"Smart Strategies, Giving Speed to your Growth Trajectory"
The global human resource (HR) technology market size was USD 22.89 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with human resource (HR) technology witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 24.04 billion in 2021 to USD 35.68 billion in 2028 at a CAGR of 5.8% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
COVID-19 to Create Unprecedented Opportunities for Market Players for Long-terms
Digital transformation is likely to disrupt industries post the COVID-19 crisis. The rapidly changing market dynamics of business models have forced HR teams to adopt new ways to respond to the needs of the workforce. Hence, Human resource software and services, including talent management, workforce management, and payroll management, are expected to gain traction in the upcoming years.
Further, during the post-COVID-19 phase, companies are more likely to prioritize investments in AI technology to optimize business processes and attain cost reduction, which is expected to offer lucrative opportunities in the human resource technology market. Besides, advantages, such as live-work environment simulation, on-demand labor forces, and effective analysis of employee performance offered by AI-enabled platforms are further expected to see high demand in the near future.
Request a Free sample to learn more about this report.
Employee Experience to be a Key Factor across Organizations
Employee experience is expected to be a key metric for enterprises. According to Josh Bersin, founder of Bersin & Associates, a research and advisory firm in enterprise learning and talent management, employers are shifting their focus towards employee experience across the workspace. Hence, they are deploying human resource (HR) technology tools to deliver satisfactory employee experiences. The factors mentioned above indicate that the growing inclination of enterprises towards delivering employee experience is more likely to drive the demand for HR technology solutions.
Integration of Artificial Intelligence and Analytics with Recruitment Tools to be the Emerging Technological Trend
Recruitment software has been observed to witness significant demand amid the COVID-19 crisis. In recent years, human resource technology market players are integrating intelligent algorithms based on artificial intelligence, machine learning, and social sensing tools with recruitment software to make it more effective and helpful.
The integration of artificial intelligence and other analytic algorithms is likely to make the applicant tracking system more effective and empower employers to make smarter decisions in terms of hiring talent.
Rising Demand for Predictive and Workforce Analytics Enabled Tools to Increase Market Growth
Companies are shifting from back-office HR data warehouses to more advanced reporting and analytics dashboards to study sales productivity, employee and retention problems, and other issues that directly affect its productivity. Vendors in this market are integrating analytics as a core part of the software, including assessment, operational, or learning tools.
Machine learning-enabled predictive and workforce analytics take employee engagement and retention to another level. It also helps in identifying the current and future skill gaps. For instance, Mexico’s Ministry of Energy utilizes analytics and a predictive workforce planning model to learn and understand the current shortage of skilled HR professionals in the oil and gas industry and foresee one over a 10-year horizon. The Ministry also started using the analytics model in renewable energy and sustainability sectors. Such significant adoption of predictive and workforce analytics is likely to fuel the market growth.
Limited Use of Analytical Tools in Traditional HR Practices to Hinder Market Growth
Even though analysis and data have played a long role in driving business decisions; nevertheless, when it comes to analytics, most companies have a long way to go. The lack of awareness about human resource (HR) technology benefits is one of the major factors impeding the market growth. Small and medium enterprises (SMEs) find it difficult to invest in advanced technologies due to low budgets. Thus, the limited use of analytics tools in traditional HR practices might restrain the HR technology market growth.
Human Resource (HR) Technology Solution Segment to Hold Maximum Share
Based on the component, the market is divided into software and services. Our market study has considered various HR technology solutions and services offered by players, such as Cornerstone Ondemand’s Human capital management software suite, including talent management, recruiting software, and others. IBM Corporation’s Workday Human Resource (HR), Workday Inc.‘s Human Capital Management Software suite, and others are operating worldwide and in different regions.
The HR technology software enables enterprises to streamline their business operations, including core HR and other administrative processes that deliver positive results. Similarly, these services are likely to generate significant revenue attributed to the increasing adoption of this software.
Payroll Management Segment to Gain More Demand among Other HR Tools
The payroll management software helps enterprises to define payroll policy, gather inputs, input validation, payroll calculation, statutory compliance, followed by payroll accounting, pay-out, and reporting. These factors are likely to contribute to the payroll management segment's significant growth rate in the global market.
