Global Human Resource Management (HRM) Market to Grow at a CAGR of 10.2% During 2023 –2031

Introduction

Human resource management is a strategic and coordinated approach to the effective and efficient administration of people within a business or organization so that they contribute to the competitive advantage of the business or organization. It maximizes employee performance, supporting an organization's strategic objectives. Human resource management focuses on policies and systems to effectively manage people within organizations. Human resources departments are responsible for designing employee benefits, hiring, training and development, performance evaluations, and reward management, which includes the administration of pay and benefits.

Market Dynamics

Strong Emphasis on HR Process Automation Drives the Global Market

A growing emphasis on the automation of HR processes in all organizations is emerging as one of the most important factors propelling the demand for HRM systems. Organizations are emphasizing the development of digital workplaces that enhance productivity, provide flexibility and mobility, and provide modern communication tools. The impending transition of business processes from legacy systems to digital HR plays a significant role in centralizing HR data across all branches of an organization, thereby facilitating simple access.

Additionally, numerous businesses have implemented modern technologies to streamline their HR operations and enhance organizational performance. Organizations seek HRM solutions that enable managers and HR department employees to devote more time to data analysis for organizational development.

Continued Integration of Big Data Analytics and Mobile Technology in HRM Systems Creates Tremendous Opportunities

In the past decade, rapid advancements in big data analytics and artificial intelligence have prompted numerous organizations to implement these technologies within their business operations. Utilizing predictive analytics in talent management helps organizations make better decisions and maximize capital by retaining human capital. The proliferation of smart devices and the ongoing execution of the Bring Your Own Device (BYOD) policy also drive the adoption of HRM systems that enable employers and employees to access data from any location and anytime using mobile applications, saving time and ensuring flexible data access. These factors create growth opportunities for the HRM market during the forecast period.

Regional Analysis

North America is the most significant global human resource management (HRM) market shareholder and is estimated to exhibit a CAGR of 11.41% over the forecast period. North America's human resource management (HRM) market is anticipated to lead the industry in revenue share due to the surging demand for effective talent management solutions. Organizations strive to enhance employee communication and streamline HR operations as the workforce becomes more mobile. As a result, cloud-based solutions and HR management software that facilitate real-time data analytics and reporting are growing in popularity. In addition, intense labor market competition has also resulted from the region's rapid economic growth and low unemployment rate, fueling demand for efficient HRM solutions. As remote work and the contract economy become more prevalent, organizations seek innovative methods to manage their remote workforces. These are a few variables that influence the revenue growth of this region's market.

Europe is predicted to exhibit a CAGR of 10.5% over the forecast period. It is anticipated that Europe's market will expand significantly during the period. The region's demand for workforce automation solutions is expected to rise as efforts are made to automate and enhance workforce administration. According to Eurostat, the European Union's aggregate employment rate increased by 1.4% from 71.7% in 2020 to 73.3% in 2021. Significant opportunities exist for the region's industries to implement HR technology solutions. The healthcare and manufacturing industries are anticipated to provide potential consumers for regional human resource software. The market is expanding because more individuals are utilizing human resource management tools.

Key Highlights

• The global human resource management (HRM) market was valued at USD 23.9 billion in 2022. It is estimated to reach USD 57.4 billion by 2031, growing at a CAGR of 10.2% during the forecast period (2023–2031).
• Based on components, the global human resource management (HRM) market is segmented into software and services. The software segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 11.4% over the forecast period.
• Based on software, the global human resource management (HRM) market is divided into core HR, employee collaboration and engagement, recruiting, talent management, workforce planning and analytics, and others. The core HR segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 10.9% over the forecast period.
• Based on service, the global human resource management (HRM) market is divided into integration and deployment, support and maintenance, training and consulting. The integration and deployment segment dominates the global market and is expected to grow at a CAGR of 11.5% over the forecast period.
• Based on deployment, the global human resource management (HRM) market is bifurcated into on-premise and hosted segments. The on-premise segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 9.5% over the forecast period.
• Based on enterprise size, the global human resource management (HRM) market is segmented into large enterprises and small and medium enterprises. The large enterprise segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 10.6% over the forecast period.
• Based on end-user, the global human resource management (HRM) market is bifurcated into academia, BFSI, government, healthcare, IT and telecom, manufacturing, and retail. The IT and telecom segment dominates the global market and is predicted to exhibit a CAGR of 13.9% over the forecast period.
• North America is the most significant global human resource management (HRM) market shareholder and is estimated to exhibit a CAGR of 11.41% over the forecast period.

Competitive Players

Competitive Players

The key players in the global human resource management (HRM) market are Accenture; ADP, Inc.; Ceridian HCM, Inc.; Cezanne HR Limited; International Business Machines Corporation (IBM); Mercer LLC; Oracle; PwC; SAP SE; Kronos Incorporated; Cegid; UKG Inc.; Workday, Inc., and others.

Recent Developments

Market News

• In June 2023, Beamery introduced a new paradigm for businesses to conduct workforce planning and make real-time hiring and talent development decisions. According to the company, the AI-powered HRM workforce planning solution will provide managers with continuous insights on how to develop their team's skill portfolio, when to hire (along with the likely costs), and when it's faster or more efficient to source internally, upskill employees, or open a short-term project or gig.

• In April 2023, Pocket HRMS, India's best smHRt HRMS (HR Management Software), revealed the introduction of their mission Bharat 2.0 to enable SMEs in India to digitalize their entire HRMS, Payroll system and related compliances with intuitive and user-friendly HR software over the WhatsApp messaging platform in regional Indian languages.

Segmentation

Global Human Resource Management (HRM) Market: Segmentation

By Component

• Software
• Service

By Software

• Core HR
• Employee Collaboration and Engagement
• Recruiting
• Talent Management
• Workforce Planning and Analytics
• Others

By Service

• Integration and Deployment
• Support and Maintenance
• Training and Consulting

By Deployment

• Hosted
• On-premise

By Enterprise Size

• Large Enterprise
• Small and Medium Enterprise

By End-User

• Academia
• BFSI
• Government
• Healthcare
• IT and Telecom
• Manufacturing
• Retail

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa