employee experience. Implementing the employee experience platform into the human resource (HR) technology enhances the employee experience by reducing administrative problems, improving access to information, and enabling employees to focus on their work.

Moreover, the employee experience platform offers various modules to address repetitive tasks and queries. It allows the HR department to plan and strategize while the platform executes and creates projections based on the data. These technologies contribute to employee engagement, enhancing employee experience and enabling employees to take control of their work-related tasks.

In addition, adopting Robot Process Automation technology delivers efficiency and innovation within human resource management solutions, enabling organizations to implement enhanced talent strategies. Companies are adopting RPA capabilities into HR department duties, such as managing security access and processing business card orders, updating payroll, handling employee benefit forms, and streamlining employee exit procedures.

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Human Resource (HR) Technology Market Growth Factors

Increasing Shift to Hybrid Workforce by the Organizations to Drive Market

The global pandemic shifted physical work to a hybrid work model. Businesses are adapting to this model, enabling HR to ensure a unified transition toward flexible and innovative work arrangements. With the rise of hybrid and remote work models, employers and HR teams are adopting and implementing a consistent work environment to keep workers engaged, connected, and productive.

Moreover, human resource (HR) technology is shifting to hybrid work to gather, manage, and analyze data from all teams, irrespective of location. This technology aids in employee upskilling, onboarding, and reskilling, providing employees with access to everything they need during their employee journey, from collaboration tools to cloud technologies.

The adoption of hybrid and remote scheduling acts as a critical differentiator in talent acquisition and retention, enabling the HR department to embrace a remote workforce model in organizations. This expansion broadens the candidate pool significantly, helping a talent-rich workforce.


Limited Integration of Data and Risk to Data Privacy May Hamper Market Growth

Human resource management solutions offer digital management of employee data. Moving from the workplace to remote working presents immense challenges for companies, notably in terms of data security risks. Implementing and maintaining human resource (HR) technology is expensive; thus, it becomes crucial to demonstrate its ROI through improved efficiency and better talent management.

During the COVID-19 pandemic, social distancing compelled businesses to shift from traditional communication and collaboration methods to digital infrastructure. Moreover, navigating employment laws and regulations across different regions poses a complex challenge for the HR technology market.

Thus, the lack of data security and privacy may hamper the human resource (HR) technology market growth.

Human Resource (HR) Technology Market Segmentation Analysis

By Type Analysis

Increasing Deployment of Talent Management Solutions by Organizations to Fuel Talent Management Segment Growth

Based on type, the market is divided into talent management, workforce management, recruitment, payroll management, performance management, and others.

The talent management segment is expected to hold the highest market share and grow with the highest CAGR during the forecast period. It assists enterprises in managing their employee’s performance, progression, development, and rewards. In addition, talent management processes hiring, engaging, developing, and retaining employees and planning for future workforce. With technology, HR teams are deploying talent management to manage talent holistically, create well-organized and engaging experiences for candidates during the recruitment process, and empower HR teams with insight such as automation and data analytics. For instance,

  • In September 2023, JazzHR partnered with Cornerstone OnDemand by integrating talent management tools to help teams drive workforce productivity and engagement. Through the partnership, JazzHR’s ATS would integrate with Cornerstone’s talent management products to enable small and mid-sized businesses to recruit, hire, train, and develop employees.

The recruitment segment is expected to gain traction as large enterprises mainly adopt core HR solutions, enabling recruiters and organizations to invest in building employee value proposals and encouraging candidates to choose their organization over others. Establishing an online presence, active social handles, and dedicated technologies for employee advocacy or recruitment marketing helps organizations build a strong employer brand and hire top talent. For instance,

  • In September 2023, Instahyre, an AI-driven HRTech platform, announced global expansion by introducing its end-to-end recruitment tech platform, including the U.S., Germany, the U.K., Southeast Asia, and other markets. The expansion aimed to revolutionize the recruitment process through its recruitment tech platform and expertise position as a transformative solution for recruiters and job searchers worldwide.

By Deployment Analysis

Increasing Adoption of Cloud-based Solutions to Boost Cloud-based Segment Growth

By deployment, the market is classified into cloud and on-premise.

