• US: +1-408-610-2300
  • Toll Free: +1-866-831-4085
  • Login / Register
  • Home
  • » Technology
  • » Human Resource Management Market Size, 2027 | Industry Report
Human Resource Management Market Size, 2027 | Industry Report

Human Resource Management Market Analysis Report By Software, By Service, By Deployment, By Enterprise Size, By End Use, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17619696  |  Published: May 2020  |  No of Pages: 184
Format: Electronic (PDF)  |  Industry: Technology  |  Publisher: Grand View Research

Industry Insights

The global human resource management market size was accounted for USD 16.01 billion, in 2019. It is projected to ascend with a CAGR of 11.7% over the estimated duration. Factors such as expansion in IT and the launch of predictive analytics in HR are projected to fuel market growth. The growth of several HRM solutions has helped professionals to save time in performing the HR functions and increased focus on recruiting efficient candidates. It is helping in handling human resources, retaining workforce, and integrative personal and organizational objectives, thereby, supporting the organizational growth.

Organizations are emphasizing on building a digital workplace that allows high efficiency, use of the latest communication tools, and provides mobility and flexibility. The shift towards digital HR systems from legacy system is helping in the centralization of data of an organization, thereby, permitting easy access to data. Several service providers provide cloud based solutions, enabling easy access to data from any system of the organization. End-user industries are preferring cloud-based solutions with greater flexibility in terms of application. These solutions have low maintenance cost and can be installed quickly.

U.S. human resource management (HRM) market size

Traditionally, the organization banked upon manual functioning of HR activities resulting in various difficulties in resource management. The HRM software helps in preventing such issues by replacing manual work into digital format. Further, these solutions allow centralization through which a supervisor can evaluate, reward, and monitor employees. Apart from reducing errors and improved efficiency, HRM software also helps in evaluating the ongoing operational trend.

The organizations are concentrating on enhancing employee engagement and competence by developing innovative employee experience platforms. Companies find it difficult to select a suitable candidates from a large pool of applicants. Moreover, companies are choosing HRM solutions to improve recruitment strategies and enable proper communications with the organization. HRM solutions help in maintaining various activities such as employee timesheets, employee on boarding, and performance monitoring, among others.

Growing preference for Artificial Intelligence (AI), machine learning (ML), and Internet of Things (IoT) are predicted to augment the market growth over the forecast years. Various HRM solution providers are developing innovative solutions that use the latest technologies in HR functions to enhance organizational performance. The service providers are creating software that can be embedded in mobile phones, making it convenient for employees and employers to access the data from their phones. These features help in increasing transparency among different departments and provides improved flexibility to access information from anywhere.

Software Insights

On the basis of software, the human resource management (HRM) market is divided into recruitment, workforce planning & analytics, core HR, talent management, employee collaborations & engagement, and others. The core HR category led the market in 2019, owing to the rising demand for automation of various HR functions. Key functions of the software are HR compliance, payroll administration, and attendance and time monitoring. It offers various benefits such as flexibility, effective utilization of time, and easy access to information. These factors are predicted to drive the use of the software over the forecast years.

The talent management category is anticipated to witness considerable growth in the coming years. It helps in enhancing the strategic decisions made by the professionals. These decisions are aligned with the companies’ objectives with succession planning and talent acquisition activities, resulting in enhancement of the overall organization’s performance. Further, it also provides features, such as retaining, inviting, and recruiting efficient employees. The growing social media and video platforms for recruiting employees are predicted to boost the market growth in the upcoming years.

Service Insights

Based on service, the market is divided into training & consulting, integration & deployment, and support & maintenance. The integration & deployment occupied the largest share in 2019. The surging demand for incorporating the latest HRM systems or integration of existing and new systems is predicted to fuel market growth. Integration & deployment permits organizations to easily access data for improved decisions. Factors such as rising demand for improved services from existing systems, penetration of cloud computing, and increasing preference for automation are projected to bode well for the market growth.

The support & maintenance function is predicted to grow substantially over the estimated duration. The rapid advancements in technology is resulting in constant system upgradation. HRM systems also need continuous upgradation with changing technology and organizations require vendor support in various technical issues and troubleshooting. The growth of HRM business modelsto fix and find issues concerning software quality is predicted to supplement market growth over the forecast years.

Deployment Insights

Depending upon deployment, the market is segregated into on-premises and hosted. The on-premise division led the market in 2019. During the transformation stage of HR from manual to digital, the suitable option was to incorporate the on-premise solution. The on-premise solution offers enhanced security to data and provides radical customizations along with complying with various norms.

The hosted solutions division is predicted to ascend with the fastest CAGR in the coming years, due to the growing penetration of smartphones and innovations in information sharing mechanisms. The accessibility of the internet at economical rates is anticipated to surge the demand for a hosted solution in the organization. Hosted solutions operate in the form of Software as a Service (SaaS) that can be utilized without purchasing it. Moreover, these solutions also provide benefits such as limited maintenance, quick integration, and less manpower use.

