HR Analytics Market to Grow with a CAGR of 21.2% Globally through to 2028
Global HR Analytics Market is rising due to the growing need for
data-driven insights to optimize human resource management, enhance workforce
productivity, and make informed talent-related decisions in the forecast period
2024-2028.
According to TechSci Research report, “Global HR
Analytics Market - Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2028”, Global HR Analytics Market has valued at USD
3.7 Billion in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 21.2% through 2028. The Global HR Analytics Market is
undergoing a significant transformation, driven by the increasing recognition
of the invaluable insights that data analytics can offer in managing human
resources effectively. Organizations across industries are embracing HR analytics
to gain deeper visibility into their workforce, enhance decision-making
processes, and improve overall employee engagement. HR analytics leverages
advanced data analysis techniques, machine learning, and artificial
intelligence to analyze vast volumes of HR data, encompassing employee
performance, recruitment, retention, training, and workforce planning.
One of the key drivers behind the market's growth is
the rising emphasis on talent management and employee well-being. As businesses
strive to remain competitive and agile, they are leveraging HR analytics to
identify high-performing talent, predict employee turnover, and tailor
development programs to individual needs, ultimately fostering a more engaged
and satisfied workforce. Moreover, the COVID-19 pandemic has accelerated the
adoption of HR analytics, as remote work and changing workplace dynamics
necessitate agile HR strategies. Analytics tools have become indispensable for
monitoring remote workforce productivity, tracking employee mental health, and
ensuring workforce diversity and inclusion.
Furthermore, HR analytics aids in aligning HR
initiatives with overall business objectives, optimizing recruitment processes,
and forecasting future workforce needs. As organizations continue to recognize
the strategic value of data-driven HR practices, the Global HR Analytics Market
is poised for continued expansion, offering innovative solutions to shape the
future of talent management and organizational performance.
Browse over 26 market data Figures spread
through 91 Pages and an in-depth TOC on "Global HR Analytics Market”.
The global HR analytics market has witnessed
significant growth and is poised for further expansion in the coming years. HR
analytics, also known as people analytics, is the application of data analysis
techniques to human resources processes and data. It enables organizations to
gain valuable insights into their workforce, make data-driven decisions, and
optimize their HR strategies. The market for HR analytics is being driven by
several factors, including the increasing adoption of advanced technologies,
the growing need for data-driven HR practices, and the rising demand for
workforce optimization. One of the key drivers of the HR analytics market is
the increasing adoption of advanced technologies, such as artificial
intelligence (AI) and machine learning (ML), in HR processes. These
technologies enable organizations to collect, analyze, and interpret vast
amounts of HR data, providing valuable insights into employee performance,
engagement, and retention. By leveraging AI and ML algorithms, HR analytics
solutions can identify patterns, trends, and correlations in the data, helping
organizations make informed decisions and improve their HR strategies.
Another factor contributing to the growth of the HR
analytics market is the growing need for data-driven HR practices. In today's
competitive business landscape, organizations are realizing the importance of
leveraging data to drive their HR initiatives. HR analytics provides a
systematic approach to collecting and analyzing HR data, enabling organizations
to measure the effectiveness of their HR programs, identify areas for
improvement, and align their HR strategies with their business goals. By
leveraging HR analytics, organizations can make data-driven decisions that lead
to improved employee productivity, engagement, and overall organizational
performance. Furthermore, the rising demand for workforce optimization is
fueling the growth of the HR analytics market. Organizations are increasingly
focusing on optimizing their workforce to gain a competitive edge. HR analytics
solutions provide insights into workforce demographics, skills, and
performance, enabling organizations to identify skill gaps, develop targeted
training programs, and make informed decisions about workforce planning and
recruitment. By leveraging HR analytics, organizations can ensure that they
have the right people with the right skills in the right positions, leading to
improved productivity, efficiency, and profitability.
In conclusion, the global HR analytics market is
experiencing significant growth due to the increasing adoption of advanced
technologies, the growing need for data-driven HR practices, and the rising
demand for workforce optimization. HR analytics enables organizations to gain
valuable insights into their workforce, make data-driven decisions, and
optimize their HR strategies. As organizations continue to recognize the
importance of leveraging data to drive their HR initiatives, the demand for HR
analytics solutions is expected to further increase in the coming years.
The Global HR Analytics Market is segmented into Solution,
Deployment, Enterprise Size, End-use, Service, regional distribution, and
company.