The talent management software segment is projected to hold a major market share during the forecast period. The primary functions of talent management (TM) applications are to assist organizations in managing their workforce's acquisition, performance, development, rewards, progression, and succession. These processes are often defined in terms of the employee lifecycle.
Cloud based HR Technology Software’s to Gain Traction in Coming Years
By deployment, the market is segmented into cloud and on-premise. The cloud-based human resource (HR) technology software segment is expected to gain traction during the forecast period. Large enterprises have to mandatorily scale their infrastructure to address the requirements and meet new demands raised by the remote workforce. Also, these enterprises need to maintain infrastructure support for their services and products. These are some of the factors that would contribute to the 21% increase in the enterprise cloud spending's, according to CloudHealth by VMware, 2020.
To know how our report can help streamline your business, Speak to Analyst
Healthcare Segment to Grow Rapidly Stoked by Need to Hire More Employees
Based on the industry, the HR technology market is segmented into IT and telecom, BFSI, government, retail, healthcare, government, manufacturing, and others. The healthcare industry is expected to drive the adoption of human resource tools and services attributed to the increasing demand for the management of a large workforce and hire a significant talent pool.
Similarly, the IT and telecommunication industry is anticipated to hold a major share in the global market. IT and telecom, BFSI, and healthcare industries, among others, would drive the demand for a more skilled workforce and hiring strategies. Hence, they are expected to be potential customers of HR technology software.
North America Human Resource (HR) Technology Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the market is fragmented into five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.
North America is forecast to emerge dominant in the global market during the forecast period. According to Cornerstone OnDemand Inc.’s 2018 survey, North America is the potential customer of cloud HCM solutions, including talent management, Core HR, workforce management, and others. This can be attributed to the presence of headquarters of established HCM software vendors, such as Ceridian HCM Holding Inc., Oracle Corporation, and IBM Corporation, among others. Also, substantial investments in cloud applications would propel growth. These factors are likely to support the HR technology market growth across the region.
Europe is projected to be the second-largest market, following North America. For instance, the European Union has undertaken a talent management strategy to reduce staff overload for professional growth. Such initiatives are likely to create new market opportunities across the region.
Asia Pacific is expected to show the fastest growth rate during the forecast period. China is expected to hold a major market share in the region, followed by Japan, India, and South Korea. Large enterprises operating in IT and telecom, BFSI, manufacturing, education, and other industries are projected to generate the market's highest revenue.
The Middle East and Africa is anticipated to demonstrate significant growth in the upcoming years. The surging mobility of workforces across cultural and regional margins is one of the factors contributing to the region's growth.
To know how our report can help streamline your business, Speak to Analyst
The market in South America is observed to be primarily influenced by companies headquartered in North America and Europe by providing software services in the region. IT and telecommunication, healthcare, manufacturing, and government are high technology investors across the region. Hence, they are expected to be potential customers of HR technology software and services in the near future.
Market Players to Drive Merger and Acquisition Strategies to Expand the Shares
Prominent players operating in the global market are focusing on expanding their global presence and market share by the merger and acquisition strategy. These companies are aiming to acquire small and local firms to expand their business presence. For instance,
February 2021 – Ceridian HCM Inc. acquired Ascender, a payroll and HR solutions provider headquartered in Japan. Through this acquisition, these companies aim to provide comprehensive human capital management and payroll solutions in Asia Pacific.
April 2020 – Cornerstone OnDemand, Inc. announced the acquisition of Saba Software, Inc. The acquisition is aimed to expand the geographical presence and provide a highly differentiated portfolio of talent experience software solutions and people development along with its existing product portfolio.
An Infographic Representation of Human Resource (HR) Technology Market
To get information on various segments, share your queries with us
The global HR technology 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 the 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 advanced market in recent years.
Value (USD Billion)
Component; Deployment; Industry and Geography
The market is projected to reach USD 35.68 billion by 2028.
In 2020, the market value stood at USD 22.89 billion.
The market is projected to grow at a CAGR of 5.8%.
The human resource technology software segment is likely to lead the market.
The high demand for predictive and workforce analytics enabled tools is the key factor driving the market growth.
Workday Inc., Cornerstone OnDemand Inc., Kronos, Incorporated, Oracle Corporation, and IBM Corporation are the top players in the global market.
North America is expected to hold the highest market share.
Asia Pacific is expected to exhibit the highest growth rate during the forecast period.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry