Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 20.54 billion

CAGR (2023-2028)

11.27%

Fastest Growing Segment

Cloud

Largest Market

North America


Market Overview

The projected market size for the global human resource management software (HRMS) market is anticipated to reach USD 20.54 billion by the conclusion of 2022, exhibiting a compound annual growth rate (CAGR) of 11.27% over the forecast period. The global HRMS market represents a rapidly growing and dynamic sector within the broader realm of enterprise software solutions. HRMS encompasses a comprehensive suite of software tools and platforms that are meticulously designed to optimize and streamline various human resource functions. These functions range from recruitment and onboarding to performance management, payroll processing, employee engagement, and more. As organizations worldwide acknowledge the pivotal role of efficient talent management in driving business success, the demand for sophisticated HRMS solutions has surged. With its capacity to augment organizational efficiency, bolster employee engagement, and facilitate strategic decision-making, HRMS is positioned as a pivotal force in shaping the future of work. Its role is to enable organizations to thrive in a competitive and dynamic global marketplace.

Key Market Drivers

Increasing Emphasis on Effective Talent Management

The global HRMS market is receiving a significant boost from the growing emphasis on effective talent management within organizations. In today's competitive business landscape, strategic talent management has become imperative for sustainable growth and maintaining a competitive edge. Organizations recognize the strategic value of their workforce and the need to optimize talent acquisition, development, and retention to achieve desired outcomes. This recognition has led to an escalating demand for HRMS solutions that encompass comprehensive tools for talent management. Effective talent management encompasses various aspects, including recruitment, onboarding, performance evaluation, skill development, and succession planning. HRMS platforms play a pivotal role in automating and streamlining these processes, empowering HR professionals to strategically identify, nurture, and deploy talent. Furthermore, these platforms offer robust analytics and reporting capabilities that furnish valuable insights into employee performance and engagement, enabling data-driven decisions to optimize talent strategies.

Cloud Technology Advancements and IoT Device Integration

The global HRMS market is undergoing a significant transformation fueled by rapid advancements in cloud technology and the proliferation of Internet of Things (IoT) devices. These technological innovations are reshaping the landscape of HRMS solutions, offering organizations unparalleled capabilities for efficient workforce management. Cloud technology has revolutionized the delivery and accessibility of HRMS solutions. The adoption of cloud-based HRMS systems provides organizations with the flexibility to access essential HR functions and data from any location, at any time, fostering a seamless and connected work environment. This accessibility enhances collaboration among dispersed teams and supports remote work arrangements.

Furthermore, the integration of IoT devices into HRMS platforms adds an additional layer of functionality and data-driven insights. IoT-enabled devices, such as wearable health trackers and smart badges, can collect real-time employee data related to wellness, attendance, and productivity. HR professionals can leverage this data to make informed decisions, optimize resource allocation, and personalize employee experiences. The synergy between cloud technology and IoT devices empowers HRMS solutions to harness vast amounts of data and leverage advanced analytics for actionable insights. Predictive and prescriptive analytics can identify workforce trends, anticipate talent needs, and proactively address challenges. This integration allows organizations to make data-driven decisions, enhance employee engagement, and align HR strategies with broader business goals. As organizations recognize the transformative potential of cloud technology and IoT devices in HRMS, the demand for innovative solutions leveraging these advancements continues to rise.

Growing Focus on Data-Driven Decision-Making

The global HRMS market is significantly influenced by the growing emphasis on data-driven decision-making within organizations. As businesses recognize the value of informed choices backed by data analysis, the demand for HRMS solutions enabling data-driven HR practices is witnessing a surge. These solutions empower HR professionals to collect, analyze, and interpret employee data, aiding in strategic HR decision-making. Data-driven insights allow organizations to identify trends, patterns, and correlations that drive effective workforce management, performance assessment, and employee engagement strategies. This shift towards data-driven decision-making is reshaping the HRMS market, prompting businesses to seek software solutions that not only automate HR processes but also offer robust analytics capabilities to optimize workforce management and enhance overall organizational performance.

