Global PEOs (Professional Employer Organizations) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global PEOs (Professional Employer Organizations) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

The professional employer organization industry includes organizations that provide human resource management and administrative services through the same-job relationship. Industry participants are responsible for managing salary, benefits, and other human resource responsibilities of client company employee management.

Market Overview:

The latest research study on the global PEOs (Professional Employer Organizations) market finds that the global PEOs (Professional Employer Organizations) market reached a value of USD 30939.1 million in 2022. It’s expected that the market will achieve USD 51353.43 million by 2028, exhibiting a CAGR of 8.81% during the forecast period.

Impacts from the short-term

In the short term, the impact of COVID-19 on the PEOs (Professional Employer Organizations) industry will involve all major links and all entities in the industry chain. The company's management efficiency has declined, commuting has been severely hindered, network expansion has been delayed, and corporate and employee revenue has declined. For the companies they serve, COVID-19 has a huge impact on the operation of various industries, of which the impact on SMEs is more obvious. The suspension of production not only exacerbates the shortage of funds for SMEs, but also reduces the solvency of enterprises and may affect production and sales. Some enterprises have fallen into business difficulties and even went bankrupt. This also has a certain impact on PEOs (Professional Employer Organizations) service providers.

Impacts from the long-term

Historical data shows that the impact of natural disasters on the macro economy is usually short-term, and the economy tends to show a V-shaped trend. With the epidemic slowly being controlled, the economic recovery, and the advantages of PEOs (Professional Employer Organizations) for enterprises, the PEOs (Professional Employer Organizations) market will continue to grow in the long-term.

High performance and large downstream application

PEO service companies are specialized in business management for enterprises and have a high degree of professionalism. Generally speaking, PEO employees have extensive experience in human resources, law, taxation, customer service and accounting. Enterprises work with PEO to reduce the cost of managing benefits, simplify payroll operations and successfully expand to the international market without having to establish their own entities. Second, operators in professional employers ’organizations mainly compete based on the quality and price of industry services. Because of the high-quality services, many downstream companies outsource services to industry operators. Therefore, outsourcing and employment-related tasks enable companies to increase profitability and transfer competitive savings to consumers.

Limitations

The lack of information on employee-related control and safety issues is an important issue related to the market and may hinder future demand. Moreover, data privacy regulations in different countries and regions may affect the way the PEO operates.
Secondly, with the development of global PEO, professional employers' organizations will track the changing rules, regulations and labor laws of various industries. PEO service companies need more professional personnel and development of professional tools for the collection of information, to a certain extent. The above will increase the cost of the enterprise.

Opportunities

Due to the development of globalization and the demand for high-quality employees, SMEs are also adopting professional employer organization services. Due to the emergence of major players in North America and strong technical and economic support, the North American market dominates. In addition, in the Asia-Pacific region, due to the increase in the number of small and medium-sized enterprises in the region, especially the concentration of many labor-intensive industries, SMEs in the region employ most of the workforce, and professional employers ’organizations will benefit them. Therefore, the Asia-Pacific region is expected to achieve growth during the forecast period.

Region Overview:

North America dominated the PEOs (Professional Employer Organizations) market in 2022, with a market share of 70.83%.

Company Overview:

Automatic Data Processing (ADP) is one of the major players operating in the PEOs (Professional Employer Organizations) market, holding a share of 17.36% in 2023.

Automatic Data Processing (ADP)

Automatic Data Processing (ADP) is a global provider of business outsourcing solutions. The Company's services include a wide range of human resource, payroll, tax, and benefits administration solutions. Automatic Data also provides solutions to auto, truck, motorcycle, marine, and recreational vehicle dealers.

Insperity

Insperity, Inc. provides human resources and business optimization services. The Company offers recruiting, employment screening, retirement, business insurance, and technology services. Insperity also provides performance and expense management, time and attendance, and organizational planning software.

Segmentation Overview:

Among different product types, ASO segment is anticipated to contribute the largest market share in 2028.

Full Service PEO

PEO: Professional employers ’organization, PEO provides customers with a full range of services, including basic human resources functions (such as salary, benefits, safety and risk management, worker compensation and compliance) and strategic services (such as safety training, leadership training, Career change, ethics and recruitment).

ASO

ASO: Administrative service organization, ASO will manage daily operations and human resources tasks, but usually does not sponsor benefits or workers ’compensation unless it is part of a service agreement that may assess additional costs.

Application Overview:

The market's largest segment by application is the segment Small Busines, with a market share of 70.59% in 2022.

Key Companies in the global PEOs (Professional Employer Organizations) market covered in Chapter 3:

New Horizons Global Partners
OUTSOURCING Inc.
TEL Staffing & HR
Ahead Human Resources
HROne
TriNet
Bradford Jacobs
Velocity Global
Group Management Services (GMS)
Alcott HR
Insperity
EuroDev
TCP Group
Acumen International
Globalization Partners
YINGKE
CoAdvantage
Automatic Data Processing (ADP)
Paychex

In Chapter 4 and Chapter 14.2, on the basis of types, the PEOs (Professional Employer Organizations) market from 2018 to 2029 is primarily split into:

Full Service PEO
ASO

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the PEOs (Professional Employer Organizations) market from 2018 to 2029 covers:

Small Businesses
Medium Businesses
Large Businesses

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)