Cloud-based deployments hold the highest market share and are expected to grow with the highest CAGR during the forecast period due to the increasing adoption of cloud technology among small and medium-sized enterprises (SMEs). Prominent market players are shifting from on-premise software to cloud solutions due to data being stored in cloud storage, providing easy and quick data access. The adoption of cloud-based solutions eliminates the need to hire IT professionals for system maintenance and enables access to data from anywhere in the world. For instance,

  • In January 2024, greytHR, a provider of cloud-based HR & Payroll software, partnered with Nirmaan, a Godrej Capital’s business solution for Micro, Small, and Medium Enterprises (Small and Medium Sized Enterprises (SMEs)). Through the partnership, greytHR focuses on assisting small and Medium Sized Enterprises (SMEs) in automating processes and enhancing productivity in the HR function.

The deployment of on-premise systems in HR solutions is carried out within the company, with the IT team responsible for maintenance and development, providing the company control over updates. On-premise HR solutions have a one-time permanent license fee and require a considerable expenditure in infrastructure and managing a team of IT experts, which affects market growth.

By Enterprise Type Analysis

Surge in Large Workforce by Large Enterprises to Expand their Geographical Presence and Product Portfolio

By enterprise type, the market is classified into small and medium sized enterprises (SMEs) and large enterprises.

The large enterprises segment will hold a significant market share during the forecast period, emphasizing employees as vital contributors to enterprise success. The adoption of human resource (HR) technology by large enterprises aims at streamlining business processes, retaining the best talent, and enhancing in-house employee experiences, with a focus on efficient management of payroll, performance, and recruitment for expansive workforces.

Small and medium-sized enterprises (SMEs) are expected to grow with the highest CAGR owing to growing investment and funding led by organizations. The growth is mainly due to small and medium-sized enterprises (SMEs) enhancing their recruitment and onboarding processes through automated applicant tracking systems to manage applicant screening, job postings, and candidate tracking efficiently. Digital onboarding tools assist in a seamless transition for new hires, contributing to an enhanced overall experience while reducing administrative problems.

By Industry Analysis

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IT and Telecommunications Segment Dominates Stoked by Need to Hire More Employees

Based on industry, the market is divided into BFSI, IT & telecommunication, government, manufacturing, retail, healthcare, and others.

The IT and telecommunications segment holds the highest market share due to HR professionals managing employees in the industry. Adopting HR technology provides a wide range of responsibilities, including employee recruitment, performance evaluation training, and compensation. It also involves leveraging the company’s wide diversity advantages to organize employees and store essential data. For instance,

  • In October 2023, Staffbase, an employee communications platform provider, introduced an integrated platform for strategic employee communications to attend internal communications with HR and IT professionals.

The healthcare industry is expected to grow at the highest CAGR due to the adoption of human resource management solutions by healthcare startups to leverage data-driven insights and identify the best candidates. AI-powered codes in human resource (HR) technology assists HR professionals in analyzing a candidate’s resume and other relevant data points to predict their success in a particular role. For instance,

  • In September 2023, Kenjo, an HR tech startup in Europe, raised USD 9.3 million in Series A investment. This funding supported Kenjo’s position in HR software for frontline workers in SME companies in sectors such as healthcare, retail, manufacturing, transport and logistics and streamline the management of HR departments.


Based on geography, the market is divided into five major regions such as North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America Human Resource (HR) Technology Market Size, 2023 (USD Billion)

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North America held the maximum human resource (HR) technology market share in the global market due to the presence of major human resource technology solution vendors such as Ceridian HCM Holding Inc., Oracle Corporation, Automatic Data Processing (ADP), Inc., Workday, Inc., and Cornerstone OnDemand, Inc. The surge in employment opportunities across the U.S. and Canada creates demand for recruitment, talent management, and performance management HR solutions. For instance,

  • In December 2023, Workleap, formerly GSoft, acquired Pingboard, a Texas-based HR tech company. This acquisition aims to expand and unify its offerings, integrating Workleap’s software products with Pingboard’s organization chart and employee directory capabilities.

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Europe is anticipated to show remarkable market growth during the projected period, displaying a growing demand for workforce automation solutions to automate and improve workforce management. Increased investment in startups and developing technologies in the region contributes to this growth. In addition, the growing adoption and employment of human resource management tools across the sector fuels market growth. For instance,

  • In October 2023, Pack, an HR tech company, raised a USD 529.3 million Pre-Seed funding round. The funds would help the company in expanding its presence across European countries such as Spain, Greece, and Portugal. It plans to recruit new coaches and mentors and develop its proprietary AI-embedded digital platform to manage global leadership programs.  

Asia Pacific is expected to grow at the highest CAGR during the forecast period. The surge in funding, partnerships, and investments to expand the presence of small and medium-sized businesses is expected to drive market growth in this region. Similarly, the increasing adoption of technologies, such as AI, ML, and cloud, is expected to fuel the demand for human resource software in this region. For instance,

  • In October 2023, Workruit, a Hyderabad-based HR tech startup, announced its expansion into the U.S. market. The expansion aimed to deploy its products, Recruitment Platform & Resume Builder, in the U.S. market, which has a fragmented recruitment industry.

The Middle East & Africa is anticipated to hold productive market opportunities. The growing mobility of workforces, employment in Small and Medium Sized Enterprises (SMEs), and adoption of technologies contribute to the region's growth.

South America is expected to witness steady growth owing to the growing demand for highly skilled tech talents and allowing businesses to stay at the forefront of the tech industry. For instance,

In February 2023, HRtech Atlas established its headquarters in Brazil with the intention of helping companies embrace borderless talent to reduce hiring costs and risk.

List of Key Companies in Human Resource (HR) Technology Market

Key Players to Adopt Merger and Acquisition Strategies to Expand Market Share

Key players in the global market for human resource (HR) technology, such as SAP SE, Oracle Corporation, Automatic Data Processing (ADP), Inc., Cornerstone OnDemand, Inc., Ceridian HCM Holding Inc., Workday, Inc. and others, are focused on expanding their geographic boundaries.  They achieve this by introducing customized solutions and new products to attract a diverse customer base, thus improving revenue growth. These companies are aiming to acquire small and local firms to expand their business presence.

List of Key Companies Profiled:

  • SAP SE (Germany)

  • Oracle Corporation (U.S.)

  • Automatic Data Processing (ADP), Inc. (U.S.)

  • Cornerstone OnDemand, Inc. (U.S.)

  • Ceridian HCM Holding Inc. (U.S.)

  • Workday, Inc. (U.S.)

  • Infor, Inc. (U.S.)

  • Cegid Group (France)

  • Hi Bob Inc. (U.K.)

  • The Access Group (U.K.)


  • October 2023: Workday expanded its partnership with ADP to provide global compliance, payroll, and HR experiences for joint customers. The partnership aimed to enable the customer to view data across their HCM environments, including tax, compliance, and payroll.

  • September 2023: HiBob collaborated with Papaya Global, a payroll platform provider, to help multinational employers meet the need for compliant HR-integrated payroll solutions. Through the collaboration, HiBob integrated its HR data into Papaya’s platform, allowing employers to integrate PTO, HR, and compensation information with real-time data synchronization and optimize payroll processes.

  • September 2023: The Access Group acquired Diversely, a Singapore-based inclusive recruitment solution company, offering a comprehensive suite, Access Volcanic, to its customers. The website allows organizations to track, measure, and improve diversity, providing recruitment solutions to bring new business, stay compliant, and attract a wider candidate group.

  • August 2023: ADP acquired Honu HR, Inc. DBA Sora (Sora), a data integration and workflow automation tool platform company, to simplify complex HR processes through automation. This acquisition aimed to provide HR solutions by integrating Sora's easy-to-use platform with ADP's HCM solutions for employees, business owners, and HR professionals. 

  • June 2023: Oracle introduced Oracle Fusion Cloud Human Capital Management (HCM) with generative AI-powered capabilities to boost HR functions and productivity. These capabilities are embedded in existing HR processes to enhance HR functions, improve productivity, drive faster business value, facilitate HR strategies, and strengthen candidate and employee experience.