Benefits of HR Management Software Integration

The global HRMS market is experiencing significant growth driven by the benefits offered through the integration of HR management software. This integration streamlines and centralizes various HR processes, from recruitment and onboarding to payroll and performance management. By consolidating these functions into a single platform, organizations achieve improved efficiency, reduced administrative burden, and enhanced accuracy in HR operations. Moreover, HRMS integration facilitates real-time data sharing and reporting, enabling data-driven decision-making and strategic workforce planning. The seamless flow of information across different HR functions leads to enhanced collaboration among teams, fostering a more cohesive and productive work environment. As businesses recognize the potential for increased operational efficiency and improved employee experiences, the demand for integrated HR management software continues to rise, driving the growth of the global HRMS market.

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Key Market Challenges

Complex Implementation and Integration with Existing Systems

The complexity of implementing and integrating human resource management software into existing organizational systems poses a significant challenge for the global market. Many businesses operate intricate infrastructures comprising various software applications, databases, and processes that need to interact seamlessly. Integrating new HR software can demand significant time, resources, and expertise, potentially leading to disruptions in daily operations. Additionally, compatibility issues may arise, especially when dealing with older legacy systems that lack the flexibility to accommodate modern software solutions. The intricate nature of integration and the potential risks of system disruptions or data inconsistencies can deter organizations from adopting new HR software, impeding the market's growth and adoption.

Concerns Over Data Security and Privacy

The paramount concern over data security and privacy is a challenge for the global HRMS market. Organizations handle sensitive employee information, including personal details and performance evaluations, necessitating safeguarding from breaches and unauthorized access. The growing frequency and sophistication of cyberattacks raise apprehensions about the vulnerability of HR software systems. Stricter data protection regulations, such as GDPR and CCPA, add to the pressure for robust security measures. Organizations are cautious about adopting HR software solutions that do not meet stringent security standards, fearing potential legal consequences and reputational damage. This concern regarding data protection inhibits the market's growth as businesses prioritize safeguarding employee information and maintaining compliance with evolving data privacy regulations.

Key Market Trends

Rise of Remote and Hybrid Work Models

The global HRMS market is undergoing transformation due to the rise of remote and hybrid work models. As organizations adopt flexible work arrangements, the demand for HR software solutions that cater to managing a dispersed workforce is increasing. These software platforms facilitate communication, collaboration, and engagement among remote and hybrid teams. Features such as virtual onboarding, performance tracking, employee engagement measurement, and remote training capabilities are essential to ensure productivity and well-being. As boundaries between physical and virtual workplaces blur, HR software providers focus on delivering intuitive tools to support employees regardless of location. The rise of remote and hybrid work models is reshaping the HR landscape, making innovative HRMS a critical enabler of organizational success.

Growing Demand for Analytics-Driven HR Software

The global HRMS market is shifting toward analytics-driven solutions. Organizations recognize the strategic value of data-driven insights in making informed HR decisions. Analytics-driven HR software gathers, analyzes, and interprets employee-related data, enabling businesses to identify trends, patterns, and correlations that drive effective workforce management. These solutions empower HR professionals to optimize talent acquisition, engagement, performance assessment, and retention strategies. Leveraging predictive and prescriptive analytics, organizations can address challenges, forecast workforce needs, and align HR initiatives with business goals. Adoption of analytics-driven HR software enhances data-informed HR practices and organizational performance.

Segmental Insights

Cloud Deployment Dominance

Cloud deployment prevails as the predominant choice throughout the forecast period. Cloud-based HRMS systems offer flexibility, scalability, and accessibility. The ability to access HR functions and data from anywhere fosters a connected work environment. Cloud deployment supports remote work arrangements and enhances collaboration among dispersed teams. Its cost-effectiveness and automatic updates further solidify its influence. Cloud deployment signifies a strategic enabler for HR functions, shaping the trajectory of the global HRMS market.

