Home > Biotechnology > People Analytics Market Size, Share & Analysis 2031
Straits Research

People Analytics Market

People Analytics Market: Information by Component (Software, Service), Deployment (On-Premises, Cloud-Based), Organizational Size (Large Enterprises, SMEs), End-User (Telecom and IT, BFSI), and Region—Forecast Till 2031

Table of Content Download Sample

Market Overview

The global people analytics market size was valued at USD 2.58 billion in 2022. It is estimated to reach USD 7.67 billion by 2031, growing at a CAGR of 12.88% during the forecast period (2023–2031).

People analytics/HR analytics is defined as a way of evaluating all people processes, functions, issues, and opportunities at work using a data-driven and goal-oriented approach to improve these systems and achieve the long-term success of end-users. The terms people analytics and HR analytics are often used interchangeably and are similarly used in the scope of this report. People analytics has become a revolution in HR, with applications such as increasing job offer acceptance rates, lowering HR help tickets, and optimizing remuneration.

In all elements of hiring and managing staff, people analytics employs arithmetic, statistics, and modeling to see and predict trends in the applicant and worker-related data, or big data. Working alone or with data scientists, HR departments can use people analytics to gain insights into talent pipeline issues, rate the effectiveness of retention efforts, understand employee performance and workforce productivity, and assess which wellness and learning programs are working.


  • Software dominates the component segment
  • On-Premises dominate the deployment segment
  • Telecom and IT dominates the end-user segment
  • North America is the highest shareholder in the global market

Market Snapshot

market snapshot
Base Year
: 2022
Study Period
: 2021-2031
: 12.88 %
Fastest Growing Market
: Europe
Largest Market
: North America
Market Size
: USD 7.67 billion by 2031
Get more information on this report Download Sample Report

Market Dynamics

Global People Analytics Market Drivers

Growing Demand for Workforce Analytics

Workforce analytics is a statistical technique for analyzing employee behavior that focuses on the workforce. It measures and maintains operational and human resource management that combines big data analytics with other statistical methodologies. It studies employee and candidate behaviors using statistical methods and software to improve corporate performance. In addition, owing to the rising number of start-ups and entrepreneurship trends, managing the workforce has become one of the core focuses of the HR department. This, in turn, has fueled the requirement for analytical software that can handle huge employee data, hence aiding the people analytics market.

Among the advantages of workforce analytics are the empowering of managers inside the business, the strengthening of team spirit, and the reinforcement of organizational values. Managers use workforce analytics to make better hiring decisions, identify and quantify work accident risk, analyze future workforce demands, and improve employee experience, among other things. As a result of all such benefits of workforce analytics, the market for people analytics is expected to grow significantly during the forecast period.

Rising Shift Toward Employee Retention and Wellness

Over 85% of corporate leaders are concerned about employee retention and engagement, 90% are concerned about leadership, and more than 80% are concerned about current labor capabilities. Companies are looking for strategies to create a highly engaged workplace in light of this problem and transition in the workplace toward younger and more diverse teams. In addition, glassdoor evaluations for the typical company ("would you recommend your company as a place to work") are 3.2 out of 5, with a nearly perfect bell curve distribution. The differences are complex, and understanding why some people enjoy their work, some want to leave, and others are undecided requires advanced people analytics. As a result, the need for people analytics has grown globally as HR departments and senior management emphasize employee retention and engagement.

Additionally, it has been discovered that companies that invest in employee experience are four times more lucrative, providing them with a distinct competitive advantage. Creating a great employee experience through agile working policies, practices, and environments reduces costs. Since cost reduction is a core focus for almost all companies across several end-user industries, deploying people analytics for employee retention has fueled the market significantly.

Global People Analytics Market Restraint

Stringent Government Regulations and Compliances

Companies in the people analytics market must adhere to government laws to protect data. For instance, in recent years, the acquisition and use of personal data have come under growing regulatory and public scrutiny, particularly concerning sensitive data (healthcare, biometrics, genetic, and financial services, among others) and precise location data. In the European Union, a company's access to protected health information triggers duties to follow specific privacy standards and data security requirements under HIPAA. Hence, adhering to all such compliances becomes challenging, particularly for new entrants penetrating the market. This, in turn, is expected to negatively impact the market growth of people analytics during the forecast period.

Global People Analytics Market Opportunities

Shifting Focus toward Predictive Analysis

Predictive analytics is the primary step in data minimization. Analyzing historical data patterns and trends might help a company predict future events. This aids in creating attainable company objectives, efficient planning, and expectation management. Predictive analytics is used by businesses to analyze data and answer questions like "What could happen in the future based on recent trends and patterns?" Since predictive analysis enables end-users in efficient planning and future predictions, it has led to increasing adoption of people analytics solutions.

Organizations employ predictive analytics to gather contextual data and combine it with other customer user behavior datasets and web server data to gain genuine insights. Companies can forecast future business growth if they keep things the same. Predictive analytics delivers better recommendations and solutions to inquiries that are more forward-looking. As a result of these factors, end-users are increasingly interested in employing predictive analytical models, pushing the growth of the people analytics market and creating tremendous opportunities for the market to grow.

Segmental Analysis

The global people analytics market is bifurcated into component, deployment, organization size, and end-user.

Based on components, the global people analytics market is divided into software and service. 

The software segment accounts for the largest market share and is anticipated to grow at a CAGR of 12.63% over the forecast period. HR practitioners can use people analytics software to collect and analyze data and find significant people metrics. These tools combine business and people data to determine the influence of the HR department on business performance. In addition, the software uses artificial intelligence (AI) and cloud computing to identify trends in HR data and data from other sources, such as social media. Various end-users use people analytics software to discover inefficiencies, anticipate productivity, and enhance workforce structure. As a result, demand for people analytics software is generated by various businesses in various industries.

Based on deployment, the global people analytics market is divided into on-premises and cloud-based deployments. 

The on-premises segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 12.59% over the forecast period. Installing on-premise people analytics software on a computer or server is required. On-premise software deployment dominates the worldwide people analytics market, but cloud-based software is rapidly gaining traction since it allows for easy access via a web interface. Many end-users cited time as a critical factor as they have plans to move away from their on-premise environments, but it takes a lot of effort, and they have not gotten to it yet. Further, on-premise solutions tend to be custom-built, and scaling becomes expensive when purchasing more storage is needed. In addition to the costs of the various hardware requirements, on-premise platforms need frequent upgrades and migrations, invariably leading to system downtime and affecting business continuity. All such factors have restrained the growth of the on-premise deployment of people analytics software.

Based on organization size, the global people analytics market is bifurcated into large enterprises and small and medium enterprises. 

The large enterprise segment owns the highest market share and is predicted to grow at a CAGR of 11.93% over the forecast period. Large enterprises dominate the people analytics market and expect significant incremental growth due to their presence across countries and the continuous requirement to reach out to people from different departments. Large enterprises operating in various industries, such as hospitality, Information Communication and Technology (ICT), retail and e-commerce, and others, are increasingly contributing to the development of the people analytics market.

Based on end-user, the global people analytics market is divided into telecom and IT, BFSI, healthcare, manufacturing, retail and consumer goods, education, travel and hospitality, and others. 

The telecom and IT segment is the largest contributor to the market and is anticipated to exhibit a CAGR of 10.25% over the forecast period. The telecom and IT industry is the major contributor to the people analytics market and is expected to grow considerably. The continuously evolving technologies and better connectivity infrastructure are boosting the telecom and IT industry, leading to growth in the number of employees. Hence, a considerable requirement exists to manage the workforce in such industries, leading to rising demand for workforce analytics from the telecom and IT sector. In addition, employee retention, hiring, engagement, and training are some of the most prominent roles for the HR department in the IT industry. Since the IT industry employs many workers, managing such a vast workforce manually becomes tedious, creating substantial demand for analytics solutions.

Regional Analysis

North America Dominates the Global Market

Based on region, the global people analytics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global people analytics market shareholder and is expected to grow at a CAGR of 10.71% over the forecast period. North America is the leader in the global people analytics market owing to the presence of a large number of end-users, such as healthcare, the public sector, the technology industry, retail, and others (real estate, among others). North America consists of some of the most developed countries worldwide. In addition, the US and Canada have many companies with a global presence and a large employee base, creating the need for platforms that bring all employees' data together and help improve employee management. Hence, this leads to increasing market demand for people analytics solutions. People in this region are early adopters of any new technology introduced in the market. Further, the continuous innovation and development of new technologies and high acceptance are accelerating the growth of industries. This constant growth of technology will likely create more demand for people analytics during the forecast period.

Europe is anticipated to exhibit a CAGR of 11.73% over the forecast period. Europe accounted for the second-largest share owing to the presence of several big companies such as Volkswagen, Daimler, EXOR, Allianz, Prudential, and others. These companies have a vast employee base and witness significant activities in the HR department. In addition, people analytics solutions are highly established in the region. Europe is one of the largest and wealthiest economies and is home to developed countries such as the UK, France, Italy, and Spain. The market also has several world-class industries, such as automobiles, financial services, and hospitality. Since the industrial revolution, Europe has proliferated regarding living standards, per capita income, productivity standards, and innovation and technology adoption. Further, the rising economic development in the region has also led to rapid urbanization. The market for people analytics is driven by the region's high awareness and adaptability of technology.