An Infographic Representation of Human Resource (HR) Technology Market

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The market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, software types, and leading applications of software and services. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 9.2% from 2024 to 2032


By Type

  • Talent Management

  • Workforce Management

  • Recruitment

  • Payroll Management

  • Performance Management

  • Others (Employee Collaboration & Engagement)

By Deployment

  • Cloud

  • On-premise

By Enterprise Type

  • Small and Medium Sized Enterprises (SMEs)

  • Large Enterprises

By Industry

  • BFSI

  • IT and Telecommunication

  • Government

  • Manufacturing

  • Retail

  • Healthcare

  • Others (Education)

By Region

  • North America (Type, Deployment, Enterprise Type, Industry, and Country)

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)

  • Europe (Type, Deployment, Enterprise Type, Industry, and Country)

    • U.K. (By Industry)

    • Germany (By Industry)

    • Italy (By Industry)

    • France (By Industry)

    • Russia (By Industry)

    • Spain (By Industry)

    • Benelux (By Industry)

    • Nordics (By Industry)

    • Rest of Europe

  • Asia Pacific (Type, Deployment, Enterprise Type, Industry, and Country)

    • China (By Industry)

    • Japan (By Industry)

    • India (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of Asia Pacific

  • Middle East & Africa (Type, Deployment, Enterprise Type, Industry, and Country)

    • Turkey (By Industry)

    • GCC (By Industry)

    • Israel (By Industry)

    • North Africa (By Industry)

    • South Africa (By Industry)

    • Rest of the Middle East & Africa

  • South America (Type, Deployment, Enterprise Type, Industry, and Country)

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America

Frequently Asked Questions

According to Fortune Business Insights, the market is projected to reach USD 81.84 billion by 2032.

In 2023, the market was valued at USD 37.66 billion.

The market is projected to grow at a CAGR of 9.2% during the forecast period.

The cloud segment holds the highest market share and leads the market.

The increasing shift to a hybrid workforce by organizations is a key factor driving the market growth.

The top players are SAP SE, Oracle Corporation, Automatic Data Processing (ADP), Inc., Cornerstone OnDemand, Inc., Ceridian HCM Holding Inc., and Workday, Inc.

North America held the highest market share.

By end-user, the healthcare segment is expected to grow with the highest CAGR during the forecast period.

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Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem 

This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share. 

Human Resource (HR) Technology Market

  1. SAP SE (Profiled in the report)
  2. Oracle Corporation (Profiled in the report)
  3. Automatic Data Processing, Inc. (Profiled in the report)
  4. Cornerstone OnDemand, Inc. (Profiled in the report)
  5. Ceridian HCM Holdings, Inc. (Profiled in the report)
  6. Workday, Inc. (Profiled in the report)
  7. Infor, Inc. (Profiled in the report)
  8. Cegid Group (Profiled in the report)
  9. Hi bob, Inc. (Profiled in the report)
  10. The Access Group (Profiled in the report)
  11. PerkSpot
  12. Lattice
  13. HiBob
  14. Bullhorn
  15. Justworks
  16. SilkRoad Technology
  17. Atlas
  18. Scholars
  19. Greenhouse Software
  20. First Advantage
  21. iCIMS
  22. Symphony Talent
  23. Empuls
  24. Engagedly, Inc.
  25. Administrate
  26. Ultimate Software
  27. Paycom
  28. HRSoft
  29. Xceleration
  30. QGenda
  31. Namely
  32. Loxo
  33. WeSpire
  34. Sage HR
  35. TeamViewer
  36. Sparta Systems
  37. Sapience Analytics
  38. BizMerlinHR
  39. Blue J
  40. Lever
  41. Beamery
  42. ZingHR
  43. Paylocity
  44. Activtrak
  45. BMC Software
  46. Presagia
  47. RiskAware
  48. Kronos
  49. Grove HR
  50. Ramco
  • 2019-2032
  • 2023
  • 2019-2022
  • 140

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