Enterprise Insights

The market is categorized into large enterprises and SMEs. The SMEs division is anticipated to ascend with the highest CAGR from 2020 to 2027. Several SMEs are incorporating HR solutions to lower the number of activities involved in administrative tasks and enable employees to emphasis on organizational development. The segment is predicted to use cloud-based technology for deploying Human Capital Management (HCM) which is cost-effective. Further, rising foreign spending in developing nations for the growth of SMEs is expected to drive the growth from 2020 to 2027.

The large enterprise category is anticipated to maintain its dominance from 2020 to 2027. Several MNCs and large corporations have also incorporated HR solutions for better organizational functioning. These solution helps in managing the large and distributed database and making the data centralized across the organization. Large enterprises are using HRM solutions owing to easy implementation and economical nature. It is crucial to implement effective HRM as they require greater flexibility, data privacy, and easy integration of systems to manage the diverse and large workforce.

End-use Insights

Based on end-use, global market is segregated into BFSI, manufacturing, government, IT & telecom, academia, healthcare and others. The surging demand from healthcare, IT and telecom, and retail sectors are anticipated to boost the market growth in the upcoming years. The rising demand for selecting candidates for various job profiles and increasing automation in the organization is predicted to supplement the demand for HR solutions across various segments. The growth of any company depends on talent recognition, learning, and employee engagement. Continuous organization development has created various difficulties in managing employees. These factors are expected to drive the requirement of HRM services across several industries over the forecast duration.

Europe human resource management (HRM), market share

HR solutions for workforce analytics and planning, performance management, and employee engagement have transformed IT & telecom. Organizations are emphasizing on implementing considerable improvements in the efficiency and productivity of the organization after implementing the HR solutions for several HR functions. The IT & telecom category is projected to lead the market over the estimated duration, owing to the growing preference for employing the latest technology in the organization. Moreover, the companies are focusing on expanding their presence globally, which has given rise to difficulties in managing and tracking the diverse workforce, which, in turn, is predicted to boost the demand for competent HRM solutions.

Regional Insights

North America led the market in 2019 owing to the operation of key manufactures in the region. The companies in the U.S. are emphasizing on adapting HRM services for talent management, attendance and payroll to improve labor productivity and efficiency, which is predicted to supplement the market growth over the forecast period. North America, is one of the timely adopters of new technologies showcasing rapid employment to cloud-built technologies.

Asia Pacific is predicted to witness steady growth over the estimated duration due to the presence of developing nations such as India and China. Factors such as government support in digitalization of business, booming service sector, and implementation of cloud-based technologies are anticipated to drive market growth. Furthermore, the increasing investment by large companies in the employment of the latest technologies is also predicted to fuel the market growth over the estimated years.

Human Resource Management Market Share Insights

The market is highly competitive and many players held a considerable market share. The key players of the market are IBM Corporation; Accenture PLC; Talentsoft; Cezanne HR Ltd.; Workday, Inc.; Oracle Corporation;Ceridian HCM, Inc.; Ultimate Software; Mercer LLC; Automatic Data Processing (ADP), Inc.; NetSuite, Inc.; SAP SE; and Kronos Incorporated.

Leading players are emphasizing various initiatives, such as technological alliances, M&A and business partnerships to maintain their dominance. For example, Accenture in 2018, took over DAZ Systems, Inc. a service provider of Oracle ERP with prior experience in supporting organizations in the integration and deployment of enterprise performance administration and HR applications. The acquisition intended at strengthening the Accenture’s vigorous Oracle competences and offers new value to their clients on their beginning to the cloud.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Million & CAGR from 2020 to 2027

Regional scope

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

Country Scope    

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

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analysts 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 customization


Segments Covered in the Report
 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2012 to 2027. For the purpose of this study, Million Insights has segmented the global human resource management market report based on software, service, deployment, enterprise size, end use, and region:

• Software Outlook (Revenue, USD Million, 2016 - 2027)
    • Core HR
    • Employee Collaboration & Engagement
    • Recruiting
    • Talent Management
    • Workforce Planning & Analytics
    • Others

• Service Outlook (Revenue, USD Million, 2016 - 2027)
    • Integration & Deployment
    • Support & Maintenance
    • Training & Consulting

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)
    • Hosted
    • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)
    • Large Enterprise
    • Small & Medium Enterprise

• End-use Outlook (Revenue, USD Million, 2016 - 2027)
    • Academia
    • BFSI
    • Government
    • Healthcare
    • IT & Telecom
    • Manufacturing
    • Retail
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • France
        • Germany
        • U.K.
    • Asia Pacific
        • Australia
        • China
        • Hong Kong
        • India
        • Japan
        • Singapore
        • Thailand
    • Latin America
        • Brazil
    • Middle East & Africa

What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service
  • 100% Secure Payments
  • Our Promise
  • 100% Service Assurance
  • Market Monitoring
  • Service Flexibility
  • 24X5 Care available