Global Human Resource Management Market By Component (Software, and Service), By Software (Core HR, Recruiting, Talent Management, and Other Software), By Service (Integration & Deployment, Support & Maintenance, and Training & Consulting) By Deployment (Hosted, and On-premise) By Enterprise Size (Large Enterprise, and Small & Medium Enterprise (SME)), By End-use (IT & telecom, Manufacturing, Retail, and Other End-Uses), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032
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Human Resource Management Market Overview:
The global human resource management market was valued at USD 20,238 million in 2021. It is projected to grow at a compound annual rate of 11.6% between 2023 and 2032.
Over the forecast period, the market will see a rise in demand due to the increasing use of automation and digitization to improve efficiency and create more agile approaches. This development is also dependent on how enterprises attract the best applicants, manage their resources efficiently, and retain human capital.
These developments are being adopted by companies as they have the potential for improving and improving HR operations.
Global Human Resource Management Market Scope:
With a 67.3% revenue share, the software segment led the HRM industry in 2021. This is due to the demand for core HR software and talent management from companies across industries. Core HR software and talent management can help improve workflows, and ultimately, increase organizational productivity. By reducing the burden of traditional HR tasks, core HR solutions help managers make strategic decisions.
Companies have a tendency to trust manual processes for employee engagement and HR compliance, which can lead to poor resource management. These problems can be solved by HRM software solutions, which digitalize all manual processes. HRM software solutions can be centrally managed and monitored by managers, allowing them to reward and assess employees even when they are working remotely. The HRM software increases productivity and decreases errors. It also helps in assessing operational trends within the company.
With a 34.6% revenue share, the core HR segment led 2021's market. Major revenue share is due to the increased need to automate various HR operations within the department. Core HR software features include HR compliance, payroll administration, attendance, time management, and payroll administration. Flexibility and easy access to data are two of the key features that have made core HR software popular around the globe.
From 2023 to 2032, the segment of talent management is expected to experience the highest CAGR. Talent management software aids HR professionals in aligning talent acquisition and planning activities, making strategic decisions, and improving organizational performance. It also offers a variety of features that will help you to hire, retain, and promote people who are valuable additions to your company. This segment is also growing due to the increased use of social media platforms and video platforms for recruitment.
With a revenue share close to 38.6%, the integration and deployment segment dominated the market in 2021. This is due to the increasing need to solve technical issues during the implementation of an HRM system, troubleshooting, and periodically updating software.
Most businesses choose deployment and integration services for software installation and integration with existing systems. These services enable establishments to view and visualize data and then use it in decision-making. These important factors are driving market development: the rising demand from organizations to improve their competence, the shift towards automation, and the adoption of cloud computing.
Support & Maintenance will see the highest CAGR between 2023 and 2032, according to estimates. Technology is constantly evolving and requires continuous improvements to the system. Therefore, HRM solutions must be regularly updated in accordance with technological developments. Companies also need strong vendor support to solve technical issues and troubleshoot problems. This will drive the growth of this segment.
Deployment Intelligences Analysis
With a 57.2% revenue share, the on-premise segment was the leader in the HRM market in 2021. On-premise solutions were the best option for implementing HR software that would replace manual tasks in the initial stages. Certain firms preferred on-premise HR solutions because they don't require internet connectivity, but allow for customization. In addition to providing data security, on-premise solutions can also help establishments comply with several regulations.
The hosted deployment will be in demand over the next few years. Hosted deployment or cloud allows users to access data anywhere they are. This reduces the need to update the software frequently. Hosted solutions offer many benefits, including a lower operational manpower requirement and faster integration. Some HRM solutions providers such as Oracle Corp. and SAP SE, ADP LLC, and IBM Corp. now offer their services via the cloud.
Enterprise Size Analysis
With a 56.4% revenue share, the large enterprise segment dominated this market in 2021. Large organizations have been aggressively implementing HRM solutions to manage their large employee databases. This has resulted in a dominant revenue share. These solutions allow HR staff to quickly access employee data, reducing the time required for manual tasks such as reviews, feedback, performance goal tracking, and feedback.
These technologies allow businesses to manage large personnel databases and give secure, real-time access to all employee information around the world. Over the forecast period, the SME segment will experience the highest CAGR. Many SMEs are now using HR solutions to reduce administrative burdens and focus on administrative growth. Cloud-based Human Capital Management (HCM), is a popular option for SMEs due to its cost savings.
Government agencies and other institutions are end-users of HRM solutions. They include BFSI, academia, and healthcare. In 2021, the IT & telecom segment had the highest revenue share at over 22.4%. This large revenue share can be attributed to the growing demand for system automation, and the need to source candidates based on job profiles and organizational structures throughout the IT industry.
Talent recognition, learning, and employee engagement are key factors in any organization's growth. These factors all point to an increased demand for Human Resource Management solutions and services in a wide range of industries and verticals.
Retail businesses are increasingly looking for HRM software and services to meet internal consumer expectations. The retail industry's rapid growth has encouraged large-scale recruitment at all levels. This has also led to the increased need for retention of employees through better career paths, perks and job positions. To modernize their functions, many retail establishments are using HRM solutions.
Кеу Маrkеt Ѕеgmеntѕ
- Core HR
- Talent Management
- Other Software
- Integration & Deployment
- Support & Maintenance
- Training & Consulting
By Enterprise Size
- Large Enterprise
- Small & Medium Enterprise (SME)
- IT & telecom
- Other End-Uses
Modern technologies such as predictive analysis, machine learning (ML), and artificial intelligence (AI), have made it easier to integrate human resource management (HRM) solutions with analytics. Startups are simultaneously developing mobile apps and collaboration software that allow employees and employers to easily access essential information wherever they are.
Predictive analytics can be used to draw inferences about employee progress using numerous infographics and charts. Providers of HRM solutions are focused on developing technological trends and designing software solutions that meet the changing needs of their clients. Market growth is expected to be a result of the development of innovative solutions.
Remote working and hybrid work has become the norm in the post-COVID-19 world. The market players in human resource management are focused on offering HRM solutions that can be easily installed and support remote working by investing in R&D.
Key market players such as SAP SE and UKG Inc. and Workday Inc. have been working to improve their existing solutions to keep up with the new trends. They also offer products over the internet as part of an effort to reduce the need for system updates. These aspects will all contribute to market growth.
With a 35.7% revenue share, North America was the dominant market in 2021. Numerous HRM solutions providers are found in North America. The U.S. is a country that focuses on improving productivity and labor efficiency. They have a number of HRM solution providers. These solutions include payroll management, attendance and time tracking, talent management and talent management.
North America is a heavy adopter of cloud-native technology and has been an avid user of new technologies for many years.
Asia Pacific will see the fastest CAGR between 2023 and 2032, due to the investment made by governments in digitization and the initiatives pursued in this region. The increasing number of automation projects being undertaken to increase organizational productivity will also drive the market.
It is expected that the region will have a large and skilled labor force, which will drive demand for talent management and recruitment software. Regional market growth is expected to be supported by aggressive investments in new technologies.
Key Regions and Countries covered іn thе rероrt:
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- South America
- Rest of South America
- South Africa
- Rest of MEA
Market Share & Key Players Analysis:
As part of their efforts to increase market share and gain a competitive advantage, vendors are pursuing various strategic initiatives, including mergers and acquisitions, partnerships, collaborations, and new product development. Accenture purchased Workforce Insight in 2021. This workforce optimization company offers technology and advising services in workforce management.
Accenture's capabilities in workforce management have been enhanced as a result of this acquisition, and Accenture is now better equipped to deliver HR transformation to its clients. Apptio, Inc., and IBM announced a partnership in 2021 to improve enterprise transformation using IBM's open hybrid cloud approach. This partnership will allow clients to increase Red Hat Open Shift usage and improve decision-making using hybrid cloud technology and IBM's open cloud approach.
The following are some of the most prominent players in the global market for human resource management:
Маrkеt Кеу Рlауеrѕ:
- Cezanne HR Limited.
- Ceridian HCM, Inc.
- Kronos Incorporated
- Mercer LLC
- SAP SE
- UKG, Inc.
- Workday, Inc.
- Other Key Players
For the Human Resource Management Market research study, the following years have been considered to estimate the market size:
Particular Scope Region
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
Historic Year 2016 to 2020 Base Year 2021 Estimated Year 2022 Forecast Year 2023 to 2032
Frequently Asked Questions (FAQ)
What is the size of the human resource management market in 2021?
The Human resource management market size is US$ 20,238 million in 2021.
What is the projected CAGR at which the Human resource management market is expected to grow at?
The Human resource management market is expected to grow at a CAGR of 11.6% (2023-2032).
List the segments encompassed in this report on the Human resource management market?
Market.US has segmented the Human resource management market by geographic (North America, Europe, APAC, South America, and Middle East and Africa). By Component, the market has been segmented into Software and Service. By Software, the market has been further divided into Core HR, Recruiting, Talent Management, and Other Software. By Service, the market has been further divided into Integration & Deployment, Support & Maintenance, and Training & Consulting. By Deployment, the market has been further divided into Hosted and On-premise. By Enterprise Size, the market has been further divided into Large Enterprise and Small & Medium Enterprise (SME). By End-use, the market has been further divided into IT & telecom, Manufacturing, Retail, and Other End-Uses.
List the key industry players of the Human resource management market?
Accenture, Cezanne HR Limited., Ceridian HCM, Inc., Kronos Incorporated, Mercer LLC, Oracle, PwC, SAP SE, UKG, Inc., Workday, Inc., and Other Key Players engaged in the Human Resource Management Market.
Which region is more appealing for vendors employed in the Human resource management market?
North America is expected to account for the highest revenue share of 35.7%. Therefore, the Human resource management industry in North America is expected to garner significant business opportunities over the forecast period.
Name the key areas of business for Human resource management?
The US, Canada, India, China, UK, Japan, & Germany are key areas of operation for the Human resource management Market.
Which segment accounts for the greatest market share in the human resource management industry?
With respect to the Human resource management industry, vendors can expect to leverage greater prospective business opportunities through the software segment, as this area of interest accounts for the largest market share.
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