The global Human Resource (HR) Technology market is experiencing significant growth, driven by various factors such as the aging of traditional HR tools and the increasing adoption of HR software solutions by businesses. The market size was valued at USD 22.9 billion in 2021 and is expected to reach USD 47.2 billion by 2030, growing at a CAGR of 7.5% during the forecast period (2023-2030).
The HR sector encompasses a wide range of HR technologies that facilitate the management of various HR functions such as payroll, onboarding, talent sourcing, performance and workforce management, and talent management. These technologies offer time and cost-saving methods for handling HR processes, leading to increased efficiency and productivity.
The demand for HR technology solutions is further fueled by rapid technological advancements and their application in talent and workforce management. Additionally, the growing working population and the adoption of advanced management techniques contribute to the growth of the HR technology market. Notably, 74% of businesses plan to increase spending on HR technology, and 44% of talent managers are looking to cloud solutions to enhance efficiency and productivity. Furthermore, 35% of businesses see the cloud as a means to reduce costs. HR technology is also widely used for talent acquisition, with 58% of companies leveraging HR technology for finding, attracting, and retaining talent. Investing in wellness intervention programs for high-risk employees yields a 5x return, while every dollar spent on employee wellness leads to a $1.50 return on investment.
The US HR Technology market is expected to grow sustainably in the next forecast year.
The global HR technology market can be segmented based on various criteria:
- Solution Type: This segment categorizes HR technology based on the type of solutions offered, including:
- Core HR: Covers essential HR functions such as employee data management, payroll processing, benefits administration, and compliance.
- Talent Management: Includes solutions for recruitment, onboarding, performance management, learning and development, and succession planning.
- Workforce Management: Encompasses solutions for time and attendance tracking, scheduling, workforce optimization, and labor analytics.
- Employee Engagement: Focuses on solutions that enhance employee experience, communication, collaboration, and well-being.
- HR Analytics: Provides data-driven insights and analytics for HR decision-making.
- Deployment Mode: This segment categorizes HR technology based on the method of deployment, including:
- On-premises: Software installed and managed on the client’s premises.
- Cloud-based: Software delivered over the internet, hosted and maintained by the vendor.
- Hybrid: A combination of on-premises and cloud-based solutions.
- Organization Size: This segment considers the size of the organization adopting HR technology, including:
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
- End-User Industry: This segment focuses on the industries or sectors where HR technology is deployed, including:
- Banking, Financial Services, and Insurance (BFSI)
- IT and Telecommunications
- Government and Public Sector
- Geography: This segment analyzes the HR technology market based on geographical regions or countries, including:
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
Segmental analysis helps in understanding the market dynamics, trends, and opportunities specific to each segment within the HR technology market. It provides insights into adoption patterns, the competitive landscape, and potential growth areas within the industry.
Top Players in the Global Human Resource Technology Market:
- Cornerstone OnDemand, Inc. (US)
- IBM Corporation
- SAP SE
- Oracle Corporation
- Workday, Inc.
- ADP, LLC
- Ultimate Software Group, Inc.
- Ceridian HCM, Inc.
- Paycom Software, Inc.
- Paylocity Holding Corporation
- BambooHR LLC
- Kronos Incorporated
- Talentsoft S.A.
- Namely, Inc.
- Paycor, Inc.
- Jobvite, Inc.
- Breezy HR
Recent Developments in the Human Resource Technology Market:
- In January 2022, cloud-based HR technology startup Darwinbox raised $72 million in a funding round led by Netflix backer TCV, valuing the company at over $1 billion.
- In February 2021, Ceridian HCM Inc. acquired Ascender, a payroll and HR solutions provider based in Japan, aiming to offer comprehensive human capital management and payroll solutions in the Asia Pacific region.
Key Market Trends in the Global Human Resource (HR) Technology Market:
- The COVID-19 crisis has led to increased demand for recruitment software. HR technology companies have been incorporating sophisticated algorithms based on artificial intelligence, machine learning, and social sensing tools to improve the efficiency and value of recruiting software. Integration of artificial intelligence and analytics enables businesses to make informed decisions about talent hiring.
SkyQuest Analysis of the Human Resource (HR) Technology Market: SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is a Business Information Services team that collects, collates, correlates, and analyzes data through primary exploratory research backed by robust secondary desk research. According to SkyQuest’s analysis, software dominated the global HR technology market in 2021 and is expected to maintain its dominance throughout the forecast period. In terms of regional analysis, Asia Pacific led the global HR technology market in 2021 due to the region’s increasing demand for advanced HR technologies to support efficient administration in various companies.