Global Human Resource Management Software Market 2023-2030

Global Human Resource Management Software Market 2023-2030

Global Human Resource Management Software Market Size, Share & Trends Analysis Report by Deployment (Cloud-Based, and On-Premises), by Organization Size (Small-Enterprise, Medium-Enterprise, and Large-Enterprise), by Functionality (Talent Management, Payroll & HR, HR Analytics & Workforce Management, and Performance Management), and by End-Users (Healthcare, Manufacturing, Finance, Retail, Government, Education, Construction, and Others) Forecast Period (2023-2030)

The global HR management software market is anticipated to grow at a significant CAGR of 10.3% during the forecast period. The market growth is attributed to factors such as increasing use of AI/ML and data analytics, companies adopting the work-from-home culture, digital transformation in HR processes, global workforce management, changing compliance and regulations, improving software user experience, and increasing focus automation and efficiency. This leads to increasing demand for global HR management software services. for instance, in April 2023, Pocket HRMS announced the launch of their mission Bharat 2.0 to enable small and medium enterprises (SMEs) in India to digitize their human resource management system, payroll system, and related compliance. The product will be available in regional Indian languages and can be integrated with WhatsApp. This launch will help SMEs to focus on their core business and improve operational efficiency by saving time and money in workforce management.

Segmental Outlook

The global HR management software market is segmented based on the Based-on deployment, organization size, functionality, and end-users. Based on the deployment the market is further sub-segmented into cloud-based and on-premises HR management software services. Based on organization size, the market is sub-segmented into small-enterprise, medium-enterprise, and large-enterprise HR management software services.

Based on functionality, the market is sub-segmented into talent management, payroll and HR, HR analytics and workforce management, and performance management. Based on end-users, the market is sub-segmented into healthcare, manufacturing, finance, retail, government, education, construction, and others (non-profit, technology). Healthcare is anticipated to hold a considerable share of the market among the end-users, owing to changing regulations, adoption of cloud-based solutions, and increasing use of AI/ML and analytics among others.

The Information Technology (IT) Industry is Anticipated to Hold a Prominent Share in the Global HR Management Software Services Market

Among the types, the IT sub-segment is anticipated to hold a prominent share of the market due to the adoption of work-from-home, hybrid work environments, changes in compliance and regulations in the IT industry, the rise of artificial intelligence (AI)/Machine learning (ML), global workforce management, and increasing need to attract new talent. For instance, In August 2023, ADP launched an AI-powered mobile app Roll for small businesses for HR and payroll support with deeper insights as a bard of their broader generative AI strategy. This development will help companies expand into SMEs by offering AI/ML-based HRMS solutions.

Regional Outlook

The global HR management software market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, the Asia-Pacific region is expected to grow considerably in the coming years. According to the Organization of Economic Cooperation and Development (OECD) fifth edition of Society at a Glance: Asia/Pacific 2022, on average almost 60.0% of the population over age 15 were employed in Asia-Pacific in 2020. 57.0% of the world’s labor force is in the Asia-Pacific region. The growing population in the region, growing regional economies, increasing literacy rates, and increasing adoption of technology in the region are some of the key driving factors for the growth of HR management software services in the Asia-Pacific region.

Europe is Expected to Hold a Prominent Share in the Global HR Management Software Services Market

The European region is expected to hold a prominent share of the global HR management software services market. For instance, according to Eurostat, 75.0% of the population between the age group 20-64 were employed in 2022 which is the highest share recorded since the start of 2009. Among the EU countries, 11 had employment rates above 78.0%. Apart from this, according to the International Labor Organization (ILO), Europe and Central Asia account for 12% of the global labor force population. Industrial growth, increasing literacy rate, adoption of technologies, changing regulations and laws in the region, and increasing adoption of flexible work culture in organizations are some of the reasons for the growth of HR management software services in the region.

Market Players Outlook

The major companies serving the global HR management software market include SAP SE, Oracle Corporation, Workday, Inc., International Business Machines Corporation (IBM), Automatic Data Processing, Inc. (ADP), Cornerstone OnDemand, Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including collaborations with private and government players and adopting new technologies such as Artificial Intelligence (AI)/Machine Learning (ML) to stay competitive in the market. For instance, in June 2023, Oracle announced its plan for its human resources software for businesses by integrating generative AI features. Under this update, Oracle will introduce a button feature in several fields, enabling the automatic generation of draft text for job listings, performance goals, and other related areas.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global HR management software market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for solid growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.