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Human Resource (HR) Professional Services Market Report, 2025

Human Resource Professional Services Market Analysis Report By Type, By Deployment, By Enterprise Size, By End Use And Segment Forecasts From 2018 To 2025

Report ID: MN17620040  |  Published: August 2020  |  No of Pages: 183
Format: Electronic (PDF)  |  Industry: Software  |  Publisher: Grand View Research

Industry Insights

The global human resource (HR) professional services market size was accounted for USD 2.99 billion in 2017. It is projected to witness a 12.4% CAGR over the forecasted years, 2018 to 2025. The increasing preference towards the adoption of automated HR processes and integration of technologies like cloud computing and big data are boosting the market growth for such services.

Human resource activities play a vital role in the working and management of organizational workflow. Alignment of organizational goals, mission, and strategic decision-making across the organization requires a good administrative hold. Thus, many organizations prefer the adoption of HR professional services.

U.S. HR professional services market

Advancements in technologies like AI (Artificial Intelligence) and big data are allowing organizations to handle a large amount of employee data and to draw suitable conclusions from it. Also, the adoption of predictive analytics in such services facilitates organizational activities like retention of human resources and decision making.

The key players operating in this market are continuously modifying and updating their services to retain competitiveness. But, a lack of technical expertise in many organizations for the deployment of such services and solutions is projected to hinder the market growth to some extent.

Type Insights

The segment of core HR held the largest share across the global market in 2017 and generated a revenue of USD 1.02 Billion. It is also anticipated to continue its dominance over the forecasted years, 2018 to 2025. This can be associated with the rising organizational need for automating business processes. Also, the necessity to implement conventional HR activities prevailing among several organizations is triggering growth.

The segment of talent management is anticipated to register the fastest growth over the forecasted period. This can be associated with its feature of improving the production of all departments across the organization. Also, benefits like succession and career planning, attendance and time tracking, and management of employee benefits are driving the growth of talent management.

Deployment Insights

In 2017, the deployment segment of on-premise dominated the global market. This can be attributed to its features like enhanced flexibility and customization provided by this segment. Also, the need for the establishment of a control center across the organization to manage and coordinate tasks is expected to propel the market growth for the on-premise HR professional services market.

The hosted segment is estimated to register the highest CAGR over the forecasted years, 2018 to 2025. This can be attributed to the rapid technological advancements and features provided by the key players operating across this market. Also, their feature of software up-gradation by service providers contributes towards market demand.

End-use Insights

In 2017, the segment of IT & telecom accounted for the highest share across the global market and generated a revenue of USD 586.7 Million. This growth can be attributed to the integration of technologies like machine learning and big data into these services coupled with the rapid growth of the information technology sector.

Europe HR professional services market

The retail segment is projected to register the highest CAGR from 2018 to 2025 across the global market. The adoption of such services permits retailers on focusing on core tasks without any disturbances. Also, other factors like the exponential growth of the retail industry, the hiring of employees, and the need to cater retention issues are projected to trigger market growth across the globe.

Enterprise Size Insights

The small & medium enterprises (SMEs) are expected to register the highest CAGR of around 14.0% over the forecasted period, 2018 to 2025. The surging number of startups and SMEs across developing regions coupled with the cost-effective nature of HR solutions is expected to drive the market growth for this segment.

Various initiatives and digital campaigns are also being undertaken by governing bodies to provide an open platform for all SMEs. Further, the adoption of IT infrastructure and cloud-based technologies among SMEs is gaining traction. These factors are also anticipated to fuel up the market demand for such solutions.

Regional Insights

North America held the largest share across the global market in 2017 and generated a revenue of USD 1.08 Billion. This can be associated with the increasing number of service providers across this region. Also, rising operational complexities of business on account of the surging workforce are anticipated to drive the demand for such services across this region.

In 2017, Asia Pacific generated USD 558.7 Million in terms of revenue. It is also anticipated to register substantial growth in the upcoming years. This can be attributed to several initiatives undertaken by governing bodies across India and Chain for efficient management of the workforce.

COVID-19 Impact Insights

The global HR professional services market has been impacted negatively on account of the ongoing COVID-19 crisis. The imposition of lockdown across several countries and economic instability is driving several organizations to lay off their employees. Also, the implementation of policies like work from home and virtual meetings has substantially reduced the workload of the HR department. Moreover, fewer organizations are willing to invest in such services due to economic uncertainty. But, rapid technological developments being undertaken by key organizations for easing organizational procedures are anticipated to propel the demand for such solutions over the post-pandemic period.

Human Resource Professional Services Market Share Insights

The global market for HR professional services includes key players such as Oracle Corporation; ADP, Inc.; SAP SE; Workday, Inc.; Ultimate Software; IBM Corporation; and Kronos, Inc. Moreover, huge investments are being undertaken by them for product development and innovation.

They are constantly developing strategies like acquisitions and mergers to widen their geographical reach. For example, ADP gained acquisition over Celergo in 2018 to enhance its payroll offerings. Several players are also collaborating with others for streamlining and automating the HR processes.

Report Scope

Attribute

Details

The base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD billion and CAGR from 2018 to 2025

Regional Scope

North America; Europe; Asia Pacific; Latin America; and MEA

Country Scope

U.S.; Canada; France; Germany; U.K.; Australia; China; Hong Kong; India; Japan; Singapore; Thailand; and Brazil

Report coverage

Revenue forecast, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For this study, Million Insights has segmented the global HR professional services market based on type, deployment, enterprise size, end-use, and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Core HR
    • Employee Collaboration & Engagement
    • Recruiting
    • Talent Management
    • Workforce Planning & Analytics
    • Others

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)
    • Hosted
    • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2014 - 2025)
    • Large Enterprises
    • Small & Medium Enterprises

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)
    • Academia
    • BFSI
    • Government
    • Healthcare
    • IT & Telecom
    • Manufacturing
    • Retail
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • France
        • Germany
        • The U.K.
    • the Asia Pacific
        • Australia
        • China
        • Hong Kong
        • India
        • Japan
        • Singapore
        • Thailand
    • Latin America
        • Brazil
    • Middle East and Africa (MEA)

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