IT & Telecom as Key End User

IT & Telecom consistently dominate the end-user segment. This reflects the sector's commitment to nurturing a skilled and engaged workforce. The sector's complexity demands agile HR tools for talent management. IT & Telecom's prominence underscores its role in driving progress and efficiency across its activities.

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Regional Insights

North America's Leading Position

North America holds a significant position in the global HRMS market. The region's technological ecosystem and business landscape contribute to its leadership in HRMS solutions. A culture of embracing digital transformation, industry players, and startups underscore North America's dominance. Diverse industry sectors drive demand for sophisticated HR software. The region's emphasis on data security and privacy aligns with compliance requirements. North America shapes the global HRMS market's trajectory through technological excellence and innovation.

Key Market Players

  • SAP SE
  • Workday Inc.
  • Accenture PLC
  • IBM Corporation
  • NetSuite Inc.
  • Ceridian HCM Inc.
  • Automatic Data Processing, Inc.
  • Oracle Corporation
  • Cegid Corporation
  • UKG Inc.

By Deployment

By Organization Size

By Type

By End User

By Region

       Cloud

       On-Premises

       Small & Medium Enterprise

       Large Enterprise

       Workplace Management

       Talent Management

       Sourcing & Recruitment

       Applicant Tracking System

       IT & Telecom

       BFSI

       Manufacturing

       Retail

       Public Sector

       Healthcare

       Transportation & Logistics

       Others

       North America

       Europe

       South America

       Middle East & Africa

       Asia Pacific

 

Report Scope:

In this report, the Global Human Resource Management Software Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

                ·         Global Human Resource Management Software Market, By Deployment:

o   Cloud

o   On-Premises

                ·         Global Human Resource Management Software Market, By Organization Size:

o   Small & Medium Enterprise

o   Large Enterprise

                ·         Global Human Resource Management Software Market, By Type:

o   Workplace Management

o   Talent Management

o   Sourcing & Recruitment

o   Applicant Tracking System

                ·         Global Human Resource Management Software Market, By End User:

o   IT & Telecom

o   BFSI

o   Manufacturing

o   Retail

o   Public Sector

o   Healthcare

o   Transportation & Logistics

o   Others

                ·         Global Human Resource Management Software Market, By Region:

o   North America

o   Europe

o   South America

o   Middle East & Africa

o   Asia Pacific

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Human Resource Management Software Market.

Available Customizations:

Global Human Resource Management Software market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Global Human Resource Management Software Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Service Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.  Markets Covered

1.2.2.  Years Considered for Study

1.2.3.  Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

4.    Impact of COVID-19 on Global Human Resource Management Software Market

5.    Voice of Customer

6.    Global Human Resource Management Software Market Overview

7.    Global Human Resource Management Software Market Outlook

7.1.  Market Size & Forecast

7.1.1.       By Value

7.2.  Market Share & Forecast

7.2.1.      By Deployment (Cloud, On-Premises)

7.2.2.      By Organization Size (Small & Medium Enterprise and Large Enterprise)

7.2.3.      By Type (Workplace Management, Talent Management, Sourcing & Recruitment, Applicant Tracking System)

7.2.4.      By End User (IT & Telecom, BFSI, Manufacturing, Retail, Public Sector, Healthcare, Transportation & Logistics, Others)