Asia-Pacific contributes a considerable share of the global market. Increasing investments in small-scale industries will likely drive the demand for people analytics in China and India. Small enterprises are expected to grow year-on-year, and people analytics allows these enterprises to add employees as required easily. The growing number of small and medium enterprises and the flourishing manufacturing sector are leading to a rise in exports, thereby boosting the logistics sector in the country. Hence, these industries are witnessing a vast employee base, signifying the role of HR. Furthermore, investment in the Indian IT sector is growing continuously, and companies in this industry are expanding globally. Moreover, well-established ICT infrastructure in South Korea and the technology-oriented population will likely provide substantial growth opportunities to people analytics vendors in the market.

Latin America is the lowest revenue-generating region in the global people analytics market, with Brazil and Mexico being the leading countries generating the highest demand. This is due to sluggish economic conditions, lack of awareness of cloud-based technology, fewer investments in data centers and cloud implementation, and tough competition from other developed nations. However, the region is expected to grow substantially in the forecast period, supported by the growing manufacturing sector and government initiatives to boost digital infrastructure. The market offers tremendous potential and opportunities to people analytics vendors, owing to the growth potential in developing economies, including Brazil and Mexico.

The Middle East and Africa experience positive and negative factors impacting the demand for people analytics services. The presence of several emerging African countries is affecting the market's need for people analytics solutions. However, increasing investments in digital infrastructure and the development of data centers are likely to push the demand for people analytics in the region.

People Analytics Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of People Analytics Market

  1. IBM
  2. Oracle
  3. Kronos
  4. Microstrategy
  5. Workday
  6. Visier
  7. Ultimate Kronos Group (UKG)
  8. SAP
  9. MicroStrategy Incorporated
  10. Sage Group
  11. Sisense
  12. Talentsoft
  13. Zoho Corporation
  14. Tableau Software
  15. GainInsights
  16. Asure
  17. Beeline

Report Scope

Report Metric Details
CAGR 12.88%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Component
    1. Software
    2. Service
  2. By Deployment
    1. On-Premises
    2. Cloud-Based
  3. By Organizational Size
    1. Large Enterprises
    2. SMEs
  4. By End-User
    1. Telecom and IT
    2. BFSI
    3. Healthcare
    4. Manufacturing
    5. Retail and Consumer Goods
    6. Education
    7. Travel and Hospitality
    8. Others
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa

Recent Developments

  • January 2023- Kellogg Company is investing in People Analytics, an emerging field at the intersection of data, curiosity, and human resources experience. In a new blog article, Petra Mudder, director of global people analytics at Kellogg, muses on producing business value and enhancing the employee experience.
  • September 2022- Claro Analytics, the world's leading labor market intelligence platform, is developing a new candidate relationship management (CRM) solution to harness its comprehensive workforce data repository to link recruiters with more than 400 million prospects globally.

People Analytics Market Segmentation

By Component

  • Software
  • Service

By Deployment

  • On-Premises
  • Cloud-Based

By Organizational Size

  • Large Enterprises
  • SMEs

By End-User

  • Telecom and IT
  • BFSI
  • Healthcare
  • Manufacturing
  • Retail and Consumer Goods
  • Education
  • Travel and Hospitality
  • Others

By Regions

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

Frequently Asked Questions (FAQs)

How big is the people analytics market?
The global people analytics market size was valued at USD 2.58 billion in 2022. It is estimated to reach USD 7.67 billion by 2031, growing at a CAGR of 12.88% during the forecast period (2023–2031).
Shifting focus toward predictive analysis is one of the key trends in people analytics market.
Growing demand for workforce analytics, rising shift toward employee retention and wellness are the key drivers for the growth of the people analytics market.
North America region has the largest share of the people analytics market.
Key verticals adopting people analytics include: - IBM, Oracle, Kronos, Microstrategy, Workday, Visier, Ultimate Kronos Group (UKG), SAP, MicroStrategy Incorporated, Sage Group, Sisense, Talentsoft, Zoho Corporation, Tableau Software.
Price Starts From
USD 995

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
Need Assistance?
+1 646 905 0080 (U.S.)
+44 203 695 0070 (U.K.)

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Report Snapshot
Looking For Custom Report ?
Check Our License Options :

As featured on :

Trusted by Fortune 500
Over 30000+ subscribers