Based on its Deployment, The on-premise segment
accounted for the largest market share of 57.8% in 2022. On-premise deployment
provides organizations with greater flexibility and control over their IT
infrastructure. Furthermore, they are replaceable and offer the tractability to
customize operations and enhance plug-ins when required. The on-premise
deployment reduces reliance on the internet while also protecting data from
potential losses and fraud. Moreover, it eliminates the requirement for onsite
staff to have an internet connection to access it, making it completely
accessible without the need for a secure connection. These benefits are
expected to drive the significant demand for on-premise deployment during the
forecast period.
The hosted segment is expected to grow at a CAGR of
17.7% over the forecast period. The increasing data connectivity through
multi-cloud environments, advancements in information-sharing technologies, and
the cost benefits of cloud-based analytics solutions drive the segment's
growth. Several organizations are eager to have their solutions deployed in the
cloud as it provides multiple benefits, such as capacity flexibility,
scalability, cost efficiency, and enhanced collaboration. SAP’s SuccessFactors
Workforce Analytics, for instance, enables HR professionals, analysts, and
business partners to influence business decisions through data-driven insights
and an evidence-based approach to HR. These benefits will supplement the growth
of the segment during the forecast period.
Based on region, North America accounted for a market
share of 34.5% in 2022 due to the increased adoption of cloud infrastructure by
major organizations, as well as the increased productivity and labor efficiency
with the help of HRM solutions for attendance & time tracking, payroll
management, and talent management. Developed countries in the region, such as
the U.S. and Canada, have aggressively financed digital solutions and
technologies for effective business operations. For instance, in June 2022,
Visier Inc. (Canada), an HR analytics solution provider, announced a
partnership with SYMPLR, a healthcare operations solutions company, to embed
its people analytics skills in the latter company’s recruiting solution to create
a talent analytics feature. These developments will further boost the regional
market growth during the forecast period. Asia Pacific is expected to grow at a
CAGR of 16.8% over the forecast period. The growing start-up culture, combined
with the aim to boost company & employee performance & productivity,
and government initiatives toward the adoption of cloud technologies will drive
the regional market. Furthermore, organizations in the region are adopting HR
analytics to develop a data-driven talent strategy. For instance, in October
2020, Tata Consultancy Services launched TCS Workforce Analytics, an AI-based
unified system of insights and engagement for managers and employees, which
enhanced workforce experience and productivity. The solution was designed to
help enterprises with the talent management challenges of the digital era.
These developments will further boost the regional market during the forecast
period.
Major companies operating in Global HR Analytics Market
are:
- Cegid
- Crunchr
- GainInsights
- IBM Corp.
- Infor
- MicroStrategy Inc.
- Oracle Corp.
- Sage Software Solutions Pvt. Ltd.
- SAP SE.
- Sisense Inc.
- Tableau Software, LLC.
- UKG Inc.
- Visier, Inc.
- Workday, Inc.
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“The global HR analytics market has been witnessing
substantial growth and is expected to expand further in the future. HR
analytics, also known as people analytics, involves applying data analysis
techniques to human resources processes and data. It allows organizations to
gain valuable insights into their workforce, make data-driven decisions, and
optimize their HR strategies. The market's growth is driven by various factors,
including the increasing adoption of advanced technologies like artificial
intelligence (AI) and machine learning (ML) in HR processes. These technologies
enable organizations to collect and analyze vast amounts of HR data, providing
insights into employee performance, engagement, and retention. Additionally,
the growing need for data-driven HR practices and the rising demand for
workforce optimization contribute to the market's expansion. HR analytics
allows organizations to measure the effectiveness of their HR programs,
identify areas for improvement, and align their HR strategies with business
goals. It also helps in identifying skill gaps, developing targeted training
programs, and making informed decisions about workforce planning and
recruitment. As organizations continue to recognize the importance of
leveraging data for HR initiatives, the demand for HR analytics solutions is
expected to increase further.,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“HR
Analytics Market – Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Solution (Employee Engagement & Development, Payroll
& Compensation, Recruitment, Retention, Talent Analytics, Workforce
Planning, Others), By Deployment (Cloud, On-premise), By Enterprise Size (Large
Enterprise, Small & Medium Enterprise (SME)), By End-use (Academia, BFSI,
Government, Healthcare, IT & Telecom, Manufacturing, Retail, Others), By
Service (Implementation & Integration, Support & Maintenance, Training
& Consulting), By Region, By Competition”, has evaluated the
future growth potential of Global HR Analytics Market and provides statistics
& information on market size, structure and future market growth. The
report intends to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in Global HR Analytics Market.
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