7.2.5.      By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)

7.2.6.       By Company (2022)

7.3.  Market Map

8.    North America Human Resource Management Software Market Outlook

8.1.  Market Size & Forecast

8.1.1.       By Value

8.2.  Market Share & Forecast

8.2.1.      By Deployment

8.2.2.      By Organization Size

8.2.3.      By Type

8.2.4.      By End User

8.2.5.      By Country

8.3.    North America: Country Analysis

8.3.1.      United States Human Resource Management Software Market Outlook

8.3.1.1.  Market Size & Forecast

8.3.1.1.1.  By Value 

8.3.1.2.  Market Share & Forecast

8.3.1.2.1.     By Deployment

8.3.1.2.2.     By Organization Size

8.3.1.2.3.     By Type

8.3.1.2.4.     By End User

8.3.2.      Canada Human Resource Management Software Market Outlook

8.3.2.1.  Market Size & Forecast

8.3.2.1.1.  By Value 

8.3.2.2.  Market Share & Forecast

8.3.2.2.1.     By Deployment

8.3.2.2.2.     By Organization Size

8.3.2.2.3.     By Type

8.3.2.2.4.     By End User

8.3.3.      Mexico Human Resource Management Software Market Outlook

8.3.3.1.  Market Size & Forecast

8.3.3.1.1.  By Value 

8.3.3.2.  Market Share & Forecast

8.3.3.2.1.     By Deployment

8.3.3.2.2.     By Organization Size

8.3.3.2.3.     By Type

8.3.3.2.4.     By End User

9.    Europe Human Resource Management Software Market Outlook

9.1.  Market Size & Forecast

9.1.1.       By Value

9.2.  Market Share & Forecast

9.2.1.      By Deployment

9.2.2.      By Organization Size

9.2.3.      By Type

9.2.4.      By End User

9.2.5.      By Country

9.3.    Europe: Country Analysis

9.3.1.      Germany Human Resource Management Software Market Outlook

9.3.1.1.  Market Size & Forecast

9.3.1.1.1.  By Value 

9.3.1.2.  Market Share & Forecast

9.3.1.2.1.     By Deployment

9.3.1.2.2.     By Organization Size

9.3.1.2.3.     By Type

9.3.1.2.4.     By End User

9.3.2.        United Kingdom Human Resource Management Software Market Outlook

9.3.2.1.  Market Size & Forecast

9.3.2.1.1.  By Value 

9.3.2.2.  Market Share & Forecast

9.3.2.2.1.     By Deployment

9.3.2.2.2.     By Organization Size

9.3.2.2.3.     By Type

9.3.2.2.4.     By End User

9.3.3.      France Human Resource Management Software Market Outlook

9.3.3.1.  Market Size & Forecast

9.3.3.1.1.  By Value 

9.3.3.2.  Market Share & Forecast

9.3.3.2.1.     By Deployment

9.3.3.2.2.     By Organization Size

9.3.3.2.3.     By Type

9.3.3.2.4.     By End User

9.3.4.      Spain Human Resource Management Software Market Outlook

9.3.4.1.  Market Size & Forecast

9.3.4.1.1.  By Value 

9.3.4.2.  Market Share & Forecast

9.3.4.2.1.     By Deployment

9.3.4.2.2.     By Organization Size

9.3.4.2.3.     By Type

9.3.4.2.4.     By End User

9.3.5.      Italy Human Resource Management Software Market Outlook

9.3.5.1.  Market Size & Forecast

9.3.5.1.1.  By Value 

9.3.5.2.  Market Share & Forecast

9.3.5.2.1.     By Deployment

9.3.5.2.2.     By Organization Size

9.3.5.2.3.     By Type

9.3.5.2.4.     By End User

10. South America Human Resource Management Software Market Outlook

10.1.   Market Size & Forecast

10.1.1.    By Value

10.2.   Market Share & Forecast

10.2.1.    By Deployment

10.2.2.    By Organization Size

10.2.3.    By Type

10.2.4.    By End User

10.2.5.    By Country

10.3. South America: Country Analysis

10.3.1.    Brazil Human Resource Management Software Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1.   By Value 

10.3.1.2. Market Share & Forecast

10.3.1.2.1.   By Deployment

10.3.1.2.2.   By Organization Size

10.3.1.2.3.   By Type

10.3.1.2.4.   By End User

10.3.2.     Argentina Human Resource Management Software Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1.   By Value 

10.3.2.2. Market Share & Forecast

10.3.2.2.1.   By Deployment

10.3.2.2.2.   By Organization Size

10.3.2.2.3.   By Type

10.3.2.2.4.   By End User

10.3.3.    Colombia Human Resource Management Software Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1.   By Value 

10.3.3.2. Market Share & Forecast

10.3.3.2.1.   By Deployment

10.3.3.2.2.   By Organization Size

10.3.3.2.3.   By Type

10.3.3.2.4.   By End User

11. Middle East & Africa Human Resource Management Software Market Outlook

11.1.   Market Size & Forecast

11.1.1.    By Value

11.2.   Market Share & Forecast

11.2.1.    By Deployment

11.2.2.    By Organization Size

11.2.3.    By Type

11.2.4.    By End User

11.2.5.    By Country

11.3. Middle East & America: Country Analysis

11.3.1.    Israel Human Resource Management Software Market Outlook

11.3.1.1. Market Size & Forecast

11.3.1.1.1. By Value 

11.3.1.2. Market Share & Forecast

11.3.1.2.1.   By Deployment

11.3.1.2.2.   By Organization Size

11.3.1.2.3.   By Type

11.3.1.2.4.   By End User

11.3.2.     Qatar Human Resource Management Software Market Outlook

11.3.2.1. Market Size & Forecast

11.3.2.1.1. By Value 

11.3.2.2. Market Share & Forecast

11.3.2.2.1.   By Deployment

11.3.2.2.2.   By Organization Size

11.3.2.2.3.   By Type

11.3.2.2.4.   By End User

11.3.3.    UAE Human Resource Management Software Market Outlook

11.3.3.1. Market Size & Forecast

11.3.3.1.1. By Value 

11.3.3.2. Market Share & Forecast

11.3.3.2.1.   By Deployment

11.3.3.2.2.   By Organization Size

11.3.3.2.3.   By Type

11.3.3.2.4.   By End User

11.3.4.    Saudi Arabia Human Resource Management Software Market Outlook

11.3.4.1. Market Size & Forecast

11.3.4.1.1. By Value 

11.3.4.2. Market Share & Forecast

11.3.4.2.1.   By Deployment

11.3.4.2.2.   By Organization Size

11.3.4.2.3.   By Type

11.3.4.2.4.   By End User

12. Asia Pacific Human Resource Management Software Market Outlook

12.1.   Market Size & Forecast

12.1.1.    By Value

12.2.   Market Share & Forecast

12.2.1.    By Deployment

12.2.2.    By Organization Size

12.2.3.    By Type

12.2.4.    By End User

12.2.5.    By Country

12.3. Asia Pacific: Country Analysis

12.3.1.    China Human Resource Management Software Market Outlook

12.3.1.1.         Market Size & Forecast

12.3.1.1.1.   By Value 

12.3.1.2.         Market Share & Forecast

12.3.1.2.1.   By Deployment

12.3.1.2.2.   By Organization Size

12.3.1.2.3.   By Type

12.3.1.2.4.   By End User

12.3.2.     Japan Human Resource Management Software Market Outlook

12.3.2.1.         Market Size & Forecast

12.3.2.1.1.   By Value 

12.3.2.2.         Market Share & Forecast

12.3.2.2.1.   By Deployment

12.3.2.2.2.   By Organization Size

12.3.2.2.3.   By Type

12.3.2.2.4.   By End User

12.3.3.    South Korea Human Resource Management Software Market Outlook

12.3.3.1.         Market Size & Forecast

12.3.3.1.1.   By Value 

12.3.3.2.         Market Share & Forecast

12.3.3.2.1.   By Deployment

12.3.3.2.2.   By Organization Size

12.3.3.2.3.   By Type

12.3.3.2.4.   By End User

12.3.4.    India Human Resource Management Software Market Outlook

12.3.4.1.         Market Size & Forecast

12.3.4.1.1.   By Value 

12.3.4.2.         Market Share & Forecast

12.3.4.2.1.   By Deployment

12.3.4.2.2.   By Organization Size

12.3.4.2.3.   By Type

12.3.4.2.4.   By End User

12.3.5.    Australia Human Resource Management Software Market Outlook

12.3.5.1.         Market Size & Forecast

12.3.5.1.1.   By Value 

12.3.5.2.         Market Share & Forecast

12.3.5.2.1.   By Deployment

12.3.5.2.2.   By Organization Size

12.3.5.2.3.   By Type

12.3.5.2.4.   By End User

13. Market Dynamics

13.1.   Drivers

13.2.   Challenges

14. Market Trends and Developments

15. Company Profiles

15.1.   SAP SE

15.1.1. Business Overview

15.1.2. Key Financials & Revenue

15.1.3. Key Contact Person

15.1.4. Headquarters Address

15.1.5. Key Product/Service Offered

15.2.   Workday Inc.

15.2.1. Business Overview

15.2.2. Key Financials & Revenue

15.2.3. Key Contact Person

15.2.4. Headquarters Address

15.2.5. Key Product/Service Offered

15.3.   Accenture PLC

15.3.1. Business Overview

15.3.2. Key Financials & Revenue

15.3.3. Key Contact Person

15.3.4. Headquarters Address

15.3.5. Key Product/Service Offered

15.4.   IBM Corporation

15.4.1. Business Overview

15.4.2. Key Financials & Revenue

15.4.3. Key Contact Person

15.4.4. Headquarters Address

15.4.5. Key Product/Service Offered

15.5.   NetSuite Inc.

15.5.1. Business Overview

15.5.2. Key Financials & Revenue

15.5.3. Key Contact Person

15.5.4. Headquarters Address

15.5.5. Key Product/Service Offered

15.6.   Ceridian HCM Inc.

15.6.1. Business Overview

15.6.2. Key Financials & Revenue

15.6.3. Key Contact Person

15.6.4. Headquarters Address

15.6.5. Key Product/Service Offered

15.7.   Automatic Data Processing, Inc.

15.7.1. Business Overview

15.7.2. Key Financials & Revenue

15.7.3. Key Contact Person

15.7.4. Headquarters Address

15.7.5. Key Product/Service Offered

15.8.   Oracle Corporation

15.8.1. Business Overview

15.8.2. Key Financials & Revenue

15.8.3. Key Contact Person

15.8.4. Headquarters Address

15.8.5. Key Product/Service Offered

15.9.   Cegid Corporation

15.9.1. Business Overview

15.9.2. Key Financials & Revenue

15.9.3. Key Contact Person

15.9.4. Headquarters Address

15.9.5. Key Product/Service Offered

15.10.UKG Inc.

15.10.1.  Business Overview

15.10.2.  Key Financials & Revenue

15.10.3.  Key Contact Person

15.10.4.  Headquarters Address

15.10.5.  Key Product/Service Offered

16. Strategic Recommendations

17. About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the global human resource management software market was estimated to be USD 20.54 billion in 2022.

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In 2022, large enterprises were the dominant segment by organization size in the global human resource management software market. This commanding influence held by large enterprises underscores their pivotal role in shaping the adoption and advancement of HR management solutions. With their complex organizational structures, diverse workforce, and intricate HR needs, large enterprises rely on advanced and comprehensive software solutions to streamline their HR processes. The scale and scope of their operations necessitate sophisticated technology to manage talent, optimize workforce performance, and ensure regulatory compliance.

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Key players in the market are SAP SE, Workday Inc., Accenture PLC, IBM Corporation, NetSuite Inc., Ceridian HCM Inc., Automatic Data Processing, Inc., Oracle Corporation, Cegid Corporation, UKG Inc. and others.

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The increasing role of effective talent management and the advancement in cloud technology and IOT devices are the major drivers for the global human resource management software market.

profile

Sakshi Bajaal

Business Consultant
Press Release

Human Resource Management Software Market to be Led by Increasing Emphasis on Data-Driven Decision-Making across the Globe Through 2028

Dec, 2023

The Increasing role of Effective Talent Management is driving the Implementation of the Human Resource Management Software market across